Strata Act- A Great Relief

                                                                                         

Everyone dreams to own a property of their own, whether it is a building, villa, house, factory etc. Today when you own a building , you are legally the owner with a legal title deed. But prior to 1961 the situation was different. Then, an Australian can own a part of a building, but he was not entitled to own a title deed for that portion of the building he owned. Which means, he did not have the freedom to sell it or lease it out. This restriction of freedom made the Australians unhappy. So the Strata Act was introduced in Australia in 1961. This Act was a great relief and beneficial to the owners, because with the introduction of this act, the owners who owned a particular part of the building, was entitled to a Certificate of Title, known as Strata Title, for the portion of the building he owned and he had a degree of freedom to do whatever he wanted with the property. The Strata Title is a kind of ownership in a common apartment. The building was divided into 'lots' or portions, where the owners were entitled to legally own a lot, and a system known as Strata was initiated for the purpose of managing legal ownership in the year 1961. The strata can mean units, villas, factories, shops, commercial offices, warehouses etc.

The building which is divided into lots or portions are owned by a collection of individuals. Although the individuals own a 'lot', some parts of the building are common property, like the external walls, roofs, driveway, common corridor etc. The owners of the 'lots' shares ownership of the common property. This is known as Strata Scheme. All the owners in the Strata Scheme, should be aware of their responsibilities and obligations involved in owning the property under the scheme.

The 'lots' are allotted to many owners and these owners that come under the Strata Scheme form a Strata Company liable under the Strata Act to show an income expenditure statement, showing all the money received and expended. The governing entity that looks after the Strata Scheme is known as the Owners Corporation. The Owners Corporation manages and maintains the common property under the scheme. But when there are many lots, there will be too many opinions, thoughts and ideas. In such a situation, an executive committee is set, which makes decisions on behalf of the Corporation. The Strata Management also known as Body Corporate Management in Australia, is the shared responsibilities of the owners in apartments or units agreeing on matters regarding the common property shared by the owners. And a strata Manager is appointed to work with the Owner's Association and manages the property to create a friendly atmosphere.

When a land is sub-divided and allotted to different owners, they come under the title scheme, and a legal entity is created known Body Corporate. This scheme can be a residential unit, a shopping complex, a business park or a duplex and all the owners of the lot under the title scheme, automatically becomes member of the body corporate. All issues regarding physical property like the common properties and issues related to the behavior and actions of the people living together are managed by the Body Corporate. The decisions of the body corporate are taken either at the meeting of the owners or the meeting of the committee of the Body Corporate. The Body Corporate has a manager, known as the Body Corporate Manager, who acts for the Corporate.

About the author:
The Strata Agency is a boutique strata management company founded by Rachael Kwawegen, a Licensed Real Estate and Strata Managing Agent with 15 years experience in the Property Sector. Our strata company services all areas of Sydney specialising in prestige strata schemes and developments. body corporate manager.

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