In New South Wales, properties such as apartment buildings, unit blocks or townhouses are managed in a strata scheme.
The day-to-day management duties of a strata scheme vary from scheme to scheme, and are generally managed by the following bodies.
The owners corporation
The
owners corporation is responsible for the management of the strata scheme. When
a person becomes the owner of a lot within a strata scheme they automatically
become a member of the scheme's owners corporation and are entitled to
participate in decision making regarding issues which affect the scheme. Such
issues may include:
- the
by-laws that govern the scheme;
- Maintenance
and repair of common property; or
- Financial
management.
The
consideration of these issues is conducted by way of regular general meetings,
which members are entitled to attend. The Owners Corporation may make decisions
by a simple majority vote (ordinary resolution) or with at least 75% of the
members present and entitled to vote (special resolution).
Where
a lot has more than one owner, only one owner may hold a vote at meetings,
though all owners may attend. Tenants may also appoint a representative on the
owners corporation, though that representative is not entitled to vote at a
meeting. An owner is only entitled to vote if they are 'financial', meaning
that they have no overdue strata levies payable as at the date of the meeting.
The
owners corporation also has a number of executive responsibilities including:
- enforcing
the by-laws of the scheme;
- Ensuring
access to common property or individual lots is provided to external
parties for particular purposes, such as for fire safety inspections;
- Notifying
residents of maintenance, pesticide treatments and other work being
conducted which affects the residents
Strata managing agent
The
owners corporation may be assisted in the discharge of its responsibilities by
a strata managing agent. A strata managing is an agent employed by the owners
corporation. The manager must be licensed and is contracted to undertake
specific responsibilities delegated to it by the owners corporation. Only
certain responsibilities are able to be delegated to the strata manager under
the Strata Schemes Management Act 2015.
Under
the Strata Schemes Management Act 2015 the owners corporation retains the right
to execute any responsibilities they have delegated.
Strata committee
The
strata committee is a body elected by the owners corporation to enable a more
efficient decision making process regarding day-to-day decisions concerning the
scheme. The owners corporation can pass motions at a general meeting overruling
the strata committee or limit the scope of the committee's decision making
powers.
People
eligible to be appointed to the committee include:
- The sole
owner of a lot in the strata scheme
- Usually,
one co-owner of a lot, unless the co-owners own multiple lots
- A
non-owner, if nominated by an eligible person who has not been nominated
themselves for a position on the committee
Those
who are ineligible, unless they also own a lot in the scheme, include building
managers, agents who lease lots to tenants on behalf of lot owners and,
generally, a person connected to the original owner of the scheme or the
building manager.
Committee
members elect amongst themselves a chairperson, secretary and treasurer for the
committee. The chairperson oversees all general meetings and procedural
matters. The secretary calls meetings by providing advance notice to members
and produces meeting agendas and minutes. The treasurer notifies lot owners of
levy contributions required and keeps proper accounting records.
Building manager
The
building manager is appointed by the owners corporation to assist with the
day-to-day management of the building itself.
Generally,
a building manager will be responsible for the management, control and repair
of common property. They may also perform cleaning, concierge and security
functions in the building.
A
building manager may not enforce by-laws or carry out functions of the owners
corporation.
The
appointment of a building manager should be considered at the owners corporation
AGM. The building manager's powers and responsibilities are ultimately governed
by a building manager agreement between the building manager and the owners
corporation, the details of which are to be considered at the AGM. Prior to
their appointment the building manager should disclose all financial interests
they hold in the strata scheme.
Source: http://www.mondaq.com/australia/x/803524/landlord+tenant+leases/What+is+a+strata+scheme+in+New+South+Wales
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Jason Gwerder
Friday, 10 May 2019
