for everything you need to know about strata...
"When dealing with Strata matters, you'll come across lots and lots of jargon, terms and 'legalese'. There's so much that even some of those well-versed in strata can have trouble getting through it on occasions. I've provided some brief descriptions for the most commonly used ones and lots of links back to more detailed information. So I'm sure they'll help you to navigate through the 'strata' soup."
COMMONLY USED STRATA TERMS & JARGON
Alphabetical index
[A] [B] [C] [D-F] [G-L] [M-O] [P-R] [S] [T-Z]
A
ADMINISTRATIVE FUND
A fund, under the control of the Owners Corporation, used to cover all the 'day-to-day' and 'regular' expenses of the scheme such as electricity, gardening, cleaning, insurance premiums, routine repairs and maintenance of common property, strata management fees and disbursements, etc. The money for this fund comes from the quarterly Levies.
NOTE - Additional information on the Administrative Fund can be found on the Levies & Special Levies information page.
AGENDA
A list of motions or issues to be voted upon or discussed at a meeting.
AGGREGATE UNIT ENTITLEMENT
The total of all the individual lot unit entitlements in the strata scheme. See also Total Unit Entitlement and Unit Entitlement.
AGM
A commonly used acronym for Annual General Meeting.
ADJUDICATOR
A person appointed as the Strata Scheme's Adjudicator under the NSW Strata Schemes Management Act 1996 to act as the 3rd-party in disputes and other matters as deemed by the CTTT.
ANNUAL GENERAL MEETING (AGM)
A meeting of owners and other interested parties (as noted on the strata roll) that must be convened once a year under the NSW Strata Schemes Management Act 1996. Also see General Meeting.
NOTE - Additional information on Annual General Meetings can be found on the Meetings information page.
B
BY-LAWS
A set of rules the residents (owners and tenants) in the strata or community scheme must abide by. Also see Model By-laws. Additional information on By-Laws can be found on the By-Laws information page.
BUDGET
An estimate of future receipts and payments likely to occur in the coming year for a scheme. This estimate is prepared by the Executive Committee or the Strata Managing Agent and is based essentially on the historical costs of the scheme.
BUILDING MANAGER
A commonly used term for Caretaker.
C
CARETAKER
Also known as a Building Manager, an Onsite Property Manager or an Onsite Building Manager and is generally associated with the larger schemes. A caretaker primarily looks after all aspects of running the maintenance side of the scheme. The caretaker is usually responsible for the tasks, delegated by the Owners Corporation to a strata managing agent, which pertain to common property maintenance, repairs and replacement. The effect of having a caretaker involved is similar to a scheme opting for a Record Keeping contract where the strata managing agent looks after everything except the maintenance of the scheme's common property.
CERTIFICATE OF TITLE
A title deed issued by the NSW Dept of Lands to prove ownership of a lot. The Owners Corporation is also issued with a title deed for the common property See also Common Property Title.
CERTIFICATE (Section 109)
A certificate, issued by the strata managing agent or authorised person of the Owners Corporation, containing a variety of details including levy contributions, insurances, Executive Committee member and strata management details, outstanding monies and other relevant information.
This certificate is covered under Section 109 of the NSW Strata Schemes Management Act 1996 and a statutory fee is payable by the applicant to the Owners Corporation.
CHAIRPERSON
One of the 3 main office holders of the Executive Committee, the other 2 being the Secretary and the Treasurer.
COMMON PROPERTY
The area of land and part of a building in the strata plan which do not form part of any lot.
NOTE - More detailed information on Common Property can be found on the What is Strata? information page.
COMMON PROPERTY TITLE
The title deed issued by the NSW Dept of Lands to prove ownership of the Common Property in a Strata scheme. This document is provided to the Owners Corporation upon registration and contains some very valuable information including any registered By-laws and the latest Unit Entitlement schedule for the scheme.
