Strata Law (NSW) glossary
Strata title is the dominant form of property ownership for apartments and townhouses in NSW. The Strata Schemes Management Act 2015 and the Strata Schemes Development Act 2015 replaced the former 1996 and 1973 Acts. This glossary explains the terms practitioners and owners corporation committees need to navigate strata governance, maintenance, and disputes.
This glossary covers 40 terms that property and strata lawyers encounter when advising on strata title in New South Wales. Each definition references the Strata Schemes Management Act 2015 (NSW) or related legislation.
Definitions
Administrative fund
The fund from which the owners corporation pays recurrent expenses — day-to-day management, insurance, and maintenance costs. Now called the administrative fund under the 2015 Act.
AGM (Annual General Meeting)
The mandatory annual meeting of the owners corporation at which financial statements are presented, levies set, and the strata committee elected.
Building bond
A bond of 2% of the contract price lodged by the developer with NSW Fair Trading, available to the owners corporation for rectification of defects in the first two years.
By-law
A rule governing the use and management of lots and common property — enforceable by the owners corporation and changed by special resolution.
Capital works fund
The fund from which the owners corporation pays for major capital items — painting, roof replacement, and other long-term maintenance. Formerly the sinking fund.
Capital works fund plan
A mandatory 10-year plan for anticipated major expenditure, prepared by the owners corporation and reviewed at each AGM.
Common property
All parts of the strata scheme that are not within a lot — including lobbies, driveways, gardens, pools, lifts, and structural elements.
Common property memorandum
A document recording responsibilities for the maintenance and upkeep of common property, adopted by the owners corporation.
Community scheme
A multi-tiered title scheme with a community association managing shared property across multiple strata or neighbourhood schemes.
Compulsory strata managing agent
A managing agent appointed by NCAT to manage a dysfunctional owners corporation — exercising all functions of the owners corporation and strata committee.
Cosmetic work
Minor renovations a lot owner can carry out without owners corporation approval — such as painting, installing hooks, or filling holes.
Defect
A building defect in common property or a lot caused by the developer or builder — actionable under statutory warranty provisions and the building bond scheme.
Developer
The original owner who registered the strata plan — owing obligations during the initial period and under the building bond scheme.
Exclusive use by-law
A by-law granting a specific lot owner exclusive use of part of the common property — for example, a courtyard, car space, or rooftop area.
Initial period
The period from registration of the strata plan until one-third of unit entitlements are held by persons other than the developer — the developer controls the owners corporation during this period.
Interest notice
A notice from the owners corporation to a lot owner requiring payment of interest on overdue levies.
Large strata scheme
A strata scheme with more than 100 lots — subject to additional governance requirements including a building manager and larger strata committee.
Levy
The contribution payable by each lot owner to the administrative and capital works funds, calculated according to unit entitlement.
Levy recovery
The process of recovering unpaid levies — the owners corporation can register a charge on the lot and recover in NCAT or court.
Lot
An individual unit of property within the strata scheme — defined by the strata plan and owned by a lot owner.
Mediation
A mandatory first step for most strata disputes before NCAT — conducted by NSW Fair Trading's strata mediation service at no cost.
Minor renovation
Renovation work that requires owners corporation approval but not a by-law — such as installing a dishwasher, replacing kitchen fixtures, or laying carpet.
Model by-laws
The standard set of by-laws in Schedule 3 of the Strata Schemes Management Regulation — applying to all schemes unless specifically changed.
NCAT
The NSW Civil and Administrative Tribunal — the primary forum for resolving strata disputes after mandatory mediation.
Ordinary resolution
A resolution passed by a majority of votes cast at a general meeting — used for routine decisions.
Owners corporation
The body corporate comprising all lot owners in a strata scheme — responsible for managing common property, insurance, and by-laws.
Pet by-law
A by-law regulating the keeping of animals — cannot unreasonably prohibit pets following the 2021 amendments and Cooper v The Owners SP 58068.
Special resolution
A resolution requiring at least 75% of votes cast in favour with not more than 25% against — used for by-law changes and major decisions.
Statutory warranty
Implied warranties under the Home Building Act that building work will be done with due care, be fit for purpose, and comply with plans — enforceable by the owners corporation.
Strata committee
The elected committee of lot owners responsible for day-to-day decision-making on behalf of the owners corporation — limited to nine members for most schemes.
Strata dispute
A dispute between owners, tenants, or the owners corporation about strata management, by-laws, or common property — resolved through mediation and NCAT.
Strata managing agent
A licensed agent engaged by the owners corporation to manage the day-to-day administration of the scheme.
Strata plan
The registered plan that creates the strata scheme — dividing the building into lots and common property and recording unit entitlements.
Strata renewal
The statutory process enabling the collective sale or redevelopment of a strata scheme by 75% resolution, with protections for dissenting owners.
Strata scheme
A form of property subdivision where individual lots are separately owned and common property is shared — governed by the owners corporation.
Unanimous resolution
A resolution requiring the agreement of every lot owner — needed for the most significant decisions, such as disposing of common property.
Unit entitlement
The share allocated to each lot in the strata plan — determining voting rights and the proportion of levies payable by each lot owner.
Utility lot
A lot in the strata plan used for utility purposes — such as a car space, storage cage, or marina berth — distinct from a residential or commercial lot.
Window safety device
A device preventing a window from opening more than 12.5 cm — mandatory installation required by the owners corporation in strata buildings.
Research these terms in context
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These definitions are general explanations for educational purposes — not legal advice. Strata law is NSW-specific and changes regularly. Other states have separate legislation (Body Corporate and Community Management Act 1997 (QLD), Owners Corporation Act 2006 (VIC)). Always verify against the current Act and regulations.
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