Strata Owners Opt for the Centre 19/08/2009 Owners of strata title properties, particularly those in high-rise apartments, usually think of themselves as living in what could be called a vertical subdivision, but this is not quite true.
Strata title is actually part of the Torrens title system. The difference is that strata title permits horizontal subdivision giving an owner control over the internal space, beginning from the centre of their property and extending outwards. This is essentially the air-space, the inside of the unit including the paint on the walls and ceiling, and the floor coverings/carpets. This is the inner skin.
Strata title ownership, despite sometimes using somewhat confusing language, is a big issue these days at it is easily amongst the fastest growing property segments of the market for residential accommodation.
A man who understands this well is the director of New South Wales Strata Management, Mr Richard Tooker, who leads one of the States largest strata specialist companies. He knows the language too.
“With strata, ownership does begin at the centre of the unit and moves out to the boundary walls, floor and ceiling. Everything within this boundary is covered by private ownership. Importantly this also allows for the existence of what is called ‘common space’ whose care and keeping will be shared amongst all of the building owners. This is one of the major strengths of the system. The sharing of costs that makes home ownership more affordable.”
Under the strata system no single owner has to pay for the care of the roof, the corridor, the steps, lawn or car park. These areas, Mr Tooker says, are cared for and maintained from collective funds called levies which all the owners pitch in to pay for.
The administration of the overall building falls to the Owners’ Corporation and its executive committee, the workings of which are easily explained by someone like Mr Tooker.
“The Owners’ Corporation is made up of all the owners of the building. These members elect a smaller Executive Committee to administer the buildings’ affairs.
“These affairs must be conducted according to law, and the law is the Strata Schemes Management Act 1996. The Owners’ Corporation is required to hold an Annual General Meeting to discuss management affairs and the administrative fund that pays for the upkeep to common areas, and the general affairs of the building.
“The Owners’ Corporation, at this time, elects or re-elects the buildings’ Executive Committee, the people who do the detailed work of management. This team can number from one to nine members depending upon the size of the building, and these office holders, as treasurer, secretary or chairperson etc, do much of the heavy lifting on behalf of all the owners.”
Whilst the duties of the Committee may be many, often complex and ranging from insurance to the amount of levies best suited to the continued upkeep of the common areas of the building, there is usually help at hand.
This help comes from the Strata Manager appointed by the Owners’ Corporation at its Annual General Meeting or at an Extraordinary General Meeting in the event one is held. The Strata Manager, when asked, can provide the important oversight role that ensures that the buildings’ affairs are managed in keeping with The Act.
Amongst the assigned tasks, the Strata Manager may be asked to collect levies, pay bills, see that the building is adequately insured, and assists in the preparation of annual accounts for the Owners’ Corporation. Mr Tooker says the types of services can be tailored to the individual needs of each Owner’s Corporation.
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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