Contents (1996 - 138)
Strata Schemes Management Act 1996 No 138
Status information

Long title

Chapter 1 Preliminary

Introductory note
1 Name of Act
2 Commencement
3 Objects of Act
4 Application of Act to strata schemes under the Strata Schemes (Leasehold Development) Act 1986
5 Act binds Crown
6 Definitions
7 Notes

Chapter 2 Management of strata schemes

Introductory note

Part 1 Introduction

Introductory note
8 Who manages a strata scheme?
9 Who else may be involved in managing a strata scheme?
10 What rules govern a strata scheme?

Part 2 The principal manager—the owners corporation

Introductory note
11 Constitution of owners corporation
12 Functions of owners corporation
13 Owners corporation may employ persons to assist in exercise of functions
14 Meetings and procedure of owners corporation
15 Termination of strata scheme

Part 3 Others involved in management—the executive committee

Introductory note

Division 1 Constitution of the executive committee

16 Owners corporation to appoint executive committee
17 What happens if executive committee is not appointed?
18 Executive committee to appoint chairperson, secretary and treasurer
19 What happens if chairperson, secretary and treasurer are not appointed?
20 Provisions relating to constitution of executive committee, appointment of office holders and meetings of executive committee
21 Executive committee’s decisions to be decisions of owners corporation

Division 2 Members and office holders of the executive committee

22 What are the functions of the secretary of an owners corporation?
23 What are the functions of the treasurer of an owners corporation?
24 Who can exercise functions relating to the finances and accounts of the owners corporation?
25 Can members of the executive committee be paid?

Part 4 Others involved in management—strata managing agents

Introductory note

Division 1 Appointment of strata managing agent

26 What is a strata managing agent?
27 How is a strata managing agent appointed?

Division 2 Functions of strata managing agent

28 What functions of an owners corporation can a strata managing agent exercise?
29 Can a strata managing agent exercise the functions of the chairperson, secretary and treasurer or the executive committee?
29A Functions that may only be delegated to member of executive committee or strata managing agent
30 Breach of duty by strata managing agent
31 Strata managing agent to record exercise of functions
32 Exercise of functions of strata managing agent appointed by an Adjudicator

Division 3 Accountability of strata managing agent

33 Information may be required relating to strata managing agent’s trust account
34 Information may be required relating to other accounts of the strata managing agent
35 Information may be required relating to money received by the strata managing agent from the owners corporation
36 Information may be required relating to transactions entered into by a strata managing agent for an owners corporation
37 Procedure for requiring information from strata managing agent
38 Who is responsible for providing information if a strata managing agent ceases to hold a licence or dies?
39 Exemption for information relating to certain transactions
40 Certain provisions of other Acts requiring agents to provide information not to apply to affairs of owners corporation

Part 4A Others assisting in management—caretakers

40A Who is a caretaker?
40B How is a caretaker appointed?
40C With which functions of an owners corporation can a caretaker assist?

Part 5 By-laws

Introductory note

Division 1 What by-laws apply to a strata scheme?

41 What by-laws apply to new strata schemes?
42 What by-laws apply to old strata schemes?
43 What can by-laws provide for?

Division 2 How are the by-laws enforced?

44 Who is required to comply with the by-laws?
45 How can an owners corporation enforce the by-laws?
46 How does a lessee get information about the by-laws?

Division 3 Amendment or repeal of by-laws

47 Can an owners corporation add to or amend the by-laws?
48 What steps must an owners corporation take to make an amendment effective?
49 Restrictions on by-laws
50 Restrictions on by-laws during initial period

Division 4 Special provisions for by-laws conferring certain rights or privileges

51 Application of Division
52 How does an owners corporation make, amend or repeal by-laws conferring certain rights or privileges?
53 Can a by-law contain conditions?
54 By-law must provide for maintenance of property
55 What is the effect of a by-law?
56 (Repealed)

Division 5 Special provisions for strata schemes that are part of community schemes

57 Application of Division
58 What happens if by-laws are inconsistent with management statements?
59 Obligation of lessee to comply with management statements
60 How does a lessee get information about management statements?

