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What You Need to Know About Strata Titles
If you’re thinking of making your first real estate purchase, you’ll undoubtedly run into a lot of new unfamiliar terms.
It can all be a bit overwhelming, but there’s no need to panic since you can easily learn the basics that can help you get started on your journey.
Once you’ve done your research and studied the essentials, you’ll surely find that you can now confidently navigate the waters of making your first property investment.
To start with, here are all the important facts you need to know about strata titles and strata management in Melbourne.
Defining a Strata Title
The first thing you need to know is that a strata title generally refers to properties such as townhouses and commercial buildings where a strata plan is used to divide the unit ownership between different individuals.
Common areas, meanwhile, are typically owned and used by all. Within the land measurements, the boundaries are not considered. As the measurements of the buildings do not include the boundaries.
The owners form a corporation when they lodge the strata plan with the appropriate office for land titles.
Some of the corporation’s functions include managing the common property and enforcing the rules or articles of ownership.
They use the entitlements of each unit (which are usually mentioned in the main strata plan) in determining the monetary amount that each individual owner contributes towards fees such as insurance and upkeep.
Furthermore, the strata corporation needs to officially meet once a year with the parties in order to consider crucial things like legal requirements and insurance, where each owner gets one vote.
In cases where more than one person owns a unit, their vote still only counts as one.
What is Strata Titles: Key Features
Before jumping right into the complexities of strata titles, you need to know the important key features of these titles. Some of these key features include:
Property Ownership:
When you purchase the Strata scheme, you are not only buying the property, you are also buying the common spaces. So, you are becoming a owner of the shared space of the property along with your own flat or apartment.
For instance, if your property includes some gardens or parks, when you purchase the property, you buy these too. That is, you are also an owner, along with the other members of the complex of this particular shared space.
Owner’s Corporation Partner:
Since it is a scheme, when you buy a strata title, you technically become a partner in the owner’s corporation. So, now whenever any decision needs to be made, your contribution will be considered.
Moreover, you are an integral part of this corporation of the owner. So, without consulting your opinion, no decisions regarding the property can be made. It will then become an illegal action from the owner’s end.
Executive Committee:
Within the strata scheme, an executive committee is always required to oversee the proper maintenance of the property. So, you will need to elect the members for the executive committee.
Moreover, with them, you can rest assured as they will take care of most of the complicated work in the Strata titles. Also, they will be the key members in the decision-making process of the area.
Managers of Strata:
Now, to ensure that the Strata retains its value among its shared owners, it requires proper management. So, the Owner always appoints a contracted individual as the Strata manager.
Their core responsibility is to maintain the condition of the property. Moreover, they also oversee the regular, time-to-time repair and restoration of the shared spaces in the property.
Benefits of Strata Titles
There are many benefits of Strata titles. Some of these benefits include:
- It creates affordable property buying options for places where land and properties are quite expensive.
- Apart from purchasing the properties, investors can actually invest in the Strata titles. This can be a great alternative to buying properties for investment.
- Moreover, you will get easy loans from financial institutions and banks for strata titles rather than a whole property. So, it is a very efficient option for getting financial funding.
Strata Corporations for Property Purchases
When you are planning to purchase a strata title, you need to consult a good strata corporation. They will help you with your property purchases.
Moreover, you can also start your own strata corporation to assist buyers with unique strata schemes. In the current property business, it is a very profitable option.
As a strata corporation, you will need to collect the specific strata titles available in the market and draft a proper scheme for them. Then, you can promote these properties and get buyers.
Just remember to follow the legal regulations before creating your strata schemes. This way, you can save your business from encountering legal issues after the scheme is drafted.
Common Restrictions
Any property that they own through a strata scheme needs to follow the articles as they are set out in Schedule 3 of the 1988 Strata Titles Act.
These can include not being allowed to keep any animals such as pets at the property, not causing obstructions in the common areas, not using individual units for illegal purposes, and maintaining the unit in good condition.
However, they can change the articles provided there’s a special resolution proposed during a strata meeting.
Owners need to make sure that they note any important changes in the meeting’s minutes and then lodge them with the office of Lands Services.
Dealing with Potential Disputes
In situations where you may have a dispute with another lot owner, the strata corporation should be able to help you work out a resolution.
However, if your dispute is with the corporation itself, then you can reach out to Community Mediation Services since they can act as a neutral third party to help solve the issue.
If the mediation is not successful, though, then you can get help from the Magistrates Court, and they will be able to decide the matter for you.
Note that there is currently no government agency that oversees the management of strata titles or handles the resolution of strata-related disputes.
If you’re part of a strata corporation and you require the services of experts in managing your property, contact the Body Corporate Collective today to find out how we may be able to help you with your needs.
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