USEFULL STRATA TERMS

 

Strata schemes are governed by the Strata Schemes Management Act 2015. If you require further detailed information, you should refer to the Act.

 

ADMINISTRATIVE FUND
Levies are paid into the administrative fund to cover day-to-day expenses of the Owner’s Corporation e.g. insurance, lawns & gardening, insurance, routine repairs and maintenance of common property.

AGENDA
A list of items to be discussed or voted upon at a meeting.

AGGREGATE UNIT ENTITLEMENT
The total of all the individual unit entitlements in the strata scheme.

BY-LAWS
A set of rules that the residents (owners and tenants) in the strata scheme must abide by. These can be changed at the general meeting of the owner’s corporation. All by-laws are not the same so it would be prudent to obtain a copy of the current by-laws for the strata scheme involved.

CAPITAL WORKS FUND

Levies paid into this fund cover major renewal, repair or replacement of fixtures and fittings, e.g. painting, roof replacement, stairwell carpet replacement, unexpected urgent repairs etc.  The levies (usually paid quarterly) have a proportion attributed to capital works fund levies.

CERTIFICATE OF TITLE
A title deed issued by the Land Titles Office to prove ownership of a lot. The Owner’s Corporation is also issued with a title deed for the common property.

CERTIFICATE (Section 184)
Certificate issued by the strata managing agent or authorised person of the Owner’s Corporation containing a variety of details including levy contributions, insurances, executive committee outstanding monies and other relevant information.  A statutory fee is payable by the applicant to the Owner’s Corporation.

COMMON SEAL
The Owner’s Corporation seal which must show the Owner’s Corporation distinctive number “The Owners – Strata Plan…” and this must be affixed whenever the owners corporation executes a document.

COMMON PROPERTY
The area of land and building in the strata plan which do not form part of any lot.

COMPANY NOMINEE
A company must authorize a person in writing to vote at meetings on its behalf. A notice must be served on the owner’s corporation.

EXCLUSIVE USE
A special right is granted to an owner to use part of common property i.e. exclusive use of a car space located on common property.

GENERAL MEETING
A meeting of owners and other interested parties (as noted on the strata roll) who have been advised by notice of a proposed meeting. The owner’s corporation is required to convene and hold a general meeting once a year. This must be held on a date not earlier than one month before no later than one month after each anniversary date of the First Annual General Meeting.

INITIAL PERIOD
The period from the date of registration in which the original owner still owns strata lots in the strata plan until the completion of the sale of one third of the aggregate unit entitlement. There are certain restrictions during the initial period.

LEVIES
Contributions which are usually paid quarterly by owners to the Owners Corporation to cover expenditure and allocation for capital expenditure. The amount is based on unit entitlement and allocated to both the Administrative Fund and the Capital Works Fund.

LOT
In a strata scheme, a unit is referred to as a “lot” and comprises the cubic air space contained within the inner surfer of the boundary walls, the undersurface of the ceiling and the upper surface of the floor.  However, car spaces, garages, laundries and marines can also form part of a lot or be a separate lot.

MOTION
A proposal put forward for consideration by a meeting held by the Owner’s Corporation.

NSW CIVIL AND ADMINISTRATIVE TRIBUNAL (NCAT)

NCAT's Consumer and Commercial Division can hear and determine disputes about strata and community schemes under the Strata Schemes Management Act 12015 and Community Land Management Act 1989.  They provide mediation and adjudication services

ORIGINAL OWNER
The owner of the strata scheme when the strata plan is registered and is usually the  builder or developer.

OWNERS CORPORATION
Collectively the owners of the lots in the strata scheme. This is formed when the strata plan is registered.

PROXY
A person appointed in writing by an owner or mortgagee to attend an Owner’s Corporation meeting and vote on that person’s behalf.

QUORUM
Before any motion can be voted upon at a meeting, a quorum must exist of:
- 25% of those entitles to vote OR
- Owner/owners holding 25% or more of the total unit entitlements
A quorum must consist of at least 2 persons.
At strata committee meetings, a quorum is constituted when half of the members are present.

RESOLUTION
A decision made at a meeting.

SPECIAL LEVY
Lump sum contribution payable by the owners to cover either unplanned or underestimated expenditure.

STRATA COMMITTEE

Elected representatives of the owners. Election takes place at each annual general meeting. The powers of the Strata Committee are limited under the Strata Schemes Management Act 2015 but the owner’s corporation may also impose additional restrictions.

STRATA MANAGING AGENT
Licensed and qualified, professional entity – or person - appointed by the Owner’s Corporation to manage the strata scheme and delegate certain functions.

STRATA PLAN
The plan registered at the Land Titles Office which shows the building on the land, indicating lots and common property.

STRATA ROLL
Register of the owners of each lot in the strata scheme. It also includes the name of any mortgage, covenant charge or lessee (if notified).

STRATA SCHEMES MANAGEMENT ACT 2015 (SSMA)
The legislation under which all strata matters are dealt with in NSW.

STRATA SCHEMES OFFICE
This office is part of the Office of Fair Trading and provides a wide variety of services and assistance in strata matters including mediation and adjudication.

STRATA SEARCH

A strata search is where an owner, mortgagee or covenant chargee of a lot, or a person authorised by an owner, mortgagee or covenant chargee, requests the Owners Corporation to allow an inspection to be carried out on the records and accounts of a Strata Scheme.

SPECIAL RESOLUTION
A resolution requires a minimum 75% majority of eligible owners or representatives present at a general meeting to vote.  The value of every vote is calculated based on the unit entitlement or each lot. 

UNANIMOUS RESOLUTION
A motion against which no vote is cast.

UNIT ENTITLEMENT
Each lot is given a “unit entitlement” and this is shown on the strata plan. The amount of the unit entitlement varies depending on a number of factors, i.e. size of lot. Levies payable are calculated on the basis of unit entitlement.  Unit entitlement can also regulate voting strength at meeting.