New South Wales strata terminology made easy

Strata keywords and phrases for property owners in New South Wales

 

Administrative fund

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

By-laws are a set of rules that property owners and residents in a strata property must follow. The owners corporation can change these by-laws by special resolution at a general 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 may need a certificate of currency if you:

• apply for a mortgage
• refinance your mortgage.

Your strata provider can assist you in obtaining 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 Registry Services. 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

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 are special rights granted to property owners via a by-law. This by-law, which must be voted on by special resolution, will give the owner in question exclusive rights to use a part of the common property such as foyers, driveways, fences, visitors parking and gardens.

 

Community management statement

A community management statement is a document that outlines the by-laws for a community title. It covers the use and management of association property being the property owned by all owners collectively.

 

Initial period

Initial period commences on registration of a strata or deposited (community title) plan. 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

Model by-laws are a generic set of rules prescribed in the legislation.

 

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 (known as NCAT) hears matters related to strata and community title schemes including disputes.

 

Ordinary resolution

Property owners or representatives make ordinary resolutions at general meetings. They must vote in the majority to pass an ordinary resolution.

 

Poll

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

Special resolution

Some matters must be vote on by special resolution where no more than 25% of the unit entitlements of the votes cast are against the motion

 

Strata plan

A strata plan subdivides the land and building(s) of a strata property into lots and common property.

 

Strata manager

A strata manager provides guidance to the owners corporation in carrying out its duties.

Strata roll

A strata roll is the register of the owners of every lot in a strata property. It includes the names and contact information of other interested parties such as

• any mortgage holders
• covenant chargees, or
• lessees (tenants).

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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