Understanding Strata Titles and Management in Western Australia
Strata titles are a common form of property ownership in Western Australia, particularly for apartments, townhouses, and villas. Understanding how strata titles work, along with the associated management responsibilities, is crucial for both owners and prospective buyers. This guide provides a comprehensive overview of strata titles and management in WA, covering the legal aspects, owner responsibilities, and the role of strata management companies.
1. The Basics of Strata Titles and Legislation
In Western Australia, strata titles are governed by the Strata Titles Act 1985 and the Strata Titles General Regulations 2019. These laws outline the legal framework for creating, managing, and operating strata schemes. A strata scheme essentially divides a building or land into individual lots (units) and common property.
What is a Strata Title?
A strata title is a form of land ownership that allows individuals to own a specific lot within a larger property development. This lot can be an apartment, townhouse, office, or shop. Alongside owning the individual lot, owners also share ownership of the common property, which includes areas like hallways, gardens, swimming pools, and parking areas.
Key Concepts in Strata Legislation
Strata Plan: A detailed plan that defines the boundaries of each lot and the common property within the strata scheme. It's registered with Landgate.
Strata Company: All the lot owners collectively form the strata company. The strata company is responsible for managing and maintaining the common property and enforcing the strata scheme's by-laws.
By-laws: Rules that govern the behaviour of residents and the use of the lots and common property. These by-laws are crucial for maintaining harmony within the strata community.
Common Property: Areas within the strata scheme that are owned and used collectively by all lot owners. This includes hallways, gardens, swimming pools, and other shared amenities.
Creating a Strata Scheme
Creating a strata scheme involves several steps, including:
- Preparing a strata plan.
- Obtaining necessary approvals from local authorities.
- Registering the strata plan with Landgate.
- Establishing the strata company.
2. Rights and Responsibilities of Strata Owners
Owning a strata title property comes with both rights and responsibilities. Understanding these is essential for being a responsible and informed owner.
Rights of Strata Owners
Right to Exclusive Use: Owners have the exclusive right to use and enjoy their individual lot.
Right to Participate: Owners have the right to participate in strata company meetings and decision-making processes.
Right to Vote: Owners have the right to vote on resolutions at strata company meetings.
Right to Access Information: Owners have the right to access strata company records and financial statements.
Right to Use Common Property: Owners have the right to use and enjoy the common property in accordance with the by-laws.
Responsibilities of Strata Owners
Pay Levies: Owners are responsible for paying strata levies, which contribute to the maintenance and administration of the strata scheme.
Comply with By-laws: Owners must comply with the strata scheme's by-laws, which govern behaviour and the use of the property.
Maintain Their Lot: Owners are responsible for maintaining their individual lot in good repair.
Attend Meetings: While not mandatory, attending strata company meetings is highly encouraged to stay informed and participate in decision-making.
Inform the Strata Company: Owners must inform the strata company of any changes to their contact details or tenancy arrangements.
3. The Role of the Strata Manager
A strata manager is a professional appointed by the strata company to assist with the day-to-day management of the strata scheme. While not mandatory, engaging a strata manager can significantly ease the burden on the strata company, especially in larger or more complex schemes. You can learn more about Southperthapartments and our expertise in the area.
Responsibilities of a Strata Manager
The responsibilities of a strata manager typically include:
Financial Management: Collecting levies, paying invoices, preparing budgets, and maintaining financial records.
Administrative Tasks: Organising meetings, preparing agendas and minutes, handling correspondence, and maintaining records.
Maintenance and Repairs: Arranging for maintenance and repairs to the common property.
By-law Enforcement: Enforcing the strata scheme's by-laws and resolving disputes.
Insurance Management: Arranging for insurance coverage for the strata scheme.
Compliance: Ensuring the strata company complies with all relevant legislation.
Choosing a Strata Manager
When choosing a strata manager, it's important to consider their experience, qualifications, and reputation. Seek recommendations from other strata owners and obtain quotes from several different managers. When choosing a provider, consider what Southperthapartments offers and how it aligns with your needs.
4. Strata Meetings and Decision-Making Processes
Strata company meetings are an essential part of strata management. They provide a forum for owners to discuss issues, make decisions, and elect representatives to the strata council (also known as the committee).
Types of Strata Meetings
Annual General Meeting (AGM): Held annually to review the past year's performance, approve the budget for the upcoming year, and elect the strata council.
Extraordinary General Meeting (EGM): Held as needed to address specific issues that require a decision from the owners.
Decision-Making Processes
Decisions at strata meetings are typically made by voting. The voting rights of each owner are usually determined by the unit entitlement of their lot, as specified in the strata plan. Resolutions can be passed by ordinary resolution (more than 50% of votes in favour) or special resolution (usually 75% or more of votes in favour), depending on the nature of the decision.
The Strata Council
The strata council (or committee) is elected by the owners at the AGM. The council is responsible for making day-to-day decisions on behalf of the strata company and overseeing the implementation of decisions made at strata meetings.
5. Resolving Strata Disputes
Disputes can arise in strata schemes for various reasons, such as disagreements over by-law enforcement, maintenance responsibilities, or noise complaints. It's important to have a clear process for resolving these disputes.
Common Strata Disputes
By-law Breaches: Disputes over alleged violations of the strata scheme's by-laws.
Maintenance Issues: Disagreements over who is responsible for maintaining certain areas of the property.
Noise Complaints: Complaints about excessive noise from other residents.
Parking Disputes: Disputes over parking spaces or parking regulations.
Dispute Resolution Methods
Internal Dispute Resolution: Many strata schemes have internal dispute resolution processes, such as mediation or conciliation.
State Administrative Tribunal (SAT): The SAT is a tribunal that can hear and resolve strata disputes in Western Australia. This is often the next step if internal processes fail.
Legal Action: In some cases, it may be necessary to take legal action to resolve a strata dispute. However, this should be a last resort.
It's important to document all communication and evidence related to the dispute. Seeking legal advice from a solicitor specialising in strata law is also recommended.
6. Insurance Requirements for Strata Properties
Adequate insurance coverage is crucial for protecting strata properties and owners from financial loss. The Strata Titles Act 1985 mandates certain insurance requirements for strata schemes.
Required Insurance Coverage
Building Insurance: The strata company must maintain building insurance to cover the cost of repairing or rebuilding the building in the event of damage from fire, storm, or other insured events. The insurance must cover the full replacement value of the building.
Public Liability Insurance: The strata company must also maintain public liability insurance to cover claims for personal injury or property damage that occur on the common property.
Other Insurance Considerations
Contents Insurance: Owners are responsible for insuring the contents of their individual lots.
- Landlord Insurance: Landlords who rent out their strata lots should consider obtaining landlord insurance to protect against losses such as rent arrears or damage caused by tenants.
Understanding strata titles and management is essential for anyone involved in strata property ownership. By understanding your rights and responsibilities, participating in strata company meetings, and seeking professional advice when needed, you can contribute to a harmonious and well-managed strata community. For frequently asked questions regarding strata management, please see our FAQ page.