What is Strata?

STRATA TERMS

The management of a strata scheme is governed by the Strata Schemes Management Act (SSMA) 1996. If you require further detailed information, you should refer to that Act.

ADMINISTRATIVE FUND
Levies are paid into this fund to cover day-to-day expenses of the owners corporation, i.e. electricity, gardening, insurance, routine repairs and maintenance of common property.

AGENDA
A list of motions to be 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 follow. These can be changed at a general meeting of the owners corporation. All by-laws are not the same so it is wise to obtain a copy of the current by-laws for the strata scheme involved.

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

COMMON SEAL
The owners corporation has a seal styled "The owners - Strata Plan….." and this must be affixed whenever the owners corporation executes a document.

CERTIFICATE (Section 109)
Certificate issued by the strata managing agent or authorised person of the owners corporation It contains details of levy contributions, insurances, executive committee, etc. A statutory fee is payable to the owners corporation.

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

COMPANY NOMINEE
A company must authorise a person in writing to vote at meetings on its behalf. A notice must be served on the owners corporation

EXCLUSIVE USE
This is when 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.

EXECUTIVE COMMITTEE
Elected representatives of the owners. Election takes place at each annual general meeting. The powers of the Executive Committee are limited under the Strata Schemes Management Act 1996 but the owners corporation may also impose additional restrictions.

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 owners 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 nor later than one month after each anniversary date of the First Annual General Meeting.

INITIAL PERIOD
The period from the date of registration of 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. For detailed information refer SSMA.

LEVIES
Contributions paid by owners to the owners corporation to cover expenditure and allocation for capital expenditure. These are usually paid quarterly and the amount is based on unit entitlement.

LOT
In a strata scheme, a unit is referred to as a "lot". Car spaces, garages, laundries, marinas can also form part of a lot or be a separate lot.

MOTION
A proposal for consideration by a meeting.

ORIGINAL OWNER
The owner of the strata scheme when the strata plan is registered

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 owners corporation meeting and vote on that person's behalf.

SINKING FUND
Levies paid into this fund cover renewal and replacement of fixtures and fittings, eg painting, stairwell carpets.

SPECIAL LEVY
Lump sum contribution to cover either unplanned or underestimated expenditure.

STRATA MANAGING AGENT
Licensed strata managing agent appointed by the owners corporation to manage the strata scheme and delegated certain functions. Appointment must be at a general meeting of the owners corporation and a strata managing agency agreement must be executed by 2 members of the executive committee and the strata managing agent.

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

STRATA ROLL
This is a register of the owners of each lot in the strata scheme. It also includes the name of any mortgagee, covenant chargee or lessee (if notified).

STRATA SCHEMES MANAGEMENT ACT 1996 (SSMA)
The legislation under which all strata matters are dealt with in NSW. For a copy of the act and regulations

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.

QUORUM
Before any motion can be voted upon at a meeting, a quorum must exist, i.e.

• 25% of those entitled to vote OR
• owner/owners holding 25% or more of the total unit entitlements

A quorum must consist of at least 2 persons.

At executive committee meetings, a quorum is constituted when half of the members are present

STRATA SCHEMES OFFICE
This office is part of the Department of Fair Trading and provides various services and assistance in strata matters. It also provides a mediation and adjudication service.

SPECIAL RESOLUTION
A motion against which not more than 25% of the value of the vote is cast (based on unit entitlement).

UNANIMOUS RESOLUTION
A motion against which no vote is cast.

RESOLUTION
A decision made at a meeting.

Find out about Our Strata Managent Service

Source: Strataman