What Books and Records Does an Owners Corporation Need to Keep?

Introduction

Accurate and comprehensive record keeping is a core responsibility for every owners corporation in a strata scheme. Maintaining the right strata documents is not only a legal obligation under the Strata Schemes Management Act 2015 (NSW), but also essential for ensuring transparency, accountability, and effective management of the scheme.

By keeping detailed strata records, owners corporations help prevent strata disputes, support smooth property transactions, and build trust among owners and prospective buyers. This guide outlines the key books and records that must be maintained, highlighting why diligent record keeping is fundamental to the successful operation of any strata scheme.

Interactive Audit: Is Your Strata Compliant?

Understanding Your Core Record-Keeping Obligations Under Strata Law

The Legal Framework for Strata Records

In New South Wales, an owners corporation is legally required to keep detailed and accurate records. This duty is not just a matter of good practice but is a mandatory obligation established under the Strata Schemes Management Act 2015 (NSW), which sets out extensive requirements for what must be documented and retained.

The legal basis for financial documentation is detailed in Section 96 of the Strata Schemes Management Act 2015 (NSW). This section mandates that every owners corporation must maintain thorough accounting records and keep separate accounts for the administrative fund, the capital works fund, and any other fund the strata scheme may operate.

Key Records Your Owners Corporation Must Keep

Beyond general financial documents, Section 180 of the Strata Schemes Management Act 2015 (NSW) specifies a comprehensive list of other records that must be kept for at least seven years. This ensures that a clear and transparent history of the strata scheme’s operations is always available.

Key records that must be retained include:

• Minutes of all strata committee and general meetings
• All correspondence sent and received by the owners corporation
• Notices of meetings for both the owners corporation and its strata committee
• Financial statements and accounting records
• Voting papers related to motions and elections
• Proxies delivered to the owners corporation
• Signed copies of any strata managing agent or building manager agreements
• Any orders from courts or tribunals that affect the strata scheme

Maintaining an Accurate Strata Roll

What is a Strata Roll & Why is it Important?

A strata roll is the official register of all owners within a strata scheme and serves as a foundational document for administration and communication. The owners corporation is legally required to prepare and maintain this strata roll for the entire duration of the scheme’s existence.

Keeping the strata roll accurate is crucial for ensuring that official notices, such as levy information and meeting agendas, are correctly served to the right people.

The responsibility for maintaining and updating the strata roll typically falls to the secretary of the owners corporation, although this task may be delegated to a strata manager. It is essential to update the roll whenever a property is sold or a new tenant moves in, as new owners and landlords must provide their details to the owners corporation.

Key Information Required in the Strata Roll

The strata roll must contain specific and detailed information to ensure it is a complete and functional record for the strata scheme. This information provides a comprehensive overview of the ownership, management, and regulatory framework of the property.

The essential details that must be included are:

• The strata plan number and the building’s address.
• The name, address, and contact details for every lot owner.
• The name and contact details of any agent acting on behalf of an owner.
• The name and contact information for any tenants, along with the start date of their tenancy.
• The name and an Australian address for the original owner of the building.
• The details of the appointed strata managing agent, if one is used.
• The total unit entitlements for the entire scheme and the specific entitlement for each lot.
• Comprehensive details of the strata scheme’s insurance policies.
• A complete and current copy of the by-laws for the strata scheme.

Essential Financial Records for Your Strata Scheme

General Accounting Records & Statements

Under the Strata Schemes Management Act 2015 (NSW), an owners corporation has a legal duty to maintain detailed accounting records. These documents are essential for tracking the financial health of the strata scheme and ensuring transparency for all lot owners.

Proper bookkeeping helps manage the scheme’s funds effectively and provides a clear history of all financial activities.

The owners corporation must keep several key financial documents, including:

• Receipts and Invoices: All receipts must be consecutively numbered and issued upon request for any payments made to the owners corporation.
• Bank Statements: Statements of deposits and withdrawals for all accounts must be retained to reconcile financial records.
• Cash Records: A cash book is required to log all cash payments and receipts, detailing what each transaction was for.
• Financial Statements: Full financial statements must be prepared annually for the administrative fund, the capital works fund, and any other funds the strata scheme operates.
• Separate Ledgers: Distinct accounting records must be maintained for each fund to prevent the co-mingling of money designated for different purposes.

These financial records provide a comprehensive overview of the strata scheme’s income and expenditure. They must be kept for a minimum of seven years to ensure compliance and to be available for inspection by authorised parties.

The Levy Register

Beyond general accounting, the owners corporation must maintain a specific document known as a levy register, which is a critical tool for managing the strata levy recovery process. This register is a critical tool for tracking the contributions paid by each lot owner, ensuring that all levies are accounted for accurately and fairly.

It also provides an at-a-glance summary of each lot’s financial standing within the strata scheme, which is crucial for managing strata debt recovery.

