Are strata companies required to insure all buildings in a scheme, not just common property?
Page 6 | Strata Insurance Solutions
What can owners do if they feel harassed or bullied by a strata manager or council?
Page 10 | McWilliams Davis Lawyers
Are ballot papers from strata elections confidential or open for inspection?
Page 12 | Realmark
About Us
LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.
As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.
Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.
Meet the team
Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians. Nikki shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ.
Nikki is also known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.
Liza came on board in early 2020 to bring structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year.
Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.
Liza Jovicic Sales and Content Manager
Are cost-plus agreements like giving the builder a blank cheque?
Bruce McKenzie, Sedgwick
What can owners do if they feel harassed or bullied by a strata manager or council?
Jason O’Meara, McWilliams Davis Lawyers 12 Are ballot papers from strata elections confidential or open for inspection?
Luke Downie, Realmark
How will software providers meet the legislative compliance requirements for embedded networks in WA?
Scott Bellerby, B Strata and Damien Moran, EnergyTec 18 How can strata companies prepare for repairs to areas they can’t inspect regularly?
Marcus Munstermann and Craig Welsh, QIA Group
20 How is responsibility for the Embedded Network Code of Practice determined in strata?
Damien Moran, EnergyTec
Reviewing your maintenance plan
ESM Strata 24 Do strata managers have a contractual obligation to attend SAT meetings?
Jamie Horner, Empire Estate Agents
Do ownership change certificates create unnecessary tax return obligations?
Rod Laws, TINWORTH & CO
How to choose the right contractor for concrete spalling remediation
Bruce McKenzie, Sedgwick 30 How many council positions can a corporate owner with multiple lots hold?
Jamie Horner, Empire Estate Agents 32 Can a majority of owners approve spending strata funds on a unit entitlement review?
Luke Downie, Realmark
The WA LookUpStrata Directory
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Are strata companies required to insure all buildings in a scheme, not just common property?
Can a strata company insure parts of the building owned by individual lot owners rather than common property?
In our WA strata scheme, the lot boundaries are defined by the external surfaces of the walls and roof, rather than the internal surfaces. This means those parts of the building structure are individually owned, not common property. Can the strata company legally insure those parts of the building, given that property normally cannot be insured by a party that does not own it or have a financial interest in it?
A single comprehensive policy arranged by the strata company ensures the entire structure is adequately protected, avoids gaps in cover, and facilitates straightforward claims management.
In relation to the strata company’s obligation to insure, under the Strata Titles Act 1985 (WA), the strata company is required to insure all buildings in the scheme, not just the common property. Section 97 of the Act imposes this obligation, provided the buildings fall within the definition of “insurable assets”, regardless of whether those buildings are common property or form part of an individual lot.
In relation to the insurable interest point, while it is commonly said that a party cannot insure something it does not own or have a financial interest in, most strata insurance policies are specifically structured to insure on behalf of both the strata company and the individual lot owners. The definition of “insured” in these policies usually includes the strata company and all lot owners in respect of their respective interests. Therefore, when a building forming part of a lot is insured, the strata company insures it on behalf of the owner, and the policy thus insures parties with a legal or financial interest in the insured property.
The intent of the legislation requiring the strata company to insure the entire building, including buildings that form part of individual lots, is based on the reality that insurers generally will not insure only part of a building. This is particularly the case when structural elements such as foundations, shared walls, and roofing are interconnected, making it impractical and commercially unviable to
insure individual portions of a building within a strata scheme. A single comprehensive policy arranged by the strata company ensures the entire structure is adequately protected, avoids gaps in cover, and facilitates straightforward claims management.
In summary, the strata company is required to insure all insurable buildings within the scheme, even if they are wholly contained within a lot. The insurance is arranged on behalf of the lot owners and the strata company, satisfying the requirement for insurable interest, while ensuring the practical and financial viability of insuring buildings in a shared environment.
Mention this offer when requesting a quote from us, and we will provide a discount off our standard fee for service of $250 (GST Inc) for buildings with 10-25 lots or $500 (GST Inc) for buildings with more than 25 lots for the first year you insure with Strata Insurance Solutions
To redeem this offer email a copy of your current policy schedule to Strata Insurance Solutions within 1 month of the publication of this magazine Your policy can expire any time in the next 12 months However we can only provide quotes 30 days prior to the expiry of your policyif your policy is not due now, we will schedule a quote at the appropriate time To ensure we apply this offer to our quotes, please specifically mention you would like to redeem the "LookUpStrata Special Offer".
