What do you need to know about strata title?

What do you need to know about strata title?

If you’re buying or renting a property, you’ve undoubtedly heard of the term ‘strata title’, but what exactly is it and what are the pros and cons of owning a strata title property? What is a strata title property? When you purchase a house, you purchase the land title or the entire block of land.

How does a strata and community group work?

You will be living in close proximity to others, possibly sharing walls and some facilities. Each strata or community group, no matter how big or small, has a ‘corporation’, which is a legal entity like a company. All owners are automatically members of their corporation, and are bound by the rules of their corporation.

What kind of property is a strata scheme?

A strata scheme is another name for a strata title development. Basically, it’s a building or group of buildings divided into ‘lots’, which can either be individual units, apartments or townhouses. When you buy a lot, you own the individual lot as well as share the ownership of common property with people who own the other lots.

Who is responsible for maintenance of a strata?

Each strata or community group, no matter how big or small, has a ‘corporation’, which is a legal entity like a company. All owners are automatically members of their corporation, and are bound by the rules of their corporation. The corporation is responsible for the maintenance and repairs of the common areas.

Under strata title, entities own their respective lots (the airspace inside their unit and interior walls) and jointly own the common property, comprising the external walls, ceiling and floor and all other parts of the land and building, excluding the lots.

Who are the owners of a strata unit?

Before strata titling was introduced, blocks of units were usually owned by one of two methods – company title or tenants in common. Company title is where a company owns the building and, by owning shares in that company, entities are entitled to occupy a particular unit.

Can a strata title be dissolved without CGT?

However, it would be prudent to take note that if you want to dissolve a strata title and you own the units in the building through different entities, there is a risk that you will be required to pay CGT. If anyone has questions or comments regarding this, please feel free to contact me.

What’s the difference between common property and strata?

Generally, as a strata owner, you own the air space within the boundaries of your lot, while the owners corporation owns and controls the fabric of the building and the land under and around it. Common property is all of the areas of the land and building that aren’t included in any lot.

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