COMMON SEAL
The stamp an Owners Corporation uses to indicate its official agreement to something. The stamp must show the Owners Corporation's distinctive number, which contains the registration number of the strata plan. The seal is styled as "The Owners - Strata Plan nnnnnn" and must be affixed whenever the Owners Corporation executes a document.
COMMUNITY MANAGMENT STATEMENT
A statement that's registered with a Community plan as a register of the by-laws and other particulars governing participation in a Community scheme.
NOTE - Additional information on Community schemes can be found on the Community & Neighbourhoods information page.
COMPANY NOMINEE
A person, authorised by a company in writing, to vote at meetings on its behalf.
COMPANY TITLE
A system of communal land ownership where a person becomes entitled to live in a property in a residential building by acquiring shares in an incorporated company or association that owns the building. The purchase of shares in the company or association normally gives the shareholder a contractual right to occupy and exclusively use a specified part or parts of the building - such as a unit and/or car space – along with the right to use other parts of the property in common with other shareholders.
COVENANT CHARGEE
a person or legal entity holding an agreement which imposes certain obligations or restrictions over a property.
CTTT
A commonly used acronym for the NSW Department of Commerce's Consumer, Trader and Tenancy Tribunal. See also Tribunal.
D-F
EC
A commonly used acronym for Executive Committee.
ECM
A commonly used acronym for Executive Committee Meeting.
EGM
A commonly used acronym for Extraordinary General Meeting.
EXCLUSIVE USE
A special right granted to an owner to use a part of the common property - for example: exclusive use of a car space located on common property.
EXECUTIVE COMMITTEE (EC)
Elected representatives of the owners. The election takes place at each Annual General Meeting.
NOTE - Additional information on Executive Committees can be found on the Executive Committee information page.
EXECUTIVE COMMITTEE MEETING (ECM)
A meeting of the Executive Committee members which excludes non-committee members unless prior authorisation has been granted.
NOTE - Additional information on Executive Committee Meetings can be found on the Meetings information page.
EXTRAORDINARY GENERAL MEETING (EGM)
A meeting of owners and other interested parties (as noted on the strata roll) which is NOT the Annual General Meeting. Also see General Meeting.
NOTE - Additional information on Extraordinary General Meetings can be found on the Meetings information page.
FAGM
A commonly used acronym for First Annual General Meeting.
FIRST ANNUAL GENERAL MEETING (FAGM)
The very FIRST meeting of owners and other interested parties (as noted on the strata roll) that must be convened within 2 months of the expiration of the Initial Period under the NSW Strata Schemes Management Act 1996. Also see General Meeting.
NOTE - Additional information on First Annual General Meetings can be found on the Meetings information page.
G-L
GENERAL MEETING (GM)
A meeting of owners and other interested parties (as noted on the strata roll) who have been advised by notice of a proposed meeting to discuss specific matters pertaining to the scheme. The Owners Corporation is required to convene and hold a general meeting once a year. This required meeting is usually known as the Annual General Meeting. The other type of general meeting is known as an Extraordinary General Meeting. Also see Annual General Meeting and First Annual General Meeting.
NOTE - Additional information on the different General Meetings can be found on the Meetings information page.
GM
A commonly used acronym for General Meeting.
HARMONY
A term commonly used to describe the level of owner contentment that exists within a scheme. Usually this term relates closely to issues associated with disputes of varying types. They could be disputes between neighbours, between owners, between owners and the Executive Committee and many others.
NOTE - Additional information on harmony issues and disputes can be found on the Resolving Disputes information page.
HOME WARRANTY INSURANCE
Home Warranty Insurance was setup to protect consumers when a builder either dies, cannot be found or becomes insolvent (ie bankrupt) and cannot fulfil his obligations to the consumer by completing the construction or fixing defects.
NOTE - More complete details on Home Warranty Insurance can be found on the NSW Office of Fair Trading website under Home Warranty Insurance.
HOME WARRANTY INSURANCE SCHEME BOARD
The Home Warranty Insurance Scheme Board was established to oversee the operation of the home warranty insurance scheme. This was a primary recommendation of the NSW Home Warranty Insurance Inquiry in September 2003.
