Emerging markets in Dubai, Abu Dhabi, the Philippines and India have adopted the Australian system.
These associations ultimately bear responsibility for the maintenance and management of common areas such as lobbies and corridors, and shared leisure facilities such as swimming pools and gyms.
The strata manager's role is to work with the owners' corporation and executive committee to successfully control, manage, maintain and administer the property and to create an appropriate community environment and includes tasks such as: Body corporate fees (also called levies[1]) are a mandatory part of strata living.
[1] These fees are payable to the body corporate or strata company managing the property, enabling them to take care of things such as insurance and maintenance of common areas.
The body corporate can award interest on delayed fees and may apply to the court for recovery unpaid money.
[4][3] In Australia, in a rental property the landlord may collect a body corporate fees as an outgoing in some circumstances.
[3] For example, some properties have gyms, pools, tennis courts and barbecue areas, and that's the reason they have high body corporate fees.
"[6] Some peoples ask the real estate agent to give them the previous few years’ body corporate fees for the apartment or unit etc.
[7] Body corporate fees are tax-deductible, but unit owners get back a percentage equal to their personal marginal rate of tax.
[12] Some major changes include strengthening accountability of strata managers, quicker and simpler approval process for resolving disputes including renovation requests, tenant participation in meetings (scheme with over 50% tenants), electronic means for voting on motions, ability to fine unauthorised car parking, removing property developer's authority and influence in formulating Owners Corporation which can bind owners, guidelines to deal with construction defects, curbing practice of proxy farming.
Strata schemes apply to residential developments, commercial, industrial, mixed use, hotel and retirement villages.
All levies must be charged in proportion to the unit entitlements of each lot in accordance with section 78 of the Strata Schemes Management Act 1996.
Developing a ten-year sinking fund plan means that future repairs and maintenance are anticipated well in advance.
[8] The owners corporation is responsible for making sure all necessary insurance policies are in place in accordance with section 83 of the Strata Schemes Management Act 1996.
Agents carry out some or all of the functions or duties or powers of the owners corporation including administrative matters such as calling meetings and collecting levies.
[8] The first annual general meeting must be held within two months of the end of the initial period, which is once one third of the total units of entitlement have been sold and the lot owner information is recorded on the strata roll.
The agenda includes deciding the insurance cover, accounting records, election of the executive committee, by-laws and the appointment of the strata managing agent and caretaker.
[8] The annual general meeting agenda includes confirming previous minutes, a copy of the financial statements, information about insurance policies, appointing auditors and election of the executive committee.