Frequently Asked Questions

1) What are Unit Entitlements and what are they used for?

2) What is a sinking fund forecast report?

3) What are levies and how do I pay them?

4) What Insurance does Regency Hyde Park have?

Answers:

What are Unit Entitlements and what are they used for?

Every strata plan contains a list of the lots in the strata scheme and a corresponding allocation of a 'unit entitlement'.  The unit entitlement is a whole number and the total of the unit entitlements on the plan is called the 'aggregate unit entitlement'.  The unit entitlement is used to determine the lot owner's:

• Share in the common property;
• Voting rights when the voting is conducted by means of a poll;
• Right to share in distributions of surplus monies in the owners' corporation's; administrative or sinking fund;
• Right to share in compensation monies paid by any public authority resuming the whole or part of the common property;
• Proportion of maintenance levies; and
• Obligation to contribute to repair and maintenance of common property.

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What is a sinking fund forecast report?

A sinking fund forecast report is designed to provide an independent analysis of the budget requirements of the owners’ corporation.  A sinking fund forecast report:

Identifies and evaluates the common property items that are likely to require maintenance work and/or replacement.  These items are identified by site inspections or referring to specifications and maintenance contracts.

• Estimates the life expectancies of common property items and the year in which maintenance is likely to be needed.
  
• Estimates the cost of maintenance and factors this into the budget to enable enough funds to be available when needed.
  
• Calculates the sinking fund levy contributions necessary to meet all identified costs after taking into account factors such as accumulated interest, income tax and GST.
  
• Most maintenance expenses accrue over time. Using a sinking fund forecast report to set the sinking fund levies ensures each owner pays a fair share of the costs attributed to their usage of the building and reduces the risk of special levies being required.

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What are levies and how do I pay them?

The law requires that Strata Schemes all maintain some form of funding to provide for the cost of painting, renewal or replacement of items of a capital nature, insurances and general administration.  The owners’ corporation determines the amount of regular contributions to be levied on owners at the Annual General Meeting.  These funds belong to the owners’ corporation and the managing agent keeps it in a trust account for the owners.  The amount to be paid by each owner is known as a 'levy'.

If you do have any questions regarding your levies please direct these to your Strata Manager.

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What Insurance does Regency Hyde Park have?

Regency Hyde Park's current insurance broker is SUU (Strata Unit Underwriters).  SUU arranges cover for the Property Insurance (building, common contents etc), Public  Liability, Office Bearers Liability, Voluntary Works and Fidelity Guarantee.  For further information on Regency Hyde Park's insurance, please contact SUU on 1300 668 066.

Under the new financial services legislation, we are unable to provide any advice as to what insurance individual owners should take out on their property.  Owners should contact their financial advisers or insurance broker/agent to get recommendations on which types of insurance cover is in their best interest.

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