Glossary and frequent abbreviations in our reports
| A/F | Administration Fund |
| S/F | Sinking Funds |
| UE | Unit Entitlements |
| AGM | Annual General Meeting |
| ECM | Executive Committee Meeting |
| EGM | Extra–Ordinary General Meeting |
| I&E | Income & Expenditure |
| OC | Owners Corporation |
| EC | Executive Committee |
| BMC | Building Management Committee |
| ia | inter-alia (amongst other things) |
| OH&S | Occupational Health & Safety |
| SP | Strata Plan |
| CP | Common Property |
| MA | Managing Agent |
| AFSS | Annual Fire Safety Statement |
LEVIES AND OUTSTANDING LEVIES
- The levies and any outstanding levies for the unit noted in our reports are as advised to us, frequently supported with a photocopy provided by the manager
- Levies are normally calculated after an AGM passes its annual budget
- Sometimes vendors are in arrears, of which we are advised
- The arrears may persist until settlement and are adjusted at settlement
- After an exchange of Contracts, the vendor is obliged to provide the purchaser with a Sec. 109 Certificate which discloses several details about the Strata scheme, such as the current insurance details, names of the Committee members, Office Bearers and Strata Manager as well as the levies payable by the lot and any arrears
- In essence therefore, the buyer obtains the unit he/she purchases free of any debts.
BY-LAWS
- The Strata Act has, amongst its regulations, a legislated set of “rules” or “By-laws”; these are the rules and regulations which all unit owners have to abide by; they set out the rules of behavior for all owners living in a community situation that is home unit living( see Current By-laws.pdf)
- Each new and prospective owner of a home unit is advised by his/her legal advisor, the details of all the standard By-laws; many Strata Managers present new owners with a “welcome package” and often include a printed list of all the current By-laws governing a particular strata scheme, either the regulation By-laws + any registered changes to the By-laws
- By-laws can only be altered, added to or repealed at a general meeting
- A change to any of the By-laws may be passed at such a meeting but only has legal effect after it has been registered on the Common Property Title – such a change of By-Laws mast be registered on the common property title within 2 years of being passed
- It is therefore imperative to read a copy of the official Common Property title as enclosed in a Contract for Sale of a unit; it is mandatory for the vendor to include in the contract, amongst other compulsory documents, a copy of the Common Property title and any and all registered changes to the By-laws; a buyer is then fully appraised of the current situation of all the rules he/she must abide by when owning a unit in that building.
COMPANY TITLE – RULES
- A legal advisor for a buyer will receive a contract which will include, amongst other documents, a “package” comprising the Memorandum & Articles, constitution and house rules of the Company that owns the building, often with a financial statement
- The contract should describe the number of shares and distinctive share numbers allocated to the unit; these shares allow the occupation of that particular unit
- The Memorandum & Articles/ Constitution / house roles contain the many regulations of the company.
ALL OF THE ABOVE ARE OF A GENERAL NATURE AND A BUYER HAS TO BE GUIDED BY THEIR LEGAL REPRESENTATIVE
