What Is A Strata Title Property?
What Is A Strata Title Property?
Strata title is a form of ownership and housing tenure specifically designed for buildings with multiple levels, such as high-rise apartments or horizontal subdivisions.
The strata title system allows individual ownership of an apartment or unit, with shared responsibility for the cost associated with maintaining and managing common areas like gardens, swimming pools, recreational facilities, driveways, and car parks.
Owners are also responsible for insurance and any improvements made to the property within their units. Strata titles are managed by a corporate body consisting of all owners who have formed an association to manage the common property.
The collective rights about ownership and use of the common property can be held by the individual but managed cooperatively through good governance by the corporate body.
Why Is It Called Strata?
Strata is derived from the Latin term stratum, meaning layer or level, which refers to apartments on different levels. Strata title was designed in 1961 in New South Wales, Australia, to effectively deal with legal ownership in apartment blocks.
With strata title, each unit owner has exclusive control over their lot and shares common property ownership with other owners. This system gives individuals more freedom but leaves them responsible for paying maintenance costs.
Strata title is now an accepted practice across most countries around the globe, and its name reflects that it caters to multi-level apartments all under one roof.
What Are The Two Types Of Strata?
Strata properties can be divided into two main types: residential and commercial. Residential strata typically consist of apartments, units, or houses that individual group members own. In contrast, commercial strata consist of purpose-built buildings such as offices and shops.
Mixed-use properties contain residential and commercial strata with their own rules and considerations.
All three types require careful consideration, including understanding the rights of each property owner, rules regarding common areas, shared facilities, and maintenance requirements.
Can I Sell My House Without A Strata Title?
No. It is impossible to sell a house without the appropriate land title, such as a strata title for condominiums and gated strata title houses or an individual title for landed houses.
In this case, you may proceed with a conditional sale subject to the relevant title being issued in your name. Without it, you won’t be able to transfer ownership of the property or use it as collateral.
What Is An Example Of A Stratum?
An example of strata is stratified random sampling, which uses categories such as age, gender, religion, race, educational attainment, socioeconomic status, and nationality to divide a population into groups.
Stratified random sampling seeks to ensure that each stratum (group) is represented in the sample proportionately so that the sample accurately reflects the population from which it was chosen.
This type of sampling allows researchers to identify patterns and differences between subgroups in a population by controlling for other variables.
What Are The Advantages Of Strata Titles?
Strata titles have numerous advantages:
- Cheaper land costs per unit to higher demand from buyers and renters, driving greater capital growth. This type of property also allows access to communal facilities (when present), with maintenance costs divided between all owners.
- Strata titles can provide security and representation of needs through collective decision-making for all participants in a project.
- Strata titles generate efficient utilization of space by utilizing narrow or odd-shaped lots that may otherwise be left undeveloped or unsold. Such a system encourages community living and growth while protecting individual interests.
What Are The Disadvantages Of Strata Titles?
Strata titles have their share of disadvantages as well. These may include:
- High strata fees are more common in developments with many amenities or older buildings that require more maintenance and repairs.
- Additionally, disagreements with other owners may arise, necessitating dispute resolution. 3. Furthermore, owners must take on greater responsibilities unless they hire a Strata Manager, adding to the cost of strata titles.
What do you Own in a Strata Title Property?
Owning a strata title property means that you basically own that cube of space, as well as having shared ownership of the surrounding land and buildings.
This ownership gives you the freedom to renovate your space in terms of cosmetics, such as painting walls, changing flooring and so on
. However, any major physical changes must be checked with the other owners before it can go ahead. In essence, you are able to make changes to the inside of your strata property but not necessarily the outside without consulting other stakeholders.
Overall, when purchasing a property in this manner, you will own its internal structure but have shared responsibility for external areas such as shared gardens and lobbies.