Frequently Asked Questions (FAQ)
Below we have answered many commonly asked questions.
If you can’t find the answer to your question below please email your question to us and we will try to help.
What are Strata Schemes?
There are two types of Strata properties in WA: Strata Schemes and Survey-Strata Schemes.
Lots contained in a Strata Scheme are also known as “Strata plan or Building Strata”. Lots may be contained with a particular building (for lots zoned before 30 June 1985) or they may be contained both within a building and include land outside the building.
In 1995 the Act was further amended to allow more flexible plans called Survey-strata Scheme” In this arraignment Lots may have certain limits placed on height and can include common property which is separately identified as a Lot prefixed with the Letters “CP” For the most part the other features and obligations are common between the two types of Schemes.
There are benefits to developers as well as to owners of Strata property. Residential strata schemes provide for grouped housing with a community atmosphere. This combined with smaller areas, such as gardens to maintain, and the use of common facilities, such as gymnasiums, club houses and swimming pools, can make strata schemes attractive for many people. Strata schemes are also very practical for commercial and industrial estates and similar developments.
What is the Strata titles act?
The Strata Titles Act is the legislation and laws that relate to developing, owning and the property management for property that is zoned as Strata Title or Survey Strata.
In Australia, the laws for properties classified as Strata vary from state to state. The current Strata Titles Act for Western Australia can be viewed on the State Government Website, click here to view or downloaded.
What does the strata company manager do?
- Provides continuity of management processes and record keeping: for the strata company. Without a professional strata manager, problems can arise with frequent changes in voluntary members who undertake the duties, resulting in different standards of record keeping and potentially inadequate or missing records.
- Ensures strata company legislative matters are being adhered to
- Resolves disputes: and provides an objective approach to dealing with members’ concerns or disputes. While disputes are rare, some situations can cause conflict; including tenanted units, parking, noise, adjacent developments etc. An objective, professional strata manager can assist in these situations.
- Looks after strata company administration: and handles day-to-day paperwork and requests from solicitors etc. Organises annual and special general meetings including minutes, facilitates setting of budgets, collects members’ contributions and maintains a complete set of financial statements.
- Administers insurance: and deals with brokers and directly with insurance companies as necessary to obtain the most effective and economical coverage for the strata company. Submits claims, schedules repair work and processes claims paperwork.
- Administers the maintenance of strata company facilities and essential services – obtains quotes and schedules works as required to ensure that the strata company is maintained in good condition and presents no dangers to visitors or members. Schedules essential services reports as necessary and reviews compliance with current legislation.
- Schedules grounds maintenance and liaise caretakers, gardeners and tradesperson’s to ensure that grounds are maintained to members’ requirements.
What is a Strata Company?
This is the legally incorporated body that represents all the owners of the strata plan as constituted under section 32 of the Strata Titles Act 1985.
Who appoints the Strata Company Manager?
As per Schedule 1 By-law 8. 2) (b) the Council of Owners has the power to employ on behalf of the Strata Company such agents and employees as it thinks fit in connection with the control and management of the common property and the exercise and performance of the power and duties of the Strata Company.
Why is there a need for a Council of Owners?
The Council of Owners shall perform the functions of a Strata Company under the Strata Titles Act subject to the Act and to any restriction imposed or direction given at a General Meeting; every Strata Company has a range of duties and the Council of Owners has to ensure that those duties and powers are performed.
What is a Lot?
Simply – it is what you own.
A lot is the term used to define a portion of a strata scheme which is defined on the strata plan as being a lot or part of a lot. A lot has its own title that can be bought and sold. It is very important to have clear understanding of where your lot boundaries are as these generally determine what you are responsible for and what the strata company is responsible for in the form of Common Property.
What are Unit Entitlements?
A licensed valuer determines the capital value of each lot and then determines the capital value of each lot in proportion to the total capital value for all lots and devises a schedule of unit entitlement that is attached to the strata plan. Unit entitlements determine not only share of ownership but also the level of contributions required towards strata company expenses, unless varied through a registered bylaw of the strata company.
What is Common Property?
The major difference between owning a house and owning a unit or apartment (known as a ‘lot’) in a strata scheme, is that the external walls, the floor and roof do not usually belong to the lot owner. These areas are usually common property and generally the responsibility of the strata company.
Am I allowed to park my car on the grassed area near my unit?
An owner, occupier or other resident of a lot cannot park or stand any motor or other vehicle on common property except with the written approval of the Strata Council.
I am a resident owner without a car bay; can I use a designated visitor’s car bay?
As the visitor car bay is common property, you would need to seek approval and exclusive use from the Strata Council.
Do I have to insure the contents of my strata unit?
While there is no obligation to do so, it is highly recommended that you take out adequate insurance on the contents of your unit. Contents such as your furniture, electrical appliances, curtains and carpets would not be covered. Owners can suffer major loss if their personal property is not insured in the event of a fire or through water damage. In addition, contents insurance usually covers your paint finishes on walls and ceilings.
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The FAQs provided on this website are for general information purposes only. No part of this website can be regarded as providing legal, accounting or other professional advice. Although all care has been taken in preparing content, readers must not alter their position or refrain from doing so in reliance on any content. Where necessary, advice must be sought from competent legal practitioners, accountants or other relevant professionals. Neither the author of any content nor SCA (WA) accept or undertake any duty of care relating to any part of the contents of this website.