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COMMON
QUESTIONS
Q: Who manages a Strata Scheme?
A: An Owners Corporation is established upon registration of a Strata Scheme
and they are principally responsible for the management of the
Scheme. The owners corporation can delegate some of the management functions
to the executive committee of the owners corporation, a strata managing agent or
a caretaker provided the delegation is in accordance with the Strata Schemes
Management Act 1996.
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 2, PART 4, SECTION 8
& 9
Q: What is a Strata Managing Agent?
A: A Strata Managing Agent can be appointed in writing and authorised at a
general meeting by the owners corporation provided they hold a Strata Managing
Agents Licence under the Property, Stock and Business Agents Act 2002. The
Property, Stock and Business Agents Act 2002 defines a Strata Managing Agent as
being a person or body that exercises or performs the functions of the Owners
Corporation in return for a reward.
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 2, PART 4, SECTION 26
& 27
Q: How do you terminate a Strata Managing
Agent Agreement?
A: The Owners Corporation is responsible for the termination of the Strata
Managing Agents Agreement as determined in the outcome of a general meeting and
in accordance with the instrument of appointment.
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 2, PART 4, SECTION 27
Q: What are the functions of a Strata
Managing Agent?
A: The Owners Corporation may delegate functions to the Strata Managing
Agent by the instrument appointing them or some other instrument if authorised
to do so by resolution of a general meeting. This can include all functions, any
one or more of its functions specified in the instrument or all of its functions
except those specified in the instrument. A delegation can be revoked by an
Owners Corporation if authorised by a resolution of a general meeting.
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 2, PART 4, SECTION 28
Q: What information is a Strata Managing
Agent accountable for providing to the Owners Corporation?
A: A Strata Managing Agent is accountable for providing the following
information to the
Owners Corporation:
(1) Trust Account Information
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 2, PART 4, SECTION 33
(2) Information relating to other accounts of the
Strata
Managing Agent
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 2, PART 4, SECTION 34
(3) Information relating to money received by the
Strata
Managing Agent on behalf of the Owners Corporation
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 2, PART 4, SECTION 35
(4) Information relating to transactions entered
into by a Strata
Managing Agent for an Owners Corporation.
STRATA SCHEMES MANAGEMENT ACT 1996 - CHAPTER 2, PART 4, SECTION
36
Q: What are the key management areas for a Strata Scheme?
A: The Owners corporation is responsible for the following key management
areas:
(1) Maintaining and Repairing the Common Property
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 3, PART 2
(2) Managing the finances of the Strata Scheme
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 3, PART 3
(3) Taking out insurance for the Strata Scheme
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 3, PART 4
(4) Keeping accounts and records for the Strata
Scheme
STRATA SCHEMES MANAGEMENT ACT 1996, CHAPTER 3, PART 5
Q: What is common property?
A: The common property of a Strata Scheme is owned by everybody and includes
all areas of land and building which are not comprised in any lot. Common
property can include: inner, upper and under surfaces of walls, floors and
ceilings, as well as the substance of floors, walls and ceilings. For example
common property can include: structural cubic space, soil beneath buildings,
lift wells and ground and air space outside the building.
Robinson. L (2000), Strata Titles Units in New South Wales, 5th
Edt, Riverwood: Ligare Pty Ltd
Ilkin. A (1998), Strata Schemes and Community Schemes Management and the Law,
3rd Edt, Sydney: LBC Information Services
Q: What are unit entitlements and why are they important?
A: A unit entitlement is a number shown on the schedule of unit entitlement
for each lot in the strata scheme and is used to determine the following:
(1) The owner's share of total contributions
payable to
administrative and sinking funds
(2) The owner's interest in the common
property
(3) The owner's voting rights when the voting
is conducted by a
poll at a general meeting
(4) The owner's right to share in the
distribution of surplus
money's in the Owners Corporation administrative or
sinking funds
(5) The owner's right to share in
compensation money's paid
by any public authority resuming the whole or part of
the
common property.
(6) The owner's entitlements and obligations
following
termination of a strata scheme by the Registrar General or
a Supreme
Court order to vary or terminate the strata
scheme
(7) A quorum for a general meeting if one
quarter of the
persons entitled to vote are not present at a meeting
(8) The owner's liability for water and
council rates
(9) The owner's contribution to expenses
incurred by the
owners corporation in unsuccessful proceedings before an
Adjudicator or the Board
(10) The owner's liability regarding court
judgements and
orders
(11) The owner's voting rights on a poll to
elect an executive
committee member
Ilkin. A (1998), Strata Schemes and Community Schemes Management
and the Law,
3rd Edt, Sydney: LBC Information Services
Q: What is the required notice to be given
for Owners Corporation Annual General, Extraordinary General and Executive
Committee meetings?
A: It is required that the notice for the Annual General Meeting of the
Owners Corporation be served on each owner of a lot at least seven days before
the meeting is scheduled. A notice for an Extraordinary General Meeting of the
Owners Corporation must be served on each owner (mortgagee or covenant chargee
where appropriate) at least seven days before the meeting. If the Executive
Committee Meeting requires a matter to be decided by a meeting of the Owners
Corporation then seven days notice will be required, however if the Executive
Committee is capable of determining the matter it will only require 72 hours
notice.
Robinson. L (2000), Strata Titles Units in New South Wales, 5th
Edt, Riverwood: Ligare Pty Ltd
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