INITIAL PERIOD
The period in which the original owner still owns strata lots in a strata scheme for which the sum of the unit entitlements of those lots comprises more than 2/3 of the aggregate unit entitlement of the scheme.
The official wording is:
"to commence on the day that the Owners Corporation is constituted (date of registration of the plan) and to end on the day when there are proprietors of lots, other than the original proprietor, the sum of whose unit entitlements are at least 1/3 of the aggregate unit entitlement".
You can read a little more on Strata Scheme Initial Periods in Initial Period - Miscellaneous Section on the NSW Dept of Lands Registrar General's Directions website.
LARGE STRATA SCHEME
A scheme consisting of more than 100 lots, not including parking or utility lots.
LEVIES
Contributions, usually paid quarterly, by the owners to the Owners Corporation to cover regular expenditure and future major works expenditure. The amount paid by each lot owner is regulated by the unit entitlement of their respective lot and allocated to both the Administrative fund and the Sinking fund.
NOTE - Additional information on Levies can be found on the Levies & Special Levies information page.
LEVY REGISTER
A historical record of levy contributions made. The NSW Strata Schemes Management Regulation 2005 - Regulation 8 details the specific information to be included on this document.
LOT
A lot is usually a dwelling in a strata scheme and comprises the cubic air space contained within the inner surface of the boundary walls, the under surface of the ceiling and the upper surface of the floor. However, car spaces, garages, laundries, marinas, etc can also form part of a lot or be a separate lot known as a utility lot. Also see Utility Lot and Parking Lot.
M-O
MINUTE BOOK
A document, usually in the form of a hardback bound book, used to hold the minutes of all meetings held by the Owners Corporation and Executive Committee.
MINUTES
A documented record of all proceedings for all meetings held by the Owners Corporation and Executive Committee.
MODEL BY-LAWS
A standard, generic set of rules used as either the actual by-laws for a strata or community scheme or as the template for specific by-laws created for a strata or community scheme. Also see By-laws.
MOTION
A proposal put forward for consideration at meetings held by the Owners Corporation and Executive Committee.
OC
A commonly used acronym for Owners Corporation
OFFICE BEARERS
The 3 elected members of the Executive Committee. Also known as Office Holders. Also see Chairperson, Secretary and Treasurer.
OFFICE HOLDERS
The 3 elected members of the Executive Committee. Also known as Office Bearers. Also see Chairperson, Secretary and Treasurer.
ORDINARY RESOLUTION
A resolution that requires a majority vote of eligible owners or representatives present at a general meeting. An ordinary resolution motion is RESOLVED if the majority of the votes cast are in favour of the motion otherwise the motion is DEFEATED.
ORIGINAL OWNER
The owner of the entire strata titled complex when the strata plan is first registered and is usually the builder or developer.
OWNERS CORPORATION (OC)
The legal entity consisting of all the owners of the lots in a strata scheme (as noted on the Strata Roll) and formed when a strata plan is registered.
NOTE - Additional information on Owners Corporations can be found on the Owners Corporation information page.
P-R
PARKING LOT
A lot designed primarily for storage of boats or motor vehicles and not for human occupation as a residence, office, shop or similar. This type of lot is also known as a Utility Lot.
POLL
A method of voting at a meetings where each owner's vote has a value based on the lot's Unit Entitlement.
PROXY
A person appointed, in writing, by an owner or mortgagee to attend a meeting and vote on the appointer's behalf.
QUORUM
The minimum number of eligible attendees at a meeting before any motion can be voted upon
RECORD KEEPING CONTRACT
An agreement between the Owners Corporation (OC) and a Strata Managing Agent (SMA) where the tasks delegated by the OC to the SMA do NOT include anything involving the MAINTAINING, REPLACEMENT or REPAIR of the scheme's common property. Such tasks are the sole responsibility of the OC with the SMA being responsible for all other delegated tasks.
