Understanding what a Strata Title means
Are you wondering what a Strata Title is or what responsibilities it involves? Read this guide to find out what you need to know. Strata Titles are a popular and convenient way to own or invest in property, and they began here in New South Wales.
What is a Strata Title?
Strata Titles can involve a lot of terminology, but they’re really quite straightforward. A Strata Title gives you individual ownership of part of a larger Strata Property (called a Lot), such as an individual apartment or townhouse. Along with other Strata Owners, you’ll also have shared ownership of communal spaces in the Strata Scheme (Common Property), such as driveways, gardens, lifts and other facilities.
Strata Titles were first introduced by the NSW Conveyancing (Strata Titles) Act in 1961 to make it easier for individuals to purchase residential units, compared to existing arrangements such as a Company Title, which could be difficult to obtain finance for. Today, Strata Titles are used worldwide, with more than 270,000 Strata Schemes in Australia alone. More than half of residential property transactions in Sydney are Strata Titles.
Types of Strata Property
Most Strata Plans are residential schemes, such as apartment blocks or retirement villages, but this type of ownership is also widely used for commercial, retail and mixed-use developments. Strata Titles are also sometimes used by holiday resorts and caravan parks and even some vineyards.
Rights and responsibilities of Strata Owners
A Strata Title gives you the right to live peacefully in your property or to sell or lease it.
Lot Owners and other residents are required to follow the established by-laws of the Strata Scheme set by the Owners Corporation. Other responsibilities include maintaining your private Lot, taking out contents insurance, paying levies on schedule and attending general meetings or nominating someone to go in your place.
As an Owner, you are automatically a member of the Owners Corporation. You are jointly responsible for the upkeep of Common Property and can vote on decisions affecting the Strata Scheme as a whole.
How a Strata Manager can help
If you don’t have the time or don’t want to manage the day-to-day responsibilities of Strata ownership yourself, you can appoint a Strata Manager to take care of it on your behalf. Strata and Community Title Managers can help in many areas including:
- Accounting and financial management
- By-law management
- Dispute resolution
- Maintenance and repairs
- Record management
Talk to local Strata Management companies to find out if they have specialists in all the areas you need.
Strata and Community Title Management NSW
Lake Group Strata has helped owners and developers to manage the complex day to day issues of Strata Management for more than 25 years. We have experts in all key areas of Strata Management.
To find out more about our services across Lake Macquarie, Newcastle, Hunter Region and Myall Lakes, call our Charlestown office on 02 4942 3305 or our Maitland office on 02 4933 6466.