Chapter 3 Key management areas

Introductory note

Part 1 Introduction

Introductory note
61 What are the key management areas for a strata scheme?

Part 2 Maintenance, repairs, alteration and use of common property and fire safety inspections

Introductory note
62 What are the duties of an owners corporation to maintain and repair property?
63 What power does an owners corporation have to carry out work and recover costs?
64 What power does an owners corporation have to carry out work at its own expense?
65 Can an owners corporation enter property in order to carry out work?
65A Owners corporation may make or authorise changes to common property
65B Owners corporation may grant licence to use common property
65C What are the duties of an owners corporation in relation to fire safety inspections

Part 3 Finances of strata scheme

Introductory note

Division 1 Administrative and sinking funds and account of owners corporation

66 Administrative fund to be established
67 What money is to be paid into the administrative fund?
68 What money can be paid out of the administrative fund?
69 Sinking fund to be established
70 What money is to be paid into the sinking fund?
71 What money can be paid out of the sinking fund?
72 Distribution of surplus money in administrative fund or sinking fund
73 Can money in administrative fund or sinking fund be invested?
74 Account of owners corporation

Division 2 Levy of contributions

75 Estimates to be prepared of contributions to administrative and sinking funds
75A Owners corporation to prepare 10-year sinking fund plans
76 Owners corporation to set levy for contributions to administrative and sinking funds
77 Effect of use of lot on insurance premiums
78 Manner of levying contributions
79 Interest and discounts on contributions
80 How does an owners corporation recover unpaid contributions and interest?

Division 3 Restrictions on spending

80A Limit on spending by executive committees of large strata schemes
80B Quotations to be obtained for certain items of expenditure by large strata schemes
80C Exceptions in relation to emergencies
80D Legal action to be approved by general meeting

Part 4 Insurance

Introductory note

Division 1 Definitions

81 Building
82 Damage policy

Division 2 Insurance of buildings

83 Owners corporation to insure building
84 Responsibility of owners corporation to insure where strata scheme is for part only of building
85 Valuations to be obtained for the purposes of insurance
86 Can a person be exempted from the requirement to insure?

Division 3 Other insurance

87 What other insurance must an owners corporation take out?
88 What other insurance may an owners corporation take out?
88A Insurance must be taken out with approved insurer

Division 4 Insurance claims and other matters affecting insurance

89 Can an owner take out insurance?
90 Insurable interests
91 Insurance of mortgaged lot
92 Insurance claim where owner at fault
93 Action against owners corporation by owner
94 Owners corporation to rebuild
95 Approved insurers

Part 5 Records and accounts

Introductory note

Division 1 The strata roll

96 Owners corporation must keep a strata roll
97 What is the form of the strata roll?
98 What must be recorded in the strata roll?
99 What information can the owners corporation rely on when making entries in the strata roll?

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?
101 Notices and orders to be kept
102 Minutes of meetings
103 Accounting records
104 Certain records to be retained for prescribed period
105 Owners corporation may require certain persons to produce records, accounts and property of the owners corporation

Division 3 Preparation and auditing of financial statements

106 Owners corporation must prepare financial statements
107 Auditing of accounts and financial statements

Division 4 Inspection of records and issue of certificates

108 Inspection of records of owners corporation
109 Certificate by owners corporation as to financial and other matters relating to lot

Part 6 Other provisions relating to functions of the owners corporation

Introductory note
110 What powers does an owners corporation have to borrow money and otherwise deal with property?
111 Can an owners corporation provide amenities and services to a lot?
112 Agreement for payment to owner of consideration on transfer or lease of common property
113 Restrictions on powers of owners corporation during initial period
114 Owners corporation to construct and maintain letterbox
115 What effect does a strata development contract have on the functions of an owners corporation?
115A Owners corporation to give information on contributions payable

