You are here: Strata Management > Affixing The Common Seal > 

Affixing the Common Seal of the Owners Corporation

The common seal is a rubber stamp unique to each strata plan, which features a number particular to the individual Owner’s Corporation. It must be used to execute a binding document, verifying an official agreement or contract. It provides evidence of the agreed position of the Owner’s Corporation.

The use of the seal is bound by state legislation. Section 238 of the Strata Schemes Management Act 1996 has the relevant clause. 

238 How should the seal of the owners corporation be affixed?

1. If an owners corporation has only one owner or 2 owners, the seal of the owners corporation must not be affixed to any instrument or document except in the presence of the owner or owners or the strata managing agent of the owners corporation.
2. If an owners corporation has more than 2 owners, the seal of the owners corporation must not be affixed to any instrument or document except in the presence of:
   
   1. 2 persons, being owners of lots or members of the executive committee, that the owners corporation determines for the purpose or, in the absence of a determination, the secretary and any other member of the executive committee
   2. the strata managing agent of the owners corporation.
3. The strata managing agent must attest the fact and date of the affixing of the seal:
   1. by his or her signature, or
   2. if the strata managing agent is a corporation, by the signature of the president, chairperson or other principal officer of the corporation or by any member of staff of the corporation authorised to do so by the president, chairperson or other principal officer.
4. A strata managing agent who has affixed the common seal of the owners corporation to any instrument or document is taken to have done so under the authority of a delegation from the owners corporation.
5. Subsection (4) does not operate so as to enable a person to fraudulently obtain a benefit.
6. A person is taken not to have fraudulently obtained a benefit from the operation of subsection (4) if the benefit was, without any fraud by the person, obtained before the seal was affixed.

There are occasions when the seal should be used and instances when it’s inappropriate for documents to be stamped with the common seal. Owner’s corporation should be aware that it is part of good corporate governance to be know when to affix the seal and also to realise that there are official processes the corporation must follow when using the seal. For example affixing the common seal to a Development Application prior to submitting to Council only adds confusion to the application.

The seal should only be used when a resolution is passed by the owner’s corporation with the subsequent document being stamped. This includes contracts for services, making additional rules and the appointment of an owner’s corporation manager.

In general the seal should be used when all information is clear, without contention and when there are resolutions in place authorising the use of the seal. It is also important to be aware that individuals are not unwittingly opening themselves to personal liability through misrepresentation.

Some owner’s corporations delegate custody of the seal to their Strata Managers. In such a case, we advise a minuted resolution setting out the granted authority, so that as your Manager we can act in your best interests efficiently and effectively.

If you are in any doubt about the use of the common seal, please seek advice from your Strata Manager at The Strata Agency.