For every lot in the strata plan, the levy register must record the following details:

• Date Due: The date each contribution was due.
• Contribution Type: The type of contribution and the period it applies to.
• Total Amount: The total amount of the contribution payable.
• Payments Made: The amount and date of every payment made.
• Payment Method: The method used for each payment, such as cash or bank transfer.
• Payment Status: Whether a payment was made in full or in part.
• Early-Payment Discount: Any discounts that were given for early payment.
• Outstanding Balance: The final outstanding balance on the lot’s account.

Key Non-Financial Strata Documents & Communications

Meeting Minutes Notices & Voting Records

An owners corporation must keep detailed minutes for all general meetings and strata committee meetings, as these documents serve as the official history of the scheme’s decisions.

The records for each meeting should include a copy of the agenda, the authenticated minutes, details of any motions discussed, and the results of any votes taken.

In addition to minutes, all notices issued for owners corporation and strata committee meetings must be retained.

It is also a requirement to keep voting papers, particularly those related to:

• Motions for resolutions
• The election of officers to the strata committee
• The establishment of a strata renewal committee

Most of these records must be kept for a minimum of seven years. However, electronic voting papers from a secret ballot have a shorter retention period and only need to be kept for 13 months.

Correspondence Contracts & Agreements

The owners corporation is required to keep a complete record of all correspondence it sends and receives. This includes a wide range of communications such as letters, emails, and reports concerning the strata scheme’s affairs.

Adopting a broad definition of correspondence is advisable to ensure all relevant communications are retained.

Furthermore, it is essential to keep signed copies of all significant contracts and agreements entered into by the owners corporation. These legally binding documents clarify the obligations and responsibilities of all parties, which helps prevent future disputes.

Key agreements that must be retained include:

• Contracts with strata managing agents
• Agreements with building managers
• Any leases or licences affecting common property
• Records provided by an agent detailing the exercise of their functions

Strata Record Retention & Access Rules

How Long You Must Keep Strata Records

Under the Strata Schemes Management Act 2015 (NSW), an owners corporation must keep most records for a minimum of seven years. This retention period preserves a clear history of decisions and financial activity.

The seven-year rule covers the following documents:

• Strata roll and its historical records
• Financial statements , accounting records, and the levy register
• Notices and minutes of all strata committee and general meetings
• All correspondence sent and received by the owners corporation
• Proxies delivered to the owners corporation
• Voting papers for motions and elections
• Signed agreements with strata managing agents and building managers

A notable exception involves electronic voting papers from a secret ballot, which need be retained for only 13 months.

Who Can Access Strata Records & How

The records must remain open to authorised individuals—current lot owners, mortgagees, or anyone an owner has authorised, such as a buyer doing due diligence.

To arrange an inspection, an authorised person submits a request to the secretary or strata manager. If they cannot agree on a time and place within three days, the owners corporation may set a date within ten days of the request.

A fee is payable to cover the work of producing the records, and the prescribed fees are:

• For an owner: $31 for the first hour and $16 for each additional half-hour
• For other authorised persons: $60 for the first hour and $30 for each additional half-hour

The Consequences of Inadequate Strata Record Keeping

Legal Penalties & Potential Disputes

Failing to maintain proper strata records can attract a direct legal penalty; an owners corporation may be fined five penalty units (about $550) for non-compliance.

However, the more significant fallout often stems from disputes within the strata scheme. When one person’s recollection of a vote or agreement conflicts with another’s, the absence of accurate records allows the disagreement to escalate.

Common problems that arise include:

• Lack of minutes making it hard to prove whether a motion passed or whether a committee member had authority to act.
• Poor record-keeping being cited as evidence of dysfunction when a lot owner seeks the appointment of a compulsory strata manager.

Impact on Property Transactions & Owner Confidence

Inadequate record-keeping can erode property values and buyer confidence. When a lot is for sale, prospective purchasers usually request an inspection of the strata books and records as part of their due diligence.

If those documents are disorganised, incomplete or unavailable, they create a negative impression of scheme management and may discourage buyers. This lack of transparency can make it harder to sell or may push the sale price lower.

Conversely, well-maintained and readily accessible records build trust and facilitate smoother transactions for every lot owner in the strata scheme.

Conclusion

Maintaining accurate and comprehensive strata records is a fundamental legal duty for any owners corporation in NSW, encompassing everything from the strata roll and financial statements to meeting minutes and correspondence. Diligent record-keeping not only ensures compliance with the Strata Schemes Management Act 2015 (NSW) but also fosters transparency, prevents disputes, and builds confidence among owners and potential buyers.

If you are unsure whether your owners corporation is meeting its obligations or need assistance bringing your records up to date, contact the strata lawyers at PBL Law Group for specialised legal advice. Our strata lawyers for owners corporations in Sydney can help you navigate your responsibilities and ensure your strata scheme is set up for success.

Frequently Asked Questions