Strata Title

Plain-English definition. Strata title is a form of property ownership where you own a defined "lot" within a building (typically an apartment, unit or townhouse) plus a share of the building's common property — lifts, hallways, gardens, roof, exterior walls.

How it works in Australia. Strata title was invented in NSW in 1961 and has since been adopted globally. Each state regulates it differently: NSW's Strata Schemes Management Act 2015, Victoria's Owners Corporations Act 2006, QLD's Body Corporate and Community Management Act 1997. Each lot has a "unit entitlement" determining the owner's share of common property and proportional liability for body corporate levies. By-laws govern pets, renovations, parking, short-term letting. Defect disputes are common — buyers should always order a strata search ($300–$500) revealing levies, sinking fund balance, special levy history, and any litigation.

Concrete example. You buy lot 12 in a 30-lot Sydney apartment building. Your unit entitlement is 38/1,000 — meaning you own 3.8% of the common property and pay 3.8% of all body corporate costs. Annual body corp budget: $400,000 → your share $15,200/year ($3,800/quarter). The sinking fund holds $180,000; a 10-year capital works plan estimates $700,000 of works, suggesting future special levies of around $20,000 per lot are likely.

Common confusion. Buyers think the body corporate handles everything inside the apartment too. It doesn't — generally only the structure, exterior, and common areas. Internal walls, fixtures, fittings and waterproofing inside your lot are your responsibility. Defective common property (e.g. cladding, balcony waterproofing) is the body corporate's, but expect levies to fund the rectification.