What is a strata titled apartment? As the laws that govern such properties changed in 2016 I thought it would be interesting over the next two articles to discuss strata title and the legal changes made.
Strata is a form of property ownership invented in NSW just over 50 years ago which has been copied around the world. Strata title allows an individual to own part of a building usually an apartment whilst sharing with the other apartment owners the remaining common property e.g. foyer or gardens through a legal entity called the Owners Corporation. Strata properties can include residential, commercial, retail, retirement villages, and caravan parks. In Western Australia there is even a strata titled vineyard. Australia’s tallest building the Q1 on the Gold Coast is a large strata titled building consisting of 526 apartments, shops, plus common property including pools, a day spa, meeting and conference facilities and dining areas. Strata schemes in Australia now involve more than two mil- lion individual properties accounting for more than half of all residential sales and leases with investors in Sydney.
Why was this concept invented? Banks; they didn’t not like loaning money to pur- chase an apartment as the owner was re- quired to purchase shares in a company that owned the building which failed to give separate ownership of the apartment to the purchaser. Less security for the banks who held the mortgage was the reason.
Next month I will discuss some of the changes to the law that govern strata prop- erty. Until then if you have any legal que- ries about this or any other matter contact Geoff Yeo of Peacockes Solicitors.