Navigating the world of strata management can be overwhelming, especially when confronted with industry-specific jargon. To help you participate confidently in strata matters, we’ve put together this guide to understanding strata terminology – NSW Edition.
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. This may include cleaning, gardening, and minor repairs.
By-Laws – By-laws establish the rules all residents and owners must follow within a strata scheme.
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.
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, or 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. Where applicable, it includes 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.
Common Property Rights – Common property rights can be granted to certain owners via a by-law. For example. 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 titled scheme, and covers the use and management of association property (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 planning.
Model By-Laws – A generic set of rules as prescribed in 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. Visit their Website.
NSW Civil & Administrative Tribunal (NCAT) – The state body that hears strata related matters.
Ordinary Resolution – Property owners or representatives make ordinary resolutions at general meetings. They must vote in the majority to pass an ordinary resolution.
Owner 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 mortgage holders, covenant charges, or lessees (tenants).
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) with vital information about a strata scheme, in return for a fee. This document can be provided by a strata committee member or strata managing agent.
Special Resolution – Some motions must be voted on by special resolution, meaning the motion will only be carried if no more than 25% of the unit entitlements of the votes cast are against it.
Strata Manager – A strata manager provides guidance to the owners corporation in carrying out its duties.
Unit Entitlement (UE) – Unit entitlement (UE) regulates levy amount each property owner must pay. Strata plans contain information on the UE.
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