Frequently Asked Questions
What is an Owners Corporation?
The Owners Corporation is created like a company and consists of each and every owner of a unit within the complex. Each member of the Owners Corporation pays levies that contribute to the Maintenance and Management of the complex.
What is the Executive Committee?
The Executive Committee of an Owners Corporation are a group of owners elected at the Annual General Meeting who act on the behalf of the Corporation and work with the Strata Manager to manage the complex. The Executive Committee is usually made up of between 3 to 7 members of the Owners Corporation and there are three office bearing positions Chairperson, Treasurer and Secretary, however the last two can be delegated to the Strata Manager.
What does a Strata Manager do?
A Strata Manager is engaged by the Owners Corporation and works with the Executive Committee to provide services to the Owners Corporation members. These services include but are not limited to coordinating the Annual General Meeting, payment of accounts, issuing of levies and arranging necessary mantainance at the complex. The Manager completes these duties in accordance with the Unit Titles (Management) Act 2011.
What is a Sinking Fund?
The Sinking Fund is a requirement under the Unit Titles (Management) Act 2011. It is used to ensure that there are funds available for the long term maintenance of the Common Property and Buildings of the complex such as Painting and upkeep of the Common Areas.
As part of the Sinking Fund requirements the Owners Corporation must also have a plan in place which forecasts the expected expenditure for this maintenance and the yearly contributions from owners.
What do levies pay for?
Levies are paid to cover the expenses of running the Complex such as Insurance, Water and Electricity Costs, Gardening and Building Maintenance.
The Levies are set based on the budget of expected expenditure approved at each Annual General Meeting and are divided amongst the owners based on their Unit Entitlements.
What is covered by the Body Corporate Insurance?
The Body Corporate Insurance covers repairs to any damage to the buildings and common property as the result of an insurable event. This covers damage to walls, ceilings and other items not deemed to be contents (such as carpets, curtains and light fittings). It is recommended that all Unit Owners have their own Contents and Landlords Insurance.