Strata Company
The term 'Strata Company' in Western Australia refers to all of the owners within a particular complex (called a Strata Scheme). Collectively, all the lot owners form the Strata Company. When purchasing a lot on a strata titled property, you become part of that Strata Company. A Strata Company is bound by The Strata Titles Act 1985 which imposes duties and functions that must be adhered to. A Strata Company elect a number of members at each Annual General Meeting to represent them, called the Council of the Strata Company. The Council are responsable for ensuring the Strata Company complies with the regulations and is reposnable for ensurign the duties and functions that are imposed on the Strata Company are carried out.
The Council of the Strata Company may employ a Strata Management Company on behalf of the Strata Company to assist them in carrying out their duties and oibligations.
Strata Management Company (often referred to as Strata Managers)
The Strata Management Company refers to a business which provides Strata Management services to Strata Companies. ESM Strata is a Strata Management Company.
Strata Management Companies will perform various functions on behalf of the Council of the Strata Company such as collection of levies, secretarial services, administrative services, & chairing meetings etc. A Strata Management Company is a point of contact to help & advise the Council of the Strata Company on strata related issues.
Functions of the Strata Company are often delegated to the Strata Company Manager. A Strata Company Manager also assists the Council members with management of the day-to-day running of the Strata Company, and provides advice in accordance with current legislation.
NOTE: In the Eastern States there is less confusion as they call Strata Companies "Owners Corporation" - which defines the difference in its title.
Strata Managers
Strata Managers are primarily responsible for assisting and advising the Council of the Strata Company to ensure compliance with the Strata Titles Act 1985. They also regularly assist with the following types of administerial areas of strata on behalf of the Council of the Strata Company, such as:
- preparing the draft budget
- managing the strata company records - both non-financial and financial accounts and statements
- preparing and issuing work orders for suppliers and contractors
- payment of invoices to suppliers and contractors
- preparing and managing insurance claims
- issuing and receipting levies into the Strata Company bank account
- advising on the relevant pieces of strata legislation where required
- preparing draft notice & agendas
- attending and/or chairing general meetings
- attending to the day to day running of the scheme including maintenance and disputes
- providing general strata advice to owners
Strata Managers can only take formal instructions from the Council of the Strata Company, who are their employer. Strata Managers have no authority to act on their own, unless that authority is given to them by the Council of the Strata Company.
More Information
In the new STAA 2018, the role of the Strata Manager is defined clearly. There are new requirements which Strata Managers must meet and adhere to.
You can read more here: https://strata.wa.gov.au/