Question: With the new WA legislation, can a complex of 6 lots still self managing or are there specific legislation or other laws that require us to appoint a strata manager?
I am a lot owner in a group of six townhouses in WA. I bought the townhouse around 20 years ago and we have been running as a self managed strata scheme.
With all the new WA legislation, I was wondering if self managing our complex is still OK or are there specific legislation or other laws that pertain to our complex that require us to change? I have seen some articles that specifically talk about ‘five’ units or less being able to be self managed but unsure of our group of six?
Answer: We would always recommend that the Strata Company engage a qualified professional Strata Manager to ensure that the requirements in the legislation are met.
We would always recommend that the Strata Company engage a qualified professional Strata Manager to ensure that the requirements in the legislation are met.
In relation to your specific query, there is nothing within the new updated legislation that specifies requirements for a 6 lot site. The Act has previously contained exemptions for 2 to 5 lot schemes however there have been no additions specific to a 6 lot scheme.
The updated legislation does now provide for Strata Managers, including volunteer managers. The volunteer managers are provided exemptions under the new legislation also, as per Sections 144, 145 and 155, and Section 143 provides some clarification on the authority of the Strata Manager, volunteer or professional.
The requirements of Section 144 do require that there is a volunteer agreement in place between the Volunteer manager and the Strata Company.
The Definition is now in the Act as:
Strata manager means a strata manager of a strata company who —
- is the owner of a lot in the strata titles scheme; and
- does not receive any fee, reward or benefit for work performed as a strata manager other than an honorary fee or reward not exceeding, if an amount is fixed by the regulations, that amount; and
- personally performs the work of the strata manager;
Under Regulation 79 they define a designated Strata Company in relation to the new requirement for a 10 Year Plan.
The new legislation requires any scheme, 10 lots or over, to complete a 10 year plan – however, there is an exception.
If a Strata Company is under 10 lots and has a building replacement value of more than $5,000,000, they are required to do a 10 Year plan. So a 6 lot plan may be impacted however they would need to refer to their insurance cover/valuation to determine.
Shelley Fitzgerald Emerson Raine E: shelley@emersonraine.com.au P: 9330 3959