Administration Fund (Admin Fund)
The Administration Fund is used for the purpose of paying the day to day expenses of the Owners Corporation, i.e. electricity, gardening, insurance, routine repairs and maintenance of common property.
An Agenda is a list of motions to be voted upon at a meeting.
Aggregate of Unit Entitlement
The aggregate of Unit Entitlement is the total of all the individual Unit Entitlements in the Strata Scheme.
The By-laws are a set of “rules” that all people (owners and tenants) living in a Strata Scheme must follow.
These By-laws can be changed at a general meeting of the Owners Corporation.
By-laws can vary form one Strata Scheme to another. It is advisable to obtain a copy of the current by-laws for the Strata Scheme you are involved with.
Certificate (Section 109)
The 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.
Certificate of Title
The Certificate of Title is 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.
The Common Property is the area of land and parts of the building in the Strata Scheme which do not form another part of any lot.
The Common Property is the areas of the land and building which every owner or occupier has the right of use e.g. foyers, driveways and gardens.
The Common Seal is a stamp that the Owners Corporation has that shows the Owners Corporation and Strata Plan Number. This stamp must be affixed whenever the Owners Corporation executes a document.
A Company Nominee is the representative of a Company. The 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 is when a special right is granted to an owner to use part of the Common Property i.e. exclusive use of a storage space located on the Common Property.
The Executive Committee is the elected representatives of all of the owners of the lots within a Strata Scheme. Election takes place at each Annual General Meeting (AGM). The powers of the Executive Committee are limited under the Strata Schemes Management Act 1996. The Owners Corporation may also impose additional restrictions.
Extraordinary General Meeting
Any general meeting that is not an Annual General Meeting is known as an Extraordinary General Meetings. These meetings are held when necessary during the year e.g. to impose Special Levies, to change or make By-laws, to appoint a Strata Managing Agent.
Annual General Meeting
Is the Annual General Meeting of owners and other interested parties (as noted on the strata roll). The Owners Corporation is required to convene and hold an Annual General Meeting once a year. This must be held on a date not earlier than one month before or later than one month after each anniversary date of the First Annual General Meeting.
The Initial Period is from the time the Strata Plan is registered at the Land Title Office until 33.3% of the Unit Entitlements are sold and settled.
There are certain restrictions during the initial period. For detailed information refer Strata Schemes Management Act 1996(NSW).
Levies are the contributions paid by owners to the Owners Corporation to cover expenditure and allocation for capital expenditure. These levies are usually paid quarterly and the amount is determined by the unit entitlement allocated to each lot.
In a Strata Scheme, a unit is referred to as a “lot”. Garages, car spaces, storage spaces, laundries can also form part of a lot or be a separate lot.
A motion is a proposal for consideration by a meeting.
The original Owner is the owner of the Strata Scheme when the Strata Plan is registered.
The Owners Corporation is collectively all of the owners of the lots in the Strata Scheme. The Owners Corporation is formed when the Strata Plan is registered.
Pre-purchase Strata Inspection
A Pre-purchase Strata Inspection is the inspection of the books and records of a Strata Scheme on behalf of prospective purchaser, mortgagee or any party who has an interest in that Lot or Strata Scheme. A statutory fee is payable to the Owners Corporation.
A person holding a proxy is a person appointed in writing by an owner or mortgagee to attend an Owners Corporation meeting and vote on that person’s behalf.
A Quorum is the minimum number of eligible people who must attend a meeting to allow it to proceed. Before any motion can be voted upon at a meeting, a quorum must exist. For a quorum to exist 25% of the total number of persons entitled to vote must attend the meeting OR
an owner or owners holding 25% or more of the total unit entitlements must attend the meeting.
The meeting must consist of a minimum of 2 persons.
NOTE: At Executive Committee Meetings, a quorum is constituted when half of the members are present at the meeting.
A Resolution is a decision made at a meeting.
The Sinking Fund is used to provide funds for future capital expenditure such as carpet replacement, painting common areas, replacing common property fences etc.
A Special Levy is used to raise funds for a special project that can not be paid for from either the Administration or Sinking Fund. It normally is for covering the cost of either unplanned or underestimated expenditure.
For a Special Resolution, not more than 25% of the unit entitlement present at the meeting can vote against the motion.
A Strata Scheme is a legally recognized system of ownership whereby a building or buildings and land is subdivided into lots and Common Property.
Strata Managing Agent
Is a 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.
A Strata Plan is the plan registered at the Land Titles Office which shows the building on the land indicating lots and common property.
The Strata Roll 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).
A Unanimous Resolution is a decision made at a meeting where no votes are cast against the motion.
Unit of Entitlement
The Unit of Entitlement of a Lot determines an owner’s equity in a Strata Scheme, their voting rights and the amount of Levies that they must contribute.