What Do You Actually Own in a Strata Scheme? Common Property vs Lot Property
If you live in or own an apartment in a strata scheme, knowing the difference between lot property and common property is essential. These definitions don’t just determine who owns what — they shape who’s responsible for maintenance, who needs to approve changes, and how disputes are resolved.
In growing cities like Sydney, Melbourne, and Brisbane, strata living is becoming the norm — but many owners still feel unsure about where their responsibilities end and the owners corporation’s begin. This guide breaks it down simply, helping you understand what falls within your lot, what’s shared, and why those distinctions matter for everything from renovations to insurance.
The Importance of Understanding the Difference
Clearly defining what constitutes lot property versus common property is essential for several reasons:
Maintenance Responsibilities: Lot owners are responsible for maintaining their individual units, while the owners’ corporation manages common property. Misunderstanding these boundaries can lead to disputes over maintenance duties and costs.
Insurance Coverage: Insurance policies for strata schemes typically cover common property, while lot owners need to arrange their own insurance for their units. Knowing the distinctions helps ensure adequate coverage.
Renovation Approvals: Lot owners must seek approval from the owners corporation before making alterations that affect common property. Unauthorised changes can lead to legal complications and potential costs.
What is Considered Lot Property?
Lot property refers to the individual ownership unit within a strata scheme. This includes the airspace within the boundaries outlined in the strata plan, typically encompassing the interior of the unit, such as walls, floors, ceilings, windows, and doors. Owners have exclusive rights to their lot property, allowing them to make alterations or improvements, subject to compliance with building codes and strata by-laws. However, any changes that affect the structural integrity or appearance of the building may require approval from the owners corporation.
What is Considered Common Property?
Common property encompasses all areas within a strata scheme that are not part of an individual lot. This includes shared spaces such as hallways, stairwells, elevators, gardens, roofs, and external walls. Common property is collectively owned by all lot owners, and its maintenance and repair are the responsibility of the owners corporation. Decisions regarding common property are typically made at general meetings, where owners vote on issues like repairs, upgrades, and the allocation of funds for maintenance.
Determining What is Lot Property and What is Common Property
Determining the exact boundaries of a lot and common property can sometimes be complex. The strata plan is the primary document that outlines these boundaries. However, interpretations can vary, and legal advice may be necessary in ambiguous situations. Factors influencing these determinations include the type of strata scheme (e.g., building format or survey-strata), historical modifications to the property, and specific by-laws in place.
Using and Maintaining Common Property
While common property is collectively owned, individual lot owners may have specific rights and responsibilities concerning these areas:
Exclusive Use By-Laws: In some cases, owners corporations grant lot owners exclusive use of certain common areas, such as parking spaces or storage areas. These arrangements are formalized through by-laws and may involve additional costs or conditions.
Levies and Contributions: The cost of maintaining common property is funded through levies collected from lot owners. The amount each owner contributes is typically based on the unit entitlement, which reflects the size or value of their lot.
Dispute Resolution: Disagreements over common property issues, such as maintenance responsibilities or by-law enforcement, can arise. Strata schemes often have procedures in place for resolving disputes, including mediation or adjudication through relevant authorities.
Do You Know the Difference?
Understanding the difference between lot property and common property is more than just ticking a legal box — it’s key to living confidently and cooperatively in a strata community. Clear knowledge of what you own, what’s shared, and who’s responsible for what helps avoid confusion, prevent disputes, and make day-to-day strata living far easier to navigate.
Whether you're considering renovations, sorting out insurance, or trying to understand who pays for what, knowing where the boundaries lie — both literally and legally — puts you in a stronger position. If you're ever unsure, take the time to review your strata plan, talk to your committee, or seek expert advice. It’s all part of being an informed and empowered strata owner.
