Certificate Forms The Holy Grail 17/01/2006 The growing popularity of strata titled properties has heightened interest in the pros and cons of ownership and raised questions about what anyone actually owns amidst a strata titled scheme.
Many new apartment complexes involve a strata scheme. This sees a building or collection of buildings house individuals who each own a portion of the building but share ownership of common areas whose upkeep and maintenance all contribute to. There can be numerous lifestyle benefits. Not the least being an ability to enjoy a greater range of amenities whilst sharing the cost. But questions about the level of individual and collective responsibilities can arise.
According to Mr Richard Tooker, getting a grip on one’s entitlements regarding strata title ownership isn’t very hard. It’s simply a matter of knowing where to look and what to look for.
Mr Tooker, as director of one of the States largest strata title management companies, New South Wales Strata Management, makes it his business to know about such matters.
He tags two sources of information as being particularly helpful. The first is the strata plan, which sets out where boundaries lay between collective and private portions of the strata titled building. The second is a little less known, but equally important.
Mr Tooker says this second document is a Section 109 Certificate. This provides details, including those that show how well the scheme is being run.
Included in a Section 109 Certificate will be not only the names and addresses of the executive committee members, the managing agent and caretaker (if applicable) but also the levies to be paid by the owners, any outstanding levies, and the address where the records and financial statement can be viewed.
Mr Tooker says the Certificate will as well identify any special by-laws that the owner’s corporation have made during the past two years.
Together the two items form what could easily be called the Holy Grail of the issue. The first item, the strata plan, is available from ‘Land and Property Information NSW’, formerly the Land Titles Office.
The second, a Section 109 Certificate, is available upon application to the owner’s corporation. Mr Tooker says that if one is not an owner, they will need an owner’s or mortgagee’s written permission, but prospective buyers could reasonably expect a property vendor to welcome the opportunity to assist. Not surprisingly in this age of user pays, a handling fee is applicable for the preparation of the Certificate.
Mr Tooker, whose organisation manages hundreds of strata titled properties, advises that anyone interested in buying a strata unit check the records of the building carefully.
“Good management shows up quite clearly, and records or books of account as kept by the strata management company can be an excellent reflection of the overall health of the scheme.”
Conscientious management he says can guide the owner’s corporation in the preparation of administrative and sinking fund estimates, the levying of contributions, the maintenance of records, insurance, the holding of meetings and the handling of correspondence.
Owner’s corporations uncertain whether their level of administration is as good as it could be can contact New South Wales Strata Management on 9890 1841 for an obligation free review.
New South Wales Strata Management (formerly Gilmour Strata Management) commenced business in early 1991, as a member of the highly respected J A Gilmour & Sons group of companies. Licensed solely and specialising only in strata management services, the company has steadily grown to become one of the largest such organisations in New South Wales.
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