Strata and Facilities Management Glossary: 55 Key Terms Explained
A plain-English glossary of strata, body corporate and facilities-management terms for Australian owners, committees, managers and contractors.
Strata and facilities management in Australia carry a dense vocabulary that varies between states and territories. This glossary defines the terms owners, committees, managers, residents and contractors meet most often, in plain Australian English. Exact wording and rules differ by jurisdiction (for example NSW, Victoria, Queensland, WA and the ACT), so always check the legislation and scheme documents that apply to you.
Strata and ownership
Owners corporation
The legal entity made up of all the lot owners in a strata scheme, responsible for managing and maintaining the common property. It is called an owners corporation in NSW and Victoria, a body corporate in Queensland, the ACT and the NT, and a strata company in WA.
Body corporate
The Queensland, ACT and Northern Territory term for the collective body of all lot owners in a scheme. It performs the same role as an owners corporation: administering finances, by-laws and the common property.
Strata company
The Western Australian term for the body of all lot owners in a strata scheme. Like an owners corporation, it manages common property and enforces the scheme's by-laws.
Scheme (strata scheme / plan)
The overall arrangement that divides a building or land into individually owned lots plus shared common property. "Scheme" and "plan" are often used interchangeably to describe the whole strata or community-titled property.
Lot
The part of a strata property that is individually owned, typically an apartment, unit, townhouse, office or car space. Boundaries are defined on the registered strata plan, and the owner is responsible for what is inside the lot.
Common property
The areas owned collectively by all lot owners and managed by the owners corporation, such as foyers, lifts, driveways, gardens, roofs and external walls. Anything not part of a lot is generally common property.
Unit entitlement
A number assigned to each lot that sets its share of ownership in the common property, its voting weight and usually its share of levies. Entitlements are typically based on relative value or floor area and are recorded on the strata plan.
Lot liability
The Victorian term for the proportion of an owners corporation's expenses that each lot must pay. It is the rough equivalent of how unit entitlement is used to apportion levies elsewhere.
Strata plan
The registered legal document and diagram that defines the lots, common property and boundaries within a scheme. It also records unit entitlements and is held by the relevant state land titles office.
By-laws
The rules that govern how people use lots and common property in a scheme, covering matters like pets, noise, parking, renovations and short-term letting. By-laws bind owners, residents and visitors, and can be changed by the owners corporation following the required voting process.
Money and levies
Levy (contribution)
The periodic payments lot owners make to fund the running and upkeep of the scheme. Levies are set by the owners corporation, usually quarterly, and are apportioned by unit entitlement or lot liability.
Administrative fund
The fund that pays for day-to-day, recurrent expenses such as insurance, cleaning, utilities for common areas, gardening and minor repairs. It covers predictable, ongoing running costs rather than major capital works.
Capital works fund (sinking fund)
The fund that saves for major, less-frequent expenditure such as painting, roof replacement, lift upgrades and repairing common property. It is called a capital works fund in NSW, a maintenance or sinking fund in some states, and is built up over time so big bills don't trigger sudden special levies.
Special levy
A one-off or additional levy raised when the existing funds are not enough to cover a significant or unexpected cost, such as urgent repairs or a major defect. Owners usually vote to strike a special levy at a general meeting.
Sinking fund forecast (capital works plan)
A long-term plan, often spanning 10 years or more, that estimates future major expenditure and the contributions needed to fund it. Many jurisdictions require schemes to prepare and maintain one so the capital works fund stays adequate.
Insurance valuation
A professional assessment of the cost to rebuild the building and common property, used to set the sum insured for building insurance. Owners corporations are generally required to insure for full replacement value and to update the valuation periodically.
Public liability
Insurance that covers the owners corporation against claims for injury or property damage suffered by third parties on the common property. It is a standard, usually mandatory, component of strata insurance.
Strata information certificate (section certificate)
An official document setting out a scheme's financial and legal status, including levies owing, balances and disputes. It is commonly ordered when a lot is sold, and is known as a section 184 certificate in NSW and by other section numbers elsewhere.
Meetings and governance
AGM (annual general meeting)
The yearly meeting at which owners receive financial statements, set levies, elect the committee and vote on other business. Holding an AGM within a set period is a legal requirement in most jurisdictions.
EGM (extraordinary general meeting)
Any general meeting of owners held outside the regular AGM, called to deal with matters that can't wait until the next annual meeting. Also referred to as a special general meeting in some states.
Quorum
The minimum number or proportion of owners (in person or by proxy) that must participate for a meeting's decisions to be valid. If a quorum is not reached, the meeting may be adjourned or proceed under specific fallback rules.
Proxy
A written authority allowing one person to attend and vote at a meeting on another owner's behalf. Many jurisdictions cap how many proxies one person may hold to prevent any single party dominating votes.
Motion
A formal proposal put to a meeting for owners to consider and vote on, such as approving a budget or changing a by-law. Each motion is recorded and decided as either carried or defeated.
Ordinary resolution
A decision passed by a simple majority of votes cast at a properly convened meeting. Most routine business is decided by ordinary resolution.
Special resolution
A decision requiring a higher level of support than a simple majority, used for more significant matters such as major by-law changes or substantial works. The exact threshold (and the limit on votes against) is set by each jurisdiction's strata law.
Minutes
The official written record of what was discussed and decided at a meeting, including motions, voting outcomes and key resolutions. Minutes must usually be prepared, distributed and retained within set timeframes.
Strata committee (executive committee)
The group of owners elected to make day-to-day decisions and oversee the scheme between general meetings. It is called a strata committee in NSW, an owners corporation committee in Victoria, and a body corporate (executive) committee in Queensland and the ACT.