Chapter 4 Owners, occupiers and other persons with interests in lots

Introductory note

Part 1 Responsibilities of owners, occupiers and other persons relating to lots

116 Owners, occupiers and other persons not to interfere with structure of lot or services to lot
117 Owners, occupiers and other persons not to create nuisance

Part 2 Notices required to be given by owners, occupiers and other persons

118 Notice to be given to owners corporation of right to cast vote at meeting
119 Notice to be given to owners corporation of leases or subleases
120 Notice to be given to owners corporation of mortgagee taking possession of lot

Part 3 Representatives of owners and other persons

121 Can an owner of a lot appoint an agent for dealings with the owners corporation?
122 How can a corporation exercise functions in relation to a lot?

Chapter 5 Disputes and orders of Adjudicators and Tribunal

Introductory note

Part 1 Application for order to resolve issue relating to strata scheme

Introductory note
123 What action can be taken if there is a dispute, complaint or problem concerning a strata scheme?
124 Applications for order to be made to Registrar
125 Registrar to be satisfied that mediation has been attempted before accepting application
126 Mediation may be arranged for disputes or complaints concerning stratum parcels

Part 2 Mediation and resolution of disputes by Director-General

Introductory note
127 Definitions
128 Mediation of disputes relating to strata schemes
129 Mediation of certain building management disputes
130 Director-General may dismiss certain applications
131 Agreements and arrangements arising from mediation sessions
132 Privilege
133 Secrecy
134 Exoneration from liability for mediators

Part 3 Procedure after Registrar receives application

135 Notice of application to be given
136 Owners corporation to display and give certain notices
137 Procedure after time for making submissions has expired
137A Procedure for orders under Part 6

Part 4 Orders of Adjudicator

Division 1 General power of Adjudicator to make orders

138 General power of Adjudicator to make orders to settle disputes or rectify complaints
139 Order for settlement of dispute between adjoining strata schemes

Division 2 Orders relating to property

140 Order relating to alterations and repairs to common property and other property
141 Order consequent on alteration of building
142 Order relating to personal property acquired or to be acquired by owners corporation
143 Order requiring owners corporation to acquire personal property
144 Order granting certain licences
145 Order for entry to lot

Division 3 Orders relating to insurance

146 Order to make or pursue insurance claim
147 Order relating to insurance

Division 4 Orders relating to contributions

148 Order varying rates of interest on contribution
149 Order for variation of contributions levied or manner of payment of contributions

Division 5 Orders relating to keeping of animals

150 Order relating to keeping of animals
151 Order relating to animal kept in accordance with by-laws

Division 6 Orders relating to meetings and decisions of owners corporation

152 Order for variation of time at which annual general meeting must be held
153 Order invalidating resolution of owners corporation
154 Order where voting rights denied or due notice of item of business not given

Division 7 Orders relating to records of owners corporation

155 Order confirming information for strata roll
156 Order to supply information or documents

Division 8 Orders relating to by-laws

157 Order revoking amendment of by-law or reviving repealed by-law
158 Order with respect to by-laws conferring exclusive rights or privileges over common property
159 Order invalidating by-law

Division 9 Orders relating to covenants and other restrictions

160 Order enforcing positive covenant
161 Order enforcing restriction on use of utility lot

Division 10 Orders appointing strata managing agents

162 Order appointing strata managing agent to exercise certain functions

Division 11 Provisions relating to orders of Adjudicator

162A Applications for orders generally
163 Dismissal of application on certain grounds
164 Matters that may be referred to Tribunal
165 Power of Adjudicator to decide type of order to be made
166 Order to be in writing
167 Investigations by Adjudicator
168 Order may not be made until submission time has expired
169 Ancillary orders
170 Interim orders
171 Variation or revocation of order by Adjudicator
172 Duration of order by Adjudicator
173 Adjudicator to have regard to strata management statement
174 Copy of order to be served
175 Adjudicator may inspect certain records
176 Adjudicator not to make order with respect to certain matters

