Part 5Introductory note. This Part requires an owners corporation for a strata scheme to keep certain records and accounts in relation to a strata scheme. The Part also provides for certain persons to inspect those records and to obtain a certificate of an owners corporation in relation to certain matters affecting a lot in the strata scheme.
96 Owners corporation must keep a strata roll
The owners corporation must prepare and maintain a strata roll in accordance with this Division.Maximum penalty: 5 penalty units.
97 What is the form of the strata roll?
(1) The strata roll must be kept in a form that contains entries for each lot and entries for the common property and the strata scheme in general.(2) The information required to be entered in the strata roll may be recorded or stored by mechanical, electronic or other means.
98 What must be recorded in the strata roll?
(1) There must be recorded in the strata roll in relation to a particular lot:(a) the owner’s name and an Australian address for service of notices or the name of the owner’s agent appointed in accordance with Part 3 of Chapter 4 and the agent’s Australian address for service of notices, and(b) information provided under section 118 or obtained from the Register in connection with the lot, and(c) information provided under section 119.(2) There must be recorded in the strata roll in relation to the common property and the strata scheme in general the following:(a) the strata plan number and the address of the strata scheme building,(b) the names of the original owner and any strata managing agent of the owners corporation and their Australian addresses for service of notices,(c) the total unit entitlement of the scheme and the unit entitlement of each lot,(d) particulars of insurance taken out by the owners corporation, including the following:the name of the insurance company
the number of the insurance policy
the nature of the risk insured
the amount of the insurance
the due date for payment of the premium
the date on which the premium was last paid
(e) the by-laws for the time being in force for the strata scheme.
99 What information can the owners corporation rely on when making entries in the strata roll?
(1) The owners corporation may make or amend the entries in the strata roll on the basis of information contained in the Register or provided under section 118 (to the extent that information so provided is not inconsistent with information contained in the Register).(2) Information provided under section 118 may be presumed to be consistent with information contained in the Register until the contrary is evident.
Division 2 Other records and accounts required to be kept by owners corporation
100 What are the duties of an owners corporation to keep other records and documents?
(1) It is the duty of an owners corporation to keep records and documents in accordance with this Division.(2) The information required to be kept may be recorded or stored by mechanical, electronic or other means.
101 Notices and orders to be kept
An owners corporation must cause the following to be recorded:(a) particulars of any notice served on the owners corporation under this or any other Act, any order under this Act served on the owners corporation and any order made by a court or tribunal and served on the owners corporation,(b) the date on which it was served and the manner of service,(c) the part of the parcel to which it relates,(d) the date by which compliance is required,(e) the date on which it is complied with.Maximum penalty: 2 penalty units.
An owners corporation must keep minutes of its meetings that include particulars of motions passed at those meetings.Maximum penalty: 2 penalty units.
An owners corporation must keep the accounting records prescribed by the regulations.Maximum penalty: 2 penalty units.
104 Certain records to be retained for prescribed period
An owners corporation must cause the following to be retained for 5 years or such other period as may be prescribed by the regulations:(a) the records, notices, orders, minutes of meetings and accounting records required to be kept under this Division,(b) its financial statements,(c) copies of correspondence received and sent by the owners corporation,(d) notices of meetings of the owners corporation and its executive committee,(e) proxies delivered to the owners corporation,(f) voting papers relating to motions for resolutions by the owners corporation and to the election of office holders and the executive committee,(g) records served on the owners corporation by the strata managing agent relating to the exercise of functions by the agent,(h) such other documents as may be prescribed by the regulations.Maximum penalty: 5 penalty units.
105 Owners corporation may require certain persons to produce records, accounts and property of the owners corporation
(1) If the executive committee of an owners corporation gives a notice to a person who has possession or control of property (including records) of the owners corporation requiring the person to deliver the property to the executive committee, the person must, within 7 days after receiving the notice, deliver that property to a member of the executive committee specified in the notice.Maximum penalty: 20 penalty units.
(2) If the executive committee of an owners corporation gives a notice to a person who has possession or control of property (including records) of the owners corporation advising of the decision of the owners corporation to terminate the person’s appointment as strata managing agent, the person must, within 7 days after receiving the notice, deliver that property to a member of the executive committee specified in the notice.Maximum penalty: 20 penalty units.
(3) This section does not take away or affect any just claim or lien which a strata managing agent may have against or on any records or other property of an owners corporation.(4) This section does not affect the operation of the Property, Stock and Business Agents Act 2002.Note. The Property, Stock and Business Agents Act 2002 contains requirements relating to the keeping of records under that Act.
Division 3 Preparation and auditing of financial statements
106 Owners corporation must prepare financial statements
(1) An owners corporation must cause to be prepared financial statements for:(a) the period that commences on the date of registration of the strata plan and ends on a date that is not earlier than 2 months before the date of the first annual general meeting, and(b) each period that commences on the date up to which those statements were last prepared under this paragraph and ends on a date that is not earlier than 2 months before the next succeeding annual general meeting.(2) The financial statements are to comprise only the following matters:(a) a statement of income and expenditure for the administrative fund,(b) a statement of income and expenditure for the sinking fund.(3) Each financial statement must specify the fund, and the period, for which it is prepared.(4) If the period is a period referred to in subsection (1), the financial statement for a fund must also specify the following:(a) the balance carried forward in the fund from the previous period,(b) the particulars and amount of each item of income of the fund received during the current period,(c) the particulars and amount of each item of expenditure from the fund during the current period,(d) the amount of the contribution to the fund determined for each person liable to make such a contribution,(e) the balance outstanding for each such contribution,(f) the cash in the fund at the end of the current period,(g) the balance of the fund,(h) in respect of each liability to contribute to the fund—any unpaid arrears and any balance outstanding,(i) the extent to which, at the end of the current period, the fund is in debit or credit.Note. The financial statements of an owners corporation prepared under this section can deal only with income and expenditure from the administrative and sinking funds and are therefore separate from any other financial statements that might be prepared in relation to the strata scheme, for example, financial statements in relation to the provision of services for a retirement village.
