What is a Strata Property and How Does it Work?

Strata Property
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In the realm of real estate, a large variety of property ownership exists. One among them is strata property. It is also called a strata lot or condominium. This property type permits individuals to own a specific portion of a developed area and share common areas and facilities with other owners. This type of ownership is most commonly associated with apartment buildings, townhouses, and gated communities.

Read on to know more about what a strata-title property entails and how it operates, its pros and cons, and your responsibilities when buying into a strata-title property.

Functioning of Strata Title Ownership Work

Strata scheme creation: A strata title property is designed as strata subdivisions wherein the property owner divides the land and the building into individual lots. Each lot or unit is allotted a unique number for easy identification and is registered with the relevant land titles office. The common areas and facilities, such as hallways, gardens, parking spaces, and amenities, are designated as “common property.”

Strata corporation and owner’s corporation: After the strata subdivision takes place, a legal

entity called the strata corporation or owners corporation is formed. This entity comprises all individual unit owners within the area. It is responsible for managing and maintaining the common spaces and ensuring compliance with the relevant laws and regulations.

Ownership and responsibility: As a strata title property owner, you own exclusive rights and control over your space. This unit includes the interior space of your unit, such as walls, floors, and fixtures. However, you also own common areas and facilities with other strata title owners. The shared responsibility of the common areas includes maintenance, repairs, and insurance through regular levies or fees generally paid quarterly.

Rules and regulations: For a peaceful and comfortable living environment, strata title properties enforce by-laws and regulations governing their owners’ and residents’ behaviour and obligations. These by-laws cover pet ownership, noise restrictions, use of shared facilities, and any specific sanctions imposed by the strata corporation. Owners and residents must familiarise themselves with these to avoid future costly mistakes, violations or disputes.

Strata meetings and committees: Strata title owners participate in general or annual general meetings as it provides a platform to address any grievances the owners face. Decisions regarding the management and maintenance of the development are made. Owners discuss and vote on matters that affect the strata scheme. Often an executive committee is elected to handle day-to-day administrative tasks and ensure compliance with the decisions made at the meetings.

Benefits of Strata Title Ownership

Affordable property ownership: Typically, units, apartments and townhouses are cheaper, on average, than buying a house. Thus, it’s a more affordable way to enter the property market.

Cost-effective expenses: This ownership type allows sharing of the expenses of maintaining and managing the common property. Thus, this shared cost can benefit in minimising the burden of preserving individual properties.

Amenities and facilities: Strata title property may offer additional amenities and facilities that improve an individual’s overall quality and well-being. These include a swimming pool, gym, park and community spaces. Additionally, it enhances the value of the property.

Maintenance and repair: The responsibility of common property maintenance and repair lies on every strata owner. This shared responsibility ensures prompt attention and response and minimises individual costs and efforts associated with property maintenance.

Community living: Strata property offers an opportunity to interact and socialise with neighbours holding similar interests and lifestyles. This eventually builds a strong sense of community and mutually-beneficial living.

Security: The property with locked front access or gated complexes may offer improved protection than a stand-alone property.

Challenges of Strata Title Ownership

Strata levies and fees: Strata owners are obligated to regularly contribute levies or fees to cover the cost of maintaining the common spaces and facilities. Budgeting for these expenses and understanding any potential increases in levies over time is crucial.

By-law compliance: Owners are forced to adhere to the by-laws and rules set by the strata corporation, irrespective of their liking. Failure to comply with them may result in penalties or legal action.

Decision-making: As a strata title owner, you can voice your opinion through general meetings. However, it can be a lengthy process with a possibility that it might be voted down. Sometimes you may need to compromise, as their decisions won’t always align with your preferences.

Value of the property: The value of your property will be linked to the value of the others in the complex, so there may be a limit to your ability to boost your property’s value through renovation.

Considerations Before Buying a Property

  • What are the body corporate or owner’s corporation fees?
  • Are there any significant repairs to the building or shared spaces planned soon?
  • What rules and regulations apply to the communal areas?
  • Are there any limitations on the kinds of improvements or purely aesthetic changes you can make to your home?
  • Can you keep a pet at home?
  • Are there any limitations on where you and/or your visitors may park their car, hang their laundry, or smoke?
  • Conclusion

    With the advantages of individual ownership and shared amenities and facilities, strata title ownership offers a distinctive style of property ownership. For residents and potential buyers to make educated judgments and guarantee a peaceful living environment, it is essential to comprehend how a strata title property operates. The benefits of community living can be experienced while actively contributing to the management and upkeep of one’s property by becoming familiar with the rights, responsibilities, and by-laws related to strata title ownership.

    Our Body Corp is a cloud-based strata management tool designed to help owners self-manage their body corporations online and save money! Save up to 70% on your strata management fees and still get the professional support you need.

    Looking for a Body Corporate Management Quote for your Strata Scheme property? Please complete the contact form or contact us today at 1300848343; we’ll get back to you shortly!

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