|The following responses to frequently asked questions are based on model by–laws provided under the Schedule 2 of the Strata Schemes Management Regulation 2010. You should check with your owners corporation as to whether different by–laws are in place for your scheme.|
Some of the frequently asked questions and answers about strata schemes are listed below.Common property
The major difference between owning a house and owning a unit or apartment (known as a ‘lot’) in a strata scheme, is that the external walls, the floor and roof do not usually belong to the lot owner. These areas are usually common property and generally the responsibility of the owners corporation.
If the trees are common property, it is the owners corporation’s responsibility. If the trees are part of your lot – you are responsible, as the owner.
If it is part of your lot, yes. If it is common property, you will need to get the permission of the owners corporation. This usually requires an exclusive use by-law to be passed by special resolution (75% of members of the owners corporation have to vote for it) at a general meeting.
If your backyard is part of your lot, you can do anything as long as it doesn’t breach by-laws, for example, you must not damage common property or create disturbing noise.
Send a written request to the secretary or strata managing agent. Permission should then be voted on at a general or executive committee meeting.
Only if you have the permission of the owners corporation. If common property needs repair or maintenance, the owners corporation should undertake that work, not an individual owner.
The owners (or residents) are responsible for putting their own bins out, bringing them in, and keeping them clean. The owners corporation usually owns the bins.
While there is no obligation to do so, it is highly recommended that you take out adequate insurance on the contents of your unit. The insurance that the owners corporation organises covers the structure of the building and any fixtures inside lots (for example, sinks, baths, shower trays).
However other contents such as your furniture, electrical appliances, curtains and carpets would not be covered. Owners can suffer major loss if their personal property is not insured in the event of a fire or through water damage. In addition, contents insurance usually covers your paint finishes on walls and ceilings.
Refer to Common property and the lot for more information.
The owners corporation is made up of all the owners in the strata scheme. By-laws are made or changed to meet the needs of all owners and to assist with the running of the strata scheme.
For more information on by-laws go to the By-laws in a strata scheme page.
All owners are always members of the owners corporation. They have voting rights and obligations to pay levies and comply with by-laws. Owners cannot ‘resign’ from the owners corporation.
However you are free to manage your unit as you see fit. You can enter into a contract with a managing agent or caretaker to manage your unit, if you wish.
Check your by-laws first. Some schemes allow pets with the permission of the owners corporation – the executive committee can give this approval. Other schemes do not allow pets at all. If your by-law allows for pets then make a written request to the owners corporation and include any information to support your request, for example, information on the type of dog, how you will look after it and so on.
The best approach is to try to resolve the problem yourself, so talk to the person first. If that doesn’t work or, if you feel intimidated, you have two choices. You can ask the owners corporation to issue them with a Notice to Comply with a By-Law (in PDF format (size: 57kb) then seek a fine if they keep breaching. Or you can apply for mediation through Fair Trading to have a mediator assist you to discuss the issue with them.
Only if it is required in your by-laws. If the owners corporation does not have a noticeboard it must send all meeting and other notices to each owner directly.
That is a matter for the owners corporation to decide at a meeting.
Under the model by–laws that apply to most schemes, owners do not require permission to remove the carpet in their lot airspace. However the model by–laws require them to notify the owners corporation before proceeding. If a noise problem results, you can talk to them about it or ask the owners corporation to serve them with a Notice to Comply with a By–Law in PDF format (size: 57kb). If the unit is tenanted, you can usually take action against the owner seeking to have the floor carpeted or covered to reduce noise.
You can draft your own by-law and put it on the agenda for the next general meeting. It requires a special resolution – 75% or more to vote in favour. Once it is passed, the by-law must be registered with the Land & Property Management Authority, then it is an enforceable by-law that must be obeyed. You may want to get assistance from your managing agent or a solicitor.
For more information, refer to The owners corporation and the Schedule 1 by–laws section of Common property and the lot.
The Strata Schemes Management Act 1996 sets out how meetings are called, who can attend and vote, how they are to be run and how decisions are made.
While it is not compulsory for any lot owner to attend owners corporation meetings, a strata scheme operates better if those concerned take an interest in its affairs. There would usually be several meetings of the owners corporation a year, however the annual meeting, when levies are set for the coming year and the executive committee is elected, is the only meeting required to be held by law. It is helpful if people are willing to make themselves available for election to the executive committee.
Tenants are not required to attend meetings and do not have voting rights. An owner could choose to give their tenant a proxy vote on the owner’s behalf.
In order to speak and vote at meetings you need to be an owner. Your name needs to be on the Strata Roll and you also need to be up to date with payment of levies.
Tell the secretary or strata managing agent. The minutes should then be amended. If they are not, the matter should be raised at the next meeting. If it remains unresolved, you can apply for mediation through Fair Trading to settle the matter.
Each year the owners corporation must have one annual general meeting and also one executive committee meeting to appoint office bearers. Other meetings can be held as the need arises.
Encourage owners to get involved in the management of their scheme. However there is no requirement for them to attend and they can choose to stay uninvolved if they wish.
General meeting minutes must be sent out with the notice of the next general meeting if not issued sooner. Executive committee minutes must be placed on the noticeboard, or sent to all owners if there is no noticeboard, within 7 days.
Refer to Meetings of the owners corporation for more information.
A proxy is where you authorise someone else to vote on your behalf when you are unable or choose not to attend a meeting.
Download the prescribed proxy form (PDF size: 782kb).
You will not be able to use a proxy if your name is not on the strata roll or if your levies are not paid in full.
