SSKB Strata Glossary

Your Guide to Strata Management Terms

Navigating the world of strata management can sometimes feel overwhelming, especially with the unique terms and jargon used in the industry. To make things easier, we’ve created the SSKB Strata Glossary—a comprehensive guide to help you understand the key terminology used in strata communities. Whether you’re a lot owner, committee member, or simply curious about strata, this glossary is your go-to resource for clear and concise explanations of common strata terms. Empower yourself with the knowledge you need to make informed decisions and confidently engage in your strata community.

A

Assistant Community Manager: An ACM supports the Community Manager in the day-to-day operations of strata communities. Their role includes assisting with administrative tasks, responding to owner inquiries, coordinating maintenance requests, and ensuring effective communication between lot owners, committees, and service providers. They play a key role in maintaining the smooth operation of the community and ensuring the needs of residents and stakeholders are met efficiently.

Adjudication is a form of dispute resolution provided through Office of the Commissioner for Body Corporate and Community management and is a more formal process than conciliation. An adjudicator makes a decision after considering the application and written submissions from all those affected by the dispute.
Where the business of a meeting is held over to another time.
This is where a quorum is not achieved, and the meeting is adjourned until the same time and location in 7 days’ time.
The Administrative Fund in a strata scheme is used to cover the day-to-day expenses of managing and maintaining the common property. This includes routine costs such as cleaning, gardening, insurance, utilities, and minor repairs. Contributions to the Administrative Fund are determined through the annual budget and are paid by all lot owners to ensure the smooth operation of the community.
Items for discussion and resolution at strata meetings.

Annual General Meeting.

The Annual General Meeting (AGM) in a strata scheme is a yearly meeting where lot owners come together to discuss and vote on key decisions for the community. These decisions may include approving the annual budget, setting levies, electing the committee, and addressing motions submitted by owners. The AGM ensures transparency and provides an opportunity for owners to participate in the management of their community.

Annual General Meeting.

The Annual General Meeting (AGM) in a strata scheme is a yearly meeting where lot owners come together to discuss and vote on key decisions for the community. These decisions may include approving the annual budget, setting levies, electing the committee, and addressing motions submitted by owners. The AGM ensures transparency and provides an opportunity for owners to participate in the management of their community.

Accounts Payable Strata Accounts Payable refers to managing and paying invoices for goods and services needed to maintain and operate the strata scheme, such as utilities, insurance, repairs, and contractor services. Payments can only be made with the approval of the Committee, ensuring proper oversight and adherence to the strata’s financial processes. These payments are funded through the strata’s Administrative or Sinking Funds to keep the community running smoothly.

B

In Queensland, the Body Corporate represents all lot owners within a strata or community scheme. It is responsible for managing and maintaining common property, enforcing by-laws, and overseeing financial matters such as levies, insurance, and budgets. The Body Corporate operates under the Body Corporate and Community Management Act 1997 to ensure the effective management and operation of the community.

The Body Corporate and Community Management Act 1997 is Queensland’s primary legislation governing the establishment, operation, and management of strata and community title schemes. The Act outlines the rights and responsibilities of lot owners, committees, and bodies corporate, as well as rules for managing common property, by-laws, meetings, financial administration, and dispute resolution. It provides a framework to ensure the effective and equitable management of strata communities in Queensland.

Body Corporate Manager.

A Body Corporate Manager or Community Manager is a contractor to the Body Corporate engaged to provide administrative services. The administrative services may include the functions of the Committee, and the executive members of the Committee. See Section 14 of the BCCMA. SSKB is a Body Corporate Manager. SSKB terminology refers to the Body Corporate Managers as the Community Manager (see CM).

Building Management Committee/Group – the representatives of the members who are party to the building management statement.
Building Management Statement – the registered document that contains the details of the parties to the agreement and management of the shared facilities.
Property owned by the Body Corporate, other than the common property. Generally, over $1,000 in value and portable.
This is a term used for the purposes of defining the replacement and reinstatement insurance obligations of the Body Corporate.
(BFP) A building format plan is a type of subdivision plan where the boundaries of the lot are defined by the building structure (e.g. floors, walls and ceilings) and by projections of the building structure (LTA Section 48C). Except to the extent permitted by the directions of the Registrar of Titles, the boundary of a lot created under a building format plan and separated from another lot or common property by a floor, wall or ceiling, must be located at the centre of that floor, wall or ceiling.

Building Units and Group Title Act 1980 – the act that was in existence prior to the introduction of the BCCMA 1997.

