As the Hunter Region continues to grow, more properties will become part of strata or community groups. Here’s a quick rundown to help you understand the differences.
Strata Title
A Strata Unit is defined by structural divisions of a building. This refers to the inner lining of the walls and bottom of the ceiling. It’s NOT a reference to the land.
The common property is part of this plan and is normally a shared space (driveway, service area & gardens). Strata managers are usually appointed to maintain the common property on behalf of the unit owners and also assists with managing the affairs of the Strata Corporation.
All unit owners are automatically members of the Strata Corporation. Funds are raised by contributions charged against all owners usually on a quarterly, half yearly or annual basis and are calculated based on unit entitlement. Building and Public Liability Insurance must be taken out by the Strata Corporation to cover the buildings and common property of the land.
The owner of the unit is liable for their own contents insurance.
Community Title
Land is divided into Lots (as opposed to units), but common property is held similarly to Strata Titles. The boundaries of a Community Lot however do not necessarily relate to structural boundaries like a Strata Title, but rather the Lot measurements (specified on the plan).
A Community Title Corporation is also appointed, which comprises of the registered owners of the lots, and the corporation is responsible for the administration of the groups By-Laws (rules), maintenance and insurance of the common property. The cost for the insurance over the common property is shared between the registered owners according to their lot entitlement.
Owners are responsible for the maintenance and insurance of any structures on their own lot. No owner is obligated to provide funds for maintenance to other lot owners buildings.
If you have any questions about your situation, contact me via leah@stevensconveyancing.com.au or call 0414 894 031 to discuss.
Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Stevens Conveyancing does not take responsibility for any errors or omissions obtained from the use of this information.