- The meaning of strata
- Strata terminology in each state
- What is a strata scheme?
- What do you own in a strata title?
- Buying a lot in a strata scheme
- How do strata title properties work?
- Owners corporation
- Building rules and by-laws
- Governance and compliance
- What do you need to know about insurance?
- Paying levies
The meaning of strata
Strata or strata title is a form of property ownership used across Australia. This type of property ownership allows individuals to own certain parts of a property or parcel of land while sharing ownership of common spaces with others.
A strata scheme includes all the individual lots together with the shared common property.
Owners buy individual strata lots within the strata scheme.
Strata terminology in each state
Strata title does not work the same across Australia. While the concepts are similar, the
legislation is not, and it is vital to use resources tailored to your specific state or territory.
This page has a list of the primary strata legislation for each state and territory in Australia – Australian Strata Legislation by State/Territory.
The table below helps you understand the different terminology used across Australia. If the
information in the article below refers to an owners corporation, we are also talking about the
body corporate or the strata company.
| 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 is a strata scheme?
The strata scheme comprises all strata lots and common areas, with rules, bylaws, and regulations compiled into a strata plan.
A strata plan represents a strata scheme. The plan represents the lots and the common property of the strata scheme. It also distinguishes between the lot property (the owner’s responsibility) and the common property.
What do you own in a strata title?
What is, and is not, included in your lot can differ from property to property. The strata plan and scheme bylaws help define what is your lot and what is common property. Buying into a strata scheme means owning the individual lot while also taking on responsibility for the shared areas, or common property.
Buying into a strata scheme
It’s a good idea to do your homework before purchasing a strata title property to ensure you’re not buying into a building with defects, upcoming special levies or unnecessarily restrictive by-laws.
The easiest way to check is through a qualified strata searcher. A good inspection report will
give you all the background information and highlight any red flags or areas of concern.
To find a qualified strata searcher in your state, search in The LookUpStrata Directory.
How do strata title properties work?
Owning a lot within a strata title property is very different from owning a free-standing house or building.
Owners corporation
When you purchase in a strata scheme, you become a member of the owners corporation. The owners corporation is responsible for managing and maintaining the building’s infrastructure and common areas. Owners corporation members share the legal and financial responsibility for the upkeep of these common areas through strata levies.
Building rules and by-laws
Every scheme has its own set of rules, called bylaws, that owners and tenants must follow. Residents share walls and common spaces, so these rules manage daily activities, such as parking, pets, renovations and noise.
In addition to the scheme by-laws, each state has strata legislation that covers committee governance, processes for levy increases, building maintenance, common property use, and the enforcement of bylaws.
Governance and compliance
The owners corporation consists of all lot owners, who elect a strata committee to manage the scheme’s daily operations. The committee handles routine decisions while all owners vote on major issues at general meetings. Most schemes engage a professional strata manager to oversee complex administrative and legal tasks.
What do you need to know about insurance?
Schemes are required to insure themselves against unforeseen events. Building insurance provides cover in the event of loss or damage to the scheme’s buildings, including the structures and fittings within each lot and all common property.
Schemes also require public liability insurance, workers compensation insurance and cover for voluntary workers. Requirements may vary from state to state, so it’s a good idea to check what the requirements are in your state or territory.
Paying levies
Lot owners must pay quarterly levies for the administration and maintenance of the common areas. The owners corporation may sometimes need to raise special levies to cover significant unexpected expenses when funds are not available.
If a special levy is approved, you are required to pay. The scheme can also borrow money through strata finance or a strata loan.