Building Managers (or caretakers) handle the operational and physical upkeep of the property. They are often on-site, making them the first point of contact for residents regarding property upkeep.

Responsibilities include:

  1. Routine Maintenance: Inspecting and addressing issues in shared facilities and common areas.
  2. Facilities Oversight: Managing amenities like pools, gyms, and gardens, ensuring everything is operational and secure.
  3. Security and Access Control: Monitoring building access and assisting with security concerns.
  4. Contractor Supervision: Engaging and supervising third-party contractors, such as cleaners and landscapers.
  5. Emergency Response: Addressing urgent issues like leaks or alarms and liaising with emergency services when required.
  6. Building managers handle day-to-day maintenance, maintaining common areas and fostering a safe, functional environment for all residents.

 

In the case a building does not have a building manager, their responsibilities fall to the committee.

Rules contained in the registered CMS (for BUGTA they are individually recorded in the Titles office).

C

Capital Works Fund in New South Wales strata schemes is a reserve fund used to cover major repairs, upgrades, and replacement of common property assets. Contributions to this fund are collected from lot owners and are based on a 10-year plan for anticipated capital expenses. The fund ensures the long-term maintenance and improvement of the community’s infrastructure and shared facilities.

The on-site person who is in charge of the maintenance of Common Property.

Community Manager is a professional responsible for overseeing the day-to-day management and administration of a strata scheme. They work closely with the committee to ensure compliance with legislation, manage finances, coordinate maintenance and repairs, facilitate meetings, and address owner inquiries. Their role is to support the smooth operation of the community while helping lot owners and committees make informed decisions.

Community Management Statement. The Community Management Statement for a community titles scheme is a document that is registered with the Queensland Land Title Office and contains all of the basic information about the Body Corporate and the community titles scheme. Among other things it identifies the exact land on which the community titles scheme is built, it sets out the by laws, it sets out each owner’s lot entitlements,and it sets out all the exclusive uses of common property given to owners (BCCMA Section 66).

Committee Meeting. A regular, formally convened meeting (often held every three months) where the elected members of the committee discuss and make decisions about the management and operation of the strata scheme.

During these meetings, the committee addresses key issues such as maintenance, financial management, by-laws, and any motions submitted by owners. The Community Manager (CM) plays a crucial role in supporting these meetings by issuing the agenda, facilitating discussions, and preparing the minutes, which are then distributed to all owners.

These meetings are an essential part of ensuring transparent and effective management of the community.

Common property is the land within a community titles scheme that is not within one of the lots owned by an Owner in the Body Corporate or Owners Corporation.
(Qld) Conciliation is a form of dispute resolution in which an independent person who understands Body Corporate law conciliator employed by the Department of Justice and Attorney- General help the parties involved resolve the dispute.
Contribution is the Body Corporate or Owners Corporation levies paid by the owners to give the Body Corporate or Owners Corporation the funds to operate.
The contribution lot entitlement for a lot is the number assigned to the lot in the community management statement. It is properly calculated as an estimate of the relative amount of expenses either caused or benefiting that particular lot. The contribution lot entitlement schedule is used for determining each owner’s Body Corporate contributions. It is also the weighted value of a lot owner’s vote on a motion to be decided by ordinary resolution.
Common Property Title refers to the legal title that encompasses all shared areas and facilities within a strata scheme. These areas are collectively owned by all lot owners and are defined on the strata plan, separate from individual lot titles. The title reference for the common property is recorded in the strata scheme’s records, which may include elements such as gardens, hallways, stairwells, lifts, pools, and other shared amenities. This title ensures the proper identification and management of common property, allowing the body corporate or owners corporation to maintain and administer these areas for the benefit of all lot owners.
Community Titles Scheme. A community titles scheme is the lots and common property that make up the Body Corporate. A community title scheme must consist of at least two lots and common property.

D

Developer Consultancy Team. SSKB’s specialised DCT is dedicated to working closely with developers to streamline the process of establishing and registering strata and community title schemes. This team provides expert guidance and support throughout the project lifecycle, ensuring compliance with relevant legislation and creating a strong foundation for future community management.

Key Services Offered by the Developer Consultancy Team
Scheme Structuring:

  • Advising on the best structure for the scheme, including lot entitlements, by-laws, and common property arrangements, to ensure a functional and sustainable community.
  • Budget Preparation: Assisting in preparing the first-year budgets for the Administrative and Capital Works (Sinking) Funds, tailored to the project’s requirements.
  • By-Laws and Rules: Drafting or reviewing by-laws to meet legislative requirements while aligning with the developer’s vision for the community.
  • Registration Support: Assisting with the documentation required to register the scheme, ensuring accuracy and compliance with local regulations.
  • Transition Planning: Facilitating a smooth transition from developer management to owner-controlled management, including support with the initial meetings and handover processes.
  • Ongoing Communication: Serving as a point of contact to address queries, resolve issues, and provide updates throughout the project’s progress.

