What is a Strata scheme?
A strata scheme is a building, or collection of buildings, where:
Some strata schemes sit within the ‘umbrella’ of a community scheme. As the name suggests, a community scheme.
is essentially a community containing a number of individual strata schemes. Each scheme is managed individually, and also has representation on the community scheme committee, which manages shared spaces such as community halls and parks.
Community schemes can also contain neighbourhood schemes and precinct schemes. Visit the Fair Trading website for more information on community schemes regulated under the Community Land Management Act 1989.
What is Common Property?
The owners corporation, which all owners automatically belong to, is responsible for managing the strata scheme.
The basic rule is that everything inside a lot is the owner’s property. This generally includes all internal walls, fixtures, carpet and paint on the walls.
Common property boundaries of each lot are generally formed by:
Common property can include such things as:
It is crucial to know where the common property boundaries are, as lot owners cannot make alterations to common property in their townhouse or apartment without first getting approval from the owners corporation.
Being sure of the common property boundaries
To know exactly what is common property and what is an individual’s lot, you will have to look at the strata plan for your strata scheme. (available through your client portal). The boundaries are usually marked by thick black lines.
Unit entitlement
The strata plan for your strata scheme, which is registered with NSW Land Registry Services, shows the unit entitlement for each lot. The unit entitlement represents lot owners’ share of ownership in the strata scheme. It is used
to calculate the contributions (levies) each owner pays and how much their vote is worth.
Contributions
Contributions are the fees paid by all lot owners in a scheme to cover the projected costs and expenses of the strata scheme. They are paid into funds administered by the owners corporation, which include the administrative fund
and the capital works fund.
General meeting
Any meeting of the owners corporation that is not an annual general meeting (AGM) is referred to as a general
meeting. In this guide, ‘a meeting of the owners’ refers to a general meeting of the owners corporation.
Common property can include such things as:
It is crucial to know where the common property boundaries are, as lot owners cannot make alterations to common property in their townhouse or apartment without first getting approval from the owners corporation.
Being sure of the common property boundaries
To know exactly what is common property and what is an individual’s lot, you will have to look at the strata plan for your strata scheme. (available through your client portal). The boundaries are usually marked by thick black lines.
Unit entitlement
The strata plan for your strata scheme, which is registered with NSW Land Registry Services, shows the unit entitlement for each lot. The unit entitlement represents lot owners’ share of ownership in the strata scheme. It is used
to calculate the contributions (levies) each owner pays and how much their vote is worth.
Contributions
Contributions are the fees paid by all lot owners in a scheme to cover the projected costs and expenses of the strata scheme. They are paid into funds administered by the owners corporation, which include the administrative fund
and the capital works fund.
General meeting
Any meeting of the owners corporation that is not an annual general meeting (AGM) is referred to as a general
meeting. In this guide, ‘a meeting of the owners’ refers to a general meeting of the owners corporation.
What is the Difference?
Strata Managers
The strata manager is engaged by the Owners Corporation at a General Meeting and is accountable to all owners as a group. The strata manager is appointed to assist with making sure that the scheme is fulfilling all its legislated obligations.
PART OF THEIR DUTIES INCLUDE:
The strata manager does not make decisions for the scheme on how to meet their obligations. Pending scope and cost of works will determine if the strata committee makes the decision or whether it needs to go to general meeting. The strata manager is instrumental in giving the client cost-effective, practical advice to help with risk minimisation.
Property Managers
The property manager, usually in a real estate office, is engaged by the landlord (lot owner) and is the liaison with the renter (tenant) to collect rent and ensure that the property is maintained in good condition.
THEIR DUTIES INCLUDE:
The landlord (lot owner) decides what their property manager’s relationship with the scheme. For example, do you want the property manager to receive all correspondence to do with the property including notices and minutes of
meetings? Do you want the property manager to pay the levies?
If there is a common property issue that relates to the lot, then the property manager provides the strata manager with all necessary information and asks when they can expect a decision to be made. Should you be renting a strata
property, and a property manager is appointed, you should contact your property manager to report any repair and maintenance matters.
The strata manager does not make decisions for the scheme on how to meet their obligations. Pending scope and cost of works will determine if the strata committee makes the decision or whether it needs to go to general meeting. The strata manager is instrumental in giving the client cost-effective, practical advice to help with risk minimisation.
Property Managers
The property manager, usually in a real estate office, is engaged by the landlord (lot owner) and is the liaison with the renter (tenant) to collect rent and ensure that the property is maintained in good condition.
THEIR DUTIES INCLUDE:
The landlord (lot owner) decides what their property manager’s relationship with the scheme. For example, do you want the property manager to receive all correspondence to do with the property including notices and minutes of
meetings? Do you want the property manager to pay the levies?
If there is a common property issue that relates to the lot, then the property manager provides the strata manager with all necessary information and asks when they can expect a decision to be made. Should you be renting a strata
property, and a property manager is appointed, you should contact your property manager to report any repair and maintenance matters.
Property Managers
The property manager, usually in a real estate office, is engaged by the landlord (lot owner) and is the liaison with the renter (tenant) to collect rent and ensure that the property is maintained in good condition.
Building Managers
The building manager is engaged by a scheme to be an on-site resource for common property matters. The responsibilities and level of authority of a building manager will vary depending on the schemes needs. Their
contract should clearly reflect what their duties are.
THEIR DUTIES CAN INCLUDE:
It is important to note that there is no contractual relationship between a strata manager and a building manager. They are both engaged by the owners corporation to perform different duties in relation to the scheme. The building
manager has skills that are not equivalent to a Licensed Strata Manager.
Property Managers
The property manager, usually in a real estate office, is engaged by the landlord (lot owner) and is the liaison with the renter (tenant) to collect rent and ensure that the property is maintained in good condition.
Building Managers
The building manager is engaged by a scheme to be an on-site resource for common property matters. The responsibilities and level of authority of a building manager will vary depending on the schemes needs. Their
contract should clearly reflect what their duties are.
THEIR DUTIES CAN INCLUDE:
It is important to note that there is no contractual relationship between a strata manager and a building manager. They are both engaged by the owners corporation to perform different duties in relation to the scheme. The building
manager has skills that are not equivalent to a Licensed Strata Manager.
Contact us for any enquiries