Owners Corporations And Strata

Owners Corporations And Strata

Herron Todd White provides independent Owners Corporations And Strata backed by local expertise and national consistency.

Frequently Asked Questions

Is an insurance valuation legally required for strata?

In most states, yes. Strata legislation commonly requires schemes to obtain an updated insurance valuation at least every five years. Because building costs can change quickly, we recommend reviewing it every one to three years, or after major works.

What is a sinking fund forecast?

A sinking fund forecast estimates when major building components, such as roofing, lifts, or painting, will need replacing, and what they'll cost. It lets the committee collect levies gradually, rather than raising sudden special levies. Depending on the state, it may be called a capital works fund or maintenance plan.

Can unit entitlements be changed if they seem unfair?

In some cases, yes. Most states have a process for owners or the scheme to apply for unit entitlements to be reviewed, often through a tribunal. A valuation of each lot's relative value is usually central to the application, but the rules and valuation dates differ between states.

Do you value individual apartments as well as the whole building?

Yes. Insurance valuations and sinking fund forecasts cover the building as a whole, but we can also value individual apartments for owners, such as for tax, SMSF, family law, or a sale. If it's for a loan, the lender will order its own valuation.

How often should a strata building get an insurance valuation?

Most states require owners corporations or bodies corporate to obtain an updated insurance valuation at least every five years. Because building costs can change quickly, we recommend reviewing it every one to three years, or after major works.