Strata Management Terms & Definition

updated 15th October 2016

ADMINISTRATIVE FUND

Levies are paid into this fund to cover day-to-day expenses of the owners corporation, such as electricity, gardening, insurance, routine repairs and maintenance of common property

BY-LAWS
A set of “rules” that residents (including owners and tenants) in the strata scheme must follow. These can be changed at a general meeting of the owners corporation. By-laws vary between different strata schemes

CERTIFICATE OF TITLE
A deed issued by the Land Titles Office (NSW), Land Registry (Victoria) or equivalent in other states to prove ownership of a lot. The owners corporation is also issued with a title deed for the common property

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

EXCLUSIVE USE
This is when a special right is granted to an owner to use part of the common property, such as exclusive use of a car space located on common property

GENERAL MEETING
The owners corporation is required to convene and hold a general meeting once a year. In NSW 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 (AGM)

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 and any related car space, laundry or garage is referred to as a “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
This is the collective group of owners of the lots in the strata scheme, and is formed when the strata plan is registered. Also known in different states as the body corporate, strata corporation or strata company

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, such painting and stairwell carpets, and major repairs to common property, such as repairing a leaky roof

SPECIAL LEVY
A lump sum contribution from each owner to cover either unplanned or underestimated expenditure

STRATA MANAGER
A licensed strata manager is 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

STRATA PLAN
This is the plan registered at the Land Titles Office (or equivalent) 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)

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, such as the 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, ie
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

SPECIAL RESOLUTION
A motion for which more than 75% of the value of the vote is cast, based on unit entitlement

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