Capturing Common Property in Capital Works Plans:
The responsible body for a strata scheme is called the Owners Corporation. It is made up of all the owners of lots in a property. For lot owners, anything inside their lot is considered their property. This includes internal walls, carpets, fixtures and paint.
All property that is external to a lot forms a boundary of common property. This includes:
- the upper surface of the floor (but not including carpet)
- the under surface of the ceiling
- al external or boundary walls (including doors and windows).
A registered strata plan can clarify which areas are common property and define these boundaries. In some cases, where there is still uncertainty in the strata plan, it can be beneficial to create a common property memorandum. This clarifies whether the Owners Corporation is responsible for the maintenance, repair or replacement of any common property, or if it is the responsibility of the lot owner.
It is the responsibility of the Owners Corporation to have the correct measures in place to be able to repair any issues regarding common property. A minor repair might be fixed without the need for a meeting; however, the Owners Corporation will need to discuss any major repairs as costs will need to be considered.
As required by the Strata Schemes Management Act, the Owners Corporation must have a Capital Works Plan (formerly known as a sinking fund forecast). This is a 10-year plan outlining all expenses for the maintenance and repair of common property and proposes the owners levies that will cover the forecasted expenses (known as the Capital Works Fund). Under the Act, the Capital Works Plan must be reviewed every 5 years to ensure that the Capital Works Fund reflects the actual aging and associated works of the building, as well as any changes in circumstances within the common property. Archi-QS have been relied upon by the strata industry for over 25 years to create accurate, detailed and user friendly Capital Works Plans for thousands of properties all over NSW.