If the property that you are purchasing is part of a set of units, flats, high rise apartments or other grouped dwellings or other forms of collective title, it is likely to have a strata title.
When you buy in a strata title property, there are a number of additional obligations that you have. Albury Conveyancing Service can advise you on all aspects of strata title property, including:
- Body Corporates
- Common Insurance
For more information on strata titles there is a brochure available for download from NSW Fair Trading at www.fairtrading.nsw.gov.au.
Albury Conveyancing Service shall assist you through the process of buying and/or selling your strata property and ensure that all your legal requirements are attended to in a quick and efficient manner. Below is an overview of the points listed above:
A body corporate is a special entity that is created on registration of the strata plan. The body corporate owns and administers all of the common property, and has other statutory responsibilities in relation to the strata title property as a whole. Each owner in a strata title property is a member of the body corporate, and must contribute to the costs of running and maintaining the common property.
The body corporate administers the by-laws that govern ownership and tenancy of a strata title property. The Strata Titles Act provides a minimum set of “model” by-laws, but these are often extended and amended by individual body corporates. Breaches of the by-laws are enforceable under the Act. The by-laws can be changed by the owners from time to time, as required.
All of the parts of a strata title property that do not form the individual dwelling units are called the common property. These can include driveways, car parks, foyers, lobbies, stairwells, lifts, hallways, and utility areas. It also includes the spaces and contents of those spaces, for example plumbing and wiring between adjoining apartments, both horizontally and vertically. The common property is controlled by the body corporate. As a minimum the body corporate must insure the common property, but it has the power to control it fully, including making resolutions to designate exclusive use rights over certain parts of the common property. This is most commonly done over car parking spaces.
The minimum statutory obligation of a body corporate is to insure the common property of a strata title property, although this is often not done because the body corporate is not active. In large body corporates often the whole property and all improvements are insured and the owners pay a contribution to that cost through the body corporate levy. In every case, a prudent property owner should ensure that their strata title property is adequately insured, including for a share of the common property if the body corporate is not active.
This information is provided as a broad overview and should not be relied upon as a substitute for legal advice. If you require further advice in relation to the above or property transfers, conveyancing, rural, commercial please contact us.