Section 108, Australian Strata Searches

Our Strata Searches Reports

Our Strata Search reports are comprehensive and clear. Please click on one of our report sections to get further information:

• Insurance Details
• Maintenance Levies
• Financial Extracts of Budgets
• Proposed Major Expenditures
• Evidence of past Special Levies

Other areas covered in our reports include:

• By-Laws
• Building Harmony
• Notices and Orders
• Fire and OHS Compliance

 

Strata Schemes - A Quick Explanation

The idea of a Strata Scheme is simple enough - People who live in an apartment building or blcok of units all share the common areas of the building - hallways, lifts, gardens and lobbies to name a few. In the newer buildings the common areas may even include swimming pools, spas, sauna's, gyms and outdoor BBQ areas. These areas are referred to as Common Property and they all cost money to maintain and repair. The pool and spa requires specialist attention, the lobbies and hallways require cleaning and wil also require carpet or tile replacement eventually, and garage doors requires repair from time to time. So who pays for all these costs?

The Owners Corporation

The Owners Corporation as its name suggests is a corporation made up of all the Owners of a Strata Scheme (known as Lot Owners), and similar to a business corporation has rules relating to the running of the scheme, known as By-Laws. The Owners Corporation also has an elected board like a corporation does, known as the Executive Committee. It is the responsibility of the Executive Committee to manage the day-to-day affairs of the Building including dealing with residents who breach the By-Laws as well as authorising the Strata Managing Agent to organise repairs and complaince of Strata Laws.

Meetings of the Owners Corporation

Just like a corporation, the Owners Corporation holds a number of meetings each year. The average Strata Scheme will hold a number of Executive Committee Meetings each year to manage the day-to-day running of the building. However, siliar to a corporation, the most important meeting each year is the Annual General Meeting of all the Owners. The most important issue on the agenda are the Maintenance Levies that determine how much money will be required by the Owners Corporation for its two seperate accounts. The Administrative Fund is used to pay for the maintenance, upkeep and repair of the buildings common property in the upcomming year. The amount is usually based on the costs of these expenses for the past year. The Sinking Fund is used to pay for unforseen or immediate major repairs as well as major upgrades and renovations. The amount is determined by previous years Sinking Fund Expenditure, planned major renovations approved for the coming year and from the 10 year Sinking Fund Forecast.

Maintenance Levies

Once the full amount required for each Fund has been determined, the Strata Managing Agent then calculates how much each Lot is required to pay. Since many apartment buildings have a variety of different sized apartments within the building (studios, one bedroom, two bedroom, penthouse) levies are calculated accordig to Units of Entitlement.

Occasionally, money will be required by the Owners Corporation to pay for large repairs, upgrades or renovations (or sometimes even o pay outstanding debt or to alleviate a deficit in one of the accounts) at a time where there is not enough money in the Administrative or Sinking Fund. In some instances, the Owners Corporation may strike a Special Levy. Special Levies are one-off levies determined by a vote of all the Lot Owners of an Owners Corporation and paid in addition to normal maintenance levies, also according to Units of Entitlement. It is also possible for Special Levies to be paid in more than one installment.

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