If you’re looking to buy property in Australia, you should become familiar with Stratas, especially if you have apartments in mind. While this has become an accepted real estate option in Australia and several other places, most people don’t have a working knowledge of what a Strata entails.
Anatomy of a Strata
When you own a house, your title includes the property and the entire home. But when you have a strata lot, you own only the room or living space in that strata.
You own a lot or space where you live, say a bedroom or suite of bedrooms. But, responsibility for anything that happens in the common areas, like a shared kitchen, living room, or patio, belongs to the lot owner.
The strata’s title owner is the body corporate. The title is legal proof that they own the property. They own the building and its property and are responsible for building maintenance. If the roof needs replacing, that is the body corporate’s job.
When the kitchen is dirty, or the washer overflows, that is the responsibility of the owner corporation or strata lot holder, which is you. As the owner corporate, you and the other tenants are responsible for cleaning and all behaviours in the shared areas.
Making and Enforcing the Rules
The Strata title scheme is a blueprint of shared spaces and single lots. A lot could be a storage room, garage, or apartment, depending on the title obtained by the lot’s owner. Shared or common property is any part of that structure not considered a lot, such as the garden, roof, or stairs. It also outlines how the strata property will be managed throughout its existence.
To keep things running smooth and protect the owners of the lots, scheme bylaws (rules) are set up along with a list of responsibilities. Everything is clearly defined. Rule compliance is mandatory on every level.
Items in the bylaws include where boats or trailers can be stored, noise compliance, and pet requirements.
Things like elevators, fire safety, smoke alarms, pest control, removing asbestos, etc., are covered by state legislators and upheld by the strata title owner. Strata committees are comprised of lot owners and the lot owner representative or a strata manager who meet and discuss issues surrounding the lots, tenants, and the property.
Things to Know Before Buying
Insurance
Schemes are required to insure the dwelling against fire and other accidental events. The insurance covers the entire structure. Laws from state to state are different, but the basics, including volunteer/ workman’s compensation and liability insurance, are a must.
Levies
States require quarterly levies to help cover maintenance costs, building upkeep, and any building emergencies. You can even be levied for unexpected events if the scheme lacks funds. Levies are handled differently by state, so checking the state laws on levies is essential. If you should require legal counsel, get one in the state where you reside. Each state should have a legislation page you can refer to in these cases!
Strat Title Property Purchases
Do your research! Never purchase strata property if you are unfamiliar with all aspects of the purchase. Look into the property thoroughly to ensure no restrictive levies, bylaws, or outstanding liens exist. Get a good background check from a competent strata searcher to ensure you get the ideal property without adverse issues.
Property Manager vs. Strata Manager
A property manager is a go-between for strata title owner and their tenants. A property manager may manage one or more properties for the owner making sure rent gets paid and everything is taken care of in the lots, such as tenant upkeep.
A strata manager takes care of the daily operations. Ensuring common areas are kept clean and neat, collecting fees, and taking care of financials, among other things.
Making the Final Decision
Know what you want and research any purchases or investments. Contact a knowledgeable and reputable management company to assist you in finding the best deal for you. Asking friends and family for referrals is an excellent idea. Murry Property can help you with all your rental, management, buying, and selling needs.