Strata Management Law

An owners corporation is a legal entity comprising the collective owners of a strata title development. The owners corporation is established upon registration of a strata title scheme, and a unit owner automatically becomes a member of the owners corporation after purchasing an individual lot.

The role of an owners corporation is to manage the common property and assets of the strata title development for the owners’ mutual benefit. Its functions include:

  • financial management and record keeping;
  • arranging public risk and building insurance;
  • entering service and facilities management contracts;
  • controlling the common property and arranging repairs and maintenance;
  • appointing managing agents and electing building management committees;
  • making, implementing and enforcing by-laws for the development.

Each year members are elected to form an executive committee which oversees the daily administration of the owners corporation and makes certain decisions on behalf of the scheme and its members. Some decisions are made at committee level while others must be passed at a general meeting.

Resolutions passed by a committee affect other unit owners. Committee members therefore have significant responsibilities and must understand their obligations and scope of powers under their appointment.

Strata title schemes and the establishment, activities and conduct of the owners corporation and its members are governed by legislation and regulations in the relevant jurisdiction. It is important for committee members to have a working knowledge of these laws and regulations so informed and lawful decisions concerning the scheme can be made.

A range of issues can arise when an owners corporation exercises its functions under the legislation, and committee members should seek legal advice and direction if facing uncertainty or for complex matters.

Our team has comprehensive knowledge of the laws and regulations affecting strata title schemes and can assist owners corporations, managers, developers and individual owners across a range of matters such as:

  • advising committee members on their powers under the relevant laws;
  • preparing, reviewing and interpreting by-laws;
  • negotiating, reviewing and advising on management rights agreements;
  • advising and assisting with contractual or building disputes;
  • preparing community management statements;
  • representing the owners corporations at Tribunals or Court.

If you need any assistance contact one of our lawyers at mail@simpsonpartners.com.au or call 02 9527 4555 for a no-obligation discussion and for expert legal advice.