Frequently Asked Questions

Strata is an Australian concept. The first strata titled building in the world was approved in 1961 and built in Burwood NSW. This concept has been adopted under different names in many countries around the world and is constantly growing.

Strata title is a form of ownership devised for multi-level apartment blocks and horizontal subdivisions with shared areas. The word “strata” refers to apartments being on different levels.

Strata Title allows an individual to own a property (called a lot) and a part of the common area /common facilities (called common property).

Lots are either apartments, garages or storerooms and each is shown on the title as being owned by a Lot Owner. The Lot Owners in the strata scheme make up the Owners Corporation.

Common Property is defined as everything else on the parcel of land that is not comprised in a Lot, such as common stairwells, driveways, roofs, gardens, pools, gyms, lifts, and so on.

The Owners Corporation is responsible for the management of the common area and facilities in the strata scheme. The Owners Corporation can delegate its functions to a Strata Manager.

In NSW, the average annual levies for the entire scheme should be between 0.8% to 1.2% of the property’s value when the complex has facilities and between 0.3% to 0.7% when there are no facilities. Those levies will cover expenditures such as electricity, building insurance, water, cleaning, gardening, repairs and maintenance and strata managers fee if appointed).

A Strata Manager is a professional person that is appointed by the Owners’ Corporation.

The role of the Strata Manager is to assist the Owner Corporation managing the common property.

According to the Property, Stock and Business Act 2002 a “Strata Manager Agent is a professional person who, for reward, exercise any function within the meaning of the “Strata Management Scheme Act 2005”.

The Strata Manager assists the Owners Corporation in managing the day-to-day operation of the Strata Scheme. Some of Strata Manager responsibilities are as follows:

• Ensure the scheme complies with all strata laws and regulations (Fire Safety, Work Health & Safety, Window Lock Compliance)
• Maintain the key register and all keys
• Arrange quotations for all services and remedial works
• Prepare, implement and co-ordinate a Preventative Maintenance Program for the scheme
• Organise and co-ordinate repairs and maintenance of the common property
• Check all tradespeople and specialists used for correct licensing and insurances
• Monitor and maintain all tradespeople and specialists on the ‘preferred’ list
• Engage cleaners & gardeners and other tradespeople and specialists
• Prepare and distribute agendas and notices of all meetings (AGM – Annual General Meeting, EGM – Extraordinary General Meetings, SCM – Strata Committee Meetings)
• Convene, hold and attend meetings
• Maintain the minute book
• Review current By-laws and provide recommendations
• Co-ordinate the addition or changes to the scheme’s By-laws
• By-laws enforcement
• Arrange valuations and quotes for strata insurance
• Maintain continuity of insurance cover
• Prepare and lodge insurance claims (including building defects claims)

According to NSW Strata law and regulation there is no legal requirement for the owner corporation to engage a Strata Manager.

However, we recommend engaging a professional Strata Manager to assist the Owner Corporation in managing strata schemes of more than 2 lots.

The Strata Management Fees, which a Strata Manager charges for their services are a small portion of the levies paid by each lot owner. In exchange you get an experienced and impartial professional who is there to liaise between all interested parties and facilitate the best possible outcome for the building.      

If you are not satisfied with the services of your Strata Manager, changing them is not as daunting as it may seem. Get in touch with us and we will be happy to guide you from start to finish. Below is the 4-Step Process required to change your Strata Manager:

1. Check the expiration date of your contract. If you don’t have a copy of your contract, ask your current Strata Manager to send you one.
2. Convene a meeting. The next step would be to call an extraordinary general meeting (EGM) or if you have an imminent Annual General Meeting, add the motions to the agenda. We will assist you in drafting the motions.
3. Pass the motions. The motions need to be passed by the majority of owners present at the meeting, either in person, by proxy or by a written vote. Once the motions have been passed and our agreement has been signed, the transition period begins.
4. Takeover Process. Once you send us the copy of the meeting minutes and the agreement, we will liaise with the current agent. We will collect the books and records on behalf of your scheme and notify you once the process is completed.

Residential strata insurance (also known as body corporate cover in some
states) is general insurance that covers common property under the
management of a strata title or body corporate entity. Owners of strata titles
typically share the premium costs of strata insurance as part of their strata
fees and liabilities. Holding strata insurance is mandatory under each state’s
relevant strata legislation.

Strata insurance generally covers common or shared property as defined on
the title of the property. This might include common areas, lifts, pools, car
parks, gardens, wiring, balconies, walls, windows, ceilings and floors. Strata
insurance must provide liability cover in the event people are injured on
common property. You should check what is covered under your strata policy.

Strata insurance is like any other form of insurance, in that there are
restrictions to the policy expressed as exclusions. Each insurer has
different exclusions and policy terms and conditions. Make sure you
understand what is excluded from the policy your body corporate or strata
manager has purchased. Exclusions can be for certain risks, such as landslip
or flood, or for certain property features such as fencing. Remember, strata
policies do not cover your contents and personal items.

No. You should make sure you have appropriate contents cover for your
belongings and for those things strata insurance does not protect. Strata
insurance covers only common or shared property. This may include some of
the fixed parts of your unit, but will not cover everything. It is important you
read the policy purchased by your manager or body corporate to understand
what is and is not covered in your unit.