What is Strata – Your 4 Top Questions Answered (Qld)

What is Strata? 

A strata community is the name given to people who live in a strata-titled building.

A strata title is a legal structure designed for apartment buildings, townhouse complexes. It even extends to industrial parks, office buildings and shopping centres.

When you purchase in a strata-titled building, you’ve not just bought an apartment or a lot, but you’ve also bought part of the building itself and all the associated common areas (such as hallways or facilities such as a swimming pool or a lift).

Owners are responsible for the maintenance of their own lot and the upkeep of all of the common areas as well.

Depending in which state you live in, a strata community may be referred to as:

  • A Body Corporate, or;
  • An Owners Corporation

Terminology changes from state-to-state but the purpose is the broadly the same.

What is the purpose of a Body Corporate?

A Body Corporate exists to manage issues mutual interest to all the owners. They include:

  • Physical property issues;
  • Issues related to people living together;
  • Physical property includes gardens, common building structures and shared assets such as recreation clubs and tennis courts.

What are the responsibilities of a Body Corporate?

The responsibilities of a Body Corporate governed by legislation.

In a nutshell, the duties are:

  • Administer the common property and the Body Corporate assets for the benefit of the owners of lots included in the scheme;
  • Maintain common property to the extent it is in structurally sound condition;
  • Enforce the community management statement (including by-laws affecting the common property);
  • Carry out other functions given to the Body Corporate under legislation, such as keeping records about its operations, meetings and owners.

The Body Corporate is not legally able to do anything other than fulfil these mandatory responsibilities.

In performing these duties, the Body Corporate can enter into contracts, employ staff and generally deal with property. Unlike a commercial company, it cannot conduct businesses, such as a letting agency, tour operation or restaurant.

How Is A Body Corporate Financed?

Every owner makes contributions, known as levies. These are pooled to maintain the community and common areas. The size and frequency of the contributions required to properly run the

Body Corporate are decided by all owners at the annual general meeting.

How Does the Body Corporate Make Decisions?

Decisions are made by owners in two ways:

  • At a meeting of all the owners (a general meeting)
  • At a meeting of the committee for the Body Corporate

It is important to note that no individual acting in isolation can make a decision on behalf of all the owners.

SSKB is Australia’s leading strata management company, specialising delivering expert advice and management to Body Corporate and Owners Corporation communities.

How can we help you?

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