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Strata Management

Strata Management Company and a Strata Company, what’s the difference?

By August 27, 2021September 7th, 2021No Comments

Purchasing a strata property can be a great investment for first home buyers, downsizers, families, and investors.

There are many services that help groups of owners manage their financial investment. A strata management company is one of them. These are the key differences between a strata company and a strata management company.

Strata Company

A strata company is defined as a group of persons (stakeholders) who have purchased a lot within a strata scheme. A strata company is made up of all lot owners in a strata titles scheme. A strata company comes into existence when the scheme is registered with Landgate. Each strata lot is issued a certificate of title which lists the proprietor of that lot. The Strata Company is bound by The Strata Titles Amended Act 1985 to raise funds, insure, perform administrative tasks and manage the scheme.

When the strata company wish to employ another entity to manage the scheme on their behalf, they may employ a Strata Company Manager to do so.

Strata Management Company

A strata management company, such as ESM Strata is an entity employed by owners of a scheme to manage the financial, administrative and insurance obligations of the strata company.

A strata management company is contracted to perform functions on behalf of the Strata Company under Section 143 of The Strata Titles Amended Act 1985.

A strata title can certainly hold financial advantages compared to freehold title, via lower purchase cost and shared upkeep costs, but it is important to recognise that it is a shared property where cooperation is needed and a commitment to the strata rules and financial obligations is essential for content strata community living

Above all, strata living is about the positive connections that are made, where small communities are built.

 

To read more articles by ESM Strata visit our knowledge base here.