|
|
Frequently asked questions
|
STRATA
TITLES
|
|
Some
useful information
|
|
The following information is a
combination of material published in Strata
Titles and The Law, produced by the Norwood
Community Legal Service and the Legal Services
Commission with the support of the Law
Foundation of S.A. We have also included legal
and mediation cases. This information also draws
on the extensive knowledge of strata managers.
These pages are designed as a general guide
and are not intended as a substitute for
professional advice
|
|
|
|
|
|
|
|
|
Strata Titles
A strata title is created by the division of
a building into separate units. The boundaries
to a unit are defined by reference to walls,
floors and ceilings in a building, not by
reference to the land. There is an area of
common property, for which the Strata
Corporation (all owners) are responsible. The
law concerning strata titles is outlined in the
Strata Titles Act 1988.
Top of Page
|
|
|
Buying a Strata Titled
Unit
If you are thinking of buying a strata title
home unit we suggest that before signing a
contract you make sure you understand the
operations and finances of the strata
corporation. This information must be supplied
to a prospective buyer, by the strata
corporation through the selling agent or
broker/conveyancer. The information (Section 41
search) provides the following: Last 2 years of
meeting minutes, current officers details, state
of the finances for both the Corporation and the
unit up for sale. It also includes the current
set of Articles and approvals for pets, air
conditioners, pergolas etc.
Important things to consider
Strata title living offers benefits, but it
does not suit everyone. Before you buy a unit,
think carefully about what is involved. You will
be living in close proximity to others, possibly
sharing walls and some facilities. This works
well for may owners who value the sense of
community and those who spend little time at
home or just want an investment unit to
rent.
Each group of units, no matter how big or
small, has a Strata Corporation, which is a
legal entity like a company. All unit owners are
automatically members of their strata
corporation, and are bound by the rules (the
Articles) of
their strata corporation. Your strata
corporation is responsible for the maintenance
and repairs of the common areas of the building
and gardens.
STRATA TITLE CHECKLIST (buying a
unit)
Entry into a Strata title residence may
restrict some aspects of your lifestyle. If you
are uncertain about anything concerning the
corporation, ask the corporation or get legal
advice.
Ask Yourself these questions/seek
information on:
|
|
1. How much money must
be paid for the upkeep, maintenance and
management of the common areas, including
arrears?
|
|
2. What are the assets and liabilities of the
strata corporation?
|
|
|
3. Details of any expenses incurred or about
to be incurred by the strata corporation
|
|
4. Copies of minutes of general meetings and
management committee meetings for the last two
years
|
|
|
5. Statements of accounts and financial
records of the strata corporation.
|
|
6. Articles' of the strata corporation
currently in force.
|
|
|
7. Current insurance policies.
|
|
8. Have I sought independent advice on the
documents relating to the strata
corporation?
|
|
|
9. What system does the strata corporation
have for solving disputes?
|
|
10. What are the rules about having other
people visiting and parking?
|
|
|
11. Are there any unpaid contributions owing
on my unit?
|
|
12. How do the contributions and other
charges compare with other strata
corporations?
|
|
|
13. Is there a 'sinking fund' or reserve of
money held by the Corporation for emergency
expenses?
|
|
14. Will the unit, building, and site be
accessible if I am disabled and require a
wheelchair or walking aid? If not, can suitable
modification be made easily?
|
|
|
15. What maintenance services are provided?
By whom and for what charge?
|
|
16. What are the restrictions on the use of
my unit and the common property?
|
|
|
17. Can I store my caravan/boat/bicycle?
|
|
18. Are pets permitted?
|
|
|
19. Is the strata corporation planning any
major expenditure that I may be asked to
contribute to?
|
|
20. Are there any structural problems in the
building which later may affect my unit?
|
|
|
21. Have you sighted the Section 41 documents
? agents selling units MUST make the documents
available [includes minutes, financial
statements, insurance detail]
|
|
22. Is there provision for your visitors to
park on the property ?
|
|
|
The Corporation may charge a fee for
providing copies of this information under
Section 41 and the Regulations of the Act. The
regulation fee is $50 - $60 for an agent or
broker.
