1
- 10-year capital works plan
- A plan estimating major works over the next ten years, used to set capital works levies. Requirements differ by state.
A
- Administrative fund
- The fund that pays day-to-day running costs such as insurance, cleaning, utilities and minor repairs.
- Annual fire safety statement
- A yearly statement confirming fire safety measures have been checked. Requirements and names differ by state.
- Annual general meeting (AGM)
- The yearly meeting of all owners to adopt the budget, elect the committee, review insurance and deal with other business.
- Arrears
- Levies that remain unpaid after the due date. Interest may apply under state rules.
- Audit
- An independent check of the financial statements. Required for larger schemes in some states.
B
- Bank reconciliation
- Checking that the cashbook matches the bank statement so every payment is accounted for.
- Body corporate
- The term used in Queensland and the Northern Territory for the group of owners who manage a community titles scheme.
- Breach notice
- A formal notice to an owner or occupier who has broken a by-law, asking them to comply.
- Budget
- The yearly estimate of income and spending for each fund, usually adopted at the annual general meeting.
- Building defects
- Faults in design or construction, such as leaks or cracking. Time limits apply to claims against builders.
- Building insurance
- Insurance the owners corporation must hold for the building and common property.
- Building manager
- A person or company who looks after day-to-day building operations like cleaning and contractors, separate from the strata manager.
- By-laws
- The rules of the scheme covering things like pets, noise, parking and renovations.
C
- Capital works fund
- The fund for long-term maintenance and replacement of common property, such as roofs, lifts and painting.
- Caretaker
- In Queensland, a person engaged under a caretaking agreement to maintain common property, often linked to letting rights.
- Cashbook
- A record of money received and paid by fund. Most owner-run buildings use a cashbook rather than full accounts.
- Chairperson
- The officeholder who chairs meetings and often signs documents for the owners corporation.
- Common property
- The parts of a scheme not within any lot, such as foyers, gardens, roofs and driveways. It is managed by the owners corporation.
- Community titles scheme
- The Queensland term for a scheme of lots and common property managed by a body corporate.
- Compliance
- Meeting legal and safety obligations such as fire safety, lifts, pools, insurance and work health and safety.
- Conflict of interest
- When a committee member has a personal interest in a decision. It should be declared and recorded.
D
- Disclosure statement
- Information a seller must give a buyer about the scheme, such as levies and by-laws. Requirements differ by state.
- Dispute resolution
- The steps for resolving disagreements, usually starting with internal discussion and mediation before a tribunal.
E
- Exclusive use by-law
- A by-law that gives one or more owners the right to use part of the common property, often with maintenance obligations.
G
- General meeting
- Any meeting of all owners. Meetings other than the AGM are sometimes called extraordinary general meetings (EGMs).
I
- Insurance valuation
- An independent estimate of the cost to rebuild, used to set the sum insured. Usually updated every few years.
L
- Levies
- Regular contributions paid by lot owners to fund the owners corporation's running costs and long-term works.
- Levy interest
- Simple interest that may be charged on overdue levies at a rate set by state law or by the owners.
- Lot
- An individually owned part of a strata scheme, such as an apartment, townhouse or car space.
- Lot owner
- The registered owner of a lot. Each lot owner is automatically a member of the owners corporation.
M
- Management agreement
- The contract between an owners corporation and a strata manager, setting duties, fees and term.
- Minutes
- The written record of decisions made at a meeting. Owners can usually inspect them.
- Motion
- A proposal put to a meeting for a vote.
O
- Ordinary resolution
- A decision passed by a simple majority of votes at a meeting.
- Owners corporation
- The legal entity made up of all lot owners in a strata scheme. It owns and manages the common property and is responsible for insurance, maintenance and finances.
P
- Proxy
- A person authorised in writing to vote for an owner at a meeting. Limits on proxies apply in most states.
- Public liability insurance
- Insurance covering injury or damage claims on common property. A minimum cover is usually required.
Q
R
- Renovations
- Changes to a lot. Minor and major works often need committee or owner approval under state rules.
S
- Secretary
- The officeholder who handles notices, minutes, correspondence and records.
- Section 184 certificate
- A certificate in NSW setting out a lot's levy position and other information, often requested by buyers. Other states have similar certificates.
- Self-management
- When owners run the scheme themselves without engaging a strata manager.
- Sinking fund
- Another name for the capital works fund: money set aside for major future works.
- Sinking fund forecast
- A report estimating future major works and the contributions needed to pay for them.
- Special levy
- A one-off levy raised for an unexpected or large expense not covered by the budget.
- Special resolution
- A decision that needs a higher threshold, often 75% of votes, for matters like by-law changes.
- Spending limit
- The amount a committee member or the committee can approve without a vote of owners. Limits may be set by law or by the owners.
- Strata committee
- A group of owners elected to make decisions for the owners corporation between general meetings.
- Strata company
- The Western Australian term for the owners of all lots in a strata scheme acting together.
- Strata manager
- A licensed professional engaged to carry out administrative and financial tasks for an owners corporation.
- Strata plan
- The registered plan that shows the boundaries of each lot and the common property in a scheme.
- Strata records
- Documents the owners corporation must keep, such as minutes, financial records, contracts and the strata roll.
- Strata roll
- The register of lots, owners, contact details and other information that the owners corporation must keep.
- Strata scheme
- A property divided into individual lots plus shared common property, registered under a strata plan.
T
U
- Unanimous resolution
- A decision where no votes are cast against the motion. Needed for a small number of major matters.
- Unit entitlement
- A number given to each lot that decides its share of levies and its voting value on some resolutions. Sometimes called lot entitlement.
W
- Work order
- An instruction to a contractor to carry out approved work.
General information only, not legal advice. Rules differ by state and change over time. Check your local legislation or get professional advice for your situation.
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