Strata Management Flashcards
where did strata scheme originate?
New South Wales, Australia
Objective of Strata Scheme ( Condo policy)
- More intensive use of limited land resources
- Greenery & open spaces for recreation
- Proper maintenance of community amenities & facilities
A system of title which gives
- Supporting rights over common property
- Exclusive ownership of strata lot
Duality in ownership
- An undivided common interest in shared facilities, i.e. common property
- A separate individual interest in the airspace, i.e. strata lot
Benefits of Strata Scheme
❖ Reduced cost of ownership
❖ Upkeep and maintenance cost are shared with other owners
❖ Ease of disposal for subdivided lots
Types of Strata Properties
- Single use type
- Mixed use type
Legislation Governing Strata Properties
- Land Titles (Strata) Act (LTSA)
- Building Maintenance & Strata Management Act (BMSMA)
Land Titles (Strata) Act (LTSA) provides for
➢ Strata subdivision
➢ Collective sale
➢ Termination of strata scheme
➢ Under the purview of MinLaw
➢ Administered by SLA
Building Maintenance & Strata Management Act (BMSMA) provides for
➢ Self-governance, management, control & administration of common property
➢ Resolution of disputes by Strata Titles Board
➢ Under the purview of MND
➢ Administered by COB of BCA
Parties in BMSMA
- management corporation
- owner developer
- council
- subsidiary proprietor
- managing agent
what does proprietor(owner-developer) means?
Any person/organization intending to develop a building
Subsidiary Proprietor (SP) meaning
- A purchaser (may be an individual or a company) whom developer transferred ownership of a unit to
- kinda like a condo unit owner
Management Corporation Strata Title (MC or MCST) meaning
juridical entity with perpetual succession that is empowered by law to administer and oversee common property of a strata development
Management Council (Council) meaning
- represented body of members appointed from among SPs to manage the strata development.
- Up to a maximum of 14 members in the Council.
Managing Agent (MA) meaning
- professional service provider engaged by the MC to manage the strata development,
- normally on a year by year contractual basis
Share Value meaning
- figure that shows
- allocation of proportionate share
- allocated to the owner in each strata unit in development.
Strata Unit/Lot meaning
Air space defined by the three-dimensional area within enclosure walls of the lot, floor & ceiling
Common Property meaning
- Parts of land/building in the strata development which are not comprised in any lot.
- Parts being used or enjoyed by occupiers of two or more lots
Strata Titles Boards (STB)
- tribunals constituted under the BMSMA
- to mediate and hear applications
- between SPs and MCs, or between SPs
- in relation to disputes arising out of strata titled property
- and orders for collective sales of property under the Land Titles (Strata) Act
Commissioner of Buildings (COB)
essentially an enforcement officer designed to police the rules and regulations of the BMSMA and LT(S)A.
Self-Regulating Framework of The BMSMA
- Allow SPs to decide on how to manage the property
- All SPs have a right to take part & vote in decision-making process & vote on decisions
- MC enforce their own rules (called bylaws) & by-laws provided in the Act when managing the estate
- SPs have responsibilities (e.g. sharing costs of upkeep of common property)
- Specific obligations of MC are performed by the council or MA
- MC will perform its obligations imposed by the Act and Regulations
(e.g. hold annual meetings)
What are common properties?
- Not comprised in any strata lot in strata title plan
- Common to all SPs; tenants-in common
- Cannot sell off the common property independently
- dont serve individual strata lots
- serve the entire space
Shared value (SV)
Each strata lot is allotted share values (SV)
Significance of SV determines
- Amount of maintenance contributions
- voting rights
- share in common property