New to the concept of strata title in real estate? We are here to familiarise you with the basics of strata.
Strata, also known as a strata title, is a specific model of property ownership. It involves a combination of individual ownership and shared ownership.
When buying a home, you own the entire property. This includes all areas in the home, interior and exterior. This differs from a strata scheme in which the owner may own some but not all areas of the property. These areas are owned by a number of individuals, through shared ownership.
When you purchase a property which is part of a strata scheme, you form part of the strata company. The strata company then has a body corporate, which is responsible for managing and maintaining the areas of the property that are part of the strata title.
A Strata Manager is responsible for managing the common property. This includes taking care of all the common areas. It involves multiple roles, such as administration, finances and social.
A Property Manager is responsible for managing individual strata properties that form part of the strata scheme. If there are tenants in the property, this is the individual/s who is managing the property on behalf of the tenant. Otherwise, it is the individual/s who live in the property.
So how do strata title properties actually work?
You may be looking to purchase a new home and are wondering if a strata title property would be a good fit for you. Every strata scheme is governed by by-laws, a set of rules that every lot owner or tenant is required to follow. For example, some by-laws may stipulate parking requirements, specific guest behaviour and certain methods of garbage disposal.
It may seem complicated but the intention of strata is to simplify property ownership by sharing some aspects of responsibility between other property owners and the Strata Manager.
Learn more about strata here: https://esmstrata.com.au/strata-title-for-beginners/
If you have questions, don’t hesitate to contact us at info@esmstrata.com.au or on 9362 1166.
