Strata Titles provide joint ownership of land between owners of the individual units built on the land. We can assist owners and developers by setting up Strata Titles for individual ownership so that the individual units can be sold or transferred.
At Prompt Settlements, we are often asked
“What is a Strata”? or “What is the difference between Strata and Survey Strata”?
Strata Title in Western Australia is the legal ownership of a ‘portion’ of a building or structure. This can apply to units, townhouses, villas, commercial offices, factories, warehouses, retail shops etc. Strata Titles can also apply to duplexes and triplexes.
Essentially, owning a strata title means that you own the space within the outer walls of the unit. Often the unit purchase will include car spaces, garages, storerooms or laundry facility which is not for human occupation, but known as a utility lot. Once outside your unit, you are on common property which is owned commonly between all residences of the strata complex.
Therefore the outer walls, awnings, handrails, stairs, driveways, visitor parking, balconies, gym, sauna, spa, swimming pool, tennis court, meeting room, gardens and lawns etc are common property which is maintained via a levy payment by the body corporate or strata managers.
Each unit contributes to the strata administration fund for the building insurance and on-going maintenance of the common property.
Regular meetings are held with the owners regarding maintenance, repairs or replacement of items within the common property. All owners have voting rights and permission must be sought from the other owners if one owner wishes to change or alter the appearance of their unit.
By-laws are a set of rules compiled by the owners with which the owners must abide, thus providing peaceful enjoyment of the property by all concerned.
Prompt Settlements will provide any Buyer with a copy of the Strata Plan and any changes in by-laws prior to settlement to enable the Buyer to fully understand the unit entitlement and common property of the unit being purchased. The outline of the building is shown on the strata plan.
It is also wise for the Buyer to request a copy of the last AGM (Annual General Meeting) minutes of the body corporate to ensure that there are no undisclosed major works to be undertaken after settlement that would incur future costs.
Survey Strata Title is almost a green title in that you own everything within the boundary line of property. Occasionally there is common driveway which all the owners contribute to the maintenance, otherwise each unit is separately insured and maintained individually. Permission of the other owners is not necessary to change or alter the appearance of the dwelling.
Prompt Settlements will provide a copy of the Survey Strata Plan so that the buyer can identify the lot being purchased. There are no buildings shown on the survey strata plan.
If you are buying a strata title unit appoint Prompt Settlements as your Settlement Agent.