E

An Extraordinary General Meeting (EGM) is any general meeting of the body corporate that is convened outside of the Annual General Meeting (AGM). EGMs are held to address specific matters that cannot wait until the next AGM and typically focus on urgent or significant decisions requiring owner input.

Why is an EGM Held?
An EGM may be called to address issues such as:

  • Approving special levies for unexpected expenses.
    Considering major maintenance or repair projects.
  • Deciding on amendments to by-laws.
  • Approving large-scale expenditures not included in the current budget.
  • Addressing disputes or compliance matters affecting the community.

How is an EGM Called?

  • By the Committee: The committee can call an EGM to address pressing matters.
  • By Owners: Lot owners can request an EGM by submitting a written request signed by the required percentage of owners as outlined in the legislation.

Notice and Voting

  • All lot owners must receive notice of the EGM, including the agenda, motions for decision, and supporting documentation.
  • Voting can occur in person, by proxy, or in writing, depending on the scheme’s rules and the nature of the meeting.

Key Differences Between an EGM and an AGM

  • Timing: EGMs can be convened at any time during the year, while AGMs are held annually.
  • Purpose: EGMs focus on specific, often urgent matters, while AGMs cover broader topics like budgets, elections, and annual reporting.
  • EGMs play a vital role in ensuring that urgent community decisions are addressed promptly, maintaining the efficient management of the strata scheme.

Execute(d) typically means signing a document to make it legally binding. It can also mean carrying out or performing an action, such as implementing a committee decision.

Part of the common property allocated to a specific lot within a scheme.

F

Bodies Corporate do not operate on the same financial year as the taxation system. The financial year of the Body Corporate is the period ending on thelast day of the month before the month in which the scheme was originally established. e.g. If a Body Corporate were created by registration of its first community management statement in the month of May, then its financial year would end on 30 April each year, except in schemes registered prior to 13 July 1997. Prior to 1997 under BUGTA, a schemes’ financial year is the date commencing on the date of registration of the plan or the day immediately after the date up to which the last previous such statement was prepared and ending on the last day of the month that precedes by 3 months the month in which occurs each anniversary of the first annual general meeting. For some schemes, the Financial Year End has been changed after the first EGM.
Fee For Service. Fees charged by SSKB for additional work other than the agreed services contained in the SSKB Administration Agreement.

I

The Interest Lot Entitlement for a lot is the number assigned to that lot in the community management statement. Under BCCMA this generally means schemes registered from 1997 and is based upon the relative market value of the lot at the time of registration of the scheme, compared to all other lots in the community title scheme. The interest entitlement is used for that lot’s payment towards the annual insurance premium for the building only should the interest entitlements differ. It is also used to calculate the amount owed to each lot owner should the scheme be terminated and it is the also used for the purpose of calculating local government rates and charges.

L

Land Title Act provides the legal framework for the ownership, management, and subdivision of land, including strata-titled properties. It governs the registration of strata plans, the creation of titles for individual lots, and the designation of common property. The Act ensures accurate record-keeping and defines the rights and responsibilities of lot owners and the body corporate within the strata scheme.

A levy is the amount each lot owner is required to contribute as their share of the annual costs associated with the strata scheme. These costs typically cover the administration fund for day-to-day expenses and the sinking (or capital works) fund for long-term maintenance and major repairs. Each owner’s levy is calculated based on their lot’s contribution entitlements within the scheme.

A lot refers to the parcel of land or individual unit within a strata scheme allocated to an owner. This can include a standalone property (Building Format Plan – BFP) or a section within a subdivided area (Standard Format Plan – SFP). Each lot is distinct and owned separately, while sharing common property with other lot owners in the scheme.

In a strata scheme, lot entitlements determine the rights and responsibilities of each lot owner. There are two types:

  1. Contribution Lot Entitlement: Determines the share each owner contributes towards the body corporate’s expenses, such as levies for the administrative and sinking funds.
  2. Interest Lot Entitlement: Defines the ownership share of the common property and may also be used to calculate voting rights and the distribution of insurance payouts or other assets.

