Strata A to Z
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Definition
When a meeting is ended with the intention to resume the remainder of the business later.
Practical Example:
The Annual General Meeting for “165 Loveridge Avenue” was dragging on past midnight, the owners agreed under the terms of the Management Act and as proposed by Mark the Chairperson to adjourn the meeting for a week and deal with the remaining 12 motions then.
A
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Definition:
An accessibility infrastructure resolution is a type of special resolution to approve the installation of improvements that assist people with disabilities or limited mobility. This may include works such as ramps, handrails, lifts, or other modifications to make common property more accessible. In NSW for example, a simple majority by is required for this type of special resolution.Practical Example:
Domenic owns a lot in a large residential community scheme in Coffs Harbour, NSW. At the Annual General Meeting, another owner proposes adding ramps next to the common property stairs so everyone can more easily access the lawns and gardens. The community association passes the proposal as an accessibility infrastructure resolution by special resolution, with 136 votes in favour and 95 against by Unit Entitlement, allowing the ramps to be installed.
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Definition:
The formal list of motions and matters to be discussed and voted on at a committee or general meetings. It is contained within the meeting notice, and sets out the order of business, identifies compulsory motions required by legislation, and presents each motion in a way that allows lot owners to clearly vote for or against. It ensures the meeting is properly structured, compliant with legal requirements, and transparent for all participants.Practical Example:
As well as the statutory motions for the accounts, budget, levies and insurances, the Agenda for the Annual General Meeting included a Motion to replace the current keeping of pets by-law with a more detailed and compliant version.
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Definition:
A compulsory yearly meeting of the owners corporation (or body corporate/ association/unit plan etc), held within a set period after the end of each financial year. The agenda must include setting levies, reviewing financial statements, electing the committee, considering insurance, and reviewing the capital works/maintenance fund plan. Notice and quorum requirements apply.Practical Example:
The owners of “Greenview Apartments” receive notice of the Annual General Meeting, attend the meeting, vote on the annual budget, elect a new committee, and discuss repainting the building.
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Definition:
The fund used for day-to-day expenses (utilities, cleaning, insurance, management, routine repairs). Levies are set annually based on a budget.Practical Example:
“Sunrise Towers” uses its administrative fund to pay for cleaning, gardening, and electricity bills.
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Definition:
These statements registered annually with local council confirming the fire safety measures in place are compliant and have been subject to testing and assessment. A motion to deal with the status of the AFSS is required on the Annual General Meeting in some states and territories.
Practical Example:
“Devol Apartments” passed a Motion to authorise its Building Manager to sign the AFSS each year and arrange all testing and maintenance as part of the general duties.
B
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A person or company contracted to manage the physical upkeep and operational needs of a strata scheme or community association. This term is interchangeable with Facilities Manager or Caretaker.
Practical Example:
The building manager at “5 Weir Place” arranges the annual fire safety works and supervises the performance of the cleaners.
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Definition:
Building Management Committee is established under a Strata Management Statement (SMS) when different property owners within a stratum plan (such as residential, retail, or commercial components) share common facilities. The BMC is usually made up of the property owners (or their representatives) and is responsible for managing shared services and costs as set out in the SMS. While it operates like a strata committee, the BMC is not a legal entity, it cannot sue, be sued, or enter into binding contracts in its own name. Instead, decisions and obligations under the SMS bind the members directly, with costs and responsibilities apportioned between them.Practical Example:
“The Zenny Centre” is a mixed-use high-rise complex with shops, apartments, hotel and a shared car park. The BMC manages the shared facilities like lifts, fire compliance, air-conditioning, and parking access. Each group of owners contributes to costs according to the SMS, and decisions are made collectively through the BMC.
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Definition:
A budget outlines the estimated expenditure for the administrative fund and the recommended contributions to the sinking fund (also called the capital works fund) for the coming financial year. It is usually prepared by the managing agent, often with input from the treasurer or facilities manager, and is adopted at the Annual General Meeting. The approved budget explains to owners how their levies are calculated and what their contributions will cover, based on each lot’s unit entitlement.Practical Example:
The strata manager and the committee of “Harbourside Apartments” prepared a budget for the Annual General Meeting showing $50,000 for gardening, $20,000 for lift servicing, and $100,000 for the capital works fund contributions. Each apartment owner’s levy is calculated according to their unit entitlement, so everyone knows how much they need to pay and what it will fund.
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Definition:
Legally enforceable rules adopted by the owners corporation to regulate behaviour, property use, and the management of common areas.Practical Example:
“Cumbernauld Gardens” adopts a by-law banning smoking on balconies. When a resident breaches this, the owners corporation can issue a notice and seek enforcement.
C
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Definition:
A fund for major repairs and replacement of common property (e.g., roofs, lifts, painting). All schemes must plan for long-term maintenance.Practical Example:
“Skyline Apartments” uses its capital works fund to save for its new lift next year and then repainting the building in five years’ time.