107 Auditing of accounts and financial statements
(1) An owners corporation may determine that the accounts and financial statements of the owners corporation are to be audited.(2) However, the owners corporation of a large strata scheme must ensure that the accounts and financial statements of the owners corporation are audited before presentation to the annual general meeting.(3) Any auditing of the accounts and financial statements of an owners corporation under this section must be carried out in accordance with the Australian Auditing Standards, unless the strata scheme concerned comprises not more than 2 lots.
Division 4 Inspection of records and issue of certificates
108 Inspection of records of owners corporation
(1) Who may inspect records?
An owner, mortgagee or covenant chargee of a lot, or a person authorised by the owner, mortgagee or covenant chargee, may request the owners corporation to allow an inspection to be carried out under this section.(2) Form of request
The request must be in writing and be accompanied by the fee prescribed by the regulations.(3) Items to be made available for inspection
The owners corporation must make the following items available for inspection by the person who makes the request or the person’s agent:(a) the strata roll,(b) any records or documents required to be kept under Division 2,(c) the plans, specifications, certificates, diagrams and other documents required to be delivered to the owners corporation at its first annual general meeting by the original owner or lessor,(d) if in its custody or under its control, the certificate of title comprising the common property or, in the case of a leasehold strata scheme, the certificate of title for the lease of the common property,(e) the last financial statements prepared,(f) every current policy of insurance taken out by the owners corporation and the receipt for the premium last paid for each such policy,(g) any other record or document in the custody or under the control of the owners corporation,(h) if the duties of the owners corporation under this subsection have been delegated to a strata managing agent, such other records (including records of the strata managing agent) relating to the strata scheme as may be prescribed by the regulations,(i) if a caretaker agreement is in force or has been entered into but has not yet commenced, a copy of the caretaker agreement.Maximum penalty: 2 penalty units.
(4) Inspection to take place at agreed place and time
The inspection is to take place at such time and place as may be agreed on and, failing agreement, at the parcel at a time and on a date fixed by the owners corporation under subsection (5).(5) Time and place of inspection if agreement not reached
If an applicant and the owners corporation fail to reach an agreement within 3 days after the owners corporation receives the application, the owners corporation must immediately send by post to the applicant a notice fixing a specified time (between 9 am and 8 pm) on a specified date (not later than 10 days after the owners corporation receives the application).(6) Copies of documents may be taken
A person entitled to inspect a document under this section may take extracts from, or make a copy of, the document but must not, without the consent of the owners corporation, remove the document from the custody of the owners corporation.
109 Certificate by owners corporation as to financial and other matters relating to lot
(1) Who may request certificate?
An owner, mortgagee or covenant chargee of a lot or a person authorised by the owner, mortgagee or covenant chargee may request the owners corporation to give a certificate under this section in relation to a particular lot.(2) Form of request
The request must be in writing and accompanied by the fee prescribed by the regulations.(3) Information relating to lot to be included in certificate
The certificate must specify the following information in respect of the relevant lot:(a) the amount of any regular periodic contributions determined by the owners corporation under Part 3, the periods for which those contributions are payable and any discounts applicable for early payment,(b) whether there is any amount unpaid of any other contributions determined under Part 3 and, if so, the amount unpaid and, in the case of a contribution levied in respect of the sinking fund, the date on which any such contribution was levied,(c) whether there is any amount unpaid by an owner under a by-law to which Division 4 of Part 5 of Chapter 2 applies,(d) whether there is any amount unpaid of any contribution levied under section 76 (4) and, if so, the amount unpaid and the date on which it was levied,(e) whether there is any amount recoverable from the owner of that lot for work carried out by the owners corporation,(f) any amount and rate of interest payable in relation to any unpaid contribution referred to in this subsection,(g) whether there is any fine unpaid under this Act that is a charge on the lot,(h) such other information as is required to complete the certificate.(4) Information relating to management of strata scheme to be included in certificate
The certificate must state, as at the date of the certificate, the name and address of each member of the executive committee and of any strata managing agent and caretaker appointed under this Act for the strata scheme.(5) Extra information required in relation to community schemes
If the strata scheme is part of a community scheme, the certificate must also include:(a) the amount of any regular periodic contributions required to be made to the administrative fund, and the sinking fund, of the community association and the respective periods to which they relate, and(b) the amount of any such contribution that has not been paid, and(c) the date on which any regular periodic contribution to the administrative fund, and the sinking fund, of the association was levied, and(d) if the strata scheme is also part of a precinct scheme—the same information in relation to the precinct scheme as is required by paragraphs (a), (b) and (c) in relation to the community scheme.(6) Form of certificate
The certificate must be in the form prescribed by the regulations.(7) When must certificate be given
An owners corporation must give a certificate under this section not later than 14 days after receipt by it of an application for the certificate.Maximum penalty: 2 penalty units.
(8) Certificate is evidence of matters stated in it
A certificate given under this section is conclusive evidence, as at the date of the certificate, of the matters stated in it in favour of a person (whether or not the applicant for the certificate or a person referred to in the certificate) taking for valuable consideration:(a) an estate or interest in a lot in a freehold strata scheme to which the certificate relates, or(b) an estate or interest in a lease of a lot in a leasehold strata scheme to which the certificate relates.