The property industry virtually has its own language,
heres a few of the most common terms
used
to assist your understanding
Administrative Fund - Levies are paid into this fund to cover day-to-day expenses of the owners corporation, i.e. electricity, gardening, insurance, routine repairs and maintenance of common property.
Agenda - A list of motions to be voted upon at a meeting
Aggregate Unit Entitlement - The total of all the individual unit entitlements in the strata scheme
Allotment - Lot or block subdivided from a larger portion of land
Auction - Sale of a property to the highest bidder in a public arena
Bridging Finance - A short term loan that is taken out by those who have purchased a new property while they are waiting for their original property to sell in order to achieve finance.
By-Laws - By-Laws
A set of "rules" that the residents (owners and tenants) in the strata scheme must follow. These can be changed at a general meeting of the owners corporation. All by-laws are not the same so it is wise to obtain a copy of the current by-laws for the strata scheme involved.
Caveat - A charge on the certificate of title for the property to ensure transfer cannot proceed without approval of charge holder.
Certificate (Section 109) - Certificate issued by the strata managing agent or authorised person of the owners corporation It contains details of levy contributions, insurances, executive committee, etc. A statutory fee is payable to the owners corporation.
Certificate Of Title - A deed issued by the Land Titles Office to prove ownership of a lot. The owners corporation is also issued with a title deed for the common property.
Commission - (usually a %) Fee payable to real estate agent for selling a property.
Common Property - The area of land and building in the strata scheme which do not form part of any lot.
Common Seal - The owners corporation has a seal styled "The owners - Strata Plan….." and this must be affixed whenever the owners corporation executes a document.
Company Nominee - A company must authorise a person in writing to vote at meetings on its behalf. A notice must be served on the owners corporation.
Contract of Sale - Legal written agreement setting out the term and conditions of a property sale
Conveyancing - A legal process of transferring ownership of a property.
Covenant - Conditions affecting the use of land written into Certificate of Title
Deposit - Usually 10% of the purchase price Placed into trust and non refundable after exchange of contract. goes towards settlement
Easement - Main, drains and water pipes are usually covered by an easement.
Exclusive Use - This is when a special right is granted to an owner to use part of common property i.e. exclusive use of a car space located on common property.
Executive Committee - Elected representatives of the owners. Election takes place at each annual general meeting. The powers of the Executive Committee are limited under the Strata Schemes Management Act 1996 but the owners corporation may also impose additional restrictions.
Gazumping - If someone has agreed to sell you a property (without written contract) and then sells it to someone else for a higher price.
General Meeting - A meeting of owners and other interested parties (as noted on the strata roll) who have been advised by notice of a proposed meeting. The owners corporation is required to convene and hold a general meeting once a year. This must be held on a date not earlier than one month before nor later than one month after each anniversary date of the First Annual General Meeting.
Initial Period - The period from the date of registration of the strata plan until the completion of the sale of one third of the aggregate unit entitlement. There are certain restrictions during the initial period. For detailed information refer SSMA.
Levies - Contributions paid by owners to the owners corporation to cover expenditure and allocation for capital expenditure. These are usually paid quarterly and the amount is based on unit entitlement.
Lot - In a strata scheme, a unit is referred to as a "lot". Car spaces, garages, laundries, marinas can also form part of a lot or be a separate lot.
Mortgage - Legal agreement issued by banks as terms and conditions of loans. Registered on land title.
Motion - A proposal for consideration by a meeting.
Multiple Listing - Having property listed with more than one real estate agent.
Original Owner - The owner of the strata scheme when the strata plan is registered.
Owners Corporation - Collectively the owners of the lots in the strata scheme. This is formed when the strata plan is registered.
Private Treaty - Listing of property with a set price.
Project Marketing - The sale of a development going to market with several properties
Property Management - An organisation who for a fee manages investment property.
Proxy - A person appointed in writing by an owner or mortgagee to attend an owners corporation meeting and vote on that person's behalf.
Quorum - Before any motion can be voted upon at a meeting, a quorum must exist, i.e.
• 25% of those entitled to vote OR
• owner/owners holding 25% or more of the total unit entitlements.
A quorum must consist of at least 2 persons.
At executive committee meetings, a quorum is constituted when half of the members are present.
