What is a strata scheme?
Category : Updates
A strata scheme is a system of multiple ownership of a building or collection of buildings. Each owner owns a portion (called a ‘lot’), which is usually an apartment or townhouse, but every owner shares ownership of any common property (e.g. foyers, driveways, gardens) if it is indicated on the title.
The multiple ownerships are combined in a legal entity called the owners corporation — or body corporate, strata company or community association, depending on your state or territory of residence. Although the term for an owners corporation varies across Australia, the role of an owners corporation is essentially the same in every state and territory.
The owners corporation is responsible for the good management of the strata scheme. All owners can vote on management decisions at an Annual General Meeting (AGM), but decisions are usually made on behalf of the owners corporation by a committee of owners who are elected at the AGM.
Some strata schemes also manage the day-to-day financial, maintenance, and other administrative duties themselves, but given these are complex, most choose to use the services of a professional strata manager.