What Is Strata?
Many people are confused about what is Strata and we are often asked what it means.
Strata or Strata Title as it is commonly known, is a system that was introduced into Australia in the early 1960s for the management of the legal ownership of a portion of a building or land. Each ‘portion’ is referred to as a ‘Lot’ and these Lots can be either apartments, commercial offices, retail shops or land. When you buy a lot you then become a lot owner.
An interesting fact is that Australia coined the term ‘Strata’ and it is now used across the globe. Sometimes people will refer to a Body Corporate or a Strata Title as a Strata Corporation but this is generally not a term used in Queensland. Each Body Corporate has its own unique identification number called a Community Titles Scheme number. This identification number is given to the Body Corporate when it first registers with the Department of Natural Resources. In other States the Community Titles Scheme is known as a Strata Plan.
What is a Strata Manager?
Strata titles are often managed by Strata Managers also called Body Corporate Managers. Body Corporate Managers are professionals that are contracted to administer your Body Corporate and help to look after your investment. You should always look to engage a licensed Body Corporate Manager as they are trained in the legal requirements for management of your Body Corporate and regularly attend seminars to remain educated in Body Corporate law.
What is Strata Management?
Strata Management involves many administrative obligations which can be time consuming for a lot owner. Some of these duties include, but are not limited to;
• Organizing committee and general meetings and sending out notice and minutes that relate to those meetings
• Attending to correspondence concerning to the Body Corporate
• Maintain the strata title records
• Payment of all invoices relating the Body Corporate
• Prepare financials, budgets, levy notices
• Provide advice regarding difficult issues
&
• Organize Insurance and make claims and follow up on any claims made when necessary.
What is Strata Insurance?
Strata insurance is compulsory for all Body Corporates. The Body Corporate must insure common property such as pool, fences, tennis courts, Body Corporate assets like plant and equipment, the building(s) in which lots are located and public risk.
Individual lot owners are encouraged to make sure that they have contents and landlords insurance for their lots as Strata insurance does not cover common contents and items such as carpets and curtains.
