Your free strata dictionary – New South Wales
Strata keywords and phrases for property owners in New South Wales
An administrative fund is money used for the day-to-day running of a strata property. The administrative fund covers the cost of any maintenance costs.
By-laws are a set of rules that property owners and residents in a strata property must follow. Committees can change these by-laws by special resolution at a general committee meeting.
Capital works plan
A capital works plan is a ten-year plan that takes into account all major works that must be completed, including painting, replacing lifts or flooring, and repairing common property such as pools or fencing. It must be reviewed every five years.
Capital works fund
A capital works fund, formerly known as a sinking fund, is maintained to ensure there is enough money to pay for major works when required, such as painting, replacing lifts or flooring, and repairing common property such as pools or fencing. Owners contribute to the capital works fund with each levy paid.
Certificate of currency
A certificate of currency contains important information about your strata property insurance coverage, including confirmation that the policy is current, the sums insured, the policy type and policy date.
You will need a certificate of currency if you:
- apply for a mortgage
- refinance your mortgage.
Your strata provider can give you a copy of the certificate of currency for any of these reasons.
Certificate of title
A certificate of title is a legal document that is issued by the NSW Land and Property Management Authority. The certificate contains key information about a property, including but not limited to:
- Names of the property owners
- Any land restrictions
- Lease details
- Mortgage details
- Other relevant property information.
Community association is land registered under The NSW Community Land Development Act 1989. It is a subdivision of association property and private lots. The owner of a lot maintains all buildings constructed on the lot. Association property is property jointly owned and maintained by all owners.
Common property rights
Common property rights is a special right granted to property owners. These rights give the owner the right to use a part of the common property. Common property they can use include foyers, driveways, fences, visitors parking and gardens.
Community Management Statement
A Community Management Statement outlines the by-laws for a community or neighbourhood scheme. A strata committee must submit these statements with community, precinct or neighbourhood plans.
Initial period commences when a group registers a strata or deposited plan. It ends when one-third of the unit entitlements sells. The length of the period ends based on legislation, the method varies depending on the type of property.
Large strata scheme
A large strata scheme consists of more than 100 lots, not including parking or utility lots.
Model by-laws are a standard, generic set of rules prescribed in the Act or legislation. A strata committee can use model by-laws as the actual by-laws for a strata or community scheme. They can also use them as the template for specific by-laws created for a strata or community scheme.
Notice to comply
Notice to comply outlines a by-law breach and requests a person to follow the notice.
NSW Fair Trading
The NSW Fair Trading is the state body that regulates strata matters.
NSW Civil & Administrative Tribunal
NSW Civil & Administrative Tribunal operates under the Strata Schemes Management Act 2015 and Community Land Management Act 1989. It hears and rules on disputes about strata and community schemes.
Property owners or representatives make ordinary resolutions at general meetings. They must vote in the majority to pass an ordinary resolution.
A poll is a method of voting at meetings where each owner’s vote has a value based on the lot’s unit entitlement.
Section 184 certificate
A Section 184 certificate is a document that provides certain parties (including owners and prospective owners who have written permission from an owner, mortgagee or covenant charge) with vital information about a strata scheme, in return for a payable fee. It was previously known as a Section 109 certificate. It can be provided by a strata committee member or strata managing agent and must include the owners corporation seal.
A Section 184 will typically include information including:
- Information about the strata committee members and managing agent
- Strata levies
- Outstanding levies
- Insights into the property’s 10-year capital works plan
- Recently-created by-laws
Property owners or representatives make special resolutions at general meetings. They must have at least a 75% majority vote to pass a special resolution.
A strata plan subdivides the land and building(s) of a strata property into lots and common property.
A strata manager is a manager that helps the strata committee carry out its duties. In NSW, a strata manager must hold a Certificate of Registration. They must also have a NSW Fair Trading registration.
A strata roll is the register of the owners of every lot in a strata property. It includes the names of other interested parties such as
- any mortgage holders
- covenant chargees, or
Unit entitlement (UE)
Unit entitlement (UE) regulates levy amount each property owner must pay. It also determines voting strength at meetings if the value of the votes is important. Strata plans contain information on the UE.
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