What is strata?

What it means to buy, rent and live in a residential strata scheme.

When you buy a unit, apartment or townhouse, you own your individual dwelling (referred to as a ‘lot’) and share the ownership of what’s called ‘common property’ which includes areas like foyers, lifts, stairwells, corridors, gardens, common BBQ areas and swimming pools.

These areas are the shared responsibility of all lot owners who make up a legal entity referred to as an ‘Owner’s Corporation’ or ‘Body Corporate’.

What is a Strata Title or a Strata Scheme?

‘Strata scheme’ or ‘strata title’ refers to a collection of lots managed by an Owners Corporation or Body Corporate. In a strata scheme, residential apartments and townhouses are the most common, but they also exist in commercial property, serviced apartments, retirement villages and retail.

What is an Owner’s Corporation or a Body Corporate?

An owner’s corporation or body corporate is responsible for maintaining the common property. This is a legal entity and is usually made up of all lot owners, both owner occupiers and investors. In many cases, the owner’s corporation may vote for lot owners to form a committee of a set size (usually a max of 9) and give them specific responsibilities to make decisions.

An owner’s corporation can make rules which are binding on the owners and tenants regarding the use of common property. They can also introduce by-laws that suit the residents of the strata scheme. A by-law must not be too harsh or oppressive and may include allowing pets or sub-letting, for example. Any by-laws must be formally adopted by the owner’s corporation and legally registered.

The body corporate is responsible for:

  • Upholding the rules and by laws covering the property,

  • Managing insurance or the building and common property areas and managing the common funds or fees paid by the lot owners,

  • Maintaining and repairing the common property,

  • Keeping records, such as budgets, financial records, minutes of meetings and a register of lot owners and committee members and they must make this available to owners if requested.

A body corporate can either carry out these responsibilities themselves (referred to as a ‘self managed strata scheme’) or engage the services of strata and/or building manager.

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