A Detailed Overview for Strata Plans and Schemes

Strata properties come in a variety of forms, which in turn impacts their management, maintenance (and more)! They are also bound by a unique set of property rules and regulations; covered in more detail below:

What is a Strata Plan & Strata Scheme?

A strata scheme refers to a building/group of buildings that have been divided into “lots” (defined by the building’s boundaries).

A strata plan(aka “strata title”) refers to individual ownership of part of a property (aka: a “lot”) on the land on which a strata scheme exists.

The owner of a “lot” owns their interior home, but all owners (and tenants) of a lot shares common property areas with other lot owners.

A single apartment in a large building is an example of a strata plan. Strata plans organise multiple unit developments so that a separate title exists for each lot.

Types of Strata Property:

Four of the most common strata properties types include:

Strata Title:

Most often multi-tiered buildings with many individual lots (for example; residential units, apartments and so on)

Feature shared communal spaces and facilities (lifts, driveways and common area amenities like pool/gardens etc.)

Mandatory strata insurance

Strata property owners must pay levies that go towards admin matters, maintenance, upkeep and repairs (capital works and sinking funds)

Owners automatically are voting members of the owner’s corporation

Community Title:

Generally multi-dwelling properties of several buildings spread across a great deal of land

Buildings are often a “single lot” or unit, and mostly individually owned

Boundaries are usually determined by surveying measurements

These can be commercial strata schemes like retail spaces, office buildings, industrial buildings

Can feature communal facilities

Owners must pay levies and are voting members

The key difference between strata titles and community titles is the latter are not required to have common strata insurance – owner’s themselves are responsible for ensuring the building they own

Company Title:

An older title name that predates community titles (company title buildings are usually 50-100 years old)

A company owns the land and buildings on it

Individual owners are shareholders entitled to exclusive occupation of a specific space

It is a more complex form of strata scheme and can be a litigious property ownership area

Building Management Committee (BMC):

Some strata schemes are mixed-use developments that blend aspects of residential and commercial together

For example, a row of shops or offices situated below a block of apartments

Occupants share facilities (such as points of entry/exit, bathrooms, parking spaces, lifts, electrical infrastructure and so on)

The Key Differences Between a Strata Plan & Subdivision:

There are various types of subdivisions, but in essence it refers to physically dividing one land title into two (or more) new parcels of land.

These are seen as separate and can be sold and owned and/or developed separately by the new land title owners.

Unlike strata plans, subdivisions:

Have no common property or a communal owner’s corporation

Lots can be sold prior to completion of the build

Require prior application for relevant local subdivision planning scheme approval and planning permits (this can take up to a year or longer)

Usually require new phone/power line connections, sewer and water connections and other extensions of existing mains

What to Look out for when Buying a Strata Property:

There are a range of considerations to look out for when it comes to buying a strata property. Key factors include:

Boundaries & Restrictions: from balconies to garage doors, a clear understanding of your property lines will determine what is and is not your direct responsibility and rules to follow. You may have to follow specific rules from where you can park your car to how you can renovate your property in future.

Overall Building Info & History: for instance, the split of owners/investors, size of the building (number of lots), whether the building history indicates ongoing issues that may be costly to fix.

Facilities: considerthe need of lifestyle perks (i.e., an elevator, gardens, pool etc.). Whilst these are often desirable and value-adding features, responsibilities for ongoing maintenance etc. will be shared also.

Strata Levies/Fees: strata schemes include fees/levies payable by each strata plan (lot owner). These range from around 0.3-1.2% of the property’s value and are usually paid quarterly and are used for general admin, maintenance, sinking fund and so on.

By-laws: overview how the property is managed and agreed allowances, big and small (such as rules pertaining to pets, rubbish disposal, noise allowances and much more).

The Benefits of Landchecker

Property Document Searches & Property Plans:

Taking this step can save you considerable time (and money) by providing faster, insight-driven, up-to-date data for the property in question. In turn you’ll be able to make the most informed decision possible!

A Landchecker property search and plan:

Will advise if a property falls under a strata scheme or not so you can determine any rules and restrictions that may impact future development plans or renovations

A Landchecker Premium Property Report also offers access to other valuable information such as property size and boundary lines, planning information, property valuation/sales history info, overall property condition, etc.

Combined, the data offers a full-picture view of your investment. Searches are quick and easy and allow you to visualise high-res property imagery/data-sets in context, all in one simple search

You can also purchase specific property documents, such as:

Copy of Plan: the surveyed sketch of a land lot that shows the original subdivision and any restrictions on the land

Owners Corporation Basic Report: outlines entitlements, rules, restrictions in relation to the owner’s corporation and land lot (VIC only)

Title Plan Diagram: image of legal boundaries on a property the date it was registered (VIC only)

And more!

Next Steps:

Sign up for free today to discover more at app.landchecker.com.au/join