Keeping Books and Records of an Owners Corporation

© Copyright 2013 Teys Lawyers www.teyslawyers.com.au

The Strata Manager’s Role in Keeping the Books & Records of the Owners Corporation


A Strata Manager’s Statutory Obligation

Strata Manager

Maintains Records

Keeps Books of Account


At Completion of This Module You Will Be Able To

1. Recognise the importance of a strata roll

2. Calculate how long certain records must be kept

3. Determine when accounts must be delivered

4. Provide the right information for inspection

5. Appreciate the evidentiary value of certificates for purchasers


The Strata Roll

The Strata Roll

Determines

Who gets meeting notices

Who must pay levies

Who is entitled to

vote

Under s.96 of SSMA each

scheme must keep a

strata roll

The strata roll may be

kept electronically s.92(2)


Information A Strata Roll Must Include

Lot Property Common Property

The owners name Strata scheme number and address

An Australian address for service The original owner (developer) and strata manager

Information of change of ownership s.118 Units of entitlement

Information about leases s.119 Insurance details

By-laws


Keeping Records

Certain records must be

kept forever

Other records must be

kept for no less than five

years

Both types can be kept

electronically s.100(2)


Information You Should Keep Forever

Notices served on the OC s.101

Court orders s.101

Compliance details s.101

Minutes of meetings s.102


Information You Must Keep for at Least Five Years

Minutes of meetings other than general meetings / meetings which grant approvals

Financial statements

Correspondence

Notices of meetings

Proxies

Voting papers

Notices of change of ownership and leases


Accounts

Owners corporations are required to keep statements of income and expenditure for both administrative fund and sinking fund s.106 (2)

Accounts must be prepared from the date of registration of plan or the last set of accounts to a date, which is not earlier than two months before the date of the next succeeding annual general meeting

All owners corporations are entitled to resolve to have the accounts audited but large strata schemes must be audited before being presented to the AGM s.102


Inspection of Records

Records may be inspected by:– An owner– A mortgagee– A person authorised by the

above

The request must be in writing

A fee is payable


Information That Must Be Made Available for Inspection

The strata roll

Any records or documents

Building plans and specifications

Certificates of title

Last financial statements

Current policies of insurance

Records / documents in the custody of / under the control of the OC


Be Aware - National Privacy Act 1988 Provisions Apply to Strata

Have applied since 1988

Because an OC discloses

personal information for a

benefit , service or advantage

(fee)

What strata managers do as

a contractor under Privacy

laws binds the OC


National Privacy Principals Require Openness

Must have a clearly

expressed privacy policy

on the management of

personal information


Certificates About Lots A lot certificate may be requested by:

– An owner

– A mortgagee

– A person authorised by the above

The request must be in writing

A fee is payable

There is a prescribed form

Certificate has evidentiary

significance in favour of purchaser /

incoming mortgagee / lessee


Next Training Module

7. Compliance with Strata and

Other Applicable Laws


About the PresenterMichael Teys is the Founder and Principal Lawyer of TEYS Lawyers. He has a

Bachelor of Laws and practices exclusively in the area of strata and community title

law. He is a Fellow of the Australian College of Community Association Lawyers. He

was formerly an Adjunct Lecturer with Charles Sturt University. He has also been the

CEO of a publicly listed company and one of Australia’s largest strata management

companies managing over $8B of residential and commercial property. Michael

appears weekly on SKY News Business Channel's Property Success with Margaret

Lomas and is a regular panellist for the property edition of Your Money, Your Call for

the same channel. You can read Michael’s blog at www.michaelteys.com and follow

him on Twitter at @MichaelTeys

Teys Lawyers practice nationally in strata and community title law representing owners corporations, bodies

corporate and apartment owners. The firm’s practice groups include building defects, strata community

disputes, strata title property law, by-law / rules and levy / fee collection.

TEYS Lawyers provide an entirely cloud based working platform for their team. The firm provides flexible

working arrangements and has remote working locations in Queensland and Victoria.

Keeping Books and Records of an Owners Corporation

Education

Transcript of Keeping Books and Records of an Owners Corporation