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Definition:
A Capital Works Fund Plan, (often called a sinking fund plan), sets out how a strata or community scheme will pay for major repairs and long-term replacement of common property items. It covers things like roofs, lifts, fences, painting, and other assets that wear out over time.The plan usually looks ahead 10 years or more and guides how much money needs to be raised through levies to meet future expenses, in most states and territories it is a legislative requirement for schemes to have one.
Practical Example:
The Capital Works Fund Plan for “Upham Rise” forecasts that the residential lobbies will need re-painting in 5 years and the fire sprinkler system overhaul in 8 years. Levies are set aside each year, so the owners corporation has enough money saved when this work is due.
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Definition:
The duties of the chairperson are prescribed in the relevant legislation. In simple terms the chairperson is responsible for presiding over general meetings and committee meetings, ensuring that proper procedures are followed. While a strata or community manager may be asked to act as chairperson, the chairperson themselves does not have a casting or deciding vote.Practical example:
Whilst Brendan chairs the strata committee meetings for “Celtic Towers”, he always has the strata manager preside over the Annual General Meeting each year.
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Definition:
All parts of the scheme not part of any individual lot (e.g., walls, roofs, gardens, foyers, shared pipes). The owners corporation is responsible for its repair and maintenance.Practical Example:
A leak develops in the foyer roof. The owners corporation arranges repairs, as the roof is common property.
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The common seal is the official stamp of the owners corporation/body corporate or community association. It acts as the scheme’s legal signature and is used on formal documents such as contracts or agreements. The seal can only be applied with the proper authority, usually by resolution at a meeting, as delegated to the strata /association manage and must be witnessed.
Practical Example:
The owners corporation at “29 Elmi Road” signed a contract with a licensed and compliant painting company to repaint the building, the agreement was stamped with the common seal and signed by one committee member and the strata manager as authorised by the owners corporation at the General Meeting.
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Definition:
The governing body created when a community scheme is registered. It is made up of all lot owners within the scheme and is responsible for managing and maintaining the community property (such as roads, landscaped areas, or recreational facilities), enforcing by-laws, raising levies, and making decisions on behalf of its members. A community association is a legal entity, similar to an owners corporation (or body corporate) in a strata scheme.
Practical Example:
“Bringas Estates” is a residential community scheme with private roads, tennis court, landscaped parks, and a shared swimming pool. The community association manages the upkeep of these areas, sets by-laws for their use, and collects levies from all owners to cover running costs.
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Definition:
A Community Management Statement (CMS) is the key document that sets out how a community scheme is managed. It includes the scheme’s name, land details, by-laws, and any building or landscape standards and other item that may apply. The CMS may also outline plans for future staged development, how layered arrangements are structured, and the lot entitlements that explain each owner’s share of costs (contribution schedule).Practical Example:
“Dennyville” is a gated estate with shared roads, gardens, marina, gymnasium and a swimming pool. The CMS sets the rules for using these areas, such as speed limits on private roads, marina use and fees and pool opening hours. It also explains how much each owner must contribute to maintaining these shared facilities.
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Definition:
A registered survey plan that subdivides a parcel of land into private lots and common property for shared use. The plan shows the boundaries of each lot, the location and extent of common areas (such as roads, gardens, or recreation spaces), and sets out how the land is legally structured for a community title scheme. The community plan also provides the legal basis for creating a community association and applying by-laws.Practical example:
“Bringas Developments No. 11101 Ltd” lodges a community plan with the titles office to create 50 residential lots, shared private roads, and landscaped parkland in a block of land it owns. Once registered, the plan defines each lot’s boundaries and the shared areas and establishes the community association to manage them.
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Definition:
Community title is a form of property ownership where individual lots (such as houses or apartment buildings) are separately owned, while certain land, facilities, or infrastructure are owned and managed collectively by the community association. Lot owners share responsibility for maintaining common areas, adhering to by-laws, and contributing to the costs of the scheme through levies.Practical Example:
Zara owns a house in the “Dennyville” estate. She has full ownership of her lot but shares responsibility with other lot owners for maintaining shared roads, gardens, marina, gymnasium and a swimming pool. She is paying levies for these shared services in line with the schedule set out in the CMS.
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Definition:
The committee is a group of owners elected at the Annual General Meeting to represent all owners and make day-to-day decisions about managing the scheme. The committee handles ongoing issues such as maintenance, finances, and by-law compliance, while major decisions are reserved for all owners at general meetings. Owners may also vote to limit a committee’s powers. After the Annual General Meeting, the committee holds its first meeting to elect office bearers such as the chairperson, secretary, and treasurer. Committee members should be mindful of and declare any conflicts of interest when accepting nomination.
Practical Example:
At the Annual General Meeting of a strata scheme 969999, “99 Sixth Street”, the owners elected a six-member strata committee. Throughout the year, the committee organises gardening, approves minor repairs, and prepares the budget, leaving big decisions like the colour of the painting of the foyer to owners at a General Meeting.
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Definition:
A company nominee is a person formally authorised in writing by a company that owns a lot in a scheme to act on its behalf. The nominee may attend meetings, vote, and deal with other scheme matters as if they were the owner.Practical Example:
“Jalloh Investments 909 Pty Ltd” owns three lots in “Felix Tower”. It appoints its company secretary as the company nominee, allowing them to attend general meetings and vote on motions on behalf of the company.
