When first purchasing in an Owners Corporation, many questions arise. Who is the Owners Corporation, what is the purpose of the Owners Corporation, how is the Owners Corporation financed, how does the Owners Corporation make decisions and more!
The Owners Corporation
The Owners Corporation is made up of all Owners in a Strata scheme. When you buy into a property that is part of a Strata scheme, you will automatically become a member of the Owners Corporation.
How is the Owners Corporation Financed?
Contributions are received from every Lot Owner of the Owners Corporation and are pooled to maintain the community and common areas. The size and frequency of the contributions required to properly run the Owners Corporation are decided by all Owners at the annual general meeting.
The levies pay for a range of costs that keep your scheme running smoothly and in good condition. This may include:
- maintenance and repairs to the building/s and common property
- administration costs
- utilities to any common areas (electricity to run elevators, lighting etc.)
What decisions need to be approved by the Owners Corporation?
- Record Keeping
- Repairing and maintaining common property
- Strata meetings
- Hiring a Strata Manager
- Hiring a Building Manager
Have your say!
By being actively involved in the running of your Owners Corporation, for instance joining the Owners Corporation Committee, Lot Owners can have a say in how a community allocated its funds and can assist in planning Committee projects.
The Strata Committee is a group of people that the Owners Corporation elects to help make decisions for the scheme.
Many of the responsibilities that fall on the Strata Committee can be discharged to the Strata Manager as per the administration agreement.
Most schemes in New South Wales give their Strata Committee decision making power for things such as:
- spending for the day-to-day running of the scheme (e.g. hiring repairers, arranging insurance)
- approving application under the by-law of the scheme (e.g. approving renovation applications)
- issuing a notice to comply with a by-law.
A Strata Manager helps the Strata Committee with the running of the Strata Scheme.
The Owners Corporation can choose which jobs to give to the Strata Manager. This may include:
- Co-ordinating and conducting meetings
- collecting and banking levies, and obtaining insurance
- advising on asset management
- keeping the scheme’s financial records
Strata Managers are appointed at the annual general meeting by the Owners Corporation.
As the name suggests, the Building Manager looks after the buildings in a Strata Scheme.
They can assist the Owners Corporation with:
- managing common property (for example, taking out the bins and recycling)
- access to Common Property (for tradespersons, non-residents etc)
- maintaining and repairing Common Property
If you are new to your Owners Corporation and would like more information about the purpose of an Owners Corporation, please don’t hesitate to reach out to SSKB with any questions you may have. SSKB will also provide you with a welcome pack to ensure you know who to contact, our role, and other information about living in an Owners Corporation. Click here to contact the SSKB team today.