Strata Company or Strata Management Company – Is there a difference?
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Yes there is! I talk with people involved in Strata Title in Western Australia on a daily basis and it is more than apparent that most people living in or owning a Strata property do not know the difference.
The Strata Titles Act gives definition to the term Strata Company as:
“a body corporate constituted under section 32 whether for a strata scheme or a survey-strata scheme”
When the Strata/Survey Strata Plan is registered the proprietors form a Strata Company. The name of that Strata Company is defined by the name of the scheme registered on that plan. An example of which could be ‘The Owners of 6 Smith Street” or “The Owners or Coast Apartments”.
A Strata Management Company is a company employed as an agent to the Strata Company engaged to assist in the day to say running of the complex. The Strata management Company will assign a Strata Manager to manage the Scheme.
Whilst the Strata Manager will most often be the one talking with owners and contractors and arranging the affairs of the Strata Company it is not the Strata Manager who is responsible for the duties, responsibilities and legislative obligations of the Strata Company. The Strata Manager is not the decision maker, he or she simply acts on instruction given by the Strata Company most often through its Council of Owners.
Often I hear about how a Strata Manager isn’t taking action. Sometimes it may be that the Strata Manager is hamstrung by an inactive Council of Owners. Strata Managers will refer decisions to the Council of Owners providing them with the information they need to make that decision. While most Strata Companies have an active council of owners, some do not. It is in this situation that the Strata Manger may not receive instruction from the Council of Owners on matters referred. In that situation the decision will usually not be decided on until a general meeting for the Strata Company is held.
Source Luke Downie
August 14, 2018
Posted in: Blog