 

Each lot is assigned specific contribution and interest lot entitlements in the Community Management Statement (CMS), represented as numerical values. These numbers reflect the proportional obligations and benefits of each lot within the scheme.

M

A majority resolution occurs at a General Meeting under Section 107 of the BCCMA Act. Each lot is entitled to one vote, which must be cast directly by the lot owner (proxy voting is not permitted).

For the motion to pass, the votes in favour must exceed 50% of the total lots entitled to vote on the motion. This ensures that the decision reflects the majority opinion of the lot owners in the strata scheme.

The Maintenance Fund (VIC Owners Corporations Act 2006). It is a reserve fund designed to cover the costs of significant repairs, upgrades, and long-term maintenance of the common property. Contributions to the Maintenance Fund are collected from lot owners and are based on a 10-year maintenance plan to ensure the ongoing upkeep and value of the property.

Management Rights are the rights granted to a person or entity (typically the caretaker or building manager) to oversee the management and maintenance of common property. These rights are outlined in an agreement and may include responsibilities such as cleaning, gardening, maintenance, and ensuring compliance with by-laws. In return, the manager is typically paid a fee and may also have the right to operate an on-site letting business for lot owners.

Mixed-use development is a property or community that combines multiple types of uses within the same development. This typically includes a combination of residential, commercial, and sometimes retail or recreational spaces.

N

The New South Wales Civil and Administrative Tribunal (NCAT) is an independent tribunal that resolves disputes and makes decisions on a range of matters, including those related to strata and community schemes. NCAT handles issues such as by-law breaches, levy disputes, and property management disagreements.

O

In New South Wales and Victoria, an Owners Corporation represents all lot owners within a strata or community scheme. It is responsible for managing and maintaining the common property, enforcing by-laws, and handling financial matters such as levies and insurance. The Owners Corporation operates under specific legislation to ensure the smooth running of the community.

The Owners Corporations Act 2006 is the primary legislation governing the creation, operation, and management of owners corporations in Victoria. It outlines the rights and responsibilities of lot owners, the management of common property, financial obligations, dispute resolution processes, and other essential aspects of strata living.

In 2021, the Act was amended by the Owners Corporations and Other Acts Amendment Act 2021, introducing a tiered classification system for owners corporations and refining the framework to improve functionality and clarity. These updates aim to ensure effective and equitable management of strata communities in Victoria.

An occupier means anyone who is resident or lives in the scheme, or a person who occupies the lot for business purposes, or carries on business from the lot.

An Ordinary Resolution (BCCMA Act Section 108) is passed if more votes are in favour than against. Each lot owner has one vote, and decisions are determined by a simple majority, typically used for routine matters.

The Original Owner is the owner of all of the scheme land before it
became a community titles scheme and all the lots at registration of
the scheme. The Original Owner is commonly referred to as the
Developer of the scheme.

P

At a General Meeting, a person entitled to vote may request a poll for counting votes on a motion decided by an ordinary resolution (excluding secret ballots).

  • The person requesting the poll must either be present at the meeting or indicate their intention on the voting paper.
  • A poll request can be made at any time before the meeting decides the next motion or, if it is the last motion, before the meeting concludes.
  • The request may be made regardless of whether voting on the motion has already occurred and can be withdrawn before the poll is completed.

Q

Queensland Civil and Administrative Tribunal. QCAT determines
appeals of adjudicators’ orders and complex disputes, as well as
disputes about debts owed by owners to a Body Corporate. Each state
in Australia has its own Civil and Administrative Tribunal.

A quorum is the minimum number of voters required for a meeting to be valid and able to make decisions. The requirements for a quorum are:

  • General Meeting: At least 25% of owners entitled to vote.
  • Committee Meeting: At least 50% of the committee members eligible to vote.
  • Company Meetings: As specified in the company’s constitution.

Without a quorum, decisions made during the meeting may not be legally binding.

R

Ratified refers to the formal approval or confirmation of a decision, action, or resolution by a body corporate, owners corporation, or committee. This usually occurs during a meeting where members vote to officially endorse a previous decision or action, ensuring it is legally recognised and binding.

Reconvened refers to restarting an adjourned meeting to address and finalise any remaining business that was not completed during the initial session.

A Resolution Without Dissent (BCCMA Act Section 105) is used for specific matters such as changes to common property or exclusive use rights. To pass, the motion must receive unanimous agreement, meaning no objections are raised by eligible voters.

The on-site caretaker and / or letting agent for the scheme. Also known as a Caretaker.

