Strata Terms and Sub-MC Rights
- a22162
- Aug 29
- 4 min read
Definitions of Key Strata Terms
Subsidiary Management Corporation (Sub-MC): A Sub-MC is a legal entity formed to manage a specific part of a larger, mixed-use strata development. This is typically found in properties that combine residential and commercial units, such as a shopping mall with an apartment complex on top. While the main Management Corporation (MC) manages the overall common property, the Sub-MC is responsible for the day-to-day management of the common property and facilities that are exclusive to a particular block or part of the development.
Strata Title Plan: A strata title plan is a legal document that divides a parcel of land and its buildings into individual lots and common property. It defines the boundaries of each individual unit (the "lot"), such as an apartment or office, as well as the shared areas (the "common property"), such as corridors, stairwells, and swimming pools. The plan is crucial for establishing ownership and defining the rights and responsibilities of each owner within the strata scheme.
Limited Common Property (LCP): This is a type of common property that is designated for the exclusive use of one or more, but not all, owners in a strata development. While it's still considered common property and owned by all proprietors, its use is restricted. Examples often include balconies, private gardens, or specific parking spaces allocated to particular units.
Legal Rights and Responsibilities of a Sub-MC
A Sub-MC is a corporate entity with specific legal rights and responsibilities. Its main purpose is to manage and administer the common property for the benefit of the owners within its designated section of the larger development.
Rights
To Sue and Be Sued: A Sub-MC, as a legal entity, has the right to enter into contracts and can sue or be sued in its corporate name. This is particularly relevant for matters related to the common property it manages.
To Collect Contributions: It has the right to collect management and sinking fund contributions from the subsidiary proprietors (unit owners) in its section of the development to cover the costs of maintenance, repair, and administration.
To Enforce By-Laws: The Sub-MC can enforce the by-laws, or rules, that govern the use and maintenance of the common and limited common property within its purview. If an owner breaches a by-law, the Sub-MC can take legal action to seek a court order for compliance or compensation for any damage.
Responsibilities
To Manage and Maintain Property: Its primary responsibility is to properly maintain, manage, and administer its specific common property and keep it in good and serviceable repair. This includes paying for services like cleaning, security, and gardening.
To Adhere to Regulations: The Sub-MC must comply with all notices or orders from the relevant public authorities regarding repairs or the abatement of nuisances on the common property.
To Maintain Accounts: It is required to keep proper, audited accounts for the funds it collects and spends. These financial statements must be made available to its members for transparency.
To Keep a Strata Roll: The Sub-MC must maintain an updated strata roll, which is a record of all the subsidiary proprietors and their contact details, share values, and contributions.
How Bestar can Help
Strata Terms and Sub-MC Rights
A Managing Agent (MA) is a professional firm hired by a Management Corporation (MC) to assist with the day-to-day administration and management of a strata-titled property. While the MC, composed of volunteer subsidiary proprietors, holds the ultimate decision-making power, Bestar provides the expertise and resources to handle the complex responsibilities involved.
Here's how Bestar can help a Strata Management Corporation:
1. Operational and Administrative Management:
Day-to-day Operations: Bestar ensures the smooth functioning of the estate, overseeing services like cleaning, security, landscaping, pest control, and general repairs and maintenance. We manage service contracts and supervise on-site staff.
Financial Administration: Bestar handles a wide range of financial duties, including collecting management and sinking fund contributions, paying invoices to suppliers and contractors, preparing financial statements and budgets, and managing arrears. Our expertise helps ensure the MC's funds are used efficiently and transparently.
Meeting Facilitation: We organize and facilitate MC and general meetings, including preparing agendas, taking and distributing minutes, and ensuring meetings are conducted in compliance with relevant legislation.
2. Legal and Regulatory Compliance:
Expert Knowledge: Bestar possesss a deep understanding of the Building Maintenance and Strata Management Act (BMSMA) and other relevant regulations. We help the MC navigate complex legal issues and ensure the property remains compliant with all statutory requirements, preventing potential fines or legal action.
Record-keeping: We are responsible for maintaining accurate and up-to-date records, including the strata roll, financial accounts, and minutes of meetings, which are crucial for transparency and legal compliance.
Enforcement of By-Laws: Bestar assists in enforcing the by-laws of the strata development, addressing issues like noise complaints, misuse of common property, and other breaches by residents.
3. Dispute Resolution and Communication:
Mediation: In multi-unit developments, conflicts between residents or with the MC are common. Bestar acts as a neutral third party to mediate disputes, helping to find fair solutions and maintain harmony within the community.
Communication Bridge: Bestar serves as the main point of contact for subsidiary proprietors, tenants, and the MC, ensuring clear and effective communication on all matters concerning the property.
4. Strategic and Technical Support:
Maintenance Planning: We provide professional advice on building maintenance, from routine inspections to long-term capital works planning. Our expertise can help the MC make informed decisions to preserve or increase the property's value.
Emergency Response: Bestar offers 24/7 support to handle emergencies, such as burst pipes or power outages, providing a quick and professional response that volunteer council members might not be able to.
Professional Network: Bestar has an extensive network of trusted contractors, legal experts, and service providers, which allows us to secure reliable services and competitive pricing for the MC.
In essence, Bestar takes on the administrative and operational burdens of strata management, allowing the volunteer council members to focus on making strategic decisions for the benefit of all property owners. This professional support is often essential for the efficient and effective management of a strata-titled property, especially in larger or more complex developments.
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