Strata Life

Often people wonder why it is necessary for a common property to exist, These are the five purposes and even benefits of having a common property

1. Enjoyment by owners and occupiers or residents of the common property - keeping in line when I refer to common property it includes schools, gyms, playgrounds, tennis court, and all those types of facilities and areas that are shared with other residences. These types of facilities are enjoyed by the residents because not all single dwelling or standalone houses have these types of facilities or are readily available to them.

2. Shared expenses to maintain or repair the common property - if a person and a standalone house own a pool, they would bear the full cost to repair and maintain a pool. For example, whereby in a common property because it is shared, and enjoyment expenses are also shared which is not a hard hit on the pocket of the owners

3. Democracy is exercised when making decisions to maintain repair the common property - what is excellent about living in a strata community is you get to be heard by your vote on when and how often should repair or maintenance be carried out on the common property and then that way where your vote is counted and it is heard then it is granted you are able to have a say on how much is to be spent and what needs to be carried out on the repair and maintenance of the common problem

4. Strata insurance protects reinstatement of public liability of common property - of course where the expenses and repair and maintenance are shared amongst owners so is the insurance coverage what's good about this is that the owners share the insurance premium to protect the repair and maintenance of the common property and that includes where there's impact damage or accidents that occur in relation to the share facility or common property insurance covers that and the insurance is through the strata insurance which means there's a larger in where its an accident that occurs or impact damage it is highly likely that insurance will cover that on the condition that the continued repair and maintenance of the common property is proven to be carried out by the strata community

5. Keep the value of your individual property within the market value of the property- where the common property is well kept and maintained it has a significant positive effect on your individual property and that means we're able to maintain the property market value and you also have a say the way the common property is maintained there for you have a say in the impact of the same to your proper property market value.

There are various types and various types of people that the strata manager communicates with but what I will be raising are in my view the type 5 communications received by your strata manager daily.

1. Committee communication - these are usually instructions given by the committee or follow-up on actions being taken on behalf of the committee. it is common that the strata manager would often hear from your committee.

2. Occupy your communication - there are many reasons why an occupier would contact a strata manager or what we know as a resident. some of them include maintenance issues or even neighborhood complaints. from time to time, it is inevitable that your strata manager would receive the occupier or resident communication.

3. Contractor communication - there are many reasons why a strata manager would exchange communication with a contractor of the strata community. this would include but is not limited to giving instructions getting progress reports and even seeking advice. from time to time the contractor and the strata manager would work together to fulfill the instructions and needs of your strata community.

4. Professional communication - professional providers similar to contractors from time to time as the strata community requires our needs communicates with a strata manager similar to contractors this would include but not limited to giving instructions getting progress reports by the Strata manager or even seeking advice from the professional provider.

5. Insurer communication - there are many reasons that the strata manager would communicate with the insurer, and these include but are not limited to the following: making an insurance claim, seeking advice in relation to insurance, or renewing an insurance contract according to the last resolution passed by the strata community at the annual general meeting.

The administration or operational budget is passed usually at an annual general meeting. These are simply put the regular expenses. Here are the five purposes of why this particular budget should be raised at each and will general meeting by your strata community .

1. Regular repair and maintenance of the common property - there is no doubt that from time to time your strata community's common property would require regular repair and maintenance and raising that administration or operational budget is definitely important in carrying out these regular repairs or maintenance.    

2. Common property insurance premium - a big chunk as we say of administration or operational budget is for that funding to be contributed to the premium of the strata insurance. It's important that the strata community make sure that there's a sufficient budget to make sure that all properties and common property and all the legal requirements to give protection to the strata community are covered in that premium to avoid necessary special levies being raised .  

3. Strata managers professional fees - where your strata community has hired a strata manager, part of the administration or operational budget would be allocated to the professional fees of your strata manager.    

4. Emergency works for common property - it is essential that your strata community puts in funding for any emergency works for common properly. It would be very difficult to comply with any legal obligations, moral obligations, and safety obligations of your occupiers if there is little budget for emergency works it is difficult to determine when an emergency would occur does call the emergency and therefore, a budget should be included at the annual general meeting.   

5. Contingency funds - a healthy budget would allow not less than 10% contingency fund for the strata community to allow for any increase in payment for services and goods. Your strata community must make sure that there is a contingency fund or percentage allocated in your administration or operational budget .

