QUARTERS

Important points you need to know

Issue 1. 2016

about owning a strata unit

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I own the unit and now I need to pay more every quarter?

Levies, what are they for?

How to read a strata plan

What do I own?

Know your title

Types of strata meetings10

COASTALSTRATA

ContentsWhat do I own?

What is strata title?

Can I keep a pet?

2 New Owner Tips

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07 Levies, what are they for?

08 2 Websites you should know

The information in this guide is general in nature and relates to strata schemes within New South Wales only.

As legislation can differ between Australian States and Territo-ries this information is not to be construed to apply to any other state or territory.

The content in this guide may not be reproduced without our ex-press permission.

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Coastal Strata Inspections Pty Ltd

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What do I own?

Every strata property is different and in order to check what you’ll own (and be responsible for) you’ll need to check the strata plan and the by-laws.

Sometimes a unit is marketed as having a car space or storeroom and you’d like to confirm that this is correct.

 Now in our strata reports this is just one of the 40+ points we check, how-ever, if you are just conducting research before making an offer here’s a tip that will help you.

The strata plan is like a floor plan and shows the location of all of the parts of a unit such as courtyards, balconies, car spaces and storerooms.

Check the lot number that you’re looking to buy and scan the plan to see if that car space is actually noted.

In addition to the strata plan you’ll also need to check the by-laws.

Occasionally you will find an exclusive use by-law where owners corpo-rations grant one lot or all lots the exclusive use of a portion of common property for car spaces or other uses. 

So in short you need to see at least the strata plan and the by-laws which should both be attached to the contract for sale of the unit.

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Put simply strata title is shared ownership, shared responsibility.

What is strata title? Strata Title allows individual ownership of a part of a property combined with shared ownership of common areas.

A property is divided into lots e.g. an apartment or townhouse and the remainder e.g. driveway, foyers, gardens etc are common property.

Originally created to allow the vertical subdivision of land, (picture a multi-story residential tower), strata title is now used in a variety of ways such as sprawling villa complexes, marinas, 3 storey walk ups and 2 lot subdivisions.

Developments that can exist under strata plans include residential, com-mercial, retail, mixed use, serviced apartments and even retirement vil-lages.

Owners often employ a professional strata managing agent who arranges all the meetings, collects the levies, arranges repairs and provides advice based on strata legislation.

Strata legislation commenced in the 1960’s and with 75,000+ strata schemes in NSW today it is here to stay.

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2. Know your by-laws

In the mountain of paperwork that comes with buying a unit you might recall seeing the by-laws. 

By-laws are simply a set of rules outlining the expected behaviour of residents and controls the use of common property.

You may wish to make an alteration such as installing an air conditioner, pergola, solar hot water system, skylight etc and if the current by-laws don’t allow you’ll need to obtain permission first.

If you’re considering making changes like this you’ll find a suite of profes-sionally prepared and immediately available by-laws at mybylaw.com.au

2 New Owner Tips1. Contact your Strata ManagerMost strata schemes employ a strata manager to arrange meetings, col-lect the levies, arrange repairs and provide advice based on strata legis-lation.

After settlement of your purchase your solicitor or conveyancer will send the strata manager advice that you are now the owner. This notifi-cation may take just a week or so but can take longer.

It’s important to note that the strata manager won’t know you’re the owner until they receive this paperwork so there may be a period where you aren’t receiving important correspondence or levy notices.

We suggest that after settlement new strata owners take the front foot and contact their strata manager to introduce themselves. Provide them with your contact details and they’ll then wait for the paperwork

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For common running costs such as cleaning, gardening, insurance and minor maintenance of common property items

Administrative Levy

Levies, what are they for?

If you’ve lived in a strata unit chances are you’ve heard of strata levies. But what exactly are they for?

Lot owners pay a fee, usually quarterly, to cover the financial commit-ments the strata scheme has.

Levies are usually paid to the strata manager who holds the money in trust. Levies raised are divided into two separate funds - the administra-tive fund and the sinking fund.

If there’s not enough money in either fund or to pay for an unexpected expense then a special levy may be raised.

For repairs or improvements to common property such as gutters, fences & painting

Capital Works Levy

Often raised when there aren’t sufficient funds in the administrative fund or to pay for an expense that has not been budgeted for such as painting, replacing balustrades or fire safety compliance.

