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Strata Management Services

As a specialist strata services company, we understand that whilst strata jargon and terminology is a common place in our working life, it is often a foreign language to most. For your convenience we have compiled the following glossary of terms to help you understand some of the most common terms in strata living.

Glossary of Terms

Aggregate Unit Entitlement

The total of all the individual lot unit entitlements in the Strata Scheme. 

Adjudicator

Strata Schemes Adjudicator appointed under the Strata Schemes Management Act 1996, to assist in settling disputes and other matters as determined by the Consumer, Trader and Tenancy Tribunal.

By-Laws

A set of rules the residents in the strata or community scheme must abide by. 

Certificate Of Title

A title deed issued by the Land and Property Information NSW to prove ownership of a lot.  The owners corporation is also issued with a title deed for the common property.

Common Property

The area of land and part of a building in the strata plan which do not form part of any lot.

Company Nominee

A person, authorised by a company in writing, to vote at meetings on the company’s behalf.

Covenant Chargee

A person who holds an agreement over a property which imposes certain obligations.

Exclusive Use

A special right granted to an owner to use a part of the common property, at the exclusion of one or all other lot owners.

Initial Period

Upon registration of the strata plan, the owners corporation is formed and the scheme enters into the initial period. The scheme continues in the initial period and expires on the day when the sum of lot owners, other than the original owner, exceed one-third of the aggregate unit entitlements.

Levy

An amount of money set by the owners corporation according to unit entitlements, which has to be paid by the owners to the owners corporation. Your levies contribute to the operating and long term expenses of your strata scheme. They are divided into two separate funds; administration fund for current operating costs and sinking fund for long term, large scale capital expenses.

Large Strata Scheme

A scheme comprising of more than 100 lots, not including parking or utility lots.

Lot

Includes a unit, town house, parcel, garage etc. that you have a right of ownership over. It is made up of the cubic air space and is generally formed by the inner surface of the boundary walls, the under surface of the ceiling and the upper surface of the floor.

Mortgagee

A person or company who lent money to a person to buy a property. The property is mortgaged to the mortgagee in case the person who borrowed the money does not repay it.

Ordinary Resolution

Most matters considered at general meetings require an ordinary resolution. This means that at least half of the people present (either in person or by proxy) who are entitled to vote must vote in favour of the motion.

Owner

A person(s) or company that buys a lot and whose name is shown on the Register at Land and Property Information NSW and is recorded on the strata roll.

Poll

A method of voting at a general meeting, where each owner's vote has a value based on the lot's unit entitlement. (NOTE - Units with larger entitlements have a greater voting power than they would if a vote was based simply on a show of hands).

Proxy

A person appointed, in writing (using the prescribed proxy form), by an owner or mortgagee to attend a meeting and vote on the appointer's behalf.

Quorum

The minimum number of eligible attendees that must be physically present or represented by proxy at a meeting before any motion can be voted upon.

Special Resolution

A resolution passed at a general meeting of the owners corporation against which no more than one-quarter of votes (calculated by unit entitlements) is cast.

Strata Plan

The actual plan registered at the Land and Property Information NSW showing the building on the land, the lots making up the plan and the common property.

Strata Roll

The register of the owners of every lot in a Strata Scheme including any utility lots.  It also includes the names of other interested parties such as any mortgagees, covenant chargees or lessees.

Tribunal

The Consumer, Trader and Tenancy Tribunal.

Unit Entitlement

Set out in the Schedule of Unit Entitlement and based on the comparative value of each lot at the time the strata plan is registered with the Land and Property Information NSW. It is used to calculate each owner’s contribution towards the levies.

Unanimous Resolution

A resolution passed at a general meeting of the owners corporation against which no vote is cast

Utility Lot

A lot designed primarily for storage or accommodation of boats, motor vehicles or goods and not for human occupation as a residence, office, shop or the like.