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Definition:
Company title is a form of property ownership that is distinct from strata or community title. When a person buys a company title unit, they do not receive a traditional title to the property. Instead, they acquire shares in the company that owns the entire building, and their shareholding entitles them to occupy a specific unit.
Ownership of the shares, typically evidenced by a share certificate, grants the right to live in the unit or lease it but does not confer a direct real estate title. Company title was the main form of apartment ownership before Strata Title was created in 1961 in NSW.
Practical Example:
Jane buys a company title apartment in a harbourside building. She receives shares in the company that owns the building (“The Art Deco Apartments 1930 Pty Ltd”), giving her the right to live in Flat 12, but the company itself remains the registered owner of the property.
D
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Definition:
A fault or deficiency in design, workmanship, or materials that results in a failure of the building to perform as intended. Defects can be minor or major. Defects are defined in the respective building legislation in each state or territory.Practical Example:
The waterproofing on the balcony was found to be defective. The builder was required to repair it under statutory warranty.
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Definition:
The person or entity responsible for subdividing land and constructing buildings for strata ownership. Must convene the first Annual General Meeting, hand over records, and prepare initial budgets.Practical Example:
The developer completes “Oceanfront Residences”, he then sells all of the lots and calls the first Annual General Meeting, hands over all records and plans to the new owners corporation.
E
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Definition:
(Also known as a common property rights by-law)
An exclusive use by-law grants a lot owner or occupier the special right to use a defined part of the common property. This gives the lot’s occupants priority over other owners for that area. Sometimes these by-laws may attract an additional levy to cover maintenance costs for the area
Practical Example:
Angie’s strata scheme granted her exclusive use of the small area of garden adjacent to her townhouse. As part of the terms of the by-law, she must maintain the lawn, garden beds and the large tree located in the area at her cost.
F
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Definition:
The government body overseeing compliance with strata laws, licencing of strata managers, providing information, handling complaints, and offering mediation.Practical Example:
A lot owner contacts Fair Trading to mediate a dispute about noise with a neighbour.
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Definition:
Fidelity guarantee insurance is optional cover that protects a strata or community scheme against direct financial loss caused by fraud, theft, or dishonest acts by an employee, contractor, or committee member. Policy details, including coverage limits, are provided on the certificate of insurance and in the Product Disclosure Statement.Practical Example:
Frankie is a committee member responsible for collecting levies, but they misappropriate the funds. The fidelity guarantee insurance reimburses the scheme for the lost money, protecting the owners from bearing the financial loss
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Definition:
A Financial Services Guide (FSG) is a document that must be given to a scheme when insurance is to be renewed. It sets out important details about the insurance broker or provider, including their contact information, the services they offer, how they are paid, how complaints are handled, and other required disclosures.Practical Example:
“Shamrock Apartments” is renewing its insurances; the broker provided its FSG as part of the proposal package to the strata committee.
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Definition:
A formal record of income, expenditure, assets, and liabilities prepared by the owners corporation.Practical Example:
The treasurer presented the financial statement at the Annual General Meeting, showing last year’s spending, the balance of the capital works fund, levies paid and owed, interest received on the bank accounts and the total funds held at the financial year end.
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Definition:
A fixture is any item or improvement that is permanently attached to a lot or to the common property within a scheme. Fixtures within a lot generally belong to the lot owner and are their responsibility to maintain, while fixtures on common property are maintained by the owners corporation/body corporate or community association.Practical Examples:
The built-in kitchen cabinets and bathroom vanities in Betty’s apartment are fixtures as the lot owner she is responsible for maintaining and replacing them.
The building’s built in Concierge desk in the foyer is a fixture on common property and is maintained by the body corporate.
G
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Definition:
Any meeting of a scheme for all owners that is not the Annual General Meeting, which called to resolve urgent or specific matters, in some states this meeting is simply referred to as an Extraordinary or Special General Meeting.Practical Example:
Owners at “Parkside Villas” called a General Meeting to raise funds via a Special levy and to approve urgent window repairs.
H
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Definition:
The formal transfer of control from the developer to the owners corporation, usually at the first Annual General Meeting. It can also refer to the process of handing books and records from on Strata Managing Agent to another.Practical Example:
At the first Annual General Meeting, the developer gives the new committee all of the building plans, the occupation certificate, the machinery manuals, an initial maintenance schedule, and the insurance documents.
I
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Definition:
The early stage of a new strata or community scheme that begins when the scheme is registered and ends once enough lots (usually one-third) have been sold and ownership has transferred to people other than the original developer. During the initial period, the owners corporation or association has limited powers, for example, it cannot enter into certain contracts, carry out major works, or sue until independent owners are in place to help make decisions.Practical Example:
The Developer at “Shay Terraces” must wait until the First Annual General Meeting to allow the owners to decide which gardening contractor is to be appointed for a one-year term.
