2.2 The duties of an owners corporation | Owners Corporation Network

2.2 The duties of an owners corporation

 In NSW the owners corporation’s duties cover:

Relevant NSW Legislation: Strata Schemes Management Act (1996)

Maintain and repair property

Section 62: What are the duties of an owners corporation to maintain and repair property?

Breach of by-laws

Section 45: How can an owners corporation enforce the by-laws?

Section 203: Civil penalties for contravention of notice of owners corporation

Record keeping

Section 96: Owners corporation must keep a strata roll

Section 100: What are the duties of an owners corporation to keep other records and documents?

Section 101: Notices and orders to be kept

Section 102: Minutes of meetings

Section 103: Accounting records

Section 104: Certain records to be retained for prescribed period

Section 105: Owners corporation may require certain persons to produce records, accounts and property of the owners corporation

Section 106: Owners corporation must prepare financial statements

Financial management

Section 23: What are the functions of the treasurer of an owners corporation?

Section 68: What money can be paid out of the administrative fund?

Section 71: What money can be paid out of the sinking fund?

Section 75 and 75 (3): Estimates to be prepared of contributions to administrative and sinking funds

Section 75A: Owners corporation to prepare 10-year sinking fund plans

Section 76: Owners corporation to set levy for contributions to administrative and sinking funds

Section 78: Manner of levying contributions

Section 79: Interest and discounts on contributions

Keeping all necessary insurance up to date

Section 88A: Insurance must be taken out with approved insurer

Section 83: Owners corporation to insure building

Section 82: Damage policy

Section 81: Building

Section 87: What other insurance must an owners corporation take out? Public liability insurance, Workers compensation insurance, Voluntary workers insurance

Fire Safety Inspections

Section 65C: What are the duties of an owners corporation in relation to fire safety inspections

Additional responsibilities for large schemes

A large scheme is defined as one with over 100 lots   (101 lots or more). Parking and utility lots are not counted in the calculation. The following special provisions apply to large schemes:

Section 75 (5): Annual budgets must list amounts expected to be spent on specific items

Section 107: Annual Auditing of accounts and financial statements

Section 80A: Limit on spending by executive committees of large strata schemes - are not permitted to spend more than 10% above the budgeted amount for any item (unless the owners corporation lifts the restriction by a resolution)

Section 80B: At least two Quotations required by large strata schemes for expenditure over $30,000

Section 80C: Exceptions in relation to emergencies. The 10% limit does not apply to emergency expenditure

 

Relevant NSW Legislation: Strata Schemes Management Regulation(2010)

Schedule 2, Regulation 11 (3): Proxy to be given to secretary of owners corporation at least 24 hours before the meeting

Schedule 3, Regulation 6: Notice of executive committee meetings must be given to all lot owners

Schedule 3, Regulation 14: At least two Quotations required by large strata schemes for expenditure over $30,000

Schedule 3, Regulation 16: Display of minutes of executive committee meetings must be given to all lot owners

What Members Say

"The whole strata community owes a huge debt of gratitude to you and the OCN executive. Much appreciated."

Robert, Darlinghurst

"I am very pleased with my membership of OCN, the discussions through sharing emails is very valuable in increasing my knowledge of strata living, the laws and EC responsibilities. I think I am better armed to tread the minefield of the managing agent responsibilities and the necessary action of the EC to monitor the contradictory interests of the agent."

Jim, Wollstonecraft

"I so appreciate being part of the OCN email forum. It provides a great opportunity for sharing ideas and learning"

Ingrid, Neutral Bay

"I must say that I have enjoyed and found consolation in the discussions that have been part of the email chain (forum). I did attend one general meeting and found that it was informative and the people "running the show" were knowledgeable and dedicated to the tasks that had taken on. In short, well done. You and the committee have and continue to support the Strata Community in a very professional manner."

Greg, Parramatta

"Nothing is easy in Strata World and we have been in building defects “mode” for some years – hopefully almost at an end but that process has been most demanding and difficult but again – greatly helped by the experience and wise counsel of other members of OCN."

Pat, St Leonards

"Keep up the good work, as many (if not most) strata schemes need your help, advice and representation at all levels of government."

Jann and John, St Ives

"I belong to OCN because of its professionalism.  I have found the meetings I have been to extremely well presented, to the point, and of course very topical and informative. Speakers on the whole certainly know their topic.  My role of Secretary last year was certainly assisted with the coverage regarding TPG & other subjects. Member newsletters are also of benefit as the topics are specific to strata matters."

Graham, East Balmain

I have enjoyed attending the quarterly OCN meetings and the exchange of emails between other Executive Committee Members and think OCN is playing an increasingly important role as a voice for strata dwellers and representing us at Government level. I wish the organisation continuing success in the future."

Pauline, Kings Cross

"The [forum] response to my question was amazing and really useful.  The OCN community is wonderful so thanks."

Jenny, Killara

"I would like to thank you all for the important effort that you are all putting in to look after apartment owners and tenants. It is so valuable and you are heroes. I would not have been able to deal with my duties as a strata chairman without your advice and assistance." 

Angela, Mascot

"The OCN is invaluable – many thanks."

Bill, Surry Hills

"OCN is proving invaluable"

Sue, Neutral Bay

"Thanks to all at OCN for your continuing efforts to keep us up to date with current strata information and advice...it has been very helpful to us"

Kate, Coogee

"When my wife & I first encountered a problematic Executive Committee I heard that OCN was a great help (from a Strata manager whom I knew) so we both joined and have gratefully used the on-line information sources. We continued to happily rely on OCN’s assistance when we progressed to Committee status & later as Chair & Secretary of our Committee. I still use OCN in my current role as Treasurer."

Peter, Chiswick

"Thanks to OCN for being such a rich resource of trustworthy information about strata matters."

Peter, Chiswick

"I wanted to extend my personal thanks for the very informative & interesting event today. The OCN team did an outstanding job in the organisation of this event & I enjoyed it thoroughly. The quality of speakers, the flow of conversation & interaction from the attendees - first class …& of course, the amazing Jimmy T - always a delight."

Sue, Epping

"OCN does a great job in providing a really valuable service to Strata owners."

Lois, Wollongong

"I am sure my appreciation of your good works is echoed by many in the Stratasphere. Keep up the good work."

John, Elizabeth Bay

"Once again, being able to discuss such things through this forum, helps clear the mind, puts things into perspective and helps one to understand their rights and to form a strategy if needs be. As a simple EC member trying to do what is in the best interests of lot owners, I truly value OCN and am grateful."

Pamela, Point Lookout

"The OCN is probably one of the best, most informed and most informative groups I have been involved with."

Alan, Maryville