strata title

A form of co-ownership of property, established for example in Australia, Indonesia, Malaysia, New Zealand, Fiji, Singapore and The Philippines. Under this scheme land is subdivided into two or more 'stratas' or cubic ('volumetric') spaces within a building, with individual owners acquiring title to individual spaces, lots, or 'units' (in substance, a space within the confines of a wall, floor and ceiling), and undivided rights to the common areas. Strata title was first established in New South Wales in 1961 and a similar system has now been established in all the other Australian States and Territories. The interest held by the owners is referred to as ‘strata title’ and the statutory rights and obligations of those with an interest in the units, the 'strata scheme'.

    Such a scheme may be applied to plots of land, although 'strata title' and 'strata schemes' is more commonly applied to vertical subdivisions in a multi-storey building and 'community title' and 'community title schemes' (also known as 'schemes of community subdivision') is applied to horizontal subdivision; although the latter terms now apply to both in Victoria. The common areas are held by a corporate body (called the body corporate in Qld, Tas and Vic; the 'owners corporation' in NSW; the 'community corporation' in SA; the 'strata company’ in ACT and WA; and 'the corporation' in NT), with the individual unit holders having a share in that body (Unit Titles Act 1970, s. 29 (ACT); Strata Schemes (Freehold Development) Act 1993, Sch. 2 & Strata Schemes Management Act 1996, ss. 8, 61 (NSW); Unit Titles Act 1975, s. 27 (NT); Body Corporate and Community Management Act 1997 (Qld) (largely replacing the Building Unit and Group Titles Act 1980 (Qld)) and the Mixed Use Development Act 1993 (Qld)—applying as the name implies to mixed use projects; Community Titles Act 1996, s. 30 (SA); Strata Titles Act 1998, s. 8 (Tas); Subdivision Act 1988, s. 28 (VIC); Strata Titles Act 1985, ss. 3, 33 (WA)). A strata title is effected by the recording of a division of the land or building into different layers or spaces and the issue of certificates of title that recognizes the separate units of ownership and the ownership of the common property. The body corporate is responsible for the management of the building and the upkeep of the common areas, including the enforcement of the by-laws that are imposed on the individual owners and for raising the levies from the individual owners to pay for repairs and insurance.

    A strata title is similar to a condominium as found in North America, or a commonhold as now found in the UK. See also flying freehold^(Eng), strata plan, unit^(NZ), unit entitlement^(Aus/NZ).

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