Only matters on the agenda can be voted on and resolved. Matters not on the agenda may be discussed, but would need to be put on the agenda for the next meeting for the matter to be voted on.
Seek to raise it at the meeting and ask again to put the motion on the agenda for the next meeting. Alternatively lodge an application for mediation through Fair Trading to resolve the matter.
Both are votes required for certain motions at general meetings (not at executive committee meetings). A special resolution is where there must be at least 75% of owners in favour of the motion, based on unit entitlement. A unanimous resolution is where everyone votes for the motion.
No, there are no deciding votes at general meetings (includes AGM) or executive committee meetings.
Yes. A quorum for a general meeting is 25% of people entitled to vote or owners who hold 25% or more of unit entitlement. A quorum for an executive committee meeting is at least 50% of the executive committee members.
Refer to Meetings of the owners corporation for more information.
The owners corporation must elect an executive committee which can make many of the day-to-day decisions about running the scheme on its behalf.
The executive committee members are elected at the AGM. Your nomination must be submitted before or during the AGM. Any owner can nominate themselves. Owners can also nominate a non–owner as long as they do not nominate themselves as well. Co–owners may be nominated by another co–owner of their lot who is not standing for election, or by an owner of another lot.
Note: Anyone nominated for election to the executive committee must disclose any financial, business or family connections they may have with the original owner or caretaker. After being elected, committee members must also disclose any financial, business or family connections they may develop with the original owner or caretaker.
The executive committee member can resign, otherwise that person’s position can be terminated by a special resolution (where 75% vote in favour) at a general meeting.
You can attend the meetings if you are an owner (or company nominee) but will need the permission of the executive committee to speak. You will not be able to vote.
Refer to Executive committee of the owners corporation for more information.
The owners corporation is responsible for repairs to common property, owners are responsible for repairs within their individual lots.
Levies must be raised to do repairs. A motion is put to a general meeting to raise levies to cover the cost of the work. The amount that needs to be paid by each owner is based on their unit entitlement.
The owners corporation must repair common property and an owner must repair their lot – it does not make a difference how the damage occurred (whether accidental or negligent). If someone else damages your property, then like any damages claim, you may take legal action to recover the cost of repairs from that person.
Speak to the secretary or the strata managing agent to find out how the matter is progressing. If the repairs are being delayed you can lodge an application for mediation with Fair Trading to try to settle the matter.
The owner or occupier is responsible for things inside their lot. They may be able to claim on their contents insurance policy.
The owners corporation is responsible for setting up an administrative and sinking fund and can raise levies from owners to pay for the expenses of running the strata scheme.
Levies are decided at general meetings and must be discussed and accepted by a vote of the owners. You can vote against the increase or put up a motion for a different levy amount if you wish. A managing agent may put a motion for an increase in levies on the meeting agenda but cannot impose levies.
Levies are normally only increased if there is a need to do new works or there are additional expenses. Ask why the increase is being made if you are not sure.
If you are concerned about rising costs you could try to negotiate paying in instalments. If you think the levies are really too high, you can lodge an application for mediation with Fair Trading to try to resolve the matter.
Your levies must be paid whether or not you receive a notice. Unpaid levies mean you will not be able to vote at meetings. Make sure your current address is on the strata roll so you can receive notices of both levies and meetings. You can pay your levies any time up until a meeting starts, in order to be financial and therefore eligible to vote.
The owners corporation can impose a charge of 10% simple interest for levies not paid within 1 month of their due date. The owners corporation can also take debt recovery action through the local court.
All buildings need to be maintained regularly to retain their value and stop minor damage and deterioration becoming major problems. Developing a 10–year sinking fund plan means that future repairs and maintenance are anticipated well in advance. The owners corporation can then agree on the best way to raise levies to cover these future costs.
For more information about levies, administrative and sinking funds, refer to the Levies and the administrative and sinking funds section of the Responsibilities of the owners corporation page.
For more information about sinking funds, refer to Sinking funds.
The owners corporation can engage a strata managing agent to work on behalf of all owners to help manage the scheme.
The managing agent is the employee of the owners corporation. They can offer advice and direction, but final authority lies with the owners corporation.
You should discuss the matter with the agent. You can also hold meetings of the owners corporation to make decisions and the agent will be bound by these. If this does not change things you could terminate the agent’s contract, but check first to see what termination provisions apply. The executive committee can always hold meetings to vote on carrying out the repairs themselves.
Write to the agent. The owners corporation can apply to the NSW Civil and Administrative Tribunal for an order for the agent to return the records.
Finding a good strata managing agent can be a key contributor to harmonious strata living. To find a good manager you could ask for recommendations from owners in other schemes, speak to local agents or contact Strata Community Australia, the Real Estate Institute of NSW or the Owners Corporation Network.
We recommend that you choose at least three potential agents and then interview them. Check to make sure they have a strata managing agent’s licence, that you understand their fee structure, and that you know what services they will be providing.
Find out whether they follow a code of ethics, and ask if they can provide references or contacts in other strata schemes so that you can check on the customer satisfaction of their existing clients.
There must be a written contract between the owners corporation and the strata managing agent, so make sure you know what is in the contract. It may be a good idea to get a legal advisor to check the contract before signing.
Terminate the agent’s agreement, then hold executive committee and general meetings to make decisions on your management issues. You may need to convene a general meeting to vote in a new executive committee who will then appoint the chairperson, treasurer and secretary at their first executive committee meeting. The executive committee will probably then take over many of the duties that the agent has been doing.
Refer to Managing agents and caretakers for more information.
Get a free copy of Adobe Acrobat Reader so you can access PDF versions of our information.