Take the test todaysee how much you can save.
Are cost-plus agreements like giving the builder a blank cheque?
We engaged a builder to address concrete cancer on a standard costs-plus agreement. On the final invoice, Strata company was not privy to how he came up with the costs. Did we write this builder a blank cheque?
We engaged a builder to address concrete cancer within a lot. The Strata company signed a standard costs-plus agreement from HIA. The Strata company were happy to pay costs and give the builder a profit, believing that the contract entitled them to see details of the builder’s costs, like timesheets and receipts for the materials.
However, when the bill came, the builder provided a cubic measurement (litres) and a per-litre cost. The volume was about right, but Strata company was not privy to how he came up with the costs.
When we challenged the bill and asked for more information, the builder refused and declared that this was industry standard. They would not provide actual figures for time and materials.
Did our building write this builder a blank cheque? When remediating concrete cancer, is there a better way to engage builders to keep them accountable and have a more transparent “costs plus” agreement?
This is very complex and difficult for owners unless the agreement is absolutely crystal clear.
Volume measurement for repairs is not ideal, particularly from an owner’s perspective. It’s extremely difficult to be able to determine how much was done. Experts have experience. Part of the issue here, is getting a very firm upfront and signed agreement with the builder to determine how the final price will be calculated.
I’m not a fan of volume measurement because, as a supervisor, I sometimes find it difficult to check, but there are strategies. We can have hold points in an inspection process where we indicate the builder can’t proceed past a point until something’s been addressed. The expert has the opportunity to look at the progress and potentially measure and understand how much volume has been used.
It’s about upfront transparency. An expert knows how to manage the process. It is very complex and difficult for owners to take on unless the agreement is absolutely crystal clear.
Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com
Helping the strata community navigate their building concerns
BUILDING CONSULTANCY
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What can owners do
if they feel harassed or bullied by a strata manager or council?
Our strata management and council of owners harass, intimidate and bully owners. What can we do and where can we make a complaint?
Try to resolve the issue internally without external intervention (if the parties feel comfortable doing so).
The options available to an owner experiencing harassment, intimidation, or bullying by a strata manager or council of owners depend on several factors, including the strata company’s by-laws or, in the case of a strata manager’s behaviour, the terms of the strata management agreement
Before making a complaint, we suggest trying to resolve the issue internally without external intervention (if the parties feel comfortable doing so). Sometimes these matters simply require open communication in a safe and comfortable environment.
Owners can make a complaint to the Strata Community Association WA (SCA WA) in relation to alleged breaches of its Code of Conduct by its members, noting the strata manager will need to be a member to make such a complaint. For more information about the SCA WA Code of Conduct, the complaints form, and its members, please visit the SCA WA website
Otherwise, if the issue cannot be resolved internally, the owner may be able to apply to the State Administrative Tribunal to resolve a scheme dispute. However, certain steps must be taken before an application can be made to the Tribunal. These steps will depend on the specific conduct you are complaining about, and legal advice should be obtained prior to commencing an application in the Tribunal.
Disclaimer: The above response contains a summary of relevant information or an opinion which is current at the date of publication. This document is not intended to constitute legal advice and does not take into account individual facts and circumstances. The reader must not rely on the above response as advice. Jason O’Meara | McWilliams Davis Lawyers jo@mcwilliamsdavis.com.au
Are ballot papers from strata elections confidential or open for inspection?
Can an owner request access to ballot papers from an AGM election for the council of owners, or must they remain confidential?
At our AGM, we received eight nominations for seven council of owner positions, so voting was put to a ballot. The unelected owner demanded to view the ballot papers. Is this permissible? Should ballots remain private and confidential, and should anyone other than the presiding persons have access to them?
The Strata Titles Act 1985 allows an eligible person to apply to a strata company to access its information, including records and correspondence. While the Act makes a substantial amount of information available, does it include ballot votes?
Ballot papers must be retained for 7 years and may be inspected, but redacting voter details could resolve privacy concerns while maintaining transparency.
Under the standard Schedule 1 Governance by-laws, a ballot on the election of council is required when the number of nominated candidates exceeds the number of positions
determined to form council. For a ballot to be valid, the person entitled to vote must write the names of the candidates they are voting for equal to the number of positions, list the lot they are voting for and their capacity for voting (proxy, mortgagee, owner), sign the ballot, and return it to the chairperson of the meeting.