Reserve Price - The minimum amount a vendor is prepared to sell for at auction
Resolution - A decision made at a meeting.
Semi-detached - Two buildings joined by a common wall
Settlement - Completion of sale process where contract price is paid and documents exchanged. A purchaser then owns the property and has the right to take possession.
Settlement Date - The settlement date refers to the date when the whole of the purchase price becomes due and payable. It is also the day you will become the owner of the property and be able to move in. Because there is a lot of work to be done before settlement, normally 35 to 42 days is allowed.
Signboard - Erected on property giving details about property and agent
Sinking Fund - Levies paid into this fund cover renewal and replacement of fixtures and fittings, eg painting, stairwell carpets.
Special Levy - A lump sum contribution to cover either unplanned or underestimated expenditure.
Special Resolution - A motion against which not more than 25% of the value of the vote is cast (based on unit entitlement).
Strata Managing Agent - Licensed strata managing agent appointed by the owners corporation to manage the strata scheme and delegated certain functions. Appointment must be at a general meeting of the owner’s corporation and a strata managing agency agreement must be executed by 2 members of the executive committee and the strata managing agent.
Strata Plan - This is the plan registered at the Land Titles Office which shows the building on the land indicating lots and common property.
Strata Roll - This is a register of the owners of each lot in the strata scheme. It also includes the name of any mortgagee, covenant chargee or lessee (if notified).
Strata Schemes Management Act 1996 (SSMA) - This is the legislation under which all strata matters are dealt with in NSW. The management of a strata scheme is governed by the Strata Schemes Management Act (SSMA) 1996. For a copy of the act and regulations click here.
Strata Schemes Office - This office is part of the Department of Fair Trading and provides various services and assistance in strata matters. It also provides a mediation and adjudication service.
Torrens Title - System of recording ownership of property.
Transfer - Document registered at Land titles Office showing change of ownership of a property.
Unanimous Resolution - A motion against which no vote is cast.
Unit Entitlement - Each lot is given a "unit entitlement" and this is shown on the strata plan. The amount of the unit entitlement varies depending on a number of factors, i.e. size of lot. Levies payable are calculated on the basis of unit entitlement.
Valuation - Assessment of the value of a property by a registered valuer in a written form.
Vendor - Person offering to sell a property.
Virtual Tour - Internet service enabling visual inspection by computer.
Agenda - A list of motions to be voted upon at a meeting
Aggregate Unit Entitlement - The total of all the individual unit entitlements in the strata scheme
Allotment - Lot or block subdivided from a larger portion of land
Auction - Sale of a property to the highest bidder in a public arena
Bridging Finance - A short term loan that is taken out by those who have purchased a new property while they are waiting for their original property to sell in order to achieve finance.
By-Laws - By-Laws
A set of "rules" that the residents (owners and tenants) in the strata scheme must follow. These can be changed at a general meeting of the owners corporation. All by-laws are not the same so it is wise to obtain a copy of the current by-laws for the strata scheme involved.
Caveat - A charge on the certificate of title for the property to ensure transfer cannot proceed without approval of charge holder.
Certificate (Section 109) - Certificate issued by the strata managing agent or authorised person of the owners corporation It contains details of levy contributions, insurances, executive committee, etc. A statutory fee is payable to the owners corporation.
Certificate Of Title - A deed issued by the Land Titles Office to prove ownership of a lot. The owners corporation is also issued with a title deed for the common property.
Commission - (usually a %) Fee payable to real estate agent for selling a property.
Common Property - The area of land and building in the strata scheme which do not form part of any lot.
Common Seal - The owners corporation has a seal styled "The owners - Strata Plan….." and this must be affixed whenever the owners corporation executes a document.
Company Nominee - A company must authorise a person in writing to vote at meetings on its behalf. A notice must be served on the owners corporation.
Contract of Sale - Legal written agreement setting out the term and conditions of a property sale
Conveyancing - A legal process of transferring ownership of a property.
Covenant - Conditions affecting the use of land written into Certificate of Title
Deposit - Usually 10% of the purchase price Placed into trust and non refundable after exchange of contract. goes towards settlement
Easement - Main, drains and water pipes are usually covered by an easement.
Exclusive Use - This is when a special right is granted to an owner to use part of common property i.e. exclusive use of a car space located on common property.