There are various names the maintenance budget others call it thinking budget others call it sinking budget, others call it reserve fund others call it capital improvements budget they all mean the same thing and that really means savings for future maintenance. Here are the five reasons or purposes for a maintenance budget

1. Long-term maintenance/repair (i.e., painting program) - long-term maintenance repair means that it has a succeeding number of repairs carried out on an example of that is to carry out a painting program. Where there is a large development, it would be beneficial for your strata community if you carry out a painting program to make sure that the exterior look of the development is maintained therefore the value is preserved

2. Big projects (roof replacement) - another purpose of a maintenance fund is if there are big projects which means it costs a lot of money that way there's time for the strata community to save some money and example of a big project would be roof replacement,

3. Improvement works (common property technology) - an example of an expensive project is a lift replacement it is an expensive project and therefore needs time for your strata community to save, to carry out at replacement

4. Improvement works (common property technology) - an example of improvement works is to make sure that you come and properly technology is up-to-date, and this allows and requires your strata community to carry out improvement works, and a maintenance budget would absolutely be necessary to make sure that your common property technology is up-to-date

5. Upgrade works (upgrade landscape) - example of an upgrade work would include upgrading of the landscape, this would mean beautifying, this would include additional common property assets that were not there before but absolutely requires further funding from the strata community and therefore further time to save money.

This particular podcast covers what should be in the agenda items of committee meetings

1. Resolution to accept the financial statements presented for the period - when I refer to the period that could mean depending on how often a committee meets so it could be the financial statement for the monthly period. quarterly period. and semiannual period.

2. Resolve to provide particular instructions to the manager on surfing directions that they could make decisions on - this allows the manager to provide action items so that they don't always have to go back for each and every single new item on the action list the committee could resolve to make for appointing the manager the strata manager as an agent who actions the decisions of the committee

3. A resolution to approve maintenance or repair works for the common property which could include urgent works - the committee must make sure that when they make decisions in respect of approving maintenance or repair works that such a decision is still within their powers otherwise if it's beyond their powers that means that they need to go back and hold a general meeting to have all members of the strata community make a decision in respect of the maintenance or repair works

4. Resolve to review and action dispute resolution matters if any - this is the opportunity for the committee to determine whether there had been any issues amongst residents and owners in other words neighborhood disputes that have come to the attention of the strata community. a decision should be made on whether the complaints or issues raised to them should be actioned by the strata community and what is the next action that’s ought to be taken and that could mean holding a dispute resolution meeting or deciding to have to take for their action in the matter or whether it's a matter that ought to be escalated to a tribunal or court

5. A resolution to determine when to hold the next committee meetings and its agenda items - it is prudent that the committee determines when they should meet next so that all the committee members are informed and they could make a decision whether they could hold the meeting at an agreed time and date so that they could block off their commitments and more informed and a collection of the decision-making of all the committee members are made at the next meeting. Also, it's an opportunity to determine what are the main agenda items in the next committee meetings these are the 5 committee meeting agendas strata enthusiast.

In particular legislations, there are basic items that need to be covered in AGM agendas I will feature the 5 foundational items that should be covered in your AGM agenda.

1. A resolution to renew or confirm your strata managers contract of appointment it’s important for all the members of your strata community to either confirm or determine whether it wishes to renew its strata manager's contract of appointment that way you could is considered at the budget that also going to be resolved at the same meeting.

2. Resolve to renew the strata insurance cover the members of your strata community should know the particular in the insurance cover to determine whether it ought to renew the same coverage of strata insurance that way the members are given an opportunity to determine whether they want to increase, maintain, or decrease their insurance premium as it affects the budget that's going to be passed at that particular meeting.

3. A resolution to raise a budget for the next financial year the members should review the proposed budget its breakdown for the next financial year so that it understands what should be passed as a budget for the next financial year it's also prudent the members of the strata community consider in putting a buffer to their budget to avoid unnecessary special levies and so that they can personally plan their own budget for the year.

4. A resolution to charge penalty inches to members who do not pay their shared contribution on time this is something that I recommend that the members of the strata community consider this allows for members to pay online to be recognized and to penalize members who do not pay their share on time.

5. Fifth agenda item is a resolution to approve maintenance or repair works for the common property it's important that when all the members of the strata community gather at this meeting, they understand what aspects of the common property requires repair or require maintenance or recurring maintenance that way they have a clear understanding of where the funding goes.

In today's podcast I want to cover “How do you register rules of the owner's corporation?” The traditional way before electronic lodgment of land Victoria documents were done was that, a form is completed, a form created by land Victoria, it is signed by either an owners corporation representative or the solicitor of the owners corporation and then a clerk would then file that form along with certified copy of the rules and a copy of the certified minutes of the owners corporation proving that the special resolution was passed in support of the rules that’s being registered.

In respect to the rules that are being registered I’m referring to special rules other than model rules. That was the traditional way of lodging rules. Nowadays many many things are now lodged in land Victoria titles office electronically and that is done in a different way only to the extent of it being lodge electronically and at the moment what is available for lodgment of land Victoria documents is the platform called PEXA, P-E-X-A, similarly to the traditional way of lodging rules of form of land Victoria is completed but this time it is completed by either a solicitor of the owners corporation or if there's a conveyancer who has access to PEXA as certified copy of the rules that’s being registered and a certified copy meaning a signed copy of the minute supporting that the special resolution was passed to support the making of the special rules.

