Section 110 Certificates: Practical Guidelines for Strata Managers

Clear, accurate financial disclosure at settlement is critical. A Section 110 Certificate provides a purchaser with key financial information relating to the lot they are acquiring, and once settlement occurs, responsibility for those charges transfers with the title.

Because of this, accuracy, timing, and communication matter far more than many realise.

These guidelines reflect Veritas Strata Solutions’ experience-based approach to preparing Section 110 Certificates in a way that supports smooth settlements, reduces disputes, and protects the integrity of trust accounting.

These are practice guidelines, not legislative standards.

Core Principles

A Section 110 Certificate must accurately reflect the financial position of the lot as at the Date of Certificate.

Your role is to ensure:

• All relevant financial information is disclosed clearly
• Settlement agents are aware of anything that may affect settlement
• Changes occurring after the Certificate is issued are communicated promptly

The aim is not simply to produce a document, but to support an informed and dispute-free settlement process.

Practice Rule 1: Manage Timing and Communication Proactively

When issuing a Section 110 Certificate, always advise the settlement agent of:

• Any upcoming AGMs or EGMs scheduled after the proposed settlement date
• Any AGMs or EGMs occurring before settlement, noting that the Certificate will only be issued once new levies are raised
• Any Special Levies approved at recent meetings
• Any invoices or levies issued between the Date of Certificate and the proposed settlement date

This applies even where the due date falls after settlement. If invoices or levies are raised after the Certificate is issued but before settlement, forward them to the settlement agent immediately.

Proactive communication prevents last-minute disputes where neither party wishes to accept responsibility for charges issued close to settlement.

Practice Rule 2: Require Upfront Payment of the Section 110 Fee

As a practice standard, the Section 110 fee should be paid before the Certificate is issued.

Recommended workflow:

• Issue the tax invoice to the settlement agent with a clear note that payment is required upfront
• If payment remains outstanding close to settlement, confirm whether the request is proceeding
• Publish the Certificate only once payment has been receipted or proof of payment is received for urgent requests

Ensure the fee is always charged:

• In PropertyIQ, the fee is generated automatically when the Certificate is published
• In StrataMaster, add the fee using the Quantity Management Fee function

Practice Rule 3: Do Not Engage with the Incoming Owner Before Settlement

Do not issue invoices, provide information, or process requests for the incoming owner prior to settlement.

If access devices are requested:

• They must be ordered after settlement, or
• The current owner must place the order and be invoiced accordingly

This avoids confusion around ownership and protects the Strata Company from liability.

Optional Timing Guidance

Where possible, issue the Certificate within one month of the proposed settlement date.

This is particularly important for schemes with sub-metering, where upcoming charges may otherwise be omitted.

If a settlement agent requests a Certificate well in advance:

• Schedule invoicing closer to settlement
• Ask to be notified of any settlement date changes

If an early Certificate is insisted upon:

• Make it clear the agent is responsible for confirming changes
• Advise that any amended Certificate will incur a new fee
• Alternatively, offer an updated Owner Ledger at no charge

Preparing the Section 110 Certificate

The Certificate must be complete, accurate, and supported by appropriate documentation.

Documents to Include

Levy Notice

• Itemise all arrears and upcoming charges
• Calculate interest as at the proposed settlement date
• Preview and download only, do not generate a new notice

Owner Ledger / Transaction Summary

• Minimum 12 months prior to the Date of Certificate
• Include all future-dated levies or invoices
• Clearly separate administrative and reserve funds

Certificate of Currency

Optional supporting documents:

• AGM or EGM minutes where Special Levies or unregistered by-laws apply

Key Certificate Components

Date of Certificate
Confirms the date the information is accurate. Charges raised after this date must be communicated separately.

Date Paid To
Shows the levy period covered. Notify the settlement agent if payments are received after issue.

Special Levies
List all instalments, amounts, due dates, and payment status.

Sub-Meter Charges
Include:

• Last reading
• Billing period
• Amount
• Payment status

Sub-meter invoices are not split by the Strata Manager. Apportionment is the responsibility of the settlement agent.

Updating Payment Status and Interest

When determining payment status:

• Replace due dates with “PAID” where applicable
• Retain correct due dates for unpaid amounts

Interest should be calculated as at the proposed settlement date, not the Date of Certificate, to provide a more accurate settlement position.

Always manually review the ledger — merge fields should not be relied upon alone.

System-Specific Guidance

PropertyIQ

• Rename lot to identify settlement activity
• Exclude from debt collection
• Do not publish duplicate Certificates
• Attach supporting documents where appropriate

StrataMaster

• Use Current Owner Account to calculate interest accurately
• Add BPAY details where required
• Ensure Section 110 revenue and quantity charges are recorded on the same day

Practical Tips

• Always confirm the correct lot number, not unit number
• Verify any unallocated credits with the settlement agent
• Do not issue debt collection notices after a Certificate is issued
• Confirm settlement date before preparation
• Follow up settlement agents for new owner details promptly

Conclusion

Section 110 Certificates are more than a formality — they are a critical point of financial disclosure that directly impacts settlement outcomes.

By applying consistent, experience-based practices, strata professionals can reduce disputes, protect trust integrity, and ensure clarity for all parties involved.

Together with Veritas, let’s build clarity, accuracy, and confidence into strata financial operations.