Aggregate Unit Entitlement
The total of all the individual lot unit entitlements in a strata scheme.
Administrative Fund
This is controlled by the Owners Corporation and is used to cover all the day to day expenses of the strata scheme such as insurance premiums, routine repairs and maintenance of the common property, strata management fees and disbursements as well as other recurrent expenses such as electricity, water, carpet cleaning, lawn mowing services, etc.
Aggregate Unit Entitlement
The total of all the individual lot unit entitlements in a strata scheme.
AGM
Annual General Meeting held by the Owners Corporation. There are numerous items that must be discussed at the AGM.
By-Laws
These are a set of rules that residents (owners and tenants) must follow. You may also hear the term ‘Model By-Laws’.
Capital Works Fund
This was previously known as the Sinking Fund.
The fund is to ensure there is enough money to pay for capital expenses such as painting of the common property, acquiring, renewing or replacing personal property for the scheme, renewing or replacing fixtures and fittings that form part of the common property, any debts and other capital expenses.
Certificate of Title
A title deed issued by NSW Land Registry Services to prove ownership of the Lot. If you did not take out a mortgage when you purchased the property, you should be in possession of the original Certificate of Title. You should keep this in a safe and secure place or keep it with your conveyancer or solicitor who acted for you on the purchase. If you did take out a mortgage when purchasing your property, your lender (in most circumstances) will hold an eCT (Electronic Certificate of Title) as there is no physical paper Certificate of Title.
The Owners Corporation is issued with a paper Certificate of Title for the common property.
Common Property
The areas of land and buildings not included in any lot. It is jointly owned by all owners and the Owners Corporation is responsible for its management.
Common Property Rights By-Law
This By-Law confers on the owner of a specified lot a right of exclusive use and enjoyment of the whole or any specified parts of the common property or special privileges in respect of the whole or any specified part of the common property.
Initial Period
The Initial Period commences the day the Owners Corporation is constituted and ends on the day there are owners of lots (other than the original owner) the sum of whose unit entitlements is at least one-third of the aggregate unit entitlement.
Levy
Levies are a part of strata living. Levies are set by the Owners Corporation according to unit entitlements, payable by the lot owners. Levies contribute to the operating and long term expenses of the strata plan.
Lot
A part of a property that can be separately owned and sold.
NCAT
NSW Civil and Administrative Tribunal. NCAT hears and decides cases about disputes in the strata scheme. These sorts of cases are usually because of breaches of by-laws.
Owners Corporation
An Owners Corporation is the legal entity that combines all the lot owners in a strata scheme. It can make rules that are binding regarding the use of common property and the lots. Any rules made cannot contravene legislation.
Strata Committee
The Strata Committee (previously known as the Executive Committee) of the Owners Corporation is a group which represents the owners. It administers the day to day running of the strata scheme. Members are elected at the Annual General Meeting. There can be from 1-9 members depending on the size of the scheme. A large scheme (more than 100 lots) must have at least 3 members on the committee. For a 2 lot scheme, both owners must be members.
Strata Manager
Strata Managers are licensed professionals who are responsible for the administration of the Owners Corporation.
Strata Plan
This is a registered plan that divides the land and buildings of a strata scheme into lots and common property.
Strata Roll
This is a register which must be kept of all lot owners in the strata scheme. It contains information such as name, address for service, date of purchase and details of interested parties such as a mortgagee.
Unit Entitlement
Unit Entitlements are recorded on the Certificate of Title for the Common Property.
Your Unit Entitlement determines matters such as levies payable and voting rights. Not all owners will have the same Unit Entitlement.
Utility Lot
A lot designed for the purposes of storage, garage, parking space or garden shed. A utility lot cannot be for human occupation.