Division 12 Appeals against orders of Adjudicator

177 Appeal against order of Adjudicator
178 How is an appeal made?
179 Procedure after appeal is lodged
180 Stay of operation of order
181 Determination of appeal from order of Adjudicator

Part 5 Orders of Tribunal

Division 1 Matters for which orders may be made by Tribunal

182 Order to authorise certain acts during initial period
183 Order for reallocation of unit entitlements
183A Orders relating to caretaker agreements
183B Orders for appointment of strata managing agent
184 Tribunal’s jurisdiction to deal with applications referred by Adjudicator

Division 2 Provisions relating to orders of Tribunal

185 Dismissal of application on certain grounds
186 Investigations and proceedings before the Tribunal
187 Power of Tribunal to decide type of order to be made
188 Ancillary orders
189 Variation or revocation of orders by Tribunal
190 Tribunal may vary order to correct error, for clarification or to extend time limit
191 Tribunal may vary or revoke order in certain circumstances
192 Orders relating to costs
193 Representation before the Tribunal
194 Intervention by Director-General
195 Copy of order to be served
196 Witness may be summoned before Tribunal
197 Tribunal may administer oath
198 Contempt of Tribunal
199 Tribunal may not make order where title to land in question

Division 3 Appeals against orders of Tribunal

200 Appeal to District Court
201 No appeal available from Tribunal except as provided by this Division

Part 6 Enforcement of orders of Adjudicators and Tribunal and certain notices

202 Civil penalties for contravention of orders under this Chapter
203 Civil penalties for contravention of notice of owners corporation
204 Order as to costs
205 Payment of penalties or costs
206 Unpaid pecuniary penalty is charge on lot

Part 7 Effect of orders of Adjudicators and Tribunal

207 Effect of certain orders
208 Resolution purporting to alter effect of order
209 Recording in Register of effect of certain orders
210 Time at which order takes effect

Chapter 6 Administration

Introductory note

Part 1 Functions of Director-General under this Act

211 (Repealed)
212 Functions of Director-General
213 Staff
214 Delegation of functions
215 Investigations by Director-General
216 Annual report of Director-General

Part 2 Strata Schemes Adjudicators

217 Appointment of Strata Schemes Adjudicators
218 General functions of Adjudicators
219 Delegation of functions of Adjudicators

Part 3 Proceedings before Tribunal

220, 221 (Repealed)
222 Proceedings before Tribunal

Part 4 Registrar

223 (Repealed)
224 Delegation

Chapter 7 General

Introductory note

Part 1 Matters relating to proceedings

225 Proceedings for offences
226 Other rights and remedies not affected by this Act
227 Owners corporation may represent owners in certain proceedings
228 Structural defects—proceedings as agent
229 Costs in proceedings by owners against owners corporation
230 Restrictions on owners corporation levying contributions for expenses

Part 1A Legal costs

230A Disclosure of matters relating to legal costs

Part 2 Legal assistance

231 Applications for legal assistance
232 Procedure when Director-General receives application
233 Investigation of application for legal assistance
234 Grant of legal assistance

Part 3 Service of documents

235 Service of documents on an owners corporation
236 Service of documents by owners corporation and others

Part 4 Seal of owners corporation

237 Who may keep seal of owners corporation?
238 How should the seal of the owners corporation be affixed?

Part 5 Miscellaneous

239 Change of owners corporation’s address
240 Dividing fences
241 Apportionment of statutory charges
242 Powers of entry by public authority
243 Notices under Real Property Act 1900 to owners corporation taken to be notices to owners
244 Protection of Director-General and Adjudicator
245 Contracting out prohibited
246 Regulations
247 Savings, transitional and other provisions
248 Review of Act

 Schedule 1 By-laws

 Schedule 2 Meetings and procedure of owners corporation

 Schedule 3 Constitution of executive committee of the owners corporation and meetings of executive committee

 Schedule 4 Savings, transitional and other provisions

Dictionary

Historical notes