The ballot papers form part of the records of the strata company and must be retained for the required period (7 years). A person with a proper interest can make an application to inspect the strata company records in accordance with section 107(1)(b). A strata company may withhold a document from inspection should it be determined that the document is subject to legal professional privilege. As to whether a ballot paper could constitute such privilege, legal advice should be sought.
If lot owners are concerned about who voted for whom, consider providing the ballot papers with the voter details redacted. Perhaps this might be a solution all parties are happy with.
Luke Downie | Realmark ldownie@realmark.com.au
WA Strata Titles: resolving common property disputes in strata living
September 2025
One advantage of strata living can be the access to facilities on common property, which one might not have in freehold ownership of stand-alone houses. Such as gyms, swimming pools, or large games rooms.
However, disputes relating to common property can take the gloss off that advantage, if not well resolved.
In seeking to resolve such disputes or problems, it is best to start with things like the by-laws, the strata plan, minutes of general meetings and other objective facts. It is important to be clear on these before getting into a dispute or debate, which can be distorted by subjective views over whose responsibility it is when it involves common property.
Let’s examine one objective thing in the world of strata law – the strata plan.
Why the strata plan?
A strata lot is essentially a cubic space owned by operation of the Strata Titles Act 1985 (as amended). It is defined by the boundaries drawn on the strata plan and that can lead to clarity on what one owns.
By law, a lot owner owns this cubic space that is bounded by:
• the inner surface of the walls.
• the upper surface of the floor; and
• the underside of the ceiling.
Physically, this means owning things like:
• the internal walls between rooms (but not structural ones);
• the paint on the walls;
• the carpets on the floor;
• the light fittings on the ceilings;
• fixtures such as fireplaces, bedroom doors, bathrooms and toilets etc; and
• for survey strata, any external yard or courtyard shown to be part of the lot on the strata plan, even if physically separate from the above.
Conversely, what is not part of the strata lot is common property, namely:
• any part of the building or land outside the defined cubic space of the strata lot (this is usually what is the most obvious aspect of common property);
• the walls themselves (but not the inner surfaces of them);
• the upper surface of the ceilings (but not the underside) and any structures above them, e.g. the roof, tiles and gutters;
• the foundations and other structures under the floor of any individual lot;
• external walls, external doors and windows of any individual lot; and
• all land not within any particular lot, such as driveways and gardens (unless expressly shown on the strata plan as being part of a particular lot).
Key Points
• Where there is a dispute, make sure you understand the strata plan before making assumptions about what is or is not common property.
• Some things which constitute common property are not immediately obvious.
Examine the strata plan
The first step to finding out what is common property and what is not, is to examine the strata plan registered at Landgate for the strata scheme.
Note though, that some strata plans can be difficult to read and understand because they can be complicated by things like:
• technical terminology;
• omissions and irregularities (which may have slipped past the original consultants, as well as Landgate); and
• changes to lot numbers following subdivisions of one or more of the lots since the commencement of the original strata plan.
If doubt arises, it may be a good idea to get input from an adviser in interpreting the strata plan.
Clarifying the issues
The strata plan can make clear what is private and what is common property. Such clarity can potentially remove at least one source of disagreement as to who has the legal right or obligation.
For example, imagine a survey strata scheme built on a steep slope, so as to take in the views of the ocean.
The higher strata lot owners would not want the lower strata lot owners to build an additional storey that would obstruct their views.
Hopefully, the developer took that into account. If so, the strata plan should show the maximum heights of each lot. Their effect would be to incorporate height restrictions that would prevent view-hampering renovations.
‘Check the facts before trying to solve the problem you face over common property’
A platform for problem solving
Good advisers will always have you check the facts before trying to solve the problem you face. That is as true of strata as it is of other areas of life.
With strata, one key source of facts and clarity is the strata plan. It is a starting point for all parties in the strata scheme to understand their rights and obligations. From there, they can move to the next phase of resolving the dispute, which will include interpreting the by-laws.
For more information please contact:
Anthony Quahe Managing Principal
T 9200 4900 E aquahe@civiclegal.com.au
Disclaimer: This article contains references to and general summaries of the relevant law and does not constitute legal advice. The law may change and circumstances may differ from reader to reader. Therefore, you should seek legal advice for your specific circumstances. The law referred to in this publication is understood by Civic Legal as of publication date.
How will software providers meet the legislative compliance requirements for embedded networks in WA?
Will strata management software providers update their programs to meet the new legislative compliance requirements for embedded networks?
