Strata Law and Management for Sustainability. Barrister, Commercial & Strata Law. Law &

Transcription

1 Strata Law and Management for Sustainability Richard Gration Barrister, Commercial & Strata Law Law & Management

2 Richard Gration 23 July 2011

3 Relevant legislation Common Property Who s who in a strata scheme & what do they do? Owners corporation Executive committee Strata managing agent Caretaker / building manager How are decisions are made? By laws

4 Strata Schemes (Freehold Development) 1973 Strata Schemes Management Act 1996 Strata Schemes (Leasehold Development) Act 1986 Strata Schemes (Freehold Development) Regulation 2007 Strata Schemes (Leasehold Development) Regulation 2007 Strata Schemes Management Regulation 2010 Community Land Management Act 1989 Community Land Management Regulation l

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6 From the strata plan: Inner surface Floors, walls & ceilings Shown on plan Subject to notations At date of registration You own or rent air space may include balconies and courtyards

7 Everything else ie. all the areas of the land and building not included in any lot Held by the Owners Corporation as agent for the lot owners as tenants in common in shares proportional to the unit entitlements of their respective lots ie. owned collectively by all owners Since 7 February 2005, restrictions on: adding to the common property altering the common property erecting a new structure on the common property Requires special resolution (75%) at general meeting

8 Comprises all lot owners in the strata scheme Membership is automatic, no choice Legally responsible for: Managing, controlling and administering the scheme prime responsibility Managing the finances Keeping the place properlyinsured Keeping books and records Used to be known as the Body Corporate

9 Elected at each Annual General Meeting (AGM) Day to day decisions on behalf of owners corporation Decisions of owners corporation prevail Maximum of 9 people, comprising: Owners Individuals nominated by owners (can include tenants) Can t make decisions that MUST be made by the Owners Corporation, eg. setting levies

10 Optional Appointed, under contract, by owners corporation to help it manage the scheme Can be delegated some or all functions, except making further delegations deciding a matter that MUST be decided by owners corporation, eg, setting levies Owners corporation and executive committee still retain their powers and responsibilities Owners corporation has final authority and responsibility on any decision

11 Optional To be a caretaker, must have a right of exclusive possession of a lot or common property Appointed, under contract, by owners corporation to assist with management of common property controlling use of common property by tradespeople & non residents maintenance & repair of common property Owners corporation has final authority and responsibility on any decision

12 Executive Committee meetings normally held several times throughout the year a decision of the EC is a decision of the owners corporation EC cannot make decisions i that must be made by unanimous, special or ordinary resolutions at a General Meeting on matters that the owners corporation determines must be made at a General Meeting a decision of the owners corporation always prevails Owners corporation General Meetings Annual General Meeting (AGM) Extraordinary General Meeting (EGM) held at any time

13 Ordinary resolution simple majority, ie. 50.1% in favour Special resolution No more than 25% of the value of the votes actually cast at the meeting (in person or by proxy) are against

14 set of rules that all people living in the scheme must follow apply equally to tenants, owners and their invitees can be made or changed to meet the needs of all owners and to assist with running the scheme are designed for the control, management, administration, use and enjoyment of the lots and common property

15 Force owners to make changes within their lots, unless they are in breach of by laws e.g. you can t force anyone to install water saving devices on taps and showers within ihi a lot even though hthe Owners Corporation pays the water bills! Make by laws that: prohibit or restrict the devolution of a lot or a transfer, lease, mortgage, orother other dealing relating to a lot prohibit or restrict persons under 18 years of age occupying a lot (except retirement villages or housing exclusively for aged persons) prohibit or restrict keeping of a guide or hearing dog

16 Strata is extremely regulated Need to understand ownership Need to understand responsibilities Understand who can assist and how Limitation on powers that an Owners Corporation has to make changes to the building or to require owners to be environmentally responsible