Strata Titles Explained: Key Facts for Apartment and Townhouse Buyers

Strata titles are a cornerstone of property ownership in Australia, particularly in urban areas with apartments and townhouses. Understanding what a strata title entails is crucial for any prospective buyer.

What is a Strata Title?

A strata title is a form of property ownership where individuals own their unit or apartment (lot) and share ownership of common areas with other lot owners within a complex.

Key Components of a Strata Title:

1. Individual Ownership:

   • Your Lot:

     This includes the inner space of your unit - typically everything within the walls, floor, and ceiling.

   • What You Own:

     Fixtures, fittings, and any internal walls that are not load-bearing.

2. Common Property:

   • Shared Areas:

     Includes external walls, roofs, foyers, gardens, pools, and other communal facilities.

   • Management:

     The owners corporation collectively manages and maintains these areas.

3. Owners Corporation (Body Corporate):

   • Role:

     An entity comprising all lot owners responsible for managing the common property and enforcing by-laws.

   • Responsibilities:

     Maintenance, insurance, financial management, and upholding community rules.

Understanding Your Rights and Responsibilities:

• Participation:

  As a lot owner, you have the right to participate in meetings and decisions affecting the property.

• Levies:

  You'll be required to pay regular fees for the upkeep of common areas and administrative costs.

• Compliance:

  Adhering to by-laws is mandatory, ensuring harmonious living within the community.

Why It Matters for Buyers:

• Legal Ownership:

  Clarifies what you own exclusively and what is shared, affecting your rights to modify or use certain areas.

• Financial Obligations:

  Awareness of levies and potential special levies impacts your budgeting.

• Community Living:

  Understanding the dynamics of shared ownership helps set expectations for strata living.

Q&A

Can I make alterations to my unit's exterior?

Generally, external alterations affecting common property require approval from the owners corporation. This includes changing windows, doors, or installing external fixtures.

What happens if I don't pay my strata levies?

Failure to pay levies can result in penalties, interest charges, and legal action by the owners corporation to recover the owed amounts.

How are decisions made within the owners corporation?

Decisions are typically made through votes at general meetings. Each lot owner has a vote, and motions are passed based on the strata scheme's rules.

Tips for Buyers:

• Review the Strata Plan:

  Clearly identify the boundaries of your lot and common property.

• Understand the By-Laws:

  These rules can significantly impact your use of the property.

• Attend Meetings:

  Stay engaged with the owners corporation to have a say in important decisions.