Most apartments, townhouses, and units in Australia are sold under a form of ownership called strata title. Understanding what strata title means before you buy is not optional, it shapes how you own your property, what you can do with it, what it costs to maintain it, and who makes decisions about the building you live in.
Strata title is a form of property ownership that divides a building or complex into individual lots, usually apartments or units, and common property that all owners share.
When you buy a strata-titled property, you own your individual lot outright. That typically includes the internal space of your apartment, from the inner surface of the walls, floors, and ceilings. You do not own the walls, the structure of the building, the external facade, the roof, the lifts, the gardens, the pool, the car parks, or any other common areas. Those are owned collectively by all lot owners through the owners corporation, also called a body corporate in Queensland and some other states.
The owners corporation is the legal entity that manages the common property on behalf of all owners. It is responsible for:
Every owner in a strata scheme is automatically a member of the owners corporation. You cannot opt out.
Strata levies are the regular payments all lot owners make to fund the owners corporation's activities. They are typically paid quarterly and cover two separate funds.
The administrative fund covers the ongoing operating costs of the building -- cleaning, gardening, building insurance, pest control, lighting and power for common areas, and the management fees of a professional strata manager if one is appointed.
The capital works fund (called the sinking fund in some states) accumulates money for larger future expenses, major repairs, building upgrades, lift replacements, painting, or any significant works that the building will eventually need.
The size of strata levies varies enormously between buildings. A small low-rise complex with minimal common facilities may have levies of $500 to $1,500 per quarter. A large building with a gym, pool, concierge, and extensive common areas may have levies of $3,000 to $6,000 per quarter or more.
Understanding what the levies are and what they cover is one of the most important things to do before buying any strata property.
Every strata scheme has bylaws, rules that govern how owners and occupants can use their lots and the common property. Bylaws typically cover things like:
Bylaws vary significantly between buildings. Some buildings have relatively permissive bylaws. Others are highly restrictive. For buyers who have pets, who plan to do significant renovations, or who want to use the property for short-term letting, the bylaws are a critical factor in whether the property actually suits their needs.
The bylaws are part of the strata documentation that must be provided with the contract of sale. Your conveyancer should review them as part of the contract review process.
The strata report, sometimes called an owner's corporation report or body corporate records, is the most important document in any strata property purchase. It contains the minutes of recent general meetings, financial statements, the current levy schedule, details of any outstanding maintenance or legal issues, and information about any special levies that have been raised or are planned.
Key things to look for in a strata report:
The capital works fund balance. A well-managed building maintains a healthy capital works fund to cover future major expenses. A fund that is near zero signals either a well-maintained building with no upcoming expenses or, more commonly, a building that has been underfunding its reserve. Special levies, which are one-off charges to all owners when the fund is insufficient for a major expense, can be costly and unexpected.
Outstanding maintenance issues. Recent meeting minutes will reveal any significant maintenance problems the building is dealing with or has dealt with. Water ingress, structural issues, lift failures, and fire safety deficiencies all appear in meeting records.
Legal proceedings. Any legal disputes involving the owners corporation, disputes between owners, disputes with builders, or proceedings against the scheme, