Special Rules – they might be made by the owners corporation but are they valid?

The case also considered the effect of the Victorian Supreme Court decision in Owners Corporation PS501391P v Balcombe [2016] VSC 384 which is now the primary authority in relation to the validity of special rules. Balcombe examined rules prohibiting short-term letting made under the former Subdivision Act provisions.

Although the powers of owners corporations under the Owners Corporation Act provisions are broader in relation to private lots, they still fall far short of the powers conferred on an owners corporation in relation to common property. Owners corporations need to consider this when purporting to make special rules that seek to limit the rights of property owners in relation to their private lots.