NOTE- Additional information on partially self-managing a strata scheme can be found on the Do-It-Yourself Strata information page.
RESOLUTION
A decision made at a meeting based on a motion raised and addressed at the meeting. There are 3 types of resolutions - Ordinary resolutions, Special resolutions and Unanimous resolutions.
S
S109
A commonly used term for a Section 109 Certificate. See also Certificate (Section 109)
SAFETY AUDIT
An inspection carried out by a suitably qualified professional on the current status of the Occupational Health and Safety standards for the scheme.
NOTE - Additional information on Safety Audits can be found on the Compliance Issues information page.
SECRETARY
One of the 3 main office holders of the Executive Committee, the other 2 being the Chairperson and the Treasurer.
SINKING FUND
A fund, under the control of the Owners Corporation, used to cover major 'renewal, repair or replacement' works for the scheme including such things as window archbar replacement or repair, concrete cancer rectification, roofing replacement or repair, common property painting, stairwell carpet replacement, structural problem rectification, balcony problems, unexpected emergencies, etc. The money for this fund comes from the quarterly Levies.
NOTE - Additional information on the Sinking Fund can be found on the Levies & Special Levies information page.
SMA
A commonly used acronym for Strata Managing Agent
SMALL STRATA SCHEME
A scheme comprising of no more than 2 lots, not including parking or utility lots.
SP
A commonly used acronym for Strata Plan
SPECIAL LEVY
A lump sum contribution paid by the owners to cover either unplanned, unexpected or underestimated expenditure.
NOTE - Additional information on Special Levies can be found on the Levies & Special Levies information page.
SPECIAL RESOLUTION
A resolution that requires a minimum 75% majority 'For' vote of eligible owners or representatives present at a general meeting. Under this type of resolution, the value of every vote is calculated based on the unit entitlement of each lot. A special resolution motion is RESOLVED if 75% or more of the 'calculated' votes cast are in favour of the motion otherwise the motion is DEFEATED.
SSMA
A commonly used acronym for the NSW Strata Schemes Management Act 1996.
SSMR
A commonly used acronym for the NSW Strata Schemes Management Regulation 2005.
STRATA MANAGER
A commonly used term for Strata Managing Agent.
STRATA MANAGING AGENT (SMA)
A suitably licensed and qualified, professional entity (or person) appointed by the Owners Corporation to manage the strata scheme in accordance with all functions delegated by the Owners Corporation.
NOTE - Additional information on Strata Managing Agents can be found on the Strata Managing Agents information page.
STRATA PLAN (SP)
The actual plan registered at the NSW Land Titles Office showing the building on the land, the lots making up the plan and the common property.
STRATA ROLL
The register of the owners of every lot in a strata scheme including any utility lots. It also includes the names of other interested parties such as any mortgagees, covenant chargees or lessees (if notified).
STRATA SCHEMES MANAGEMENT ACT 1996 (SSMA)
The management of every strata scheme in NSW is governed by the rules laid down in the NSW Strata Schemes Management Act 1996 also referred to as the SSMA. The rules, contained in this legislation and the SSMR, provide the entire requirements and conditions for the running and operation of every type of strata scheme in NSW today.
NOTE - Full details on the SSMA can be found on the NSW Consolidated Acts website.
STRATA SCHEMES MANAGEMENT REGULATION 2005 (SSMR)
The management of every strata scheme in NSW is governed by the rules laid down in the NSW Strata Schemes Management Regulation 2005 also referred to as the SSMR. The rules, contained in this legislation and the SSMA, provide the entire requirements and conditions for the running and operation of every type of strata scheme in NSW today.
NOTE - Full details on the SSMR can be found on the NSW Consolidated Acts website.
STRATA SCHEMES OFFICE
There was, for some years, an actual NSW government department which had this name but now, the actual Strata Schemes Office no longer exists in its old form. Today, the NSW Office of Fair Trading (a division of the NSW Department of Commerce) handles all Strata and Community Scheme enquiries via its Call Centre. The call centre can be contacted on 13 32 20 (in NSW) - just follow the prompts to get to correct area. The Office of Fair Trading provides a wide variety of services and assistance in strata matters including mediation and adjudication.