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Definition:
An initial maintenance schedule is a document given to a scheme at handover by the developer/builder. It explains how the common property should be looked after, including when items need to be inspected or serviced, details of warranties, manuals, and contacts for things like roofs, pools, lifts, or ventilation systems. The developer must provide it when the building is finished, so the scheme knows from the start what their maintenance responsibilities are and how to perform them.
Practical Example:
“Parker Constructions”Initial Maintenance Schedule shows that the paintwork on the exterior of “Terzic Villas” needs to be washed every two years and the building repainted every seven years due to the coastal position of the property.
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Definition:
Insurance is compulsory and must be arranged by strata or community schemes. It covers the building(s), common property, public liability (minimum $20 million in some states), workers compensation (if applicable), and voluntary workers. Optional policies may include machinery breakdown and office bearers’ liability. The policy must be with an authorised insurer and is reviewed annually.Practical Example:
A fire damages the building’s roof. The owners corporation claims on the strata insurance to repair the common property.
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Definition:
An insurance valuation is an assessment of the cost to replace the property or its assets at current market prices. It shows how much the owners corporation would need to pay to rebuild or replace the property if it were damaged.Practical Example:
The independent valuation of building by a registered valuer shows that in event of a loss, demolition, clearing of the site, professional fees and rebuilding the structure, including common areas and facilities to the same standard as currently, would cost $25 million today. The owners corporation used this figure to set the building insurance cover for this year. The owners corporation resolved in its Annual General Meeting to obtain a new valuation each year to ensure that there was adequate insurance coverage
J
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Definition:
A legal principle where multiple parties are each individually and collectively responsible for an obligation. In a strata or community title context, this can apply when an owners corporation is liable for a claim that exceeds its insurance coverage. The lot owners may then be held responsible for the shortfall, either jointly or individually.Practical example:
An owners corporation received as Judgment for a $20 million liability claim, but its Public Liability insurance only covers $10 million. The remaining $10 million is then apportioned among the 10 lot owners. Under joint and several liability requirements, each owner could be required to contribute to cover the $10 million shortfall, and if one owner cannot pay, the others may need to cover the unpaid portion.
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Definition:
A situation where a lot in a strata or community scheme is owned by two or more people together, each holding a defined legal interest in the lot. Joint owners share rights, responsibilities, and obligations, including payment of levies and compliance with by-laws.Practical example:
Jez and Toni purchase an apartment together under joint ownership. Both are responsible for paying the strata levies, maintaining the lot, and complying with the owners corporation by-laws. Unfortunately Jez cannot pay her share of the levies, Toni has to cover the shortfall.
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Definition:
A formal decision made by a court or tribunal resolving a legal dispute. Once a judgment is issued, it is legally binding and enforceable, and failure to comply can result in further legal action, such as garnishee orders, liens, or enforcement proceedings.Practical example:
An owners corporation takes legal action against a lot owner for unpaid levies. The tribunal issues a judgment in favour of the owners corporation, ordering the owner to pay $15,000 plus costs. If the owner fails to pay, the corporation may enforce the judgment through a lien on the lot or other legal remedies.
L
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Definition:
Mandatory financial contributions paid by lot owners to fund the administrative and capital works funds. Levies are set at the Annual General Meeting based on unit entitlement. Special levies may be raised for unexpected expenses.Practical Example:
Each owner at “Stein Towers” pays quarterly levies to cover cleaning, insurance, and future painting.
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Definition:
A formal document issued by the scheme to a lot owner, requesting payment of contributions (levies) for the administrative or sinking/capital works fund.Practical example:
The owners corporation issued levy notices to each owner immediately after the Annual General Meeting for the quarter commencing 1 July. Further notices will be issued by its Strata Manager for the subsequent quarters commencing 1 October, 1 January and 1 April. The levy notice specifies when that payment is due, what it is form and provides details of how to pay the contribution.
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Definition:
In a strata or community scheme, a lot is an individual unit or parcel of property owned separately by a person. In a strata scheme, a lot usually refers to an apartment, townhouse, or commercial space, while in a community scheme, it may refer to a house, townhouse, or land parcel. The lot owner has exclusive ownership of their lot and shared rights over common property or community facilities. Lots are shown in the strata or community plan.Practical example:
Henrik notes that his car-space lot as shown on the Strata Plan is 7 meters long and 3 meters wide giving him 21 square meters of lot space.
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Definition:
A term used for a record maintained by the owners corporation or strata manager that tracks all financial transactions relating to an individual lot.Practical example:
An apartment owner requests a copy of their lot owner ledger before selling their unit. The ledger shows that all levies have been paid on time, with no outstanding charges or arrears interest.
M
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Definition:
An optional insurance that covers the cost of repairs or replacement when machinery or equipment in a strata building breaks down unexpectedly. It helps protect the scheme from financial loss caused by sudden mechanical or electrical failure.Practical Example:
Following a recent fire, the building’s central air-conditioning system and lift motor were damaged severely. The machinery breakdown insurance could cover the replacement costs, reducing the financial burden on the owners corporation.
