The Owners’ Corporation of a strata scheme in NSW is made up of the registered owners of all the lots in the plan.
On 1st July 1997 the Strata Titles Act 1973(NSW) was replaced by the Strata Schemes Management Act 1996(NSW). This Act brought about many changes including a change in some of the terminology.
Some older owners may still use the earlier terms.
|Owners’ Corporation||Body Corporate|
|Executive Committee||Body Corporate Council|
|Office Holders||Office Bearers|
|Original Owner||Original Proprietor|
|Strata Schemes Management Act 1996(NSW)||Strata Titles Act 1973(NSW)|
The Owners’ Corporation is responsible for administering the building and looking after the common property, such as the pathways, walls and fences, as well as common contents, such as carpets on stairwells.
The Owners’ Corporation elects an executive committee of between one and nine members to administer the general affairs of the building. The executive committee appoints office holders to fill positions such as chair, secretary and treasurer.
The Owners’ Corporation also needs adequate business insurance.
The Owners’ Corporation is required to convene and hold a general meeting once a year. This must be held on a date not earlier than one month before nor later than one month after each anniversary date of the First Annual General Meeting.
Levies are money paid to the Owners’ Corporation, either directly or through a strata manager. Administrative and Sinking Fund levies are usually paid quarterly.
Administrative levies are the sums of money collected by the Owners’ Corporation for insurance and everyday services such as gardening and cleaning of the common areas. They are kept in an Administrative Fund account.
Money is held in a sinking fund so that owners contribute little and often to avoid large sums paying on demand for such things as paving, painting or updates to fire regulations. This money is kept in a separate Sinking Fund account.
These are needed when the sinking fund does not have enough in it to cover the cost of expensive items such as carpet replacements in common areas, painting, major structural or repair work or upgrades to the fire protection.
At its Annual General meeting the Owners’ Corporation appoints a Strata Manager for the following year.
This manager must be licensed under the Strata Schemes Management Act.
Financial tasks falling to the Strata Manager include
- collecting the levies;
- paying the bills;
- seeing that the building is adequately insured; and
- prepare annual accounts for the Owners’ Corporation.
The Strata Manager must make sure that an Annual General meeting is called and should attend Owners’ Corporation meetings.