When you have a group of properties, known as lots, which share common property (i.e. driveway, carpark, lifts, gardens, etc.), there are laws that require the owners of the properties to manage their entitlements and obligations to the common property. Owners can choose to manage their entitlements and obligations on their own or with the help of a professional strata management services provider. Strata management is important to ensure residents of the properties appropriately use and maintain the common property for the benefit of all lot owners.
Owners corporation insurance covers the building, the common area and the contents, legal liability, workers compensation, fidelity and office bearers insurance.
The annual maintenance fund required to meet the anticipated expenditure is divided by the lot liability for each apartment as shown on the registered plan of subdivision.
The owners corporation raises funds by levying contributions against all lot owners. The amount that each lot owner contributes to maintenance funds is calculated according to the ‘lot entitlement’ accompanying the strata plan.
Lots are created by the subdivision process and the creation of the Community Title Scheme – which must comprise at least 2 Lots and some Common Property.
Lots have individual ‘title’ under the Land Titles Act and have individual ownership – the Common Property is jointly owned by the Body Corporate, which in effect is all the Owners co-jointly.
A ‘unit’ is just a more common name for a residential Scheme Lot i.e. ‘home unit’, but the term ‘unit’ is not now used in the Body Corporate and Community Management legislation, and your Body Corporate manager will always refer to ‘Lots’.
The duties of a Owners Corporation Manager include but are not limited to:
Managing the financial accounts of the Body Corporate;
looking after insurance matters – claims and renewals, and Owner’s queries;
Managing the correspondence with Owners, contractors, and other 3rd parties;
Drawing up proposed new budgets each financial year;
calling the AGM, and sending out related Notices, Nominations etc;
Holding of the AGM, and issuing the Minutes following the meeting;
Setting up the new budgets adopted at the AGM, and the resulting Levies;
Attending to the issuance of Disclosure Statements for Owners selling their Lot;
Attending to the calling of any EGM;
Managing Committee issues, including calling of Committee Meetings and issuing Minutes of those meetings;
Advising any Owner on matters of Body Corporate law and procedure and;
managing any dispute and resolutions that may arise.
As part of a strata title, you have certain rights as a lot owner. For example, you have the right to live peacefully in your home. This means all by-laws should be respected, and all residents should be respectful of each other, and their common space.
This also applies to noise and health issues, such as smoking. While there will be a bit more noise than if you live in a freestanding house, it’s not unreasonable to expect a certain level of peace and quiet. As long as you remember you have common walls, ceilings and floors with your neighbours around you and be considerate of that, there shouldn’t be problem.
Leave us a message
