Strata is a form of property ownership where you own your own lot outright, but share ownership of the common areas with everyone else in the building. If you own an apartment, unit, townhouse or villa, chances are you own it under strata title.
It's different from owning a standalone house. There, you own the land and everything on it. Under strata, you own the inside of your lot, and you share ownership of everything else, the driveway, the gardens, the lifts, the lobby, with the other owners in the scheme.
Strata title started in New South Wales in 1961. It's now the standard way apartments and multi-unit buildings are owned right across Australia.
If you've just bought into a strata scheme, or you're thinking about it, this guide covers what you actually need to know.
Strata terminology in each state
Strata is called different things in different parts of Australia. The concepts are the same everywhere, but the names change depending on where you are. This guide uses the national terms, so check the table below for what strata terminology is called where you live.
| State | Entity name | The committee | The funds (savings) |
|---|---|---|---|
| NSW | Owners Corporation | Strata Committee | Capital Works Fund |
| QLD | Body Corporate | The Committee | Sinking Fund |
| VIC | Owners Corporation | The Committee | Maintenance Fund |
| WA | Strata Company | Council of Owners | Reserve Fund |
| SA | Strata Corporation | Management Committee | Sinking Fund |
| TAS | Body Corporate | Committee of Management | Maintenance Fund |
| ACT | Owners Corporation | Executive Committee | Sinking Fund |
| NT | Body Corporate | Management Committee | Sinking Fund |
What do I own?
You own the inside of your lot. That generally means the walls, floors, ceilings, and any fixtures and fittings inside your unit. Depending on your building, it might also include your balcony, garage or storage cage, though this varies from scheme to scheme.
What you don't own is the land itself, or anything outside your lot. The driveway, the gardens, the lifts, the lobby and the hallways are all common property, owned collectively by every lot owner in the scheme. The owners corporation is responsible for maintaining these shared areas, using money collected through everyone's levies.
The exact boundary of your lot, down to the wall, isn't something you can assume. It's set out in your strata plan, which we cover below.
Who looks after common property?
Every lot owner in the scheme is automatically part of the owners corporation the moment they buy in. There's no joining process, no application. If you own a lot, you're a member.
The owners corporation is collectively responsible for the building. That means managing and maintaining common property, arranging building insurance, enforcing the scheme's by-laws, and handling the scheme's finances, including collecting levies from all owners.
In practice, the owners corporation doesn't do this work directly. Owners elect a committee to handle the day-to-day, and many schemes also engage a strata manager to help with administration, compliance, and the financial side. We cover both of those roles next.
Who runs the building day to day?
The owners corporation as a whole makes the big decisions, but it doesn't manage the building directly. Owners elect a committee from among themselves to handle routine matters between general meetings, things like approving minor works, following up on maintenance, and keeping things ticking over.
Major decisions still go to a vote of all owners at general meetings. Things like large capital works, by-law changes, or anything with a significant cost usually need the whole scheme's sign-off, not just the committee's.
Many schemes also engage a strata manager. This is a paid professional who handles the administration, financial management and compliance side, things like issuing levy notices, keeping records, organising insurance renewals and helping the committee run meetings properly. A strata manager works for the owners corporation, not for individual owners, which matters if you're ever trying to get something actioned on your behalf.
What's a strata plan, and why do you need to worry about it before you buy?
A strata plan is the document that legally defines your scheme, lot boundaries, what's common property, unit entitlement, all of it. Get a copy before you sign anything.
Unit entitlements are important because they decide your share of the levies and your vote at general meetings. Two lots can look the same, but carry different entitlements. Don't assume your lot's entitlements match your neighbour's. It's best to check.
If you're buying into a strata scheme, get hold of the strata plan and read it before you sign anything. It's the only way to know exactly what you're buying and what you're responsible for.
It's also worth ordering a strata inspection report. This covers the things a strata plan won't tell you, like the scheme's financial health, its levy history, whether a special levy is likely, any building defects on record, and outstanding maintenance issues. A qualified strata searcher can run this for you.
You should also read the by-laws before buying, since they can affect how you're allowed to use your own lot. We cover by-laws next.
What are by-laws, and what happens if I break one?
By-laws are the scheme's rules, on top of the state strata legislation, that govern how you can use your lot and the common property. They can cover things like pets, renovations, noise, parking and short term rentals, and they often restrict things a new owner assumes are fine. Read them before you buy.
They're not optional guidelines. By-laws are enforceable, and the owners corporation has the power to act if a by-law is breached.
If you break a by-law, the usual first step is a written notice from the owners corporation or strata manager, asking you to fix the issue. Most matters get resolved at this stage. If it's not resolved, the owners corporation can apply for orders through the relevant state tribunal or dispute body, which can result in fines or an order requiring you to comply.
What are levies, and what happens if I don't pay?
Levies, usually billed quarterly, are the regular payments every lot owner makes to fund the scheme's running costs. They cover things like building insurance, common property maintenance, administration and contributions to the scheme's funds. A scheme with a healthy long-term fund is in a stronger position than one that's been underfunding it for years.
Sometimes the regular levy isn't enough to cover an unexpected or large cost, a major repair, an insurance shortfall, or storm damage. In that case, the owners corporation can raise a special levy, an extra one-off payment on top of the usual amount. If it's approved, every owner has to pay their share.
If you don't pay a levy, interest usually starts accruing on the overdue amount. If it stays unpaid, the owners corporation can take debt recovery action against you, which can escalate to legal proceedings and, in some cases, a charge over your lot. Unpaid levies don't go away. They follow the lot, so if you're buying into a scheme, checking for outstanding levies is one of the things covered in the strata inspection report we mentioned earlier.
What about strata insurance?
Every strata scheme is required to hold building insurance, arranged and paid for by the owners corporation through the levies. This generally covers the building structure, common property and, in most cases, fixtures inside your lot like built-in kitchens and bathrooms. Contents inside your unit, including furniture and personal belongings, are your own responsibility to insure separately.
Depending on the scheme, other cover may also be in place, like public liability for anyone injured on common property.
Disputes can arise over what the building policy covers, particularly where damage crosses the line between your lot and common property. If you disagree with how a claim's being handled, raise it with the committee or strata manager.
What if there's a dispute?
Disagreements come up in strata over things like a by-law, a levy, a repair, or a decision the committee's made. Most get sorted without becoming a formal dispute.
If you find yourself in this sitaution, put your concern in writing to the committee or strata manager. Be specific about what you want to happen, and give them a reasonable chance to respond. A lot of disputes are just a breakdown in communication, and a direct, calm conversation resolves more than people expect.
If that doesn't work, most states offer some form of mediation before anything goes to a tribunal. It's usually faster and cheaper, and it keeps you on reasonable terms with the people you living close to.
If mediation doesn't resolve the issue, the matter can go to the relevant state tribunal. Each state has its own body and process, so check your state's strata hub page for specific details.
Where to next?
This guide covers the basics of how strata works. If you want to go deeper on any of these topics, such as strata managers, levies, disputes, we've got lots of information on each.
For details specific to your state or territory, like the applicable legislation, forms, and dispute bodies, find your state's information here.
If you've got a specific question, search our Q&As for real answers from the strata community.