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Definition:
Legislation that sets out the rules for how schemes (Strata or Community) are run and managed. It covers the rights and responsibilities of owners, residents, committees, and strata managers. While the name of the Act varies between states and territories, each jurisdiction has its own law dealing with the management of shared property, finances, meetings, by-laws, and dispute resolution.
Practical example:
Wynnie’s apartment complex needs to repair its roof, the Management Act provides the legal framework for the owners corporation/body corporate to raise levies from owners, approve the works at a meeting, and ensure the repairs are carried out properly.
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Definition:
A set of detailed rules made under the main Management Act (strata or community) in each state or territory. Regulations expand on the Act by providing the practical procedures and requirements for running a strata or community title scheme. They often cover matters such as meeting notices, record-keeping, financial reporting, insurance levels, safety requirements, and forms to be used. The title and content of the regulations vary across Australia, but all serve to support the main legislation.Practical example:
Kiara’s Annual General Meeting was attended by almost all owners. When it came to electing the Committee, a formal ballot was needed as there were 15 candidates for 9 places. The Strata Manager used the process as set out in the Regulation to conduct the election.
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Definition:
A voluntary dispute resolution process offered by government agencies or other parties. The process involves an impartial third party who helps resolve disputes before escalation to a Tribunal. In some instances, before a matter can proceed to a Tribunal or Court this is a necessary step in the process.Practical Example:
Two owners disagree about noise transfer between their apartment walls. They attend mediation with NSW Fair Trading and reach a compromise.
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Definition:
The written record of decisions, motions, and discussions at meetings. Must include attendees, motions, votes, and resolutions, and be kept for at least 7 years.Practical Example:
The Minutes of the Annual General Meeting recorded that the budget and therefor levies for the scheme for this year were to be increased in line with the CPI (Consumer Price Index).
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Definition:
A proposal put forward for decision at a meeting. Motions can be about routine matters (such as approving the budget) or special issues (like changing a by-law). Owners vote on each motion, and the outcome is recorded in the meeting minutes. Motions are best drafted in a form that allows a “for or against” answer.Practical Example:
Andre is an owner in the scheme and has proposed a motion at his Annual General Meeting to have the foyer and stairwell carpets cleaned annually. Owners can then vote for or against the works and expense. The result of the vote on the motion will determine whether the works are to proceed.His motion read:
That the owners corporation Resolve to have the foyer and stairwell carpets cleaned annually by Jezabel’s Spick and Span Cleaning at a cost of $200 per clean.
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Definition:
A written notice advising lot owners of an upcoming general meeting, including date, time, location, Agenda, and voting instructions. Minimum notice periods apply (dependent on the state or territory).Practical Example:
Owners at “No 7 Larsson Way” received a notice 14 days before the General Meeting, listing all motions to be discussed.
N
O
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Definition:
An occupier is a person who lives in or uses a lot or property within a strata or community scheme, whether as an owner, tenant, or other lawful resident. Occupiers have rights to use common property in accordance with the scheme’s by-laws and must follow directions from the owners corporation or community association regarding shared facilities.Practical Example:
Tom rents in a strata townhouse within a community scheme. When the shared driveway is being resurfaced, he must temporarily park elsewhere, following the association’s directions for the safe use of the community property.
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Persons elected by the strata /association committee to hold the offices of chairperson, secretary or treasurer. A person may hold one or more of these offices
Practical Example:
Maria is the elected treasurer. She reviews the scheme’s budget, ensures levies are collected from lot owners, and pays the invoices for the gardener and cleaning service. Meanwhile, Sarah, as Chairperson, runs the Annual General Meeting and keeps discussions on track, and makes sure the decisions are recorded correctly for the Minutes that are to be drafted and circulated by Billy, the Secretary.
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Definition:
Office bearers liability insurance is an optional insurance cover that protects committee members against claims made for wrongful acts, errors, or decisions they make while carrying out their duties in good faith. It ensures that volunteer committee members are not personally liable for the financial consequences of such claims. The scope of cover, limits, and exclusions are set out in the policy’s certificate of insurance and Product Disclosure Statement (PDS).Practical Example:
Lubomir is committee member at “Champion Towers” who approves repairs in good faith that later turn out to be unnecessary and another owner alleges financial loss. The office bearers liability insurance covers the legal costs and potential compensation, protecting Lubomir from personal liability.
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Definition:
The original owner is the first owner of all lots in a new strata or community scheme at the time the plan is registered. This is usually the property developer who establishes the scheme before selling the lots to other owners.Practical Example:
“New Build Developments 1888 Pty Ltd” completes a new apartment building and registers the strata plan; they are the original owner of all the lots until they begin selling them to the individual purchasers.
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Definition:
A decision made at a general meeting that is approved by more than half of the eligible voters who are present and voting.Practical example:
The owners corporation Resolved by 6 votes to 4 that the Budget for the year as presented be accepted.
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Definition:
The person(s) or entity recorded on the strata or association Roll.Practical example:
Sharn and Vera own lot 6 in their scheme. Whilst Narada Holdings 9090 Pty Ltd owns lot 5 and Jonathan is the company nominee for that lot and is listed on the roll.
