What’s a strata scheme?
A strata scheme is a building or collection of buildings that has been divided into ‘lots’. Lots can be individual units/apartments, townhouses or houses. When a person buys a lot, they own the individual lot and also share the ownership of common property with other lot owners. Common property generally includes things like gardens, external walls, roofs, driveways and stairwells.
Strata living can provide a friendly community-style environment but differs from living in a freestanding house. Some activities may be more restricted – for example, where you can park your car or how you can renovate your lot. It is important for people to be aware of the responsibilities and obligations.
Community schemes
The property you are looking at may actually be within a community scheme. Generally, community schemes support a variety of different land uses (houses, apartments, gym, shops, golf course) within the one complex. Community schemes operate in much the same way as strata schemes, having lot owners, common property, owners corporations and by-laws.
What would I actually own in a strata scheme?
One major difference between owning a house and a unit in a strata scheme (or ‘lot’) is that the external walls, the floor and roof do not usually belong to the lot owner. These areas are usually common property, which means that the maintenance and repair of these parts of the building are the responsibility of the owners corporation. As it is common property, the lot owner cannot alter or renovate these areas without permission from the owners corporation. Lot owners may need permission to do things such as install services (eg. cable television, phone or internet), knock down walls or replace locks on doors or windows.
Before purchasing a strata lot, the prospective buyer should be clear on the common property boundaries. For a definitive answer on the common property, refer to the strata plan for your individual strata scheme from Land and Property Information NSW. The strata plan shows the layout of the strata scheme and the common property details. Pay close attention to items such as sliding doors leading to balconies, garage doors and balcony railings, as strata plans may differ on whether these are common property. You can also obtain expert advice if you are uncertain about the common property boundaries.
In most strata schemes, the lot owner owns the inside of the unit but not the main structure of the building. Usually the four main walls, the ceiling, roof and the floor are common property. The internal walls within the lot (e.g. the wall between the kitchen and lounge room), floor coverings such as carpet and fixtures such as baths, toilet bowls and bench tops are all the property of the lot owner. Effectively, a lot owner generally owns the ‘airspace’ (and anything included in the airspace) inside the boundary walls, floor and ceiling of the lot.
Airspace can also extend to balconies and courtyards. You should get proper advice about ownership of such things as a tree in the courtyard or the responsibility to maintain a pergola covering a balcony or courtyard. They could be in your airspace and, therefore, would be maintained at your cost. You should also check whether things like car spaces or gardens are part of your lot. If they are, you will be responsible for their maintenance.
Article Provided by NSW Fair Trading
http://www.fairtrading.nsw.gov.au/
