Strata Glossary

At CHU, we try to make strata insurance as simple as possible. To help, we’ve put together a glossary of common terms used in Australia’s strata industry. We’ll continue to expand on this guide, but if you have any questions or need further assistance, please contact us.

Annual General Meeting (AGM): A meeting held once a year by the owners corporation. The AGM consists of the owners and other interested parties (as noted on the strata roll). It aims to discuss matters of the strata property, review financial statements, and elect the executive committee (strata committee). An AGM is legally required and must follow requirements set out by the relevant state or territory strata legislation.

By-Laws: A set of rules that govern the strata property and individual units. Includes noise restrictions, pet ownership, and general conduct that owners and occupants must follow. 

Certificate of Currency (CoC): A document that confirms the current insurance policy at a certain date. It includes the policy details and the insured details of the strata property. 

Common Property: The shared spaces or common areas of the strata property. This includes driveways, visitor parking, gardens, fences, lobbies, and other shared facilities. 

Extraordinary General Meeting (EGM):  An EGM is a special meeting called outside the usual schedule of Annual General Meetings (AGMs). It addresses urgent matters requiring immediate attention or decisions from the owners or strata committee that can’t wait until the next AGM. Typical reasons for calling an EGM include approving special levies, making urgent repairs, or handling legal issues affecting the property.

Facilities Manager (or Building Manager): Is responsible for the day-to-day management and maintenance of the strata property. They oversee tasks such as repairs and general upkeep of the property, cleaning, inspections, and implementing fire safety and work health and safety protocols. 

Lot: A part of a property that can be separately owned or sold. In strata schemes, this can refer to an individual unit, apartment, or townhouse within the development. 

Office Bearers: Three members elected by the strata committee to carry out the duties of chairperson, secretary, and treasurer. 

Chairperson: The chairperson oversees meetings, ensuring they are conducted in an orderly manner and that decisions align with the owners' corporation's rules. They may also be the spokesperson for the owners’ corporation and facilitate discussions to achieve consensus.

Secretary: The secretary is responsible for administrative duties, including preparing meeting agendas, taking minutes, maintaining strata records, and managing correspondence. They help keep owners informed and ensure that the documentation for decisions and actions is up-to-date.

Treasurer: The treasurer manages the financial affairs of the strata scheme. This includes preparing budgets, managing funds, overseeing expenses, and ensuring levies are collected on time. They report on the financial health of the scheme and ensure proper accounting practices are followed.

Owners Corporation (or Body Corporate): The owners corporation consists of all the owners of lots within the strata scheme. They are responsible for the maintenance, repair, and overall management of the strata property, including holding the appropriate strata insurance. 

Familiarise yourself with the terminology typically used based on the state that you live in:

The Capital Works Fund (previously known as the 'sinking fund'): A fund established by the owners corporation to save money for future expenses such as repairs, updates, and upgrades to the common property. In NSW a 10-year Capital Works Fund must be prepared, reviewed every 5 years, and discussed and implemented annually at the AGM.

Familiarise yourself with the terminology typically used based on the state that you live in:

Strata Insurance: Strata insurance is mandatory for all Australian residential and commercial strata properties. It covers the common property including the building structure and shared facilities, and includes public liability. This insurance safeguards against loss and damage. 

Strata Title: A form of property ownership where individuals own a specific unit or lot within a larger complex, such as an apartment building, while sharing ownership of common areas with other residents. 

 Familiarise yourself with the terminology typically used based on the state that you live in:

Strata Committee: Elected by owners at the AGM, the strata committee represents all unit owners within the complex and makes decisions on their behalf regarding the day-to-day management and operation of the property.

Familiarise yourself with the terminology typically used based on the state that you live in:

Strata Manager: A professional agent or hired company that the owners corporation appoints to manage the strata scheme's administrative, financial, and maintenance aspects. 

Special Levy: An additional levy for unexpected and unbudgeted expenses. Special levies require approval from the owners corporation. 

Strata Levy: A regular payment made by unit owners to cover the costs of maintaining and managing the shared areas of a property. The amount varies depending on the property's size and the strata scheme's needs.

NSW additional common terms used 

VIC additional common terms used 

WA additional common terms used 

SA and NT additional common terms used 

At CHU, we’re here to help! For a tailored quote on your residential or commercial strata insurance, click here, or call us on 1300 289 248 (9am-7pm AEST). Please note that the links provided are for informational purposes, and you may need to refer to more specific information by state or territory legislation and regulations for accurate and up-to-date information in your area.