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Unpacking Responsibility: Who Really Runs a Strata Plan?

Updated: May 17

Who Really Runs a Strata Plan?

In the complex world of strata management, understanding who holds the most responsibility can be as layered and multifaceted as the regulations that govern multi-owned properties themselves. Strata plans, which detail the ownership and management of a building or collection of buildings that are owned collectively and individually, require a well-coordinated approach to administration and decision-making. This blog explores the roles and responsibilities that are crucial in running a strata plan effectively.


Key Players in Strata Management


The Owners Corporation


At the heart of every strata scheme is the Owners Corporation (formerly known as the body corporate). All owners are automatically members of the Owners Corporation, which has ultimate responsibility for the general administration of the property. This body makes decisions about the maintenance and repair of common property, manages the strata scheme’s finances, and ensures compliance with the law and the strata plan's by-laws.


The Executive Committee


Selected from amongst the members of the Owners Corporation, the Executive Committee acts on behalf of the Owners Corporation and is responsible for making many of the day-to-day decisions regarding the administration of the strata scheme. These can range from urgent repairs to the common property to approving new by-laws for the building.


The Role of the Strata Manager


While not every strata scheme employs a Strata Manager, their presence can be crucial in larger or more complex schemes. A Strata Manager is typically hired by the Owners Corporation and takes care of tasks such as:

  • Financial Management: Preparing budgets, collecting levies, and managing the strata account.

  • Administrative Assistance: Organizing meetings, taking minutes, and ensuring compliance with the by-laws.

  • Maintenance Coordination: Arranging repairs and regular maintenance of common areas.

Strata Managers act under the direction of the Owners Corporation and must adhere to the decisions made by the Executive Committee.


Individual Lot Owners


Individual owners also carry a significant amount of responsibility. They must maintain their own lots, comply with the strata scheme’s by-laws, and contribute to the decision-making process by voting in general meetings. Owners have the right to propose motions for consideration by the Owners Corporation and can be elected to the Executive Committee.


Legal and Ethical Responsibilities


Compliance with the Law

All parties involved in strata management must comply with relevant local laws, which can include state or territory legislation governing strata operations. It is also crucial for the Owners Corporation to enforce the strata scheme’s by-laws consistently and fairly amongst all owners.


Transparency and Accountability

Transparency and accountability are essential in maintaining a healthy strata environment. This includes open financial reporting by the Strata Manager and regular communication from the Executive Committee to all members about decisions and issues affecting the strata scheme.


Conclusion: A Collective Effort


While the Owners Corporation holds the most legal responsibility, the successful management of a strata scheme is truly a collective effort. Each player, from individual owners to the Executive Committee and the Strata Manager, must fulfill their roles effectively and cooperatively.

In today’s digital age, solutions like Kobode.ai are revolutionizing how these responsibilities are managed by automating complex processes and providing seamless communication tools. These advancements help ensure that running a strata plan is more transparent and efficient, leading to more harmonious community living.


Thus, while the Owners Corporation might hold the reins legally, the health of a strata scheme depends on the active and engaged participation of all its members, supported by technology and guided by good governance practices.

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