Strata Dictionary - SSKB - Strata Managers | Community Experts

Strata Dictionary


The Strata Terms you need to know

Strata living can be a confusing world, from the many terms to the constant changes in legislation and the different terminology around the country. We have taken some of the most common terms that you may need to know whilst you are living in a strata community.  

Adjourned.

Where the business of a meeting is held over to another time.

Administrative Fund.

Under the control of the Owners Corporation/Body Corporate, an administrative fund is used to cover day to day expenses, such as electricity, cleaning, gardening, insurance premiums, routine repairs and maintenance of common property, strata management fees etc.

Agenda.

Items for discussion and resolution at Strata meetings.

Annual General Meeting.

A meeting for all owners that must be convened once per year.

Budget.

An estimate prepared by the Committee of   the expenses likely to occur in the coming year for a scheme.

Building Manager.

Building Manager.

Larger schemes may have a contract with a building manager who may also live on site and is responsible for the management of the common property on behalf of the Owners Corporation/Body Corporate.

Chairperson.

The chairperson is one of the three executive committee members and is responsible for chairing meetings of the committee and body corporate.

Committee Meeting.

Regular (often three monthly) meeting where the elected members of the committee meet in a formally convened meeting.

Common Property.

The area of land and part of a building in the strata plan which does not form part of any lot.

Contribution.

Contribution is the body corporate or owners corporation levies paid by the owners to give the body corporate the funds to operate.

Contribution Lot Entitlement.

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.

Financial Year End.

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 the last day of the month before the month in which the scheme was originally established. For example, If a body corporate were created by registration of its first community management statement in the moth of May, then its financial year would end on 30 April each year, except in schemes registered prior to 13 July 1997.

General Meeting.

A meeting that includes the owners and other interested parties who have been advised by notice of a proposed meeting to vote on specific matters listed in the agenda that pertain to the scheme.

Interest Lot Entitlement.

The interest lot entitlement for a lot is the number assigned to that lot in the community management statement. It is properly calculated as 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 buildings 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 also used for the purpose of calculating local government rates and charges.

Levies.

Levies are typically paid quarterly by the Owners Corporation/Body Corporate to cover regular expenses and future major work.

Lot.

The lot owner owns the inside of the unit but not the main structure of the building under a Building Format Plan scheme. Usually the four main walls, the ceiling, roof and the floor are common property. The basic rule is that everything inside a lot is the owner’s property which includes all internal walls, fixtures, carpet and paint on the walls.

Minutes.

A record of all minutes for all meetings held by the Owners Corporation/Body Corporate.

Occupier.

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

Ordinary Resolution.

An ordinary resolution is passed if no poll is requested and the votes counted for the motion are more than the votes counted against the resolution.

Original Owner.

The original owner is the owner of all of the scheme land before it became a community titles scheme. The original owner is commonly the developer of the scheme.

Quorum.

The least number that must be present in a meeting to make its transactions valid. This is at least 25% of the owners entitled to vote at a General Meeting, at least 50% of the voting members of the Committee for a Committee Meeting or as per the Constitution for a Company.

Secretary.

The Secretary is one of the three executive members and is responsible for sending out notices of meetings, calling for and receiving nominations and receiving completed voting papers and proxy forms.  Generally your body corporate manager will carry out these functions on the Secretary’s behalf.

Sinking Fund.

A body corporate must have a sinking fund and it is effectively a deposit which exists to allow a body corporate to pay for capital expenditure in accordance with a Sinking Fund Forecast.

Special Levy.

A levy that is resolved at a general meeting required for a particular expenditure. A levy other than a normal budgeted administrative and sinking fund expenditure.

Special Resolution.

At least two thirds of the votes cast are in favour of the motion, the number of votes counted against the motion are not more than 25% of the number of lots in the scheme, the total contribution schedule lot entitlements for the lots which voted against the motion is not more than 25% of the total contribution schedule lot entitlements for all lots in the scheme.

Strata Roll.

The records containing the record of each lot owner and their lot details in the scheme.

Strata Community.

The name given to people who live in a strata-titled building.

Strata Committee.

Elected representatives of the owners and officers.

Treasurer.

The Treasurer is one of the three executive members and can be responsible for preparing budgets and managing funds, although the legislation does not require them to.  Generally, your body corporate manager will carry out these functions on the Body Corporate’s behalf.

Unit Entitlement.

Each lot is given a unit entitlement which is shown on the strata plan. Reference to a lot’s contribution entitlement.

Utility Infrastructure.

Utility infrastructure for a community titles scheme is the cables, wires, pipes, drains, ducts, meters, plant and equipment by which the lots and the common property within the scheme are supplied with utility service.

Utility Service.

A utility service for a community titles scheme includes water, gas, electricity, air conditioning, telephone, data, television, sewer, drainage, a waste removal system.

SSKB is Australia’s leading strata management company specialising delivering expert advice and management to Owners Corporation and Body Corporate communities.

 



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