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Definition:
The collective legal entity comprising all lot owners in a strata scheme. Responsible for managing common property, enforcing by-laws, maintaining records, and ensuring compliance with the Act.Practical Example:
The owners at Strata Plan 32323232 voted at its Annual General Meeting to hire a new cleaning company.A contract was then entered into between “Jezabel’s Cleaning Pty Ltd and The owners corporation Strata Plan 32323232” for the services.
P
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Definition:
A method of voting in strata and community title meetings where votes are counted according to each owner’s unit entitlement (or lot entitlement), rather than on a simple “one lot, one vote” basis. This ensures that larger stakeholders in the scheme, such as owners of bigger apartments or commercial lots, have voting power in proportion to their share of ownership.Practical example:
At the Annual General Meeting of “Kiara Townhouses” owners first voted on a new exterior paint scheme by a show of hands 10 votes for Option A and 8 for Option B. Some owners then requested a poll vote. When voting was weighted by unit entitlements, the result shifted, with Option B winning 800 to 750.
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Definition:
A person authorised in writing by a lot owner to vote on their behalf at a meeting.Practical Example:
Johnny is overseas and appoints his next-door neighbour Craig as his proxy for the Annual General Meeting. Craig sends the statutory Proxy form to the Strata Manager before the meeting so it can be recorded accurately for voting purposes
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Definition
Public liability insurance is a compulsory insurance that protects a strata or community scheme against claims for property damage, injury, or death that occur in relation to common property or shared facilities.In Australia, the minimum cover is typically $10 million, with some states mandating $20million. Specific details of the policy conditions are outlined on the scheme’s certificate of insurance and the insurers Product Disclosure Statement.
Practical Example:
During a summer barbecue in the shared garden at “Antonia Towers”, a guest tripped over a loose paver and breaks their arm. The public liability insurance covers the cost of the medical bills and any legal claims, protecting the scheme and owners from financial loss.
Q
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Definition:
The minimum number of eligible voters required for a general meeting to proceed (usually 25% of unit entitlements or lots).Practical Example:
At the Annual General Meeting, only 10 of the 40 owners attended. Despite this low turnout, this meets the quorum requirement and the meeting went ahead.
R
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Definition:
Works carried out by a lot owner to change or improve their apartment, townhouse, or unit in a strata scheme.In NSW for example, Renovation Works are classified according to their impact:
Cosmetic works (e.g. painting the inside of the apartment, replacing carpet) usually do not need approval or any form of notice to the owners corporation.
Minor renovations (e.g. installing floorboards, renovating a kitchen) generally require notice from the lot owner and approval by the owners corporation at a General Meeting by Ordinary Resolution or in accordance with any by-laws for such works.
Major renovations or structural changes (e.g. removing structural walls, altering plumbing or waterproofing) that affects the common property usually needs a Special Resolution at a General Meeting and sometimes a by-law for future maintenance and responsibility.
The exact rules and approval process vary between states and territories.
Practical example:
Andre owns an apartment in Sydney’s “Felix Tower” and wants to fully renovate his bathroom. Because the works affect the common property, Aleks, the strata manager, advises that before he proceeds, he must submit plans and obtain approval by special resolution at a general meeting, along with an exclusive use (common property rights) by-law making him responsible for the new waterproofing, tiles, pipework and fixtures.
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Definition:
Strata and community schemes are legally required to maintain and repair common property and the related fixtures.Practical Example:
The Strata Manager for “5 Lilian Circuit “arranged for urgent repairs when a pipe burst the common stairwell.
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Definition:
A formal decision made by vote on an motion at a meeting. Types: ordinary (simple majority ), special (75%), unanimous (100%).Practical Example:
A special resolution was required to approve the major alterations to the common property foyer and entranceway.
S
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Definition:
A search, also called an inspection, is when the books and records of a strata or community scheme are reviewed. This process is often done before someone buys a lot to check things like finances, by-laws, levies, insurance, or any disputes. Searches are usually carried out by a specialist company on behalf of a solicitor or conveyancer. Owners can also conduct a search, dependent on applicable legislation in a state or territory a fee to conduct the search can be charged by the scheme.Practical Example:
Before buying into “Bolton Lane Apartments”, Darren’s solicitor arranges a strata records search. The search shows the scheme is planning major roof repairs and has a special levy coming up. This helped Darren decide whether to go ahead with the purchase or not.
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Definition:
The secretary is an office-bearer of the owners corporation/body corporate) or community association and is responsible for key administrative duties. Their role includes preparing meeting Agendas and notices, keeping minutes, handling correspondence, maintaining records, and giving access to books and documents when required. The secretary ensures that the day-to-day communication and record-keeping of the scheme are properly managed.Practical Example:
Perry is the secretary of his strata scheme; he has convened a committee meeting for the removal of trees on the common property and has prepared and distributed the Notice and Agenda
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Definition:
A term used in relation to BMCs. Shared facilities are items owned and maintained by more than one entity or can include services.
