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1. The Truth About Strata; what
purchasers really need to know.
Part 1
Are our owners corporations complying
with the law?

2. The truth about strata is
…we are asleep at the wheel

3. The strata wheel of (mis)fortune ?
Owners decide
(or not)
Purchasers buy
Lawyers advise
Managers act
Inspectors
report

4. Let’s take a building somewhere
• 15 res apartments
• Part of a mixed use
stratum (separate OC’s)
• Balance commercial
and retail lots
• Onsite management
• Res OC levies $ 1550
per quarter
• 4 years old

5. The seven things the owners must do
meet
record
manage
comply
insure
maintain
$ave

6. The duty to meet (s.14)
• Signifies developer control
• Defines period for holding First
Initial period AGM
First AGM
AGMs
• Check developer handover
• Defines the AGM meeting
window
• Check requirements for last
notice of AGM
• Look for next AGM if the date is
close to avoid nasty surprises

7. The duty to manage ( s 61)
Pets
Parking
Privileges
Common
property

8. The duty to maintain (s.62)
• Reasonable steps
• Best endeavors
• Reasonable care …
All fail the test of strict
liability for repair and
maintenance of
common property in
NSW; Seiwas case.

9. The duty to $ave ( s. 76)
Year
Plan
Reality
2007
-
-
2008
-
$ 20 000
2009
-
$ 30 000
2010
$ 44 572
$ 26 000
2011
$47 742
-
Balance end 2010
$87 358
$ 61 249
Compliance
(under 41.6%)
( short $ 26 107)
( 29.8 %)

10. The duty to insure ( s.83)
Expectations
of cover
Reality of
exclusions

11. The duty to record (s. 100)
Soft copies
Hard copies

12. The duty to comply (s 12)

13. The truth about this strata
Disclosed
Undisclosed

14. Purchasers remain dazed and confused
Owners corporations
tight
ineffective
Strata managers
underpaid
beyond scope
Strata inspectors
unsupported
at risk

15. How we propose to help ?
Educate
inspectors
Unite
inspectors
Better
informed
purchasers