Top Ten Tips For New Strata Schemes

Purchasers of lots in a new strata plan find themselves members of a new owners corporation, which has a lot of work to do during the lead up to its first annual general meeting. That meeting must take place within two months of the expiry of the “initial period”, i.e. the period within which one third of the lots owned by the developer change hands, which can pass quickly.

This can be a tricky period. The developer may still own lots and possibly a controlling interest. The owners corporation may be party to arrangements negotiated by the developer with a strata managing agent, caretaker and others. The strata plan will usually be new, with potential building defect issues. The first AGM itself can be complicated, there being mandatory agenda items, restrictions on developer voting rights and use of proxies.

Another excellent article by our friends at Bannermans Lawyers, highlights the top 10 things to watch out for. For the full article, hit this link.