Understanding Strata Terminology – A Guide for Owners and Committee Members

Navigating the world of strata management can be overwhelming, especially when confronted with industry-specific jargon. At TCM Strata, we believe in transparency and education, ensuring that our clients feel empowered and informed about their rights, responsibilities, and community obligations.

To help you participate confidently in strata matters, we’ve put together a guide to commonly used strata terminology, making strata ownership and committee roles clearer for everyone.

 

Queensland Strata Terminology Explained

Body Corporate

A body corporate is a legal entity formed when a property is subdivided into multiple lots, governed by the Land Title Act 1994. The body corporate is responsible for managing and maintaining common property, enforcing by-laws, and setting levy contributions to fund property expenses.

 

Body Corporate Manager

A body corporate manager provides expert administrative and financial services, ensuring the smooth operation of the strata scheme. At TCM Strata, our managers leverage 35 years of expertise to deliver tailored solutions that foster thriving communities.

 

Body Corporate Property

A body corporate property is a parcel of land with a building (or buildings). Individuals own a part of the property, referred to as a lot. They may have common areas such as driveways, pathways, fences, external walls and roof. A body corporate property has at least two lots. Residents and commercial businesses can use these lots. Lots can be a vertical block of units (high-rise). They can also be all on the one level such as townhouses or commercial offices.

 

Building Format Plan (BFP)

A Building Format Plan (BFP) is a subdivision of multi-storey complexes (vertical developments). Most BFP’s are a subdivision such as apartment buildings.

 

Community Titles Scheme

A community titles scheme (CTS) refers to properties where lot owners share common spaces, such as gardens, pools, or hallways, under a structured governance system.

 

Community Management Statement (CMS)

A Community Management Statement outlines the specific by-laws, financial contributions, and property management rules for a community titles scheme.

 

Contribution Schedule

A contribution schedule determines each owner’s financial obligations toward maintenance and operational costs. It also dictates voting entitlements within the body corporate structure.

 

Contravention Notice

A contravention notice is a document that details an owner or resident’s breach of by-laws and requests the person responsible to fix the issue.  The notice must state the body corporate believes the person is breaching a by-law, detail the by-law that is being breached, explain how the by-law is being breached and set a time period to fix the breach or provide a warning not to breach the by-law again.

 

Committee Code of Conduct

A committee code of conduct is a set of rules for committee members, which outline how to act in the best interests of the body corporate. Schedule 1A of the Body Corporate and Community Management Scheme Act 1997 outlines how a body corporate committee must adopt a committee code of conduct. The code of conduct will generally state committee members must act honestly and fairly, must disclose conflicts of interest, must not cause a nuisance, and must comply with body corporate legislation.

 

Fire Safety Installations

Fire safety installations are important for body corporate committees. These include structural features such as:

• fire windows
• fire doors
• Dampers
• fire protection systems such as sprinklers
• stairwell pressurisation systems
• firefighting equipment such as fire extinguishers, hydrants, and reels,
• occupant safety features such as fire signage and emergency lighting, and
• other services such as vehicle access.

 

Interest Schedule

An interest schedule is a type of lot entitlement schedule. It is used to calculate each owners’ proportionate share of insurance.

 

Office of the Commissioner for Body Corporate and Community Management

The Office of the Commissioner for Body Corporate and Community Management is the governing body for people living, investing or working community title schemes in Queensland. It provides information and dispute resolution services.

 

Occupiers Statement

An Occupiers Statement is a summary of testing and maintenance performed. This testing is undertaken on building fire systems.

 

 Ordinary Resolution

An ordinary resolution is a resolution of votes for and against a motion. A committee passes a motion when the for votes counted are more than the against votes counted.

 

 Majority Resolution

A majority resolution is a resolution of votes for and against a motion. A committee decides a motion by majority when more than 50% of the owners entitled to vote, vote a particular way. Each lot is only allowed to cast one vote for this type of resolution, and proxy voting is not allowed.

 

Standard Format Plan (SFP)

A Standard Format Plan (SFP) outlines the boundaries for horizontal developments. Townhouse complexes are horizontal developments. Gated communities with a building and a yard are also horizontal developments. Distances, bearings and structural elements of a building define their boundaries.

 

Committee Code of Conduct

A committee code of conduct governs how strata committee members should act, ensuring fairness, transparency, and adherence to legislation.

 

New South Wales Strata Terminology Explained

Administrative Fund

The administrative fund is used to cover the day-to-day expenses of maintaining a strata property, including cleaning, gardening, and minor repairs.

