Strata Title allows individual ownership of part of a property (called a ‘lot’) which is generally an apartment or townhouse and combined shared ownership in the remainder called the ‘common properties’ e.g. foyers, driveways, gardens through the legal entity called a Body Corporate in QLD or
an Owner Association in NSW.
Building developments that exist under strata title plans can be residential, commercial, retail, mixed-use, serviced apartments, retirement villages, caravan parks, industrial estates, and resorts.
The key features of living in a strata scheme are:
- Lot owners own the inside of the unit but not the main structure of the building.
- The internal walls within the lot, carpets, baths, toilet bowls, and bench tops are all the property of the lot owner.
- You own your unit or apartment as well as shared ownership of the common property.
- You are automatically a member of the Body Corporate which is responsible for the common property.
- You have to contribute to the day-to-day cost of running the building by paying money into the Administration fund.
- You have to pay into a capital works fund (or sinking fund) for long-term expenses such as painting the building.
Owners Contributions
These payments are made by every lot owner and are invoiced as Body Corporate levies, normally every 3 months.
They are paid into either the Administrative Fund ( to pay the 12 month running costs of the complex) or
into the Sinking Fund (which is a fund used for long term maintenance of the building, up to 10 years).
The Rules or By-Laws
These are the rules of the body corporate and relate to the use of lots and common property.
The rules state what can and can’t be done in the complex.
They apply to everyone entering the complex – owners, tenants and guests alike.
The Body Corporate Committee
Body Corporate Managers
Most schemes engage outside Body Corporate Managers to help the committee run their administrative services. These businesses are specialist Strata Title management companies that are contracted by the Body Corporate, normally on a yearly basis.
On-Site Management
Most complexes have on-site Residential Managers also called Caretaker Manager or Building Manager.
They perform tasks for which they are paid a salary from the contract they have with the Body Corporate.
The tasks, duties and the legal obligations of all parties involved in this contract are contained in the site specific legally binding Caretaker / Letting Agreement.
These Managers also acts as the Letting Agent for those lot owners who wish to rent out their properties.
This business structure is called Management Rights.
Queensland Community Living Handbook
The information supplied on this website is general information only.
Individual or company must seek their own professional advice in relation to their own set of circumstances
You can contact the Author Steve Reynolds by emailing [email protected]
or by Snail Mail to PO Box 394 Surfers Paradise.4217