Executive Committee - Elected representatives of the owners. Election takes place at each annual general meeting. The powers of the Executive Committee are limited under the Strata Schemes Management Act 1996 but the owners corporation may also impose additional restrictions.
Gazumping - If someone has agreed to sell you a property (without written contract) and then sells it to someone else for a higher price.
General Meeting - A meeting of owners and other interested parties (as noted on the strata roll) who have been advised by notice of a proposed meeting. The owners corporation is required to convene and hold a general meeting once a year. This must be held on a date not earlier than one month before nor later than one month after each anniversary date of the First Annual General Meeting.
Initial Period - The period from the date of registration of the strata plan until the completion of the sale of one third of the aggregate unit entitlement. There are certain restrictions during the initial period. For detailed information refer SSMA.
Levies - Contributions paid by owners to the owners corporation to cover expenditure and allocation for capital expenditure. These are usually paid quarterly and the amount is based on unit entitlement.
Lot - In a strata scheme, a unit is referred to as a "lot". Car spaces, garages, laundries, marinas can also form part of a lot or be a separate lot.
Mortgage - Legal agreement issued by banks as terms and conditions of loans. Registered on land title.
Motion - A proposal for consideration by a meeting.
Multiple Listing - Having property listed with more than one real estate agent.
Original Owner - The owner of the strata scheme when the strata plan is registered.
Owners Corporation - Collectively the owners of the lots in the strata scheme. This is formed when the strata plan is registered.
Private Treaty - Listing of property with a set price.
Project Marketing - The sale of a development going to market with several properties
Property Management - An organisation who for a fee manages investment property.
Proxy - A person appointed in writing by an owner or mortgagee to attend an owners corporation meeting and vote on that person's behalf.
Quorum - Before any motion can be voted upon at a meeting, a quorum must exist, i.e.
• 25% of those entitled to vote OR
• owner/owners holding 25% or more of the total unit entitlements.
A quorum must consist of at least 2 persons.
At executive committee meetings, a quorum is constituted when half of the members are present.
Reserve Price - The minimum amount a vendor is prepared to sell for at auction
Resolution - A decision made at a meeting.
Semi-detached - Two buildings joined by a common wall
Settlement - Completion of sale process where contract price is paid and documents exchanged. A purchaser then owns the property and has the right to take possession.
Settlement Date - The settlement date refers to the date when the whole of the purchase price becomes due and payable. It is also the day you will become the owner of the property and be able to move in. Because there is a lot of work to be done before settlement, normally 35 to 42 days is allowed.
Signboard - Erected on property giving details about property and agent
Sinking Fund - Levies paid into this fund cover renewal and replacement of fixtures and fittings, eg painting, stairwell carpets.
Special Levy - A lump sum contribution to cover either unplanned or underestimated expenditure.
Special Resolution - A motion against which not more than 25% of the value of the vote is cast (based on unit entitlement).
Strata Managing Agent - Licensed strata managing agent appointed by the owners corporation to manage the strata scheme and delegated certain functions. Appointment must be at a general meeting of the owner’s corporation and a strata managing agency agreement must be executed by 2 members of the executive committee and the strata managing agent.
Strata Plan - This is the plan registered at the Land Titles Office which shows the building on the land indicating lots and common property.
Strata Roll - This is a register of the owners of each lot in the strata scheme. It also includes the name of any mortgagee, covenant chargee or lessee (if notified).
Strata Schemes Management Act 1996 (SSMA) - This is the legislation under which all strata matters are dealt with in NSW. The management of a strata scheme is governed by the Strata Schemes Management Act (SSMA) 1996. For a copy of the act and regulations click here.
Strata Schemes Office - This office is part of the Department of Fair Trading and provides various services and assistance in strata matters. It also provides a mediation and adjudication service.
Torrens Title - System of recording ownership of property.
Transfer - Document registered at Land titles Office showing change of ownership of a property.
Unanimous Resolution - A motion against which no vote is cast.
Unit Entitlement - Each lot is given a "unit entitlement" and this is shown on the strata plan. The amount of the unit entitlement varies depending on a number of factors, i.e. size of lot. Levies payable are calculated on the basis of unit entitlement.
Valuation - Assessment of the value of a property by a registered valuer in a written form.
Vendor - Person offering to sell a property.
Virtual Tour - Internet service enabling visual inspection by computer.