Prior to 1961, if an Australian owned a part of a building, he was not entitled to own a title deed for that part of the building he owned. The Australians were not very happy about this system as they had no privacy or freedom to do anything regarding that part. So an Act was introduced in 1961 in Australia, known as the Strata Act. According to this Act, the building was subdivided into strata lots, whereby the owner of a particular part of the building, was entitled to a Certificate of Title for the part of the building he owned, known as Strata Title. According to this title, the owners were free to do anything with their property and this gave them a certain degree of freedom.
Now what is Strata? In the year 1961, a system was introduced in Australia, for handling legal portions of a building, known as ¡°lots¡±, which includes villas, commercial offices, units, townhouses, factories, retail shops, warehouses etc. This system was known as Strata.
All the members who come under the title scheme automatically become a member of the body corporate. This body manages the issues and interests of the owners. The body corporate has a manager who acts for it. The body corporate manager manages and administers the common property area of a subdivided building.
Lands were developed to build many individual units to allow many individuals and companies to occupy and own these units and these land owned by the owners were known as strata lot. Such a scheme was known as Strata Scheme and this scheme consists of these strata lots.
Each owner will have a ¡°lot¡±, and the owners of all these lots under the strata scheme is formed into a body corporate or Strata Company. The company has certain obligations set by the Strata Act and according to the Act the company must keep a proper account of the money received and expended, and provide an income expenditure statement.
The owners who come under the Strata Scheme form a body known as owner¡¯s corporation and each lot owner is a part of the owner¡¯s corporation. This corporation has an executive committee, which makes decision on its behalf. The owners have the right to participate in the corporation¡¯s decision making.
The owners of group dwellings have shared responsibilities to come together and agree on matters which concern the property which is common to them. This is known as Strata Management. In Australia, strata management is also known as Body Corporate Management. A Strata manager provides strata management services to the strata corporation and acts on behalf of the corporation.