People and roles
Strata manager
A licensed professional or firm engaged by the owners corporation to handle administration, finances, levies, insurance, meetings and compliance. Also called a strata managing agent or body corporate manager, they act on the scheme's instructions and do not own the building.
Building manager (caretaker)
The person or company responsible for the physical, on-site operation of a building, such as coordinating maintenance, managing contractors and supervising common areas. The role is distinct from the strata manager and is sometimes called a caretaker or facilities manager.
Agent
A person or business authorised to act on behalf of an owner, such as a real estate agent letting and managing a tenanted lot. An agent acts within the authority given to them and is accountable to the owner who appointed them.
Owner
The registered proprietor of a lot, who holds title, can vote on scheme matters and is liable for levies. An owner may live in the lot (an owner-occupier) or lease it to a tenant.
Resident
Anyone who lives in a lot, whether they own it or rent it. Residents must comply with the scheme's by-laws even if they are not owners and cannot vote at meetings.
Tenant (tenancy vs ownership)
A person who rents and occupies a lot under a lease rather than owning it. Tenancy grants the right to occupy and use the lot, whereas ownership grants title, voting rights and levy obligations; a tenant must follow by-laws but generally has no vote in the owners corporation.
Maintenance and assets
Preventive maintenance (planned maintenance)
Scheduled, proactive servicing carried out to keep assets working and prevent failures, such as routine lift, pump or fire-system inspections. It is planned in advance against a maintenance program rather than triggered by a breakdown.
Reactive maintenance
Repairs carried out in response to a fault, breakdown or report after something has already failed. It is unplanned and is usually more disruptive and costly than preventive maintenance.
Work order
A documented instruction authorising a contractor or worker to carry out a specific maintenance or repair task. It typically records the location, scope, priority, cost and completion status of the job.
Asset register
A structured record of the physical assets in a building, such as lifts, pumps, fire equipment and air-conditioning, including details like make, age, condition and service history. It underpins maintenance planning, budgeting and the capital works forecast.
Defect
A fault or flaw in a building's construction, materials or finishes that does not meet the required standard, such as water ingress, cracking or faulty waterproofing. Defects in newer buildings are a common and significant issue in Australian strata.
Defects liability period
The period after construction during which the builder is obliged to return and rectify defects that arise, at no cost to the owners. Its length and the rights attached to it depend on the contract and the relevant building and home-warranty laws.
Compliance and safety
Essential services (essential safety measures)
The fire and life-safety systems and equipment a building must keep operational, such as fire detection, sprinklers, exit signs, emergency lighting and mechanical ventilation. They are called essential safety measures in Victoria and essential services or fire safety measures elsewhere, and must be maintained and certified regularly.
Annual Fire Safety Statement
A document, used in NSW, confirming that each essential fire safety measure in a building has been inspected and is operating to the required standard. A building owner must obtain and lodge it each year, with similar annual statements required in other states under different names.
AS 1851
The Australian Standard covering the routine servicing of fire protection systems and equipment, setting out inspection frequencies and procedures. Maintenance records are commonly required to demonstrate compliance with it.
NABERS
The National Australian Built Environment Rating System, which rates the environmental performance of buildings, most commonly their energy and water efficiency, on a star scale. It is widely used for commercial offices and is mandatory to disclose in certain leasing and sale situations.
Certificate of compliance
A document confirming that specific work, equipment or a system meets the relevant standard, code or regulation, often issued by a licensed tradesperson or certifier. Examples include electrical, plumbing and fire-safety compliance certificates.
Permit to work
A formal authorisation system controlling high-risk work, such as hot work, confined-space entry or work at heights, before it can begin on site. It documents the hazards, controls and approvals required to do the job safely.
Work health and safety
WHS (work health and safety)
The legal framework requiring those who manage premises and engage workers to ensure health and safety so far as reasonably practicable. Owners corporations and managers can hold WHS duties in relation to common property and the contractors who work there.
SWMS (safe work method statement)
A document that sets out the high-risk construction or maintenance tasks to be done, the hazards involved and the control measures to manage them. Contractors are typically required to prepare and follow a SWMS before starting high-risk work.
Disputes and tribunals
NCAT / VCAT (tribunals)
The state administrative tribunals that hear and resolve strata and tenancy disputes quickly and at low cost, including levy recovery, by-law breaches and repairs. NCAT operates in NSW and VCAT in Victoria, with equivalent bodies such as QCAT in Queensland and SAT in WA.
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Frequently asked questions
What's the difference between the administrative fund and the capital works fund?
The administrative fund pays for regular, recurring running costs like insurance, cleaning and minor repairs, while the capital works (or sinking) fund saves for major, infrequent expenditure such as painting, roof and lift works. Keeping them separate ensures everyday bills and long-term capital projects are each properly funded.
Is an owners corporation the same as a body corporate?
Yes, in practice they describe the same thing: the legal entity of all lot owners that manages a strata scheme. The label simply depends on the state or territory, with "owners corporation" used in NSW and Victoria and "body corporate" used in Queensland, the ACT and the NT.
What's the difference between a strata manager and a building manager?
A strata manager handles the scheme's administration, finances, levies, insurance and meetings, usually off-site, while a building manager or caretaker looks after the physical, day-to-day operation of the building on-site. A scheme may engage one, both or neither, depending on its size and needs.
Do I get a vote at the AGM if I rent rather than own?
Generally no: voting rights belong to lot owners, so tenants and other residents do not vote at general meetings. Tenants must still comply with the scheme's by-laws, and they can usually raise concerns through the owner or agent who manages their lot.