Practical example:
The total maintenance cost of the shared facility in the Zenny Centre sewer system as shown in the SMS is apportioned as follows: the Residential Strata Scheme (60%), the hotel (30%) the commercial space (7%) and the car-park (3%).
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Definition:
An additional financial contribution imposed on lot owners outside regular levies, usually for unexpected or underfunded expenses.Practical Example:
A special levy was raised by “Chidgey Villas” to pay for long its overdue painting works.
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Definition:
A decision at a general meeting that passes if no more than 25% of the votes (calculated by unit entitlement) are cast against it.Practical example:
The owners of “McKenzie Place” passed Special Resolutions to adopt a new parking by-law, alter the common property foyer and approve a renovation in Lot 9.
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Definition:
A group of owners elected to make day-to-day decisions for the owners corporation. The committee must have office bearers (chairperson, secretary, and treasurer).(Dependent on the entity and the state or territory it is also termed Association Committee, Board, Council of Owners, Committee of the Community Corporation, Executive Committee, Committee of the Body Corporate, Committee of Management…)
Practical Example:
The committee at “Riverfront” approved quotations for garden maintenance and reported the details of the new contractor to the Annual General Meeting.
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Definition:
A strata information certificate is an official document that sets out the financial and administrative details of a lot and its owners corporation (or equivalent body or association) at a specific point in time. It is usually requested by a conveyancing solicitor during the purchase process to give buyers a clear picture of the lot’s obligations and the scheme’s financial position. The certificate typically includes details such as levies (current and outstanding), unregistered by-laws, insurance, the names and addresses of committee members and the managing agent, and other prescribed information.
It must be provided in the approved form set out in the applicable law in each state or territory and is also known as an Owners Corporation Certificate, Body Corporate Information Certificate, Strata Corporation Information certificate or a Certificate of Disclosure, dependent on your circumstances ensure you seek professional advice if you need further information on this.
Practical Example:
When Chloe decided to buy an apartment in Sydney, her solicitor requested a Strata Information Certificate from the Strata Managing Agent and paid the prescribed fee. The document showed the annual levies, that there are no unpaid contributions for the lot, and that the scheme was insured. This helped Abby make an informed decision before settlement.
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Definition:
A licensed professional or company contracted to assist in managing the administrative and financial affairs of a strata scheme.Also termed as Body Corporate or Association Manager (dependent on the state/territory or entity being managed)
Practical Example:
The strata managing agent for “Jude Gardens” collects levies, arranges insurance, organises repairs and sends the Notice for the Annual General Meeting.
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Definition:
A legally registered plan that creates a strata scheme and defines the individual lots and common property within a building or development. It typically includes administrative details such as the name and contact address for service of notices, by-laws, a schedule of unit entitlements, approvals (such as surveyor and certification certificates), and plans showing the layout of the lots and common areas. strata plans are prepared by a licensed surveyor and lodged with the relevant state or territory land registry.
Practical Example:
Vera and Sharn have a small garden area outside their apartment at 95 Mole Street which they have been looking after since they moved in. A review of the strata plan shows where their lot ends, and the common property begins. They realise that part of the garden is actually common property, so they arrange a meeting with the owners corporation to discuss maintenance and a possible by-law to allow them exclusive use of the area.
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Definition:
Association Roll / Lot Owner Register
Contains information about common property and the scheme as well as a register of all lot details such as the names of owners, other interested parties such as mortgagees, covenant charges, lessees.
(Dependent on the entity or state/territory with can also be referred to as Association Roll/Lot Owner Register/Shareholder Register etc…)
Practical Example:
The secretary of “Donovan Mews” checked the strata roll before sending the meeting Agenda and finds out that the owner of Lot 6 has changed their address for the service of notices and correspondence.
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Definition:
Strata title is a form of property ownership that allows individual ownership of a lot (such as an apartment or townhouse) within a multi-unit building or complex, combined with shared ownership of common property (like gardens, lifts, driveways, and roofs). Each lot owner holds a separate title for their Lot and shares responsibility with other owners for the management, maintenance, and expenses of the common property through the owners corporation (body corporate).
Practical Example:
Caroline owns an apartment in “Felix Tower” under strata title. She has exclusive ownership of her lot but shares responsibility as a member of the owners corporation for the Concierge, Building Management, lifts, lobby, swimming pool, and gardens with the other unit owners, contributing to their upkeep via the strata levies.
T
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Definition:
A tenant is a person who rents or occupies a lot or property from a landlord. In a strata or community scheme, a tenant’s rights are governed by the relevant state or territory residential tenancy laws. While a strata managing agent or community association does not have a direct contractual relationship with the tenant, tenants are occupiers of the scheme and should be informed about any matters affecting common property. If a tenancy notice has been lodged, tenants are entitled to certain information about the scheme.Practical Example:
Anton rents an apartment in “Cityscape Towers”. When the owners corporation scheduled maintenance on the building’s shared pool, they notify Anton using the tenancy notice details so he knows when the pool will be unavailable.
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Definition:
An office bearer of the strata committee responsible for supervising the budget, financial performance, and well-being of the scheme.Practical Example:
The treasurer prepares the annual budget and presents the financial statement and balance sheet for the past year at the Annual General Meeting.