STRATA SEARCH
A strata search is where an owner, mortgagee or covenant chargee of a lot, or a person authorised by an owner, mortgagee or covenant chargee, requests the Owners Corporation to allow an inspection to be carried out on the records and accounts of a strata scheme. This is covered under Section 108 of the NSW Strata Schemes Management Act 1996.
T-Z
TOTAL UNIT ENTITLEMENT
The total of all the individual lot unit entitlements in the strata scheme. See also Aggregate Unit Entitlement and Unit Entitlement.
TREASURER
One of the 3 main office holders of the Executive Committee, the other 2 being the Chairperson and the Secretary.
TRIBUNAL
The Consumer,Trader and Tenancy Tribunal (also known as the CTTT) is a division of the NSW Department of Commerce. Its role is to resolve disputes between tenants, landlords, traders and consumers in a timely and effective manner. Usually the CTTT only gets involved in those disputes which cannot seem to be resolved via simple mediation.
UNANIMOUS RESOLUTION
Under an unanimous resolution a motion is RESOLVED if no voter at the meeting votes against it otherwise the motion is DEFEATED.
UNIT ENTITLEMENT
Each lot is given a unit entitlement which is shown on the strata plan. The amount of the unit entitlement varies depending on a number of factors such as the size of the lot. Unit entitlements regulate what proportion of the total annual budgeted levies will be paid by each lot owner. Unit entitlements also can regulate voting strength at meetings if the value of the votes is required. Basically, the larger the unit entitlement of a lot the more the voting "strength".
NOTE - Additional information on Unit Entitlements (including some examples) can be found on the What is Strata? information page.
UTILITY LOT
A lot designed primarily for storage or accommodation of boats, motor vehicles or goods and not for human occupation as a residence, office, shop or similar. This type of lot can also be known as a Parking Lot.
Table of TERMINOLOGY CHANGES
|
On July 1st, 1997 the NSW Strata Titles Act 1973 was replaced by the NSW Strata Schemes Management Act 1996. This Act brought many changes including a change in terminology for some of the more well known terms. |
|
| OLD | NEW |
Body Corporate |
|
Body Corporate Council |
|
Office Bearers |
|
Original Proprietor |
|
Proprietor |
Owner |
NSW Office of Fair Trading |
|
DISCLAIMER: All information on this website is of a general nature and is intended as a guide only. Readers should check all information obtained from this website for accuracy from other sources and seek professional legal advice before taking any action based on any information obtained from this website. Information on this website should not be substituted for proper legal advice. The owners of this website will not be held responsible for any action taken as a consequence of same.
EXTERNAL SOURCES: The owners of this website do not make any warranty or representations regarding the information, products, services provided by or qualifications of any external sources listed on this website. Readers should make their own appropriate enquiries regarding accuracy, qualifications, licences, etc. The owners of this website will not be responsible or liable in any way for any representations made by any external sources listed on this website.
IMPORTANT NOTE: This website deals with strata matters in NSW, Australia only. Legislation varies in different states and territories and in other countries. For information pertaining to places outside of NSW, Australia please refer to the appropriate legislation for your region.
What is strata?
Strata terms and jargon
Frequently Asked Questions
Do-It-Yourself Strata
Strataman News
Helpful Websites
Buying a strata titled property
Buying "off-the-plan"
By-Laws
Community & Neighbourhoods
Compliance issues
Executive Committee
Insurance requirements
Legal advice
Levies & Special Levies
Meetings
Ongoing maintenance&repairs
Owners Corporation
Preventative maintenance
Records & Accounts
Resolving disputes
Small & Large schemes
Strata Managing Agents
Strata trades guide
Taxation & GST
Want to keep up with the latest news, trends and legislation in the world of Strata?
Then Register HERE to receive Strataman News