Strata schemes definitions
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Capital works fund
The capital works fund (previously called a 'sinking fund') is to ensure there is enough money to pay for capital expenses when the job needs doing. This can include funds to pay for the following works:
- painting or repainting the common property
- acquiring, renewing or replacing personal property for the scheme
- renewing or replacing fixtures and fittings that are part of the common property, and
- to replace or repair the common property.
The capital works fund is required by law to have a 10 year plan in place.
Strata renewal committee
A strata renewal committee is formed when a strata scheme is considering a strata renewal proposal for the collective sale or redevelopment of the scheme. If the scheme is sold or redeveloped under this proposal, the owners corporation will be terminated.
National Australian Built Environment Rating System (NABERS)
NABERS is a national rating system that measures the environmental performance of a building in energy efficiency, water usage, waste management and indoor environment quality. Not all schemes will have a rating. Only schemes that have a rating must provide one.
Final or interim occupation certificate
A final occupation certificate is what allows residents to move into a residential building once it has finished being built. The certificate also starts reporting periods for warranties and defects in the building. Before December 2019, some buildings were also issued with interim occupation certificates. This allowed people to move in even when development was still ongoing. If an interim certificate was issued, a final certificate was still required once all the building work was complete.
Insured replacement value
Strata schemes are required to hold an insurance damage policy to replace all the buildings (or parts of a building) in the scheme in the case of total destruction. The ‘insured replacement value’ refers to the amount the scheme is covered for in their damage policy to replace everything
The owners corporation must prepare and keep a strata roll. It should include:
- the owner's name and address/email for service of notices
- the owner's agent and the agent's Australian address/email for service of notices
- the strata plan number and the address of the building
- the name of the original owner and an Australian address for notices
- the name of the managing agent (if there is one) and an Australian address for notices
- the total unit entitlements for the scheme and each lot
- insurance details
- the by-laws for the strata scheme
- details of any tenants (name and address/email) for service of notices.