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Part strata and mixed use developments can involve more than one ownership structure operating within the same wider building or precinct. Shared facilities, access ways, services and operating costs can cross the boundaries between different parts of the development. A strata management statement is one of the documents used to establish how the relevant arrangements are managed.

The exact legal framework depends on the structure of the development and the documents registered for it. The NSW Government provides specific guidance on management statements for community associations and explains the role these documents play in setting out rules for managing shared property and responsibilities. Professional advice should be obtained where a development has several interacting plans or legal structures.

When a Strata Management Statement Is Required

A management statement is relevant where the ownership and management framework requires shared arrangements to be documented between different parts of a development. These arrangements become particularly important when a single site contains multiple strata or other land arrangements and the parties need a consistent system for shared property and building operations.

The NSW Government's information on community and neighbourhood schemes explains how shared property arrangements can operate within community title structures. Developers and committees should identify the correct statutory framework early because a document that is appropriate for one structure may not perform the same function in another.

What the Statement Must Cover

The purpose of a management statement is to make shared building responsibilities clear enough to operate in practice. Depending on the development, the statement may deal with governance, access, maintenance, shared facilities, costs, insurance and the way disputes are handled. The document should be read together with the registered plans and other governing documents rather than treated as a standalone set of rules.

For a new development, the value of early review is practical. A clear framework can reduce future arguments about who manages a shared loading area, lift, plant room, driveway or other facility. It can also provide a reference point when committees and owners need to make decisions about recurring costs or changes to building operations.

Building Management Committee and Office Holders

Where a development operates through a building management committee or another shared governance body, the management framework should establish who can act, how decisions are made and what responsibilities sit with each party. The objective is to ensure that shared operational decisions do not depend on informal arrangements between individual owners.

The NSW Registrar General's Building Management Statements fact sheet describes how building management statements can set out committee functions, office bearer responsibilities and methods for resolving disputes. Although the statutory context of that historical document should be considered carefully, it remains a useful illustration of why shared governance needs to be documented rather than left to custom.

Shared Facilities, Access and Cost Allocation

Shared facilities often create the most practical complexity in a part strata development. A facility may serve different lots or ownership groups while requiring one maintenance programme. The management framework needs to explain how access is managed, how work is authorised and how the costs are allocated between the parties who benefit from the facility.

The more complex the site, the more important it is to define these arrangements before disputes arise. Where responsibility depends on a formula, usage percentage or another allocation method, the records should be clear enough for committees and owners to understand how a charge has been calculated.

Strata Management Statement vs Building Management Statement vs By-Laws

These terms are sometimes used interchangeably even though they can refer to different documents and legal structures. By-laws generally regulate the use and conduct of a strata scheme. A management statement is concerned with the management framework for the relevant scheme or association. A building management statement has historically been used in certain multi-owner building arrangements to address shared building management.

The distinction matters because the document determines who is bound by it, how it is changed and what legal process applies. The best approach is to identify the registered document by its title and statutory basis instead of relying only on the name used informally by a developer, committee or managing agent. Strata One's Strata Schemes Management Act 2015 guide provides broader context on NSW strata governance and dispute processes.

Registration, Amendments and Special Resolutions

A management framework is only useful when it matches the registered records and the legal structure of the development. Changes to the statement may therefore require a formal resolution, registration step or other process depending on the governing legislation. The exact requirements should be confirmed before a committee adopts a change that is intended to bind other parties.

The NSW Government's guidance explains that management statements are registered and form part of the rules that apply to the relevant scheme. Because amendment pathways can depend on the document and scheme structure, owners should obtain advice before changing cost allocation, access arrangements, management responsibilities or other core provisions.

Resolving Disputes Under the Statement

Disputes in mixed-use developments often arise because different parties see the same facility from different perspectives. One group may view a repair as essential building work while another may see it as an optional upgrade. A well-structured management statement should help identify the process for dealing with disagreement before it becomes a prolonged operational issue.

The relevant pathway may include internal discussion, committee consideration, mediation or another statutory process depending on the dispute and governing documents. Strata One's strata mediation service provides a structured approach to resolving conflict, while the NSW Government strata disputes guidance outlines general dispute resolution principles for strata communities.

Due Diligence Checklist for Developers and Committees

A management statement should be reviewed as part of broader project due diligence rather than only when a disagreement occurs. Developers can reduce future operational uncertainty by checking the document against the final development layout, shared services and the responsibilities that owners will inherit after handover.

• Confirm the legal structure of each part of the development.

• Identify every shared facility and access arrangement.

• Check who is responsible for maintenance and replacement.

• Confirm how shared costs are calculated and approved.

• Review insurance responsibilities and records.

• Confirm committee membership, decision rights and meeting processes.

• Check the dispute resolution pathway.

• Confirm the registration status and current version of the statement.

• Keep supporting plans, agreements and handover documents together.

• Have the final management framework reviewed before registration or amendment.

How Strata One Can Support Developers and Committees

Mixed-use and part strata projects benefit from early attention to how the building will actually operate after completion. Strata One assists developers with establishing strata developments, including by-law recommendations, compliance requirements, insurance and first meeting preparation. Developer Strata Services explains the broader support available from pre-setup planning through to ongoing management.

For owners and committees already operating a complex building, Strata Consulting can provide guidance on building upgrades, by-laws and mediation. Where the development involves community land arrangements, Strata One's guide to the Community Land Management Act 2021 can also help explain the relationship between shared property management and the wider statutory framework.

Ready to Review Your Building Management Framework?

A clear management statement gives a complex building a stronger foundation for shared decisions, cost allocation and day-to-day operations. If you are preparing a new development, reviewing an existing arrangement or considering an amendment, contact Strata One to discuss the structure and the management support your project requires.

Early review can identify unclear responsibilities before they turn into recurring disputes. It can also give developers, committees and owners a more reliable reference point when the building needs to manage shared facilities over the long term.