Buying into a strata community is an exciting time. You may have shared facilities such as pools and saunas that you can enjoy, or you may be looking forward to having common property so you are no–longer having to spend your Sundays doing the gardening.
However, if you are new to the strata world, you may come across some terminology that you haven’t heard before. If you decide to join the committee of your scheme, or just want to update your strata knowledge, we have made it easy for you below!
Some common terms you may hear if you are on the committee have been defined below:
Body Corporate/Owners Corporation:
A Body Corporate/Owners Corporation is a legal entity created when land is subdivided to create common property and lots and is registered to establish a community titles scheme. The scheme can be a duplex, a residential unit block, a high–rise accommodation complex, a shopping complex, a residential suburb or a business park. Every owner of a lot in a community titles scheme is automatically a member of the Body Corporate/Owners Corporation.
Body Corporate/Owners Corporation Manager:
A Body Corporate/Owners Corporation Manager is essentially engaged to attend to the legislative requirements placed on a Body Corporate/Owners Corporation. This generally entails the following processes:
- Call, attend, and record the Annual General Meeting each year;
- Prepare draft budgets and issue levy notices throughout the year;
- Pay Body Corporate/Owners Corporation creditor invoices;
- Generally maintain and report on the financial accounts of the Body Corporate/Owners Corporation;
- Generally maintain the rolls and registers of the Body Corporate/Owners Corporation, including owners’ details;
- Effect the common property insurance;
- Issue contravention notices;
- Provide general advice and guidance to Committee Members and Lot Owners on matters relating to their Body Corporate/Owners Corporation.
The Committee is the executive arm of the Body Corporate/Owners Corporation. The Committee has the duty of putting into effect the lawful decisions of the strata title. It is a group charged with decision-making power to deal with matters of lesser importance that confront a Body Corporate/Owners Corporation during the year. Every Bodies Corporate/Owners Corporation must have a Committee.
The Secretary has various duties in their role as a member of the executive committee, and one of these is calling Committee and General Meetings. The Secretary must advise owners of any upcoming Committee Meetings by placing a Meeting Notice on the common property notice board (if applicable) or distributing notices to residents, however, this is a function generally completed by your Body Corporate Manager on behalf of the Secretary.
The Treasurer is one of the three executive members and can be responsible for preparing budgets and managing funds, although the legislation does not require them to. Generally, your Body Corporate Manager will carry out these functions on the Bodies Corporate behalf.
The Chairperson is one of three executive members and is responsible for chairing meetings of the Committee and Body Corporate/Owners Corporation.
An agenda is all items for discussion and resolution at Strata meetings.
A record of all minutes for all meetings held by the Body Corporate/Owners Corporation.
A sinking fund is effectively a deposit which exists to allow a Body Corporate/Owners Corporation to pay for repairs and maintenance of their building. The money in a sinking fund can be spent on anticipated capital expenditure, or non-recurring items.
This is primarily to cover the annual day to day running costs of the Body Corporate/Owners Corporation such as cleaning, grounds maintenance, pool chlorine, electricity for the common area and insurance.
Levies are made up of the sinking fund and administration fund. The definitions for both funds can be found out directly.
If you are a new strata owner and would like to join your committee, click here for more information or contact your Community manager.
If you are not already a client of SSKB and would like to see how easy it is to make the switch, click here contact us today.