The owners’ corporation is an integral part of a strata. A strata is a property ownership model where individuals own a specific part of a larger property or development while communally owning others. Strata are the premier method of real estate ownership in Australia today. Once you have completed a purchase in a strata, you automatically become part of the owners’ corporation.
Members of the owners’corporation gain the right to influence the functioning of the living community through decision making. Conversely, individual owners have legal and financial responsibilities to the body corporate.
What is the role of the owners’ corporation?
An owners corporation is primarily tasked with authority to oversee the running of the living community. It must ensure that the strata is well managed. These obligations are met by:
* Managing the common property.
* Commissioning and overseeing repairs in the common areas services and fixtures.
* Meeting the strata’s financial commitments through fees collected from each owner.
* Certifying that there is adequate and up-to-date insurance cover.
* Keeping accurate financial records.
* Establishing by-laws to govern all residents of the strata.
* Providing owners corporation certificates upon request.
* Keeping and maintaining a register of all owners.
* Creating a procedure dictating how grievances are presented and resolved.
* Certifying that the strata is compliant with federal law.
Levels of an Owners’ Corporation
In many cases, owners’ corporations consist of several individual owners. They can easily total up to one hundred or more, depending on the size of the strata. Relying on an owners corporation to effectively run a strata in this form can be akin to having too many cooks in the kitchen. It can become untenable, thus spoiling the broth.
The body corporate gathers to nominate and vote in candidates to form a strata committee to resolve this problem. This committee is a trimmer body that represents all owners. Its purpose is to streamline the decision-making process to facilitate quicker and more accurate decisions. With the ability to understand and agree faster on the requirements they must address, the strata gains the advantage of running more smoothly.
More often than not, even a strata committee will have difficulty managing all the responsibilities of managing the strata. This lack is due to no fault of their own. Strata management is more complex than many people realise; thus it requires a lot of care and attention. Few owners have the time or the expertise to know what to look for and when. This lack leads to the need for the committee to seek out and hire a professional.
Professionals who take over the responsibilities of an owners corporation are known as strata managers. They are well-versed in the running of strata. Therefore, they can perform the administrative, financial and social roles of the owners’ corporation. The primary benefit of hiring a strata manager is that they become the focal point of the strata administration. They do not make significant decisions that affect the strata as a whole- that remains the sole responsibility of the body corporate- but they do have the ability to execute directives more expeditiously.
Furthermore, strata managers are better able to keep up with ever-changing laws and regulations. This oversight is crucial in maintaining compliance. They also have more direct access to market trends with the know-how to interpret them accurately. In this way, the owners’ corporation can keep abreast of what is happening in the real estate market and anticipate and account for trends that directly affect them.
One cannot overestimate the role of the owners’ corporation. With the help of a competent strata manager, they can create a thriving content community.
Members of the owners’corporation gain the right to influence the functioning of the living community through decision making. Conversely, individual owners have legal and financial responsibilities to the body corporate.
What is the role of the owners’ corporation?
An owners corporation is primarily tasked with authority to oversee the running of the living community. It must ensure that the strata is well managed. These obligations are met by:
* Managing the common property.
* Commissioning and overseeing repairs in the common areas services and fixtures.
* Meeting the strata’s financial commitments through fees collected from each owner.
* Certifying that there is adequate and up-to-date insurance cover.
* Keeping accurate financial records.
* Establishing by-laws to govern all residents of the strata.
* Providing owners corporation certificates upon request.
* Keeping and maintaining a register of all owners.
* Creating a procedure dictating how grievances are presented and resolved.
* Certifying that the strata is compliant with federal law.
Levels of an Owners’ Corporation
In many cases, owners’ corporations consist of several individual owners. They can easily total up to one hundred or more, depending on the size of the strata. Relying on an owners corporation to effectively run a strata in this form can be akin to having too many cooks in the kitchen. It can become untenable, thus spoiling the broth.
The body corporate gathers to nominate and vote in candidates to form a strata committee to resolve this problem. This committee is a trimmer body that represents all owners. Its purpose is to streamline the decision-making process to facilitate quicker and more accurate decisions. With the ability to understand and agree faster on the requirements they must address, the strata gains the advantage of running more smoothly.
More often than not, even a strata committee will have difficulty managing all the responsibilities of managing the strata. This lack is due to no fault of their own. Strata management is more complex than many people realise; thus it requires a lot of care and attention. Few owners have the time or the expertise to know what to look for and when. This lack leads to the need for the committee to seek out and hire a professional.
Professionals who take over the responsibilities of an owners corporation are known as strata managers. They are well-versed in the running of strata. Therefore, they can perform the administrative, financial and social roles of the owners’ corporation. The primary benefit of hiring a strata manager is that they become the focal point of the strata administration. They do not make significant decisions that affect the strata as a whole- that remains the sole responsibility of the body corporate- but they do have the ability to execute directives more expeditiously.
Furthermore, strata managers are better able to keep up with ever-changing laws and regulations. This oversight is crucial in maintaining compliance. They also have more direct access to market trends with the know-how to interpret them accurately. In this way, the owners’ corporation can keep abreast of what is happening in the real estate market and anticipate and account for trends that directly affect them.
One cannot overestimate the role of the owners’ corporation. With the help of a competent strata manager, they can create a thriving content community.
