Commonly used strata terms and their definitions.

 

AGM

An Annual General meeting held by the Owners Corporation.

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Body Corporate

Another term for Owners Corporation.

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Body corporate managers

Another term for strata managers.

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Rules

A set of ‘rules or bylaws’ that the proprietors and occupants in a strata scheme must follow. These can be changed at a general meeting of the strata scheme. All rules are not the same so you should obtain a copy of the current by-laws for your strata scheme. Also called Articles or Operational Rules.

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Committee

Responsible for the administration of an owners corporation. They are a group of owners elected at each Annual General Meeting who represent all the lot owners of the strata scheme, and carry out the duties required. These include the control, maintenance and repair of the common property. The committee also has the responsibility of enforcing the bylaws. Also called an executive committee, managing committee, management committee, committee of management, or just the committee.

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Chairperson

The person elected as Chairperson to the strata scheme at a General Meeting.  This person may or may not be on the Committee and has specific duties under the Act.

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Common Property

Common property refers to the areas of a strata building or community which every occupier or owner shares, including foyers, driveways, fences, visitors parking and gardens. The common property is the responsibility of the strata company whose obligations include maintaining and repairing the common areas.

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Executive Committee

Another term for Owners Committee.

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Levy

Levies are contributions paid by owners to the strata company to cover the proposed expenditure of the strata company. Levies are usually paid annually or quarterly and are based on ownership or utility interest.

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Lot

A portion of a property that can be separately owned and sold. In a strata scheme, a lot is generally an apartment or townhouse. Commonly known as a Principal Unit.

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Lot liability

The proportion of the owners corporation expenses that a lot owner is required to pay. Commonly known as a Ownership or Utility Interest.

 

Long Term Maintenance Fund

A fund for long term maintenance of the strata scheme and/or capital works.

 

Long Term Maintenance Plan

A plan for long term maintenance of the strata scheme and/or capital works.

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Managing Committee/Management Committee/Committee of Management

Other terms for Owners Committee.

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Owner

An owner is a person(s) or company that purchases a strata lot and is registered on the Certificate of Title.

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Proprietor

Another name for a strata owner.

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Reserve Fund

Another name for a Sinking or Contingency Fund.

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Sinking Fund

Also called a Reserve or Contingency Fund. Levies paid into this fund cover the costs of future capital expenses, such as painting the building, and replacing common property items like stairwell carpeting and roofing.

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Strata Manager

Professionals who administer owners corporations, and are responsible for maintaining their buildings and common areas. Also called Body Corporate Managers, Strata Managing Agents, Managers, and Agents. They report to the owners committee and chairperson.

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Strata Scheme

A strata scheme is a parcel of land with a building(s), where individuals each own a portion referred to as a lot. These buildings have common property but are not limited to areas such as driveways, pathways, fences, external walls and roof. A strata scheme can have a minimum of 2 lots and can be used for residential or commercial purposes or a mixture of both. A strata scheme can be a vertical block of units (high rise) or it can be all on the one level such as townhouses or commercial offices.

 

Strata managing agents

Another term for owners Strata Managers.

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Strata or Unit Plan

The plan that subdivides the land and building(s) of a strata scheme into lots and common property.

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