| Strata title in NSW gives exclusive ownership of part of a building (a lot) and some rights over other parts of the building known as ‘common property’. At the first Annual General Meeting (AGM), the original owner (usually a developer or builder) is required to give the new owners of the lots (the ‘owners corporation’) a comprehensive range of legal documents and records, or face penalties of up to $11,000. A good strata manager will know all the details of what is required by law and will ensure that the owners corporation receives everything it should. The owners corporation must ensure that certain books and records are kept for at least five years |
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| After the first AGM, the next AGM must be held between 11 and 13 months after the date of the first AGM. The law details exactly what must be contained in notices for general meetings and in the agenda, how to put a motion on the agenda and what rules govern the conduct of a general meeting. One of the roles of a strata manager is to advise the owners corporation on these matters. |
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| An executive committee is elected at an AGM to administer the day to day running of a strata scheme. Members of the executive committee decide who shall be the office bearers (eg: Chairperson, Secretary, Treasurer). There are rules that govern the conduct of executive committees. While the Chairperson must preside at a general meeting or an executive committee meeting if they are present, they don’t have a casting vote. |
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| Special provisions for large schemes in NSW were introduced in February 2005 for strata schemes with over 100 lots (not including parking, storage etc). Examples include having the financial accounts audited every year; new rules for budgeting; obtaining at least two quotations for expenditure over $25,000; giving all lot owners at 72 hours personal notice of executive committee meetings and personal notice of the decisions within seven days of the meeting taking place. (Personal notice can include emails.) |
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| Other changes to the law in 2005 for all strata schemes included compulsory sinking fund plans; fire safety inspections; alterations and additions to common property; limitations on legal fee expenditure by executive committees; owners corporations’ powers, responsibilities and delegations; compulsory appointment of a managing agent and the transfer of management between strata businesses. |
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| Owners are protected by compliance with the law and having a strata manager whose knowledge and practice is current and whose advice is the best possible. Take an active interest in protecting your NSW asset by emailing Dynamic at customerservice@dps.net.au or phoning (02) 9263 9925 for an obligation free discussion and quotation for managing a NSW property. |
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| An excellent source of more general information about strata schemes is the strata section of the NSW Office of Fair Trading website. |
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