What to Know Before Buying into a Strata or Community Title Scheme 10 Essential Considerations for Prospective Buyers
Buying into a strata or community title scheme is quite different from purchasing a freestanding house. While these types of property ownership can offer convenience, shared amenities, and a sense of community, they also come with a unique set of responsibilities, rules, and financial obligations. If you’re considering purchasing a unit, townhouse, or apartment within a strata or community scheme in Australia, here’s what you need to know before signing the contract.
1. Understand What Strata and Community Title Mean
Strata title is a form of property ownership where individuals own a lot (such as an apartment or townhouse) and share ownership of common property (like driveways, gardens, stairwells, or pools) with other lot owners. Strata schemes are common in multi-unit dwellings and apartment complexes.
Community title schemes are similar but are often larger and may include freestanding homes, recreational facilities, or commercial areas. These schemes operate with shared rules and contributions but may have more complex governance structures.
Each state and territory in Australia has legislation governing these types of properties, including:
NSW: Strata Schemes Management Act 2015
VIC: Owners Corporations Act 2006
QLD: Body Corporate and Community Management Act 1997
SA: Community Titles Act 1996
WA: Strata Titles Act 1985
TAS: Strata Titles Act 1998
ACT: Unit Titles (Management) Act 2011
NT: Unit Title Schemes Act 2009
Understanding the basic structure and laws in your state or territory is key to avoiding surprises later.
2. You’ll Be Part of a Collective Decision-Making Body
When you buy into a strata or community title, you automatically become a member of the owners corporation/association (also called the body corporate or strata company depending on the state). This means:
You’ll share responsibility for common property maintenance.
You’ll vote on decisions at general meetings.
You may be asked to join a committee or become more involved in scheme governance.
While this collaborative structure helps manage shared spaces efficiently, it also means you must follow group decisions—even if you disagree.
3. Check the Financial Health of the Scheme
Before you commit, carefully review the financial documents of the scheme. These include:
Administrative and capital works (or sinking) fund balances
Past and projected budgets
Levy history and any upcoming special levies
Unpaid levies or debts owed by other owners
Poor financial health could mean unexpected special levies for repairs or increases in contributions. In large schemes with lifts, pools, or underground car parks, maintenance costs can be high.
4. Review the By-Laws or Rules or community statement
Strata and community schemes operate under by-laws (or rules) that govern how people live in the property. These can affect:
Whether pets are allowed
Short-term letting or Airbnb use
Renovations or changes to your lot
Noise restrictions
Use of common property
It’s essential to read the by-laws before purchasing to ensure they align with your lifestyle. Want to have a dog? Planning to work from home? These might be affected by the scheme’s by-laws.
5. Consider the Maintenance and Condition of the Building
Shared responsibility doesn’t mean no responsibility. Take note of the condition of:
Roofs, facades, and gutters
Car parks and lifts
Swimming pools, gyms, or shared gardens
Ask for the most recent building condition report or maintenance plan if available. If major repairs are due and the capital fund is low, you may be footing part of the bill soon after moving in.
6. Understand Insurance Arrangements
In most cases, the owners corporation is responsible for building insurance, while you must arrange your own contents insurance, in a community association there are different requirements.
However, the scope of what’s covered can vary.
Review the insurance certificate of currency and make sure:
The building is insured for the correct replacement value.
Public liability insurance is in place.
You understand where your personal coverage starts and ends.
7. Strata or Community Living isn’t for Everyone
Living in close quarters with neighbours requires compromise and communication. You may hear more noise, have less private space, or face disputes about parking, smoking, or shared costs.
On the positive side, you might gain:
Access to facilities like pools and gyms
Lower individual maintenance responsibilities
A sense of community
Think about your lifestyle and whether communal living suits you and your family.
8. Know What You’re Really Buying
When you buy a strata or community title property, you’re purchasing more than just the walls and floor.
Make sure you:
Clarify boundaries: Is your courtyard, balcony, or garden on title or common property?
Check entitlements: What is your unit entitlement? This affects how much you pay in levies and your voting power.
Understand exclusive use rights: Are you granted special access to a car space or storage area?
A strata or community report from a qualified inspector or conveyancer can clarify these details before purchase.
9. Investigate the Managing Body
Most schemes engage a strata manager or community managing agent. They handle the day-to-day administration and maintenance of the scheme.
Find out:
Who the manager is
How responsive and professional they are
What fees are charged for management
Whether the contract is long-term or up for renewal
An effective manager can make a big difference to how well the scheme is run.
10. Ask for a Strata/Community Inspection Report
Before buying, ask your solicitor or conveyancer to organise a strata or community inspection report This independent report can uncover:
Ongoing disputes between owners
Building defects or litigation
Pending special levies
Non-compliance issues
It’s one of the most valuable documents in assessing whether the scheme is well run and a good long-term investment.
Conclusion
Buying into a strata or community title scheme can be a great lifestyle or investment choice—but it requires a thorough understanding of the legal, financial, and communal responsibilities that come with it. Take the time to do your research, review documents, and ask the right questions. A little extra effort upfront can save you from unexpected costs or conflicts down the line.
Disclaimer:
This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction
