Strata Lingo
A Guide to Common Strata Jargon
Talk the talk
Welcome to our Strata Lingo Page - your one-stop destination to unravel the mysteries of strata jargon! Navigating the world of strata ownership can sometimes feel like decoding a secret language, but fear not! Whether you're a seasoned owner, a new investor, or just curious about the ins and outs of strata living, our glossary has got you covered. So, let's dive in and start speaking the language of strata with confidence!
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Administration Fund
A pool of funds collected from owners to cover daily operational expenses like maintenance, insurance, and management fees.
Annual Fire Safety Statement (AFSS)
The AFSS is a document that certifies that essential fire safety measures within a building have been assessed and are operating correctly, as required by law.
AGM (Annual General Meeting)
A yearly meeting of all owners within a strata scheme to discuss and vote on important matters such as financial reports, budgets, and the election of the strata committee.
Budget
A strata budget refers to the financial plan outlining the projected income and expenses for a strata scheme over a specific period, typically one year. It includes anticipated revenue from strata levies and other sources, as well as planned expenditures for maintenance, repairs, insurance, and other operational costs.
Building Manager
A building manager is an individual or company responsible for overseeing the day-to-day operations and maintenance of a building or complex. Their duties may include managing common areas/facilities, coordinating repairs and maintenance, liaising with contractors and service providers, and addressing occupant concerns or issues.
Building Management Committee (BMC)
BMCs are crucial in mixed-use properties where diverse usage types coexist within the same building/complex. This structure aims to segregate operational decisions for each component use area, aligning with the distinct goals of, for example, commercial, retail, residential, and hotel owners all within the same development.
By-laws
By-laws are rules and regulations that govern the use and behavior of owners and residents within a strata scheme, covering matters like noise, pet ownership, and renovation approvals.
Capital Works Fund (CWF)
The CWF is a reserve/saving fund set aside for future capital expenses and major repairs within a strata scheme, funded by contributions from owners.
Capital Works Plan (CWFP)
The CWP outlines long-term (typically 10 years) major maintenance and repair projects for the property, such as recarpeting common areas or repainting the building facade. It helps ensure funds are allocated appropriately over time to address necessary improvements and upkeep.
Certificate of Currency (CoC)
A certificate of currency is a document issued by an insurance provider. It confirms that the owners corporation's insurance policy is current and provides coverage for the property. This certificate is often required for various legal and financial purposes, such as when applying for a mortgage or entering into contracts.
Common Property
Common Property are areas within a strata scheme owned collectively by all owners, such as hallways, elevators, gardens, and swimming pools.
Common Seal
The common seal is an official stamp or emblem used to authenticate documents and transactions. It is typically used to endorse contracts, agreements, and legal documents on behalf of the owners corporation. It serves as a formal indication that the document has been approved and authorised by the owners corporation.
Community Management Statement (CMS)
A CMS is a legal document that outlines the rules, rights, and responsibilities of lot owners within a community scheme in New South Wales (NSW). It provides detailed information on the management and operation of the scheme, including the division of lots, allocation of common property, by-laws, and any special conditions or restrictions affecting the community. The CMS is registered with the NSW Land Registry Services and serves as a governing document for the community scheme, ensuring consistent management and compliance among lot owners.
Community Scheme
A Community Scheme is a type of strata scheme in New South Wales (NSW), Australia, governed by the Strata Schemes Management Act 2015. It refers to a development comprising multiple lots, each with its own individual title, along with common property shared by all lot owners. Community Schemes may include residential, commercial, or mixed-use properties, and they typically involve shared facilities and amenities managed by an owners corporation or community association.
Company Nominee
A Company Nominee refers to a designated entity or individual appointed by a company to represent its interests and exercise its voting rights on behalf of the company in meetings or decision-making processes related to strata properties.
Development Application (DA)
DA is a formal request to a local council for permission to carry out building or renovation work on a property, including within a strata scheme.
Deposited Plan (DP)
A deposited plan is a legal document that outlines the boundaries and dimensions of land parcels within a strata scheme.
Exclusive Use
Exclusive use in strata refers to the right granted to a lot owner to use a specific part of the common property exclusively, typically for a particular purpose, such as parking or storage.
Financial
"Financial" typically refers to being up-to-date with the payment of strata levies or fees. When it comes to voting in strata meetings, owners who are considered "financial" are those who have paid all their outstanding levies or fees to the owners corporation. They are usually entitled to vote on matters discussed during strata meetings.
First Annual General Meeting (FAGM)
FAGM is the initial meeting held after the formation of a strata scheme. It is convened within two months after the initial period ends (marked by the sale of one-third of unit entitlement by the orginal owner). The meeting's agenda is set by legislation covering arious important matters including the election of the strata committee, adoption of by-laws, approval of budgets, and appointment of managing agents.
General Meeting
A general meeting is a formal gathering of all owners within a strata scheme to make decisions on significant matters affecting the property, such as by-law changes or major expenditures.
Initial Period
The "initial period" in strata typically refers to the initial phase after the registration of a strata plan. During this period, specific regulations and requirements may apply, such as the holding of the First Annual General Meeting (AGM) and the establishment of the strata committee. The initial period often involves setting up administrative processes, determining budgets, and addressing any immediate concerns related to the newly formed strata scheme.
Insurance
Strata insurance refers to a type of insurance policy designed to protect the common property and shared assets within a strata scheme. It typically covers the building structure, common areas, and common contents against risks such as fire, theft, vandalism, and liability claims. Strata insurance is mandatory for strata schemes.
Large Strata Scheme
A large strata scheme comprises over 100 lots, excluding parking or utility lots.
Levies
Strata levies are regular payments made by property owners to cover shared expenses. They fund maintenance, insurance, and communal services. Levies are based on the approved budget and calculated based on unit entitlement.
Lot
An individual portion of property within a strata scheme, such as an apartment, unit, or townhouse.
Meeting
A strata meeting is a gathering of owners, committee members, or both, convened to discuss and make decisions regarding various matters concerning the management and maintenance of a strata scheme. Common meetings include the Annual General Meeting, General Meeting, Strata Committee Meetings.
Minutes
Strata minutes are official records of discussions, decisions, and resolutions made during strata meetings. They document topics such as maintenance, financial matters, and by-law changes, serving as a historical record for the owners corporation.
New South Wales Civil and Administrative Tribunal (NCAT)
NCAT is a tribunal that resolves disputes related to strata and community schemes in New South Wales. It handles matters such as by-law disputes, levy disputes, building defects, and other strata-related issues.
Notice to Comply
Notice to Comply is a formal notification issued by a strata manager or owners corporation to an individual or entity within a strata scheme, requiring them to rectify a breach of strata laws, by-laws, or regulations within a specified timeframe. Failure to comply may lead to further action or penalties.
Office Bearers
Office bearers refer to individuals who hold official positions within a strata committee like chairperson, secretary, and treasurer, who are responsible for overseeing the administration and decision-making processes of the strata scheme.
Office of Fair Trading (OFT)
OFT is the government agency in NSW responsible for regulating various consumer protection laws, including those related to strata schemes. The OFT oversees matters such as compliance with strata legislation, handling complaints, and providing guidance to strata owners and managers.
Ordinary Resolution
An ordinary resolution is a type of decision-making process used in strata meetings where a simple majority vote is required for the resolution to be passed. This means that more than 50% of the votes cast must be in favor of the resolution for it to be adopted. Ordinary resolutions are typically used for routine or less significant matters within the strata community, such as approving minutes, adopting financial statements, or appointing a managing agent.
Owners Corporation
Owners corporation is the collective body of all owners within a strata scheme responsible for managing and maintaining common property.
Poll Vote
A poll vote in strata meetings refers to a voting method where each lot's vote is weighted according to its unit entitlement. This means that the votes are not simply counted per lot but are calculated based on the proportionate share of ownership each lot represents in the strata scheme.
Pre-Meeting Vote
A pre-meeting vote in strata refers to a voting process where owners submit their votes on agenda items before the actual meeting takes place. This allows absentee owners or those unable to attend the meeting to participate in decision-making. Pre-meeting votes are typically conducted through written forms or electronic means and are counted along with the votes cast during the meeting. It helps ensure that all owners have a say in important matters affecting the strata community, regardless of their ability to attend in person.
Property Manager
A property manager is a professional tasked with overseeing the day-to-day operations of a property/unit on behalf of the owner. Their responsibilities typically include collecting rent, managing leases, handling maintenance and repairs (of the lot), and ensuring the property complies with relevant regulations. They act as a liaison between the owner and tenants, working to maximise the property's value and profitability while providing excellent service to occupants.
Proxy
Proxy is a written authorisation given by an owner to another person to vote on their behalf at an owners corporation meeting.
Quorum
Quorum refers to the minimum number of eligible voters required to be present or represented at a meeting for the meeting to be valid and decisions to be made. It ensures that decisions made during the meeting have the support of a sufficient number of owners or their representatives.
Resolution
A resolution in strata refers to a formal decision or action agreed upon by the owners corporation or strata committee during a meeting. Resolutions are typically proposed, discussed, and voted on to address various matters concerning the management, maintenance, and administration of the strata scheme. There are different types of resolutions, such as ordinary resolutions, special resolutions, and unanimous resolutions, each requiring different levels of support from the owners or their representatives to be passed.
Section 184 Certificate
s184 Certificate is a legal document providing information about the financial and administrative status of a strata scheme, typically required when selling a strata property.
Strata Search
A strata search is a comprehensive investigation conducted by prospective buyers or their representatives to gather information about a strata-titled property before purchase. This search typically involves obtaining documents and records related to the management, financials, and legal status of the strata scheme. It aims to provide insights into the financial health, governance structure, by-laws, outstanding levies, insurance coverage, maintenance history, and any potential legal issues affecting the property. The findings from a strata search help buyers make informed decisions and assess the suitability of the property for their needs.
Strata Building Bond and Inspections Scheme (SBBIS)
SBBIS is a regulatory framework introduced in New South Wales, designed to ensure the quality of residential strata building construction and protect the rights of homeowners. Under this scheme, developers are required to lodge a building bond and arrange for independent inspections of new strata buildings to identify any defects. The bond serves as a financial safeguard to cover the cost of rectifying any defects discovered during the inspection process.
Strata Committee
A strata committee is a group elected by owners within a strata scheme to make decisions on behalf of the owners corporation between general meetings.
Special Levy
A special levy refers to additional funds raised from owners for specific purposes not covered by regular strata (administration and capital works fund) levies, typically used for one-off major repairs or upgrades.
Strata Manager
A Strata Manager is a professional hired by the owners corporation to assist with the administrative, financial, and maintenance aspects of managing a strata scheme.
Strata Management Statement (SMS)
The SMS is a document governing the management of shared amenities within a Building Management Committee (BMC). It outlines meeting protocols, by-laws, cost allocations for shared facilities, and procedures for resolving disputes among involved parties.
Strata Plan
A strata plan is a legal document that delineates the boundaries and layout of individual lots and common property within a strata scheme. It includes details such as lot numbers, boundaries, and any exclusive use areas, providing a blueprint for the entire strata development.
Special Resolution
A special resolution in a strata context refers to a formal decision made by the owners corporation on matters of significant importance or those requiring a higher threshold for approval. It typically requires at least 75% of the votes cast in favour, ensuring that substantial decisions within the strata community are made with a strong majority consensus.
Strata Roll
The strata roll is a comprehensive register containing vital information about the owners, tenants, and lots within a strata scheme. It includes details such as names and addresses of owners and tenants, lot numbers, unit entitlements, contact information, and any other relevant particulars pertaining to the management of the strata scheme.
Strata Scheme
A strata scheme is a development where individuals each own a portion (lot) of a property, such as an apartment or townhouse, along with shared ownership of common property.
Tenant
Tenant is a person who occupies land or property rented from a landlord. Although a strata managing agent doesn't directly have any contractual relationship with tenants, they are considered occupants of the property and may receive guidance on common property issues. However, tenants are advised to initially contact their landlord or property manager for assistance.
Unanimous Resolution
Unanimous resolution refers to a decision made by all owners in a strata scheme, meaning every owner entitled to vote agrees to the decision. This type of resolution is rare and typically pertains to significant changes that affect all owners equally.
Unit Entitlement
Unit entitlement is the proportionate share of ownership each lot owner has in the common property and voting rights within the owners corporation, typically based on the size or value of their lot.
Voting
Voting refers to the process by which strata owners participate in making decisions regarding the management and administration of their strata scheme. Owners typically vote on various matters during owners corporation meetings, such as the approval of resolutions, the election of committee members, or the adoption of by-laws. Each owner's voting power is generally determined by their unit entitlement, and decisions are usually made based on a majority or special resolution, depending on the nature of the issue.
