Strata Living Guide: Understanding Your Rights & Rules

Every resident is a key part of keeping your scheme in the top shape!

We encourage everyone, owners and tenants alike, to participate and stay informed.

Knowing how things are run prevents frustration! Ask the right questions of the right people.

Check the By-laws – rules of your strata ‘scheme’ (your building or complex) that that ensure everyone gets along. Understand how money is allocated, how things work and shared (common) property.

What is strata title?

When you buy a freehold house, you own the whole of the land and any buildings on it. Strata title is a form of title where you own a “lot” and a share in the “common property” which is the land and building apart from your lot.

What is common property?

When you buy a ‘lot’ in a strata title development, you usually only own the area inside the walls, ceiling and floors (including furnishings such as carpet, internal walls and doors). You do not own the floors, ceilings, walls, or entry/exit doors.

The rest of the property is called ‘common property’ and this is owned by the entity which comes into being when the strata plan is registered. The name of the entity differs in each state (see table).

What are Levies / fees?

When you own a house, you are responsible for the repair, maintenance and insurance of the land and buildings.

In a strata scheme, the entity representing all owners is responsible for the running of the scheme including maintenance, repair and insurance of the land and all the buildings. Lot owners pay levies – sometimes called strata fees – toward these costs (whether they use them or not).

There are two types of levies, and they are saved into separate funds:

administration for the day to day running of the scheme (such as insurance, strata managing agent fees, cleaning, gardening)
capital works / sinking fund / reserve / maintenance for large improvements or maintenance (such as roof replacement, painting the building exterior).

Can I do renovations without permission?

Unlike a house, where you own the buildings and land, in a strata title development, you usually do not own the area which is defined as ‘common property’.

You will generally have to obtain approval from the entity representing all owners to do any work on the common property (Owners Corporation / Body Corporate / Strata Corporation / Strata Company).

Different levels of approval will be required depending on whether the renovations are minor or not. Even something which may seem small, like drilling into the front door of your unit to install a deadlock or peephole is likely to need approval, and if done without permission, may have consequences in terms of the fire safety of the block as these doors are usually fire doors.

Can I keep a pet?

Most strata schemes will have a by-law that a lot owner can keep a pet. It should explain any conditions, such as areas in the scheme where animals are not permitted, and/or forms required.

Some schemes request evidence that the pet is unlikely to be a nuisance (e.g. references from previous committees, neighbours, or a vet).

Who makes decisions?

In practice, most of the running of the scheme is usually done by a committee, which is elected at each Annual General Meeting. This group instructs the business which is paid to take care of administration. The administration company should have expertise in rules about running a scheme, but is not responsible for managing the scheme – that is an owners obligation.

What is the Committee? (In WA, this is called a ‘Council’)

At each annual general meeting, owners vote to elect a committee which will volunteer to work for the good of the scheme, by making and overseeing day-to-day decisions. The committee will have a Chair/Presiding Officer, Secretary and Treasurer, it may have other members. Typically, all correspondence is to/from the Secretary – keeps things clear for scheme records.

Anyone not on the committee can still play an important role in running the scheme, by supporting the committee and doing tasks.

What is a Manager / Agent?

Most strata schemes appoint a company to manage the administration and assist with the running of the scheme. For instance, to arrange meetings, obtain insurance quotes, distribution of accounts, and engage contractors. Typically, all correspondence is between the Secretary and a person appointed by the agency (often known as the ‘Manager’) – this ensures clear instructions.

Some schemes have active owners who contribute to organising this work, in order to keep costs down
Some schemes have no owners wishing to volunteer time, preferring the agency to charge for all administrative tasks.

Owners should initiate ongoing communication throughout the year to ensure the agent is paying close attention to directions provided. In turn, the agent should provide good advice to the group of owners elected to make day-to-day decisions (for instance, guidance about the law in your state).

Owners may delegate certain powers and functions to the strata managing agent. This should be done with care, so that control and oversight is maintained by owners. Strata managing agents must be licensed under the applicable Act (law) in your state or territory.

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How do I know if a new apartment building has defects?

Unfortunately, many new apartment buildings have defects including waterproofing and fire safety systems. The best way to avoid a defective building is to check out previous projects by the developer, builder and certifier.

OCN is working to improve building standards in apartment buildings, with the aim of developers providing a 10-year warranty on major defects, backed up by an insurance policy. Ideally, each state or Territory should have a dedicated office-holder such as a Building Commissioner with the authority to bring beneficial outcomes to schemes, specifically improved legislation.

4 commonly used terms – choose the row for your state:

STATE	ENTITY WHICH OWNS COMMON PROPERTY (Refer property contract / Registered Plan)	STATE	ADMINISTRATION COMPANY (governed by an Agreement or Contract)	STATE	OWNERS ELECTED TO MAKE DAY-TO-DAY DECISIONS (Elected by owners vote)	STATE	WORK FUND Levies / Fees fund the Administration & Works accounts (as voted by owners at the AGM)
ACT	Owners Corporation	ACT	Strata Managing Agent	ACT	Executive Committee	ACT	Sinking Fund
NSW	Owners Corporation	NSW	Strata Managing Agent	NSW	Strata Committee	NSW	Capital Works Fund
NT	Body Corporate	NT	Manager	NT	Committee	NT	Sinking Fund
QLD	Body Corporate	QLD	Body Corporate Manager	QLD	Committee	QLD	Sinking Fund
SA	Strata Corporation	SA	Agent	SA	Managing Committee	SA	Sinking Fund
TAS	Body Corporate	TAS	Manager	TAS	Committee of Management	TAS	Maintenance Fund
VIC	Owners Corporation	VIC	Owners Corporation Manager	VIC	Committee	VIC	Maintenance Fund
WA	Strata Company	WA	Manager	WA	Council	WA	Reserve Fund

Management of common facilities may have additional parties involved, e.g. if a hotel is attached, or if the grounds are under Community Title, which may act alongside Strata Title.