Owners Corporation vs Strata: Understanding the Key Differences in NSW
29th April, 2025
When you buy a strata property in New South Wales (NSW), understanding the terms “Owners Corporation” and “Strata” is essential. These terms define how your property is managed and who makes decisions. Let’s break it down and clarify the key roles involved.
What is an Owners Corporation?
An Owners Corporation is the legal body made up of all the lot owners in a strata scheme. When you purchase a lot, you automatically become part of the Owners Corporation. You cannot opt out.
This body owns and manages the common property—shared areas like hallways, gardens, lifts, and pools. It also handles finances, insurance, compliance, and enforcement of by-laws.
Core responsibilities include:
- Maintaining common property.
- Managing funds and levies.
- Keeping financial records.
- Ensuring compliance with building and insurance laws.
- Enforcing by-laws set for the building.
Major decisions are made at general meetings where owners can vote.
What is a Strata Committee?
The Strata Committee is elected by the Owners Corporation to handle day-to-day matters. It acts on behalf of the Owners Corporation but within limits set by law or at general meetings.
This group usually includes:
- Chairperson – leads meetings and ensures procedures are followed.
- Secretary – handles communication, notices, and meeting records.
- Treasurer – oversees budgets, levies, and financial records.
The committee can make decisions on smaller issues such as:
- Maintenance quotes and approvals.
- By-law breaches.
- Pet and renovation applications.
- Approving minor repairs.
However, major decisions still require approval from the full Owners Corporation.
What is a Strata Manager?
A Strata Manager is a professional hired by the Owners Corporation to assist with administrative and legal tasks. They are not a member of the committee or an owner.
Their role may include:
- Collecting levies.
- Organising meetings and minutes.
- Ensuring compliance with the Strata Schemes Management Act 2015.
- Coordinating maintenance and service providers.
- Providing expert advice on strata matters.
The Strata Manager reports to the Owners Corporation but often works closely with the Strata Committee.
Important note: The Strata Committee reports to the Owners Corporation, not the Strata Manager. The Strata Manager is a paid contractor. They assist but don’t control decisions.
Strata vs Body Corporate in Queensland
In Queensland, the term Body Corporate is used instead of Owners Corporation. The responsibilities are similar: managing shared property, handling funds, and enforcing by-laws. The structure is the same, but the terminology and legislation differ between states.
Why Understanding These Roles Matters
Whether you’re a buyer, owner, or committee member, understanding these roles helps avoid confusion and conflict. Here’s why it matters:
- You know who’s responsible for decisions.
- You can raise issues with the right person.
- You understand your rights and duties as an owner.
- You stay informed about levies, meetings, and repairs.
Strata law in NSW can feel overwhelming, especially when roles and responsibilities are unclear. At Bangalow Conveyancing, we help owners, committees, and buyers understand their legal position in a strata scheme.
Whether you need advice on renovations, by-laws, disputes, or reports, our team is here to help.
📞 Contact us today for tailored legal advice and guidance on all property matters in NSW.
If you found the information in this blog post helpful, check out our other regularly updated blog posts.
