A Guide to Strata-Titled Property

A strata scheme (also known as strata title) is a form of property ownership in which you own your individual ‘lot’ (such as an apartment or townhouse) while sharing ownership of the ‘common property’ with other lot owners. Owning a lot in a strata title has a myriad of benefits but can also lead to disputes. It is my goal in this article to give you an overview of all the boundary and responsibility laws within strata properties, and what you can do if disputes arise.

Your Lot in a Strata Title

Your lot refers to the area that you own individually within the strata scheme. What’s included in your lot is defined in the strata plan registered with the land titles office. Typically, this includes the airspace within your apartment, and may include the internal surface of walls, floors and ceilings, along with internal fixtures and fittings. Many strata properties also come with subsidiary lots such as a parking space, a storage cage and/or a balcony. It is important to note, however, that you do not have total autonomy over what to do with your lot. As an owner in a strata scheme, you’ll need approval from the owners corporation before making renovations or significant changes to your lot. The specific rules about what you can and cannot do are set out in the strata scheme’s by-laws. It’s important to review these by-laws and understand the approval process before purchasing or making any changes.

Common Property

The opposite of a lot, common property refers to all of the shared areas within a strata title. They include areas such as:

• Building areas: hallways, driveways, stairs, lifts, roofs, etc.
• Communal areas: kitchens, gardens, pools, etc.
• Infrastructure that serves more than one lot: plumbing, electricity, gas, etc.

This common property is managed collectively by all lot owners through the owners corporation (also called a body corporate). The owners corporation is responsible for maintaining and repairing common property, and this is typically funded through the levies paid by all owners. The owners corporation operates according to the strata scheme’s by-laws and relevant state legislation. Typically, the owners corporation engages professional contractors or building managers to handle maintenance tasks like pool cleaning, with costs covered by the levies paid by all owners.

Easements

Easements are a commonly overlooked factor that can blur the line between individual and shared property. An easement is a legal right for one party to use another person’s land for a specific, limited purpose. Some examples include utility easements for power lines or pipes, a right-of-way easement to access a blocked property, a cross-easement for shared walls and more. Easements must be registered on the property title and will be shown on the strata plan. The rights and responsibilities of each party regarding the easement should be clearly documented in the easement terms registered with the land titles office.

Shared Responsibility

Because common areas in strata properties are owned by an owners corporation, there is a shared responsibility for the management, maintenance and repair of this common property. Every person who owns a lot within a strata property is required to pay levies. These are periodic payments that cover insurance, maintenance and running expenses. Strata schemes also include by-laws (sometimes called “rules” in casual conversation), which are legally binding regulations that govern what owners, tenants and occupiers can and cannot do. They cover aspects such as noise levels, pets and appropriate uses of common areas.

When Disputes Arise

It is not uncommon for disputes to arise in strata schemes, whether between lot owners, between owners and tenants, or between owners and the owners corporation. Common disputes include disagreements over levies and finances, maintenance responsibilities, noise complaints, unauthorized renovations, and breaches of by-laws. Many disputes can be resolved through internal processes within the owners corporation, or through mediation. In Australia, most states have specialist tribunals (such as NCAT in NSW or VCAT in Victoria) that handle strata disputes efficiently and affordably. For more serious matters, parties may need to pursue claims through these tribunals or, in some cases, through the courts.

If you are a tenant or landlord with any questions about your strata property, please do not hesitate to contact me. I am here to help.

DISCLAIMER: This article is for informational purposes only and does not constitute legal advice.