Strata refers to a system of ownership whereby a building is
divided into portions known as 'lots'. The building can be
an apartment block, a complex of townhouses or villas, commercial
offices and so on. In addition to each individual lot, each owner
also shares ownership of the common property which usually
encompasses foyers, gardens, stairwells, driveways and external
walls. Each individual lot owner is responsible for maintaining
their own property however, the common property needs to be
maintained collectively by all the lot owners through levy payment
systems. Enter, the Owners Corporation.
The Owners Corporation comprises of each lot owner in the Strata
Scheme and they are responsible for administering, controlling, and
maintaining all areas of the strata scheme. However, given that
some strata schemes can comprise of upwards of 20 lots, it would be
impractical to involve each and every lot owner for the purposes of
working out 'who will trim the roses this week'. Enter, the
The Executive Committee consists of individual lot owners who
have been elected at each Annual General Meeting (AGM). The
Committee is predominantly responsible for running and overseeing
the day-to-day administration type issues for the Strata Scheme.
Within the Executive Committee there are three positions/office
bearers who must be elected, these are:
Chairperson – who must preside at all meetings
of the Executive Committee. It's important to note however that
the Chairperson doesn't have a casting vote under any
Secretary –who is responsible for preparing
meetings, providing notices, answering correspondence addressed to
the Owners Corporation and generally doing all administrative and
secretarial duties for the Owners Corporation and Executive
Treasurer – who is responsible for giving notice
of any levies, keeping all accounting records, preparing financial
statements and section 109 certificates and taking care of all of
the general banking and account management for the money paid to
the Owners Corporation.
And there we have the introduction to Strata Schemes and a
general overview of its composition.
My next blog will delve deeper into the responsibilities of the
Owners Corporation and the Executive Committee, the introduction of
levies and special levies, and ongoing maintenance and repairs.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Warranties can be risk-shifting mechanisms when the party giving the warranty is not the party at fault for the defect.
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