Strata Title

Definition

Strata title is a form of property ownership where individual lots (apartments, units, townhouses) are owned separately while common areas (lobbies, pools, driveways, lifts) are shared and managed by an owners' corporation (body corporate). Owners pay quarterly body corporate/strata fees to fund maintenance, insurance, and a sinking fund for major repairs. Strata plans define lot boundaries and entitlements.

For investors, strata title means shared costs (body corporate fees are tax deductible) but also shared decisions. Special levies for building defects, lift replacements, or cladding remediation can cost $10,000–$50,000+ per lot. Checking the sinking fund balance before buying is essential due diligence.

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