A glossary of strata abbreviations
Are you confused by strata terms? When you’re building or developing a property, jargon and legalese can’t be avoided, but they don’t have to be confusing.
Here are simple definitions of the common abbreviations you’re likely to come across when dealing with strata titles in NSW, which could come in handy yourself when talking to your strata manager.
AFSS – Annual Fire Safety Statement
This is a document detailing the fire safety measures contained in a property and requires the servicing contractors to sign and affirm that the fire safety measures are being maintained in line with the relevant Australian Standard. This document must be submitted annually to the local council and NSW Fire & Rescue.
AGM – Annual General Meeting
Mandatory annual meeting where all owners and other interested parties can make decisions based on a statutory agenda that sets the parameters for actions between now and the next Annual General Meeting for matters such as election of a Strata Committee, reviewing the financial statements, preparation of a budget and to deal with matters specific to the property.
BL – By-laws
Rules of occupation that strata residents must follow. These rules are set by the original owner at the time of registration of the Strata Plan and may be added to, amended or rescinded by Special Resolution at a general meeting.
CMS – Community Management Statement
Legal document detailing the by-laws and other rules relating to the management of a Community scheme that owners and occupiers of Community Lots must follow.
COC – Certificate of Currency
Insurance document provided by an insurer that details insurance coverage and the policies held by a Strata Scheme. These may be requested by an owner when applying for a mortgage, refinancing or for other purposes.
CP – Common Property
Common property consists of all areas that are not considered part of a Lot. These areas of land or buildings jointly owned by the Owners Corporation and typically includes driveways, gardens, common hallways, fire stairs and similar land areas. Common Property does also take a structural form as part of the perimeter of a Lot and can include perimeter walls, floors, doors and windows.
CT – Certificate of Title
Legal document issued by NSW Land and Property Management Authority that proves ownership of a Lot or the Common Property and includes key information about a property.
CTTT – Consumer, Trader & Tenancy Tribunal
CWF – Capital Works Fund
Fund established by a Strata Scheme to cover the capital replacement costs of common property items over a 10-year period. Formerly called the Sinking Fund.
CWFP – Capital Works Fund Plan
This plan is quite often prepared by a Quantity Surveyor and details all common areas and provides an asset replacement cost that is then costed over a 10 (or more) year period. This plan assists in the development of a budget and for forecasting the maintenance and replacement of common property.
DP – Deposited Plan
Legal document defining the boundaries, ownership and unit entitlement of lots.
EC – Executive Committee
Now only used in Community Title properties to define the decision making body elected by an Association at a General Meeting to manage Association Property on a day to day basis. For Strata Plan Committee’s see ‘SC’ or Strata Committee.
EGM – Extraordinary General Meeting
All General Meetings outside of the Annual General Meeting are referred to as Extraordinary General Meetings or EGM’s. EGM’s can be held to discuss any pertinent matter that affects a Lot Owner or the Owners Corporation. EGM’s can be called by the Secretary of the Strata Committee, a resolution of the Strata Committee or by an aggregate of Lots whose combined unit entitlements total at least 25% of the aggregate unit entitlement for the Strata Scheme.
FAGM – First Annual General Meeting
First General Meeting of the Owners Corporation. This must take place within two months of the initial period ending and acts as the meeting that defines how the Plan will operate. The FAGM also serves as the handing over of management responsibilities from the Original Owner to the Owners Corporation.
HBCF – Home Building Compensation Fund
Mandatory insurance for contractors carrying out Residential building work under the Home Building Act 1989 over the value of $20,000. This protects the future owner if the builder is unable to complete the contract. Formerly called Home Warranty Insurance.
HWI – Home Warranty Insurance
LP – Lot Property
The cubic space within a strata scheme that belongs to a lot owner. When an owner purchases a Lot they are purchasing cubic airspace and a part share of the common property, of which each Lot Owner becomes a joint owner in the Owners Corporation.
NCAT – NSW Civil & Administrative Tribunal
NCAT is a government body tasked with mediating, managing and arbitrating disputes relating to Strata property. This replaced the old Consumer, Trader & Tenancy Tribunal.
NMS – Neighbourhood Management Statement
Legal document detailing the By-Laws and other conditions that relate to the Management of a Community Title property, specifically a Neighbourhood Association.
NP – Neighbourhood Property
A Neighbourhood Association is responsible for managing Neighbourhood Property, which will always be shown as Lot 1 in the Deposited Plan.
OC – Owners Corporation
Legal entity comprising all lot owners in a strata scheme. An OC is formed when a Strata Plan is registered. The Owners Corporation must hold an Annual General Meeting each year, appoint a Strata Committee and make key decisions regarding the operation of the Strata Plan.
PA – Precinct Association
A Precinct Association is a legal entity, created by a subdivision and is generally seen as the middle layer of a three-tiered subdivision structure in complicated Community Title subdivisions. A Community Development Lot can be subdivided into a Precinct Association consisting of multiple Precinct Lots or in turn to a Neighbourhood Association. Precinct Associations need to comply with their own Precinct Association Statement, as well as the Community Management Statement and the Precinct Association would appoint at least one representative to represent them at meetings of the Community Association.
SC – Strata Committee
Elected representatives of the Owners Corporation who are responsible for making management and administration decisions related to a Strata Plan. Formerly called the Executive Committee.
SCM – Strata Committee Meeting
Meeting of elected Strata Committee representatives where decisions are made on behalf of the Strata Plan At least 50% of members must attend to achieve a quorum for the meeting to proceed. Formerly called an Executive Committee Meeting.
SF – Sinking Fund
SMA – Strata Managing Agent
A suitably qualified and licensed entity or individual appointed to manage a Strata Scheme by the Owners Corporation.
SP – Strata Plan
Plan detailing how a Strata Scheme is divided into Lots and Common Property. Strata Plans must be created by a registered surveyor and registered with NSW Land Registry Services.
SSMA – Strata Schemes Management Act 2015
The legislation governing the management of Strata Schemes in NSW.
UE – Unit Entitlement
Schedule that determines budgeting allocation and voting rights for each Lot in a strata scheme, that must be determined by a valuation at the time of registration of the Strata Plan. Unit Entitlement will generally be calculated by the factors that would affect the sale price (Lot size, aspect, location in building, car spaces etc) and essentially be a comparison of one Lot against another in terms of value.
Talk to a strata manager in NSW
If you want to know more about strata management in NSW, get in touch with Lake Group Strata today. We’ve helped developers to manage all types and sizes of developments for more than 25 years.