The recent legislative changes for embedded networks introduce new requirements for strata managers, which will likely require improvements to existing strata management software to handle these obligations. Will software providers need to update their programs to meet the new compliance requirements, and are they prepared for this?
Strata managers must ensure compliance with new code requirements, but they can rely on partnerships with meter service providers for support.
Scott Bellerby, B Strata:
When it comes to strata management software, there are definitely limitations. That’s where partnerships with meter reading companies, such as EnergyTec, can help. They can assist with that additional layer of compliance.
Strata managers won’t be able to say, “Our system doesn’t support it,” as an excuse once the new requirements come into effect.
Damien Moran, EnergyTec:
The heavy burden of code compliance, like providing advanced notice of fee increases, can be managed by businesses like ours, or by meter service providers and agents, with support from strata managers. The role of the strata manager remains critical: they’re responsible for aligning and managing the by-laws, as well as recovering associated costs and charges.
There needs to be a symbiotic relationship between the meter network service provider and the strata manager to ensure everything works together efficiently.
Scott Bellerby | B Strata scott.bellerby@bstratawa.com.au
How can strata companies prepare for repairs to areas they can’t inspect regularly?
How should a strata company budget for inaccessible areas like the roof?
We self-manage our small strata scheme. I create spreadsheets that include administration fund expenses, 10-year plan budgets, and reserve fund for our use and to ensure compliance.
We’ve recently had roofing problems. The unexpected repairs threw our budget out the window. The roof wasn’t on our radar. How do we budget for areas we can’t access ourselves? Should we organise annual or bi-annual inspections?
It’s tough to plan for things that you can’t see.
It’s tough to plan for things that you can’t see. Particularly when it comes to things like roofs, underground pipe work, etc. Nevertheless, any maintenance plan and any proposed funding needs to consider those items. It pays to get a roofer up there every few years to have a look around and see what we can’t see.
You can see the paint, you can see the windows, but you can’t see the roof. As part of our maintenance inspection, we conduct a rudimentary site-wide inspection to identify potential problems and suggest solutions for areas that may be overlooked. We will ask you about the maintenance history of items we can’t see - Small problems, such as minor leaks, can be an indicator of bigger roof issues down the track.
Advice from licensed contractors already working on site is important - If a contractor is attending the site, say fixing the gutter, pay them extra to have a look around the roof while they’re there and give you some advice. It’s really about taking notice. The building ages incrementally, so you think everything’s fine. Somebody else with fresh eyes may say, “Well, that’s not what it’s supposed to be doing right now”.
Marcus Munstermann and Craig Welsh | QIA Group info@qiagroup.com.au
Managing the Strata Maintenance Backlog: How to Stay Ahead in 2025
As strata properties continue to age, the pressure to address maintenance backlogs is growing in 2025. With the increasing cost of materials, labour shortages, and a growing list of maintenance tasks, many strata communities are finding it more difficult to stay on top of repairs and upgrades. The emphasis on preventative maintenance for strata properties has never been more vital.
Whilst reactive maintenance is often seen as the default approach, a comprehensive plan can save significant time, money, and stress in the long term, ensuring that critical repairs are completed before they become major issues.
A strong preventative maintenance plan is a must -have for Strata Managers looking to streamline operations and maintain standards over time, building a reputation of reliability and care.
We specialise in developing customised Building Maintenance Assessment reports for Strata Managers, helping to reduce backlogs and prevent costly emergencies. Contact us today to discuss how we can support your strata management needs with expert services tailored to meet the demands of 2025 and beyond.
How is responsibility for the Embedded Network Code of Practice determined in strata?
Who is responsible for compliance with the Embedded Network Code of Practice in a strata scheme?
Our strata scheme operates an embedded electricity network managed by a third-party provider. Who is responsible for ensuring compliance with the Embedded Network Code of Practice(CoP)? Does accountability sit solely with the energy provider?
These third-party arrangements vary based on the terms of the agreement your scheme or developer has entered into.
These third-party arrangements vary based on the terms of the agreement your scheme or developer has entered into.
Possible scenarios:
1. A third party operates as a licensed retailer and owns the sub-meter network (meters) installed in your scheme’s electrical infrastructure, selling electricity directly to residents. The third-party operator would be responsible as the ENS under the code.
2. A third-party has been granted a license with easements to utilise the scheme owned meter network to onsell electricity directly to the residents. The scheme would be primarily responsible as the Embedded Network Supplier (ENS) under the EN CoP.