Special Levy

I own the unit and now I need to pay more every quarter?

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2 Strata Websites you should know

Here’s 2 strata websites we use almost daily to find information for our clients and to stay up to date with industry news.

Maps Six maps.six.nsw.gov.au

Maps Six is an online mapping tool for NSW developed by Land and Property Information.

Think of it like Google Maps with lot numbers, boundary lines and neighbouring property details and you get the idea.

Simply search by address and you’ll see an aerial view with lot numbers overlaid of the property and surrounds.

Strata Community Australia NSW nsw.stratacommunity.org.au

This site is a resource every strata owner or strata professional should check in on. Strata Community Australia is the industry body of the strata sector in NSW.

On here you’ll find news on strata laws, education events and general strata industry information.

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Know your title

Within the world of community living there are a number of property titles including strata plans, community associations and neighbourhood associations.

Strata Plans are allocated a number when the plan is established. The strata plan shows the areas that are part of the lot

Strata Plan numbers ranging from 1- 90,000+

Strata Plans

In a neighbourhood association owners are responsible to repair and maintain any structures within their lot such as the house, unit garage etc. The common property areas are shown on the plan as lot 1.

Neighbourhood Association numbers range from DP285001 - DP300000

Neighbourhood Associations

In a community association individual lots are created which can then be further divided into neighbourhood association lots or strata plans . The common property areas are shown on the plan as lot 1.

Community Association numbers range from DP270001 - DP280000

Community Associations

So what’s a quick way of determining the title of the property you are considering purchasing?

Perhaps the easiest way is to check the  plan number noted on the  contract for sale of the lot.

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Strata CommitteeBETWEEN 1 - 9 OWNERSELECTED AT EACH ANNUAL MEETINGMAKE DECISIONS ON BEHALF OF ALL OWNERS

Annual General MeetingA MEETING FOR ALL OWNERS1 VOTE PER LOTBUDGETS, MAINTENANCE PLANS ELECTING COMMITTEE MEMBERSCHANGING BY-LAWS

Extraordinary General MeetingMAY BE NEEDED TO CHANGE BY-LAWS,RAISE SPECIAL LEVIES, APPROVE CAPITAL WORKS

Types of strata Meetings

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Can I keep a pet?Strata plans have a set of rules, called by-laws which outline amongst other items whether residents can keep pets within their units.

Strata plans commonly adopt an option from the model by-laws however as plans can write their own by-laws you’ll need to read the by-laws for your strata unit.

Here’s some examples showing why it pays to check.

A strata plan in Kiama NSW states “An owner must not keep any ani-mal without consent from the own-ers corporation other than one toy or small dog the equivalent size of a Maltese, Silky Terrier or Shih Tzu in weight up to 8.0kg or one cat.”

I’m not sure why or even how they measure this one. An annual weigh in perhaps?

Another strata plan in Woonona states “An owner or occupier must not keep any animal on the lot or common property.”

This wording is Option C from the model by-laws and it’s pretty clear that no animals are permitted.

It’s not safe to just assume you’ll be allowed to keep a pet.

Check the by-laws for your strata unit and if you need permission we can assist in obtaining a decision from your fellow strata owners.

Pet Application Form

Do you need permission from the owners corporation to keep a pet within your unit? We get it. Pets mean everything and your purchase may be conditional on whether you can keep a pet or not.

So to save you stress (there’s enough already when buying a unit) leave it to us. We’ll liaise with the strata manager on your behalf and seek the owners corporation’s decision as quickly as possible.

For more details and to download our Pet Application Form visit coastalstrata.com.au/free-tools-tips

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COASTALSTRATA

This guide has been prepared by Coastal Strata, a leading strata unit research company based in Shellharbour NSW.

GET IN TOUCH. CONTACT US

Ph: 02 4297 2555

Email: info@coastalstrata.com.au

Web: coastalstrata.com.au

An analysis of the owners corporation’s records to provide clients with the knowledge they need to negotiate or to provide reassurance and insights

Standard.Strata Inspection Report

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Combines the benefits of a Strata Inspection Report with a detailed guide outlining which building elements are common property and which are part of the lot.

Our inspection team are able to:

1. Analyse the records to understand who is responsible for any repairs

2. Provide comprehensive reports that give clients the facts they need to move forward with confidence

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