All those three documents are then lodge electronically through PEXA by a subscriber and the subscriber would only be either a solicitor who has access to PEXA for a conveyancer. once that’s lodged electronically the owners corporation will then wait for the documents to be registered on the plan of subdivision, a confirmation is then provided that has been lodged and then a search could be done to confirm that the rules had been registered on the plan of subdivision, that is the process now of electronically lodging rules of the owners corporation so that is registered on title capable of enforcement.

A common question that we get asked is “How does a person deal with water leak issues?”

The main thing to determine in water leak issues are two things:

1. Is there evidence through an expert report identifying what caused the leak and the damage, once you get evidence from an expert identifying where the leak is coming from and what is the damage caused, a significant amount of the water leak issue has been addressed?
2. The second thing that needs to be determined is once it’s been identified where did the water leak is coming from, identify whether the source of a water leak is private property or common property. If the water leak is coming from common property, the party claiming water leak damages could turn to the owner's corporation and claim and require them to rectify and stop the leak and rectify the result and damages. On the other hand, if the expert report says that the water leak is coming from private property, the party claiming the damages must determine whether that private property is their neighbor or the private property relates to their property or it's coming within their own property. Where the leak is coming from a neighbor similarly to an owners Corporation claims a party should seek that their neighbor (meaning the owner of tea nearby property) rectify the source of the leak and also the results and damages. On the other hand, if the water leak is coming from their own property clearly they are responsible to stop the water leak from making further or causing further damages to their property and they would also be responsible to rectify the resulting damages.

The truth is, neighborhood disputes could occur in a strata community development. What your strata community must do is simply consider these disputes as part and parcel of strata community living that should be dealt with by using resources that help resolve them. Here are 5 resources of your strata community that could help resolve disputes.

1. Chart with a diagram of the dispute resolution procedure

Creating a chart that illustrates the dispute resolution process, and a copy of that chart being issued to all owners and residents will contribute to a clear chain of communication and documents that are relevant in the dispute resolution process.

2. List of legal requirements to the dispute resolution process

The source of a list of legal requirements to a dispute resolution process for your strata community will depend on the legal requirements of your relevant state or territory. Create a list of these legal requirements so that it is clear to the parties of the dispute why particular documents and steps are required to be presented or produced.

3. Last annual general meeting or committee meeting minutes

At the last annual general meeting or committee meeting of your strata community, it would have been decided whether your community, any office bearer or manager are given particular delegated powers to deal with the dispute resolution process. It is prudent that the delegated powers are determined before the commencement of the dispute resolution process so that all decisions made in relation to the process are legal, which ultimately avoids wasting time and money of the strata community.

4. Platform to hold the dispute resolution meeting

Whether it is face to face or through any electronic platforms, such platform for the dispute resolution meeting should be easily accessed by the parties so that there is a fair opportunity for all parties to attend that meeting. That way, the parties are given fair opportunity to be heard, negotiate and resolve the dispute.

5. Plan of subdivision and title extract

The strata community should obtain a copy of the plan of subdivision and title extract to make sure all parties are aware of their role in the community. By being aware of the boundaries, contributions and entitlements, including the membership, the parties are provided clarity on their membership, obligations and rights in the strata community.

Financial, legal and ethical obligations. Financial, legal and ethical management. When strata enthusiasts talk about what it is like living in a strata community, Most people usually talk about the obligations, the levy contributions, the work required to be part of a strata community. That said, there are absolutely many benefits of living in a strata community.

Here are what in our view some of the benefits of living in a strata community.

1. Helps maintain the property value

Since the common property is well maintained, it positively impacts the real estate value of the property. There is a greater chance of being assured that your real estate value will continue to increase because the shared assets are well-maintained.

2. Financial stability

Your strata community is financially stable and is able to continuously repair and maintain the common property, which ultimately keeps up the value of your real estate asset.

3. Opportunity to service the community

Being part of a strata community gives you the opportunity to volunteer and contribute for the benefit of the community. In addition, you are provided with the opportunity to have a deeper connection with the community.

4. Available support

In the event that you experience a neigbourhood dispute, the strata community could step in to support and assist with resolving the dispute. It becomes very difficult if you not only experience a neighbourhood dispute, but also if you could not find the appropriate support within the community to resolve the issue.

5. Access to common amenities and facilities

Whether it is a common tennis court, gym, pool, recreation centre, depending on what is available in your development, one of the great benefits in living in a strata community is unlimited access to the common amenities and facilities, which makes you enjoy more living in a strata community.