Responsibilities of the Owners Corporation

• The Owners Corporation

• Owners Responsibilities

   

  - Record keeping

   

  - Statements and financial records

   

  - Strata Roll

   

  - Levies

   

  - Sinking Funds

   

  - Administration Fund

   

  - Insurance

• General powers and obligations of the Owners Corporation

The Owners Corporation

The Owner's Corporation comprises the owners of the group of lots bound by a Strata Title. The owner's corporation is the new name for what used to be called a "body Corporate". All Strata Solutions experienced property team can assist with all aspects of running your Owners Corporation.

The Owners Corporation has designated and legislated functions and powers. It has powers and responsibilities to administer the building and care for such things as the land around the building and common property. At each annual general meeting of an Owner's Corporation an executive committee is elected to administer the day-to-day running of the strata scheme, as schemes have become larger it is often more practical to delegate this authority to managing agents. All Strata Solutions extensive contacts within the industry can help in the due diligence required, if you desire to appoint a managing agent.

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Owners Responsibilities

The rights and responsibilities of the Owners Corporation and lot owners are governed by legislation called the Strata Schemes Management Act. The following list of responsibilities includes, but is not limited to the following.

Record keeping

The Owners Corporation must keep a record of all information for at least 5 years on the following.

• Details of motions passed

• Copies of correspondence sent and received

• Copies of proxies

• Notices of executive committee meetings, Owners Corporation, and relevant details of all other notices.

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Statements and financial records

The Owners Corporation must prepare and keep a record of all information for at least 5 years on the following:

• A levy register

• Receipts that are consecutively numbered

• Banking details including statements of deposits and withdrawals, passbooks and bank deposit books.

Audited financial statements that are to be prepared at least 2 months before the AGM.

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Strata Roll

A strata Roll must be prepared or maintained. Information regarding the owner's name, address or owner's agents name and address must be recorded.

The Schemes records must include the following:

• The by-laws of the scheme

• Total unit entitlements for each lot and the scheme

• Name and address of managing agent (if applicable)

• Strata numbers and address of building.

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Insurance details

All Strata Solutions can provide you with templates to help simplify and maintain your compliance responsibilities.

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Levies

The Owners Corporation, in order to have enough funds to fulfil its responsibilities, is obliged to charge (levy) the lot owners an amount which is commensurate to the unit entitlements of each lot.

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Sinking Funds

It is the responsibility of the Owners Corporation to have money set aside to cover future capital expenditure. All new lots and older schemes are required to begin a ten year sinking fund as of the 1 May 2006 or have 5 yearly reviews of existing funds. This scheme is designed to prevent lot owners being forced to sell properties or suffer financial hardship as a result of massive capital expenditure requirements.

The Sinking fund is to cover, but is not limited to the following:

• Repair, replace or make good common property e.g. Lifts

• Renewal or replacement of fixtures on common property or property of the Owners Corporation

• Painting Common property

• Obtaining property by the owners Corporation e.g. BBQ, Mowers, Laundry

• Other Capital expenditure

• Any Debts that are not covered by the administration fund.

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Administration Fund

The owners Corporation is responsible for maintenance of a fund to cover the daily operational expenses of the scheme. The administration fund is used to cover things like, insurance premiums, minor maintenance of common property, or other recurrent expenditures, that are not provided for in the above levies or sinking

 funds.

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Insurance

The Owner's Corporation is responsible for taking out insurance and having the building valued at least every 5 years: Insurance cover must be taken out with APRA approved insurers for the following:

• Building damage insurance. (Including replacement, demolition and debris removal) i.e. return the building to its original state

• Public liability insurance

• Workers compensation insurance

• Any other appropriate insurance for the scheme.

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General powers and obligations of the Owners Corporation

The Owners Corporation have the following powers and obligations. Please note that this list is not exhaustive as every scheme has different requirements however generally:

• The Owners Corporation is responsible to conduct fire safety inspections

• Notify residence regarding pest control

• Provide Strata information as required

• Dismiss executive committees

• Powers to grant special resolutions.

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Our expert team can provide you with more information or assistance with a Strata management issue. Complete and submit the Express Enquiry form on the top right hand side of this page and we will contact you to discuss your enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.