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What is the difference between a Strata Company and the Council of the Strata Company?

Owning a strata title offers many benefits including, affordability, access to shared facilities and sharing the financial responsibility for maintenance work. When you first start exploring strata and whether strata living is for you, all the terms can be somewhat confusing. We are here to help you understand everything you need to know about strata living. Let’s start with the Strata Company and the Council of the Strata Company – what is the difference?

A Strata Company is a group of owners of a strata titled property. This differs from the Council of the Strata Company, which is the group of owners that are elected to represent the Strata Company in matters of the strata. These may include common property maintenance, by-law issues, and instructing the Strata Manager.

Being part of the Council of the Strata Company is an important responsibility and requires each member to:

  • be honest and trustworthy in their conduct
  • exercise due care and diligence in their role
  • not use their position for any improper conduct
  • be open and honest about any conflict of interest that may impact their role as part of the council

Some strata companies choose not to have a council. This means that all decisions regarding the strata must be made by the Strata Company. Each decision made requires correspondence to be sent to all owners and approval must be obtained by at least 50% of the owners before any action can take place. Not having a council can sometimes act as a roadblock, preventing maintenance works from being carried out and resulting in a less well-maintained property.

With an active council who meet regularly and effectively liaises with your Strata Manager, your strata will be in good hands and you can trust your strata will be well-maintained.

Have more questions about strata companies and councils? Give us a call on 08 9362 1166 or email us at info@esmstrata.com.au. You can also learn more about strata by visiting the News and Resources page on our website.