A glossary to commonly used strata terms

Property ManagementFriday 18 November 2016
Property-Blog

If you are an owner or investor new to the world of strata schemes, you may have heard a few terms being used that you haven’t heard before. Here are the main terms you’ll need to know, and how the new NSW strata law reform may be affecting them.

Annual General Meeting
Just as it sounds, your strata’s Annual General Meeting is the opportunity for all owners to attend, introduce motions and vote on any number of important management factors. These can include strata building insurance, adding and amending by-laws and agreeing on building management and services.

Annual General Meeting
Just as it sounds, your strata’s Annual General Meeting is the opportunity for all owners to attend, introduce motions and vote on any number of important management factors. These can include strata building insurance, adding and amending by-laws and agreeing on building management and services.

Common Property
Common property will include all of the property that is not included within your lot, which can consist of hallways, corridors, entryways and foyers, as well as structural and external elements of the building.

Lots
Your lot is the space that you purchase within the strata scheme, including all of the property you are responsible for maintaining and managing. In the case of commercial investment, this could be known as a utility lot.

Levies
These will be the payments you make, typically on a quarterly basis, to cover the expenditures of the strata scheme. Your levies will contribute to an administration fund, which covers non-capital works in common areas such as repairs and building services, as well as a sinking or reserve fund, which is used for major capital works such as the replacement of roofing or elevators in the building.

Proxy Vote
If a committee member is unable to make it to a strata meeting, they can choose a person to cast a proxy vote on their behalf. As of November 2016 the new NSW strata law reforms will update the proxy vote regulations, restricting any one person’s proxy votes to only one for a scheme with fewer than 20 lots, or 5% for schemes with over 20 lots.

Section 109 Certificates
A Section 109 Certificate enables you to conduct due diligence when investing in a strata scheme. Made available by the strata committee or strata manager, this document will include insurances, outstanding funds, management details, levy contributions and other relevant information.

Strata Manager
Although not vital in a strata scheme, a strata manager plays an important role in your residential or commercial property management, resolving disputes before they escalate further and ensuring your strata stays compliant with the complex legislation and regulations. The new strata law reforms will put in place a number of measures to minimise conflict of interest from any unscrupulous strata management services, which is welcome news for the industry.

Strata Manager
Although not vital in a strata scheme, a strata manager plays an important role in your residential or commercial property management, resolving disputes before they escalate further and ensuring your strata stays compliant with the complex legislation and regulations. The new strata law reforms will put in place a number of measures to minimise conflict of interest from any unscrupulous strata management services, which is welcome news for the industry.

Are you looking to find the right commercial strata for your next investment? Burgess Rawson can assist you in finding the ideal property for your portfolio as well as providing residential or commercial strata management services for your strata scheme.

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