Often, the solar, battery and EV charging assets are owned by the third-party. Third occurs when the third party is granted licenses or gains exclusive use of spaces, such as roofs for solar. Third parties are interested in these assets because they are income-generating assets. In some instances, specific lots have been granted access to solar generation, while others have not.
The electrical infrastructure distributing the electricity throughout the property remains the property of the scheme as does the liability of maintenance, insurance, compliance, etc.
Damien
Moran | EnergyTec damien.moran@energy-tec.com.au
Get Ready for the Embedded Network Code of Practice
New regulations are coming. From 1 January 2027, embedded network sellers must register with the Economic Regulation Authority and the Energy & Water Ombudsman. Strata companies will be required to comply on behalf of owners.
Key Obligations Include:
Supply agreements & disclosure statements
Lot owner access to meter information
60-day billing cycles
Retention of billing history
Offering a default flat-rate tariff
Support for hardship, family violence & life support
How EnergyTec Supports You:
Onsite & remote meter reading
Compliant utility statements
Online portal
Pharos, our online portal provides:
Automated billing & cost recovery
Full billing history & data access
Take the first step today - Talk to us!
For more information visit our website or get in touch with our team by contacting sales@energytec.com.au
Reviewing your maintenance plan
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Do strata managers have a contractual obligation to attend SAT meetings?
Are strata managers contractually obliged to attend a SAT meeting with a representative from the council of owners, or are they within their rights to say they will not be attending?
A strata manager is not contractually required to attend a SAT hearing unless specified in the agreement or ordered to appear as a witness.
Strata managers do not have a contractual obligation to attend a SAT meeting, unless there is an order requiring their attendance by a party or the Tribunal, as a witness.
The Strata Management Agreement between the owners of the scheme and the strata
manager may delegate some of the functions of the scheme to the strata manager, but the key term is ‘may’. The contract will outline agreed-upon services, typically accompanied by a price and a list of additional services. SAT meetings would be an additional service, and the obligation to attend would be optional, with an additional cost.
Whilst it may be beneficial to have the strata manager at the SAT meeting, generally, they cannot make decisions on behalf of the scheme, and the council of owners should attend. Alternatively, if the council wishes to appoint a representative, a lawyer, strata consultant, or mediator would be more appropriate.
Connect with professionals from across the property industry as we share valuable strata insights and spark meaningful collaboration.
ANN MANIFIS Self-Leadership Strategist
GLENN FAIREY Mediator, Strata Mediation Services
JORDAN ENNIS Senior Development Manager, Blackburne
JAMIE HORNER Principal, Empire Strata Management and REIWA Trainer
Do ownership change certificates create unnecessary tax return obligations?
Can strata managers charge for ownership change certificates on their own behalf to avoid unnecessary tax returns?
When a change of ownership occurs, the strata manager issues the necessary certificates on behalf of the strata company and invoices the requesting party. The payment goes to the strata company, and the strata manager then charges the strata company for the amount received. The strata manager also engages a tax professional to file an annual return at a cost of around $300, even though the only income is from the issue of certificates.
The result is that the return costs around $300, there is no taxable income, the tax office processes the return and may issue an assessment, and significant time is wasted preparing the return.
Has this issue ever been raised with the state strata regulator so that strata managers can charge directly for issuing certificates, or with the tax office so that an Australia-wide exemption ruling could apply?
The reason for this treatment lies with the trust account requirements in most States.
I understand the frustration with this issue. The reason for this treatment lies with the trust account requirements in most States. For transparency reasons, all trust income must be banked into the trust account and expenses disbursed from the trust account.
This requires the certificate income paid by the new owner being banked into the trust account and then disbursed to the managing agent.
Unfortunately, ATO reissued IT 2505, largely unchanged as TR 2015/3. The receipt of certificate fees by non-owners is specifically mentioned as non-mutual income and, therefore, it is taxable, resulting in the requirement of an income tax return.
I agree this is counterproductive, but it is not on the Government’s priority list. Unfortunately, given that the ATO reissued its ruling for Strata Plans, there appears to be no change coming anytime soon.
Rod Laws | TINWORTH & CO RodLaws@tinworth.com
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An engineer’s scope of work to replace waterproofing membranes includes amounts for insurance and DBPA document lodgement. At this stage of the process, how accurate are the amounts mentioned?
Our strata scheme has 33 units in two buildings. The waterproofing membrane on both roofs needs to be replaced. The roofs are a flat concrete structure, and the building was constructed in 1984.
The engineer’s scope of works quoted a $35,000 premium for the HBCF insurance certificate and $20,000 for the lodgement of documents.