Top of Page
|
|
|
THE STRATA CORPORATION
The role of a strata corporation is to
administer and maintain the property for the
benefit of all unit holders and to enforce the
articles of the strata corporation. All unit
owners are automatically members of the
corporation, but tenants are not however they to
are subject to the Articles. The strata
corporation can delegate some, or all of its
functions to a management committee and may
appoint a strata manager or other such agent to
assist with the management of the
corporation.
The corporation raises funds by levying
contributions against all unit holders, often on
a quarterly basis. The amount that each unit
holder contributes to maintenance funds is
calculated according to the 'unit entitlement'
set out in the strata plan or any other way as
agreed by Unanimous Resolution.. Unit
entitlement is the portion, or ratio, of the
capital value of a unit as against the sum of
the capital values of all the units.
Top of Page
|
|
|
SOME OF THE POWERS AND
FUNCTIONS OF THE STRATA CORPORATION
Administer and maintain the common property
and other property of the corporation.
Enforce the articles of association. Borrow
money, maintain bank accounts and invest surplus
funds. Enter into contracts. Levy maintenance
payments against unit holders. Insure the
buildings and take out public risk insurance.
Require an owner to carry out necessary work,
such as internal plumbing repairs.
Do other things that are necessary as
required by the Act.
Records
The strata corporation has a responsibility
to maintain proper records, including minutes of
meetings (both general meetings and committee
meetings), notices and orders served on the
corporation and all records relating to
financial affairs. It must keep a minute book
containing a record of meetings for 30 years and
accounting records and notices of meetings must
be kept for 7 years. Complete details relating
to record keeping are outlined in the
'regulations', which are attached to the Strata
Titles Act. Strata Managers and agents
authorised by the corporation to hold and
receive money on behalf of the corporation must
operate a trust account and keep financial
records relating to that trust account for five
years.
Top of Page
|
|
|
Insurance
The strata corporation must insure buildings
to replacement value and also provide public
liability insurance for an amount specified in
the regulations, currently at least $5m. Under
no circumstances can a corporation decide that
each unit owner take out their own individual
building insurance. Keep in mind building
insurance will not cover the contents of your
unit. If you choose to take out contents
insurance, check the provisions of both policies
to ensure there are no items left unprotected,
e.g.:. carport, pool etc.
Top of Page
|
|
|
What is Common
Property?
The question of what is and what is not
common property is a difficult issue, and can
cause many disputes. Generally speaking, the
boundary of a unit is the internal surface of
it's walls, floors and ceilings (but another
boundary may be specified on the strata plan). A
unit also includes an area defined on the unit
plan as a 'unit subsidiary', which is an area
for the exclusive use of a particular unit, for
example a carport or garden. Common property is
any land or space that is not within a unit.
Common property such as pipes or electrical
wiring which service a number of units can run
into these boundaries, which then complicates
any strict definition of 'common' property. Such
things as pipes or electrical wiring which
service only one unit are considered part of
that unit and not part of the common property.
It should be noted that in most strata
corporations the roof, guttering, external walls
and foundations are common property.
|
Example questions about common
property
I have paid for my blocked sewer pipe to
be cleared, but the secretary refuses to
reimburse me, claiming it was not common
property. Who should pay?
The issue of what is and what is not common
property can cause many disputes. Generally
speaking, the boundary of a unit is the internal
surface of it's walls, floors and ceilings, and
a unit can also include an area known as a 'unit
subsidiary' marked on the strata plan as being
for the exclusive use of a particular unit, e.g.
a carport or garden area. Common property
comprises any land or space that is not within a
unit, and such things as pipes, drains or
electrical wiring that are not for the exclusive
use of a unit.
Clearly the strata corporation has a
responsibility to maintain the common property.
However if the corporation carries out work that
wholly or substantially benefits a particular
unit, or group of units, then responsibility for
payment may be placed on those units owners. So
it could be argued that the clearing of your
pipes should be at your expense. The cause of
such blockage may be relevant to who pays the
bill. If it was clearly your fault, e.g.. your
child's toy blocking pipes, then you may well
have a responsibility to pay for clearing and
possibly even repairs.
Back to top
|
|
|
|
|
|
