What does that mean? Strata Terms Explained (2026 Guide)
Buying into or living in a strata scheme introduces a whole new vocabulary. From “Owners Corporation” to “special resolutions”, understanding these terms can make it much easier to participate in meetings, read reports and make informed decisions.
This glossary explains the most common terms used in NSW strata legislation and the strata management industry in simple language.
Administrative Fund
The fund used to pay the day-to-day running costs of the strata scheme.
Examples include:
- Cleaning
- Gardening
- Electricity for common areas
- Insurance
- Strata management fees
- Minor repairs
AGM (Annual General Meeting)
The yearly meeting of all owners.
Important decisions are made including:
- Approving the budget
- Setting levies
- Electing the strata committee
- Reviewing financial statements
- Appointing the strata manager
Building Manager
A person or company appointed to manage the day-to-day operation of larger buildings.
They typically coordinate:
- Cleaning
- Contractors
- Security
- Building maintenance
- Resident enquiries
A Building Manager is not the same as a Strata Manager.
By-laws
The rules that govern how people live within the strata scheme.
They commonly cover:
- Pets
- Renovations
- Parking
- Noise
- Smoking
- Use of common property
- Behaviour of residents
Every owner and resident must comply with the registered by-laws.
Capital Works Fund
Money set aside for major repairs and replacement of common property.
Examples include:
- Roof replacement
- Lift upgrades
- Painting
- Driveway resurfacing
- Waterproofing
- Window replacement
Previously known as the Sinking Fund.
Common Property
Parts of the building owned collectively by all owners.
Examples include:
- Roof
- External walls
- Stairwells
- Lifts
- Driveways
- Gardens
- Swimming pools
- Shared hallways
Owners cannot usually alter common property without approval.
Community Association
The governing body for a Community Title development.
Unlike strata, a Community Association may manage:
- Roads
- Parks
- Shared recreational facilities
- Estate landscaping
Community Title
A form of property ownership commonly used in housing estates where owners own their own land but share facilities with neighbours.
Defect
A fault in the construction of a building.
Examples include:
- Water leaks
- Cracking
- Waterproofing failures
- Structural issues
Exclusive Use By-law
A registered by-law giving one owner the exclusive right to use part of the common property.
Examples include:
- Courtyards
- Roof terraces
- Storage areas
- Parking spaces
Extraordinary General Meeting (EGM)
A meeting held between Annual General Meetings to consider urgent or important matters.
Fire Safety Statement
A document confirming that the building’s essential fire safety measures have been inspected and are operating correctly.
Levy
The regular contributions owners pay to operate the Owners Corporation.
Levies usually fund:
- Maintenance
- Insurance
- Utilities
- Cleaning
- Administration
Lot
The individual property owned by an owner.
It may be:
- An apartment
- A townhouse
- A villa
- A commercial suite
- A storage lot
- A parking lot
Lot Owner
A person or company that legally owns a lot within the strata scheme.
Also commonly referred to as an owner.
Managing Agent
Another name for a licensed Strata Managing Agent or Strata Manager.
Mediation
A voluntary dispute resolution process provided by NSW Fair Trading before many matters proceed to NCAT.
NCAT
The NSW Civil and Administrative Tribunal.
NCAT hears many strata disputes including:
- Renovations
- Pets
- By-law breaches
- Repairs
- Levy recovery
- Meeting disputes
Notice to Comply
A formal notice issued when someone breaches a strata by-law.
It is often the first formal step before Tribunal proceedings.
Occupier
Someone living in the property.
This may include:
- The owner
- A tenant
- A family member
Office Bearers
Members of the strata committee elected to specific positions including:
- Chairperson
- Secretary
- Treasurer
Ordinary Resolution
A decision passed by more than 50% of votes cast at a meeting.
Many routine decisions are made this way.
Owners Corporation
The legal entity made up of all lot owners.
The Owners Corporation owns and manages the common property and makes decisions affecting the building.
Older schemes may still use the former term Body Corporate, although this is no longer the legal term used in NSW.
Proxy
A person authorised to vote on behalf of an owner who cannot attend a meeting.
Quorum
The minimum number of people or voting entitlements required before a meeting can proceed.
Section 184 Certificate
Previously known as a Section 109 Certificate or Strata Information Certificate.
It provides important information about a strata scheme when a property is being bought or sold, including levies, insurance, by-laws and known financial matters.
Special Levy
An additional levy raised to pay for unexpected or major expenses not covered by existing funds.
Special Resolution
A higher level of approval required for significant decisions.
Examples include:
- Changing by-laws
- Major renovations affecting common property
- Property rights by-laws
A special resolution generally requires no more than 25% of the value of votes cast to be against the motion.
Strata Committee
Owners elected by the Owners Corporation to make many day-to-day decisions between general meetings.
Strata Inspection Report
A report prepared by inspecting the Owners Corporation’s records before purchasing a lot.
It often identifies:
- Building defects
- Financial health
- Legal disputes
- Upcoming major works
Strata Manager
A licensed professional appointed by the Owners Corporation to assist with the administration of the strata scheme.
Typical responsibilities include:
- Organising meetings
- Financial management
- Compliance
- Record keeping
- Contractor coordination
- Advice to the committee
Strata Plan
The registered survey plan showing:
- Individual lots
- Common property
- Lot boundaries
It determines what each owner owns and what belongs to the Owners Corporation.
Tenant
A person renting a lot from the owner.
Tenants must comply with the strata by-laws even though they are not owners.
Unit Entitlement
Each lot is allocated a number called a Unit Entitlement.
It is used to calculate:
- Levy contributions
- Voting rights (in some circumstances)
- Ownership share of common property
Larger or more valuable lots generally have higher Unit Entitlements.
Utility Infrastructure
Shared building services including:
- Water
- Sewer
- Electricity
- Gas
- Communications
- Stormwater drainage
Responsibility depends on whether the infrastructure forms part of the lot or the common property.
Work Order
An instruction issued by the strata manager or building manager authorising contractors to perform approved maintenance or repairs.
Work Health and Safety (WHS)
The laws requiring the Owners Corporation to provide a safe environment for workers, contractors, visitors and residents when carrying out building operations.
Why Understanding Strata Terminology Matters
Understanding these common terms helps owners:
- Participate confidently in meetings.
- Understand financial reports.
- Read meeting agendas and minutes.
- Communicate effectively with their strata manager.
- Make informed decisions about renovations, maintenance and by-laws.
- Understand their rights and obligations under NSW strata legislation.
At Strata Real Estate Services, we believe informed owners make better decisions and stronger communities. If you’re ever unsure about a strata term or process, our experienced team is here to help.
Your Strata, Our Expertise.