Key questions answered!
A strata scheme is a system of multiple ownership of a building or collection of buildings. Each owner owns a portion (called a ‘lot’ or ‘unit’), which is usually an apartment, townhouse or commercial/retail unit; but every owner shares ownership of any common property (e.g. foyers, driveways, gardens, outside walls, the roof, hallways, stairs, lifts, carparks etc ) if it is indicated on the title. The multiple ownerships are combined in a legal entity called the body corporate.
Strata owners are levied by the body corporate to cover many of the expenses faced by all home owners, such as council charges, insurance, cleaning, general maintenance and utilities such as power and water.
It should also include an amount to be saved for long-term expenses as the building ages, such as painting, tiling, plumbing, carpet, plant and equipment, etc for the Sinking Fund. The amount is usually calculated in proportion to an owner’s ownership or utility interest, as it relates to the total number of lot entitlements in the strata scheme.
You must pay your levies and comply with the scheme’s by-laws/rules, which can cover everything from renovations to pets. You have the right to contribute to your community’s decision making, to stand for a position on your committee and generally be heard. As an owner, you also have a share of an unlimited liability for anything that goes wrong, which is why strata insurance is required.
If you can’t attend a general meeting of the body corporate in person, you can appoint a proxy to vote in your place.
You will need the approval of the body corporate when you intend to make significant structural alterations to your lot, or any alterations to any part of the common property. You will also need the approval of the body corporate if you plan on engaging activity that contravenes your scheme’s rules — for example, the keeping of a pet may be prohibited. You should consult your rules to determine whether approval is necessary.
If you are unhappy with the way the rules are being applied you can talk to a committee member, raise it at a general meeting or contact the Commissioner for Body Corporate and Community Management, the government authority responsible for regulating strata issues in Queensland.