Under the Victorian Owners Corporations Act 2006, Rules regulate the behaviour and responsibilities of lot owners, residents, and visitors within an owners corporation. These rules address areas such as the use of common property, noise levels, parking, and pet ownership. Designed to ensure the smooth operation of the community, they can be customised to suit the specific needs of the owners corporation and are legally enforceable.

S

Strata Communities Australia (SCA) is the national association representing strata and community title management professionals across Australia.

A sinking fund is a reserve fund that collects contributions from lot owners to cover capital expenditure, such as major repairs, replacements, and long-term maintenance of common property. Contributions are calculated based on a 10-year sinking fund forecast, which outlines the scheduled work required to maintain the building in accordance with the Body Corporate and Community Management Act 1997 (BCCMA) in Queensland.

A special levy is an additional levy approved at a general meeting to fund a specific, unplanned expenditure. It is separate from the regular levies for the budgeted administrative and sinking (or maintenance) fund expenses and is typically used for unexpected or significant costs not covered in the annual budget.

A special resolution is passed when all the following conditions are met:

  1. At least two-thirds of the votes cast are in favour of the motion.
  2. The votes against the motion do not exceed 25% of the total number of lots in the scheme.
  3. The contribution schedule lot entitlements for the lots voting against the motion do not exceed 25% of the total contribution schedule lot entitlements for the entire scheme.

 

This ensures that a special resolution reflects a significant majority agreement among lot owners while limiting the impact of dissenting votes.

A Standard Format Plan (SFP) is a type of subdivision plan where the boundaries of the lots are defined by specific points on the ground (e.g., survey posts) in a horizontal plane, as outlined in Section 48B of the Land Title Act. SFPs typically include lots with standalone houses or townhouses, where each lot owner is responsible for maintaining their own land and structures, while shared areas may be managed collectively.

A Strata Plan in New South Wales is a legal document that outlines the survey details of a strata scheme, including the boundaries of individual lots, common property, and any buildings or structures within the development. It defines ownership and responsibility for maintenance, providing the framework for managing the strata scheme in accordance with the Strata Schemes Development Act 2015.

The Strata Roll is a record maintained by the strata scheme that contains essential details about each lot and its owner. This includes the lot owner’s name, contact information, lot number, and any details required under relevant legislation. The roll is used to manage communications, levy notices, and voting eligibility within the scheme.

U

In both New South Wales (Strata Schemes Management Act 2015) and Victoria (Owners Corporations Act 2006), a unanimous resolution requires all eligible voters to agree to the motion, with no objections. This type of resolution is often used for significant matters, such as changes to common property or alterations to the plan of subdivision. Any dissenting vote prevents the resolution from passing.

Unit Entitlement refers to the proportional share assigned to a lot within a strata scheme, which determines the owner’s contribution entitlement. It is used to calculate each owner’s share of levies, voting power, and, in some cases, their interest in common property and distribution of assets.

Utility infrastructure refers to the physical components that supply utility services to lots and common property. This includes cables, wires, pipes, drains, ducts, equipment, and meters used for services such as electricity, water, gas, telecommunications, and waste management.

V

The Victorian Civil and Administrative Tribunal (VCAT) is an independent tribunal in Victoria that resolves a wide range of disputes, including those related to owners corporations. VCAT handles matters such as by-law enforcement, levy disputes, common property maintenance, and other issues affecting strata communities. It provides a legal forum for resolving conflicts in accordance with the Owners Corporations Act 2006.

A Vote Outside Committee (VOC) in Queensland allows the committee to make decisions on specific matters, such as expenditure or other urgent issues, without convening a formal committee meeting. This process enables faster decision-making while still ensuring that votes are recorded and compliant with legislative requirements under the Body Corporate and Community Management Act 1997

A Volumetric Plan is a type of subdivision plan that defines a lot in three dimensions, specifying its height, breadth, and length using 3D coordinates, as outlined in Section 48D of the Land Title Act (LTA). Unlike other subdivision plans, a volumetric plan does not necessarily create common property.

This format is often used for dividing space within or above land and can apply to lots in a Building Format Plan (BFP), Standard Format Plan (SFP), or another volumetric plan, as described in Section 49D of the LTA.

Lots within a volumetric plan are typically managed by a Building Management Statement (BMS) to ensure coordination of shared services and facilities.

A Vote Outside General Meeting (VOGM) is a decision-making process conducted entirely in writing, without holding a face-to-face meeting. This approach is rare and typically applies only to Commercial schemes under specific circumstances, allowing owners to vote on motions without convening a physical or virtual general meeting.

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