 

By-Laws

By-laws establish the rules all residents and owners must follow within a strata scheme. These cover issues such as pet ownership, noise levels, and renovation approvals.

 

Capital Works Plan 
A capital works plan is a ten-year plan that takes into account all major works that must be completed, including painting, replacing lifts or flooring, and repairing common property such as pools or fencing. It must be reviewed every five years.

 

 

Capital Works Fund

A capital works fund, formerly known as a sinking fund, is maintained to ensure there is enough money to pay for major works when required, such as painting, replacing lifts or flooring, and repairing common property such as pools or fencing. Owners contribute to the capital works fund with each levy paid.

 

 

Certificate of Currency

A certificate of currency contains important information about your strata property insurance coverage, including confirmation that the policy is current, the sums insured, the policy type and policy date.

You may need a certificate of currency if you:

• apply for a mortgage
• refinance your mortgage.

Your strata provider can assist you in obtaining a copy of the certificate of currency for any of these reasons.

 

Certificate of Title

A certificate of title is a legal document that verifies ownership of a property, including any associated restrictions, mortgages, or encumbrances.

 

Community Association

Community association is land registered under The NSW Community Land Development Act 1989. It is a subdivision of association property and private lots. The owner of a lot maintains all buildings constructed on the lot. Association property is property jointly owned and maintained by all owners.

 

Common Property Rights

Common property rights are granted to certain owners via a by-law, giving them exclusive use of specific common areas, such as balconies, gardens, or parking spaces.

 

Community Management Statement

A community management statement is a document that outlines the by-laws for a community title. It covers the use and management of association property being the property owned by all owners collectively.

 

Initial Period

Initial period commences on registration of a strata or deposited (community title) plan. The length of the period ends based on legislation, the method varies depending on the type of property.
Large Strata Scheme

A large strata scheme is any strata development comprising more than 100 lots, excluding parking spaces and utility lots. These schemes require enhanced governance and financial planning.

 

Model By-Laws

Model by-laws are a generic set of rules prescribed in the legislation.

 

Notice to Comply

Notice to comply outlines a by-law breach and requests a person to follow the notice.

 

NSW Fair Trading

The NSW Department of Fair Trading is the state body that regulates strata matters.

 

NSW Civil & Administrative Tribunal

NSW Civil & Administrative Tribunal (known as NCAT) hears matters related to strata and community title schemes including disputes.

 

Ordinary Resolution

Property owners or representatives make ordinary resolutions at general meetings. They must vote in the majority to pass an ordinary resolution.

 

Poll

A poll is a method of voting at meetings where each owner’s vote has a value based on the lot’s unit entitlement.

 

Section 184 Certificate

A Section 184 certificate is a document that provides certain parties (including owners and prospective owners who have written permission from an owner, mortgagee or covenant charge) with vital information about a strata scheme, in return for a payable fee. It was previously known as a Section 109 certificate. It can be provided by a strata committee member or strata managing agent and must include the owners corporation seal.

A Section 184 will typically include information including:

Information about the strata committee members and managing agent

• Strata levies
• Outstanding levies
• Insights into the property’s 10-year capital works plan
• Recently-created by-laws

 

Special Resolution

Some matters must be vote on by special resolution where no more than 25% of the unit entitlements of the votes cast are against the motion

 

Strata Plan

A strata plan subdivides the land and building(s) of a strata property into lots and common property.

 

Strata Manager

A strata manager provides guidance to the owners corporation in carrying out its duties.

 

Strata Roll

A strata roll is the register of the owners of every lot in a strata property. It includes the names and contact information of other interested parties such as

• any mortgage holders
• covenant chargees, or
• lessees (tenants).

 

Unit Entitlement (UE)

Unit entitlement (UE) regulates levy amount each property owner must pay. It also determines voting strength at meetings if the value of the votes is important. Strata plans contain information on the UE.

 

Strata Should Be Simple—TCM Strata Makes It That Way

At TCM Strata, we believe that knowledge is the key to better strata living. Whether you’re a new owner or an experienced committee member, our commitment to transparency and education ensures you always have the support you need.

Are you considering a change in strata management?

Book a free strata assessment today. Our team of dedicated local experts will provide an obligation-free review of your current management, offering tailored solutions to better serve your community.

Contact us to learn how TCM Strata can help you navigate the complexities of strata living with confidence and ease: info@tcmstrata.com.