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Definition:
A statutory tribunal with authority to hear and decide strata disputes not resolved internally or via mediation. Applications include by-law disputes, levy recovery, and enforcement orders.Practical Example:
Vera and Sharn have a garden area outside their ground level apartment at 95 Mole Street which they have been looking after since they moved in 3 months ago. A review of the strata plan shows that the garden is actually common property, so they arrange a meeting with the committee to discuss maintenance. The committee decline to contribute to the maintenance in any form and tell them it is up to them to keep it tidy. Sharn and Vera proceed to the Tribunal for an order to have the owners corporation maintain the common area under its legal obligation as set out in the Management Act.
U
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Definition:
Depending on the jurisdiction this type of Resolution needs agreement of all owners entitled to vote, with no objections. These resolutions are uncommon and are usually reserved for significant matters that affect all owners, such as altering common property, buying land or determining not to insure the property.
Practical example:
Jimmy and Bertie own a villa each in their two Lot scheme and have agreed to disburse the surplus funds from the owners corporation back to themselves.
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Definition:
A term used for a lot owner who has not paid their levies. Unfinancial owners may lose voting rights at meetings.Practical Example:
Claire is three months behind in levies and now cannot vote at the Annual General Meeting.
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Definition:
The proportional share assigned to a lot within a strata or community scheme, used to calculate levies, voting power, and interest in common property.Unit Entitlement is determined at the registration of the plan by a licensed surveyor or valuer at The allocation may take into account factors such as:
The market value of each lot compared to others in the scheme.
The size, location, or permitted use of the lot
Relevant legislation or regulations in that jurisdiction.
Once registered, the schedule of unit entitlements becomes part of the strata plan and can only be changed by order of a court or tribunal.
When all Unit Entitlements are added together it is termed the “Aggregate Unit Entitlement”.
Practical Example:
Joy owns the penthouse in “Felix Tower” and pays largest proportion of the levies due to its higher unit entitlement because it has the best views, is larger than any other lot in the scheme and is worth the most in terms of market value.
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Definition:
A utility lot (also accessory lot) is a type of lot within a strata or community scheme that is intended for purposes such as storage, parking of motor vehicles, or housing of equipment or goods. It is not designed or permitted for human occupation as a residence, office, shop, or similar use. Utility lots are usually sold or leased with another lot (like an apartment or townhouse) but may also be separately owned.Practical Example:
In “Parkhead Towers”, Lot 525 is a utility lot located in the basement car park. It is owned by Brendan who also owners an apartment in the scheme. Lot 525 is used to store bicycles, car parts and tools. It cannot be converted into a living space or office.
V
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Definition:
Designated parking spaces within a strata or community title scheme set aside for use by guests of lot owners or residents. The rules for using visitor parking, including time limits and permit requirements, are sometimes set out in the scheme’s by-laws.Practical example:
In Anthony’s townhouse complex, each visitor parking space has a four-hour time limit and requires a temporary permit displayed on the dashboard. Residents are not permitted to use these spaces for their own vehicles.
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Definition:
The legal entitlement of a lot owner to participate in decisions at general meetings of a strata or community title scheme. Voting rights may be weighted according to unit entitlements or allocated on a “one lot, one vote” basis, depending on the scheme’s legislation and rules. Voting rights determine the outcome of motions, including approval of budgets, renovations, or amendments to by-laws.Practical example:
At the Annual General Meeting a motion to repaint the building is decided by voting rights. Each owner’s vote is weighted according to their unit entitlements, so owners of larger lots have more influence on the outcome than owners of smaller lots.
W
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Definition:
A term used for a formal instruction issued by the scheme or its strata/association manager authorising maintenance, repairs, or other work to be carried out on the common property. Work orders usually specify the scope of work, the contractor or service provider, and any deadlines or conditions.Practical example:
Martin is the Strata Manager for “Celtic Towers” and issued a work order to repair the building’s leaking roof. The order outlined the work required, the completion date, and any safety requirements to ensure the job is completed correctly and efficiently.
Z
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Definition:
The division of land by a local councils into specific areas (zones) that regulate how the land can be used and developed. In a strata or community title context, zoning can affect what types of buildings can be constructed, the permitted uses of lots, and certain development requirements such as height limits, setbacks, or density.Practical example:
A strata scheme is located in a residential “R2 zone”. This zoning restricts the construction of commercial buildings on the site, ensuring that all properties remain for residential use only.
Disclaimer
The information contained in this dictionary is provided for educational and general informational purposes only. It is not intended as legal, financial, or professional advice, and should not be relied upon as such. Strata and community title laws vary across Australian states and territories and may change over time. Readers, residents, or anyone accessing this dictionary are advised that no responsibility is accepted for any loss, damage, or injury, whether direct or indirect, including accidental harm, arising from use of or reliance on the information provided. Readers should seek independent professional advice before making any decisions or taking action based on this dictionary. The authors and contributors disclaim all liability to any person for any consequences of reliance on the content.