Common property in a strata scheme is defined in the strata plan. For more information on interpreting strata plans see What is common property?
However the strata plan itself may not always resolve owner corporation uncertainty about the maintenance, repair or replacement of items or areas contained in the strata scheme. Nor does current strata legislation provide specific details on who is responsible for maintenance or repairs, and researching case law may not reveal the latest decisions.
To help owners’ corporations identify common property in their particular scheme, a Strata Industry Working Group hosted by LPI has created two ‘Memoranda’ which can be adopted as a By-Law in new or existing strata schemes. The Strata Industry Working Group comprises a mix of government and private sector stakeholders with an interest in strata title issues.
The Memoranda are designed to provide more certainty for strata owners and owners’ corporations in dealing with most items of common concern within their strata scheme.
Each Memorandum has been recorded in LPI’s land title system.
Memorandum No AG520000 defines who is responsible for the repair, replacement or maintenance of specific items or areas contained within a Strata Scheme. The full text of the principles and provisions set out in Memorandum No AG520000 is published in LPI Circular 2011/07 (PDF 134KB). This Memorandum may be more appropriate for new strata schemes.
Memorandum No AG600000 provides a guide to assist in determining whether a particular item in a strata scheme is part of an owner’s lot or is common property. The full text of the principles and provisions set out in Memorandum No. AG600000 is published in LPI Circular 2011/08 (PDF 91KB). This Memorandum may be more appropriate for existing strata schemes.
Owners’ corporations should seek professional advice as to whether either of the memoranda would be appropriate for their scheme.
Adopting a Memorandum
To adopt the provisions of either of the Memoranda the following procedures should be followed:
Existing Strata Schemes
The new By-Law must first be agreed by a “Special Resolution” at an Owners Corporation Meeting in accordance with Section 47 of the Strata Schemes Management Act 1996.
A Change of By-Laws Form 15CB (PDF 60KB) should then be lodged in LPI for registration to register a new By-Law on the Common Property Title. The terms of that By-Law will state that the Owners of the Strata Plan adopt the provisions of Memorandum No AG 520000 or Memorandum No AG600000. Any specific provisions within Section 2 of either Memorandum may be excluded by exception if desired. Any additional items that are not referred to in the Memorandum may be addressed by including additional clauses within the wording of the By-Law.
The Change of By-Laws must be lodged by hand at LPI with:
- the current lodgment fee to be paid - see Land Title fees page.
- the Certificate of Title for the Common Property of the Strata Scheme.
The By-Law will become effective on registration, when it will be recorded in the Second Schedule of the Common Property Title. It should be noted that the Change of By-Laws dealing must be lodged in LPI no later than two years after passing the resolution.
Sample Change of By-Laws dealing
New Strata Schemes
The surveyor preparing the plan should strike through the model By-Law option in the By-Law panel on the Strata Plan Administration Sheet (PDF 156KB) and complete the option for lodging a schedule of By-Laws. This will require the lodgment of an Approved Form 27 (PDF 62KB) with the plan, which will set out specific By-Laws being adopted by the strata scheme as instructed by the developer. If the model By-Laws are proposed to be adopted they should be referred to on the Approved Form 27.
One of the By-Laws specified in the Approved Form 27 will be the adoption of the Memorandum AG 520000 or Memorandum AG 600000. Any specific provisions within Section 2 of the Memorandum may be excluded by exception if desired. Any additional items that are not referred to in the Memorandum may be addressed by including additional By-Laws.
Once the Strata Plan is registered the By-Laws applicable to the scheme will be recorded in the Second Schedule of the Common Property Title.
Sample Administration Sheet By-Law panel
Sample Strata Plan Approved Form 27
More information
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