How can I check these quotes are reasonable? How do we know the insurance quote is accurate, given we have not yet gone to tender and thus do not have quotes for the repair costs?
These amounts would likely be subject to change depending on the final project or contract cost.
Costs associated with HBCF and lodgement of documents are generally costs dependent on the extent of works and final value.
If an engineer has prepared a scope, it is unlikely these amounts are fixed quotes and are a guide or provisional allowances that would be subject to change depending on the final project or contract cost.
Check the scope of work qualifications or conditions. If they are unclear, ask the engineer how the costs were established.
Often, provisional allowances are included at the higher end to ensure sufficient funds are allowed. However, the final cost will always be determined once tendering occurs.
Therefore, realistically, checking these costs for accuracy can only occur once the project costs are established. Provisional sums for these items are industry standard, based on the uncertainty of final values.
Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com
How many council positions can a corporate owner with multiple lots hold?
Can a corporate owner of multiple units hold more than one position on a council of owners?
A corporate owner of multiple units in our strata scheme has applied for multiple positions via different representatives on the council of owners. Can individuals representing a corporate owner hold more than one position on the council?
Despite legal advice stating that a corporate owner of multiple units is not permitted to hold more than one position, the corporate owner’s representatives refuse to accept this. Is there a definitive answer, or would this require a SAT ruling?
Refer to your scheme’s bylaws regarding the constitution of the council of owners.
Each scheme has varying by-laws First, you need to check the Governance Schedule 1 By-laws applicable to your scheme. Your strata complex may have the standard Schedule 1 Governance Bylaws. If so, they state that the constitution of the council of owners and Section 136 of the Strata Titles Act 1985 note that a corporate body may be an officer or council member. The Schedule also notes how a council is constituted if there are co-owners.
In Schedule 1 By-Laws, it notes that they must be elected at the Annual General Meeting.
Corporate body may be officer or council member
In Section 136 of the Strata Titles Act 1985 notes:
1. A corporation is eligible to be an officer of a strata company or a member of the council of a strata company.
2. A corporation may authorise an individual to perform on its behalf a function conferred under this Act on the corporation as an officer of the strata company or as a member of the council and may revoke the authority of an individual so authorised.
3. If an individual performs a function that the individual is authorised to perform by a corporation under subsection (2), the function is taken to be performed by the corporation.
The legislation quoted above notes that, if duly elected at the Annual General Meeting, a corporation is eligible to be an officer of a strata company or a member of the council. Review your legal advice to note which sections of the Act or by-laws they are referring to, and provide this to the corporation that holds multiple positions on the council.
spending strata funds on a unit entitlement review?
Can strata funds be used to pay for a revaluation of unit entitlements if not all owners agree?
A group of owners holding the majority vote wants to engage a valuer using strata funds to revise unit entitlements for all owners in an attempt to reduce their strata fees. The vote to change unit entitlements has not been taken, but we know it will not pass without about 15% dissent. Can strata funds be used to pay for a revaluation when not all owners agree?
A licensed valuer sets unit entitlements, and the strata company may approve the valuation cost by ordinary resolution or through the council of owners.
The unit entitlement (UE) of the lots in a strata or survey strata scheme is set in accordance with section 37 of the Strata Titles Act 1985 (STA1985). The UE of schemes created since 1985 is set by a licensed valuer. The valuer sets the values by determining the capital value of the lot in proportion to the total value of the lots in the scheme (aggregate of unit entitlement). Capital value is used for a strata scheme, and site value is used for a survey strata scheme.
Your question relates to the resetting of the UE, and particularly the cost of the valuer. The approval of the valuer’s cost ultimately depends on expenditure approval. If the expenditure is presented as part of the strata company’s budget or budget amendment, it would be an ordinary resolution (passed by more than 50% of the lots or by more than 50% of the unit entitlement) to approve this expenditure. The council could probably approve this expenditure of owners under section 102(6)(a), given the cost is likely low enough for this to occur.
I understand that the point raised is “why spend the money if the change to the UE is not likely to pass”. The strata company may intend to seek to have the resolution passed via the State Administrative Tribunal, should the motion fail to pass via Resolution Without Dissent at a general meeting of the strata company.
The value of the UE is set by a licensed valuer. It is important to remember that the UE will not change simply because a lot owner or group of lot owners wants the UE to change. A variance in proportionate value would need to exist for the UE to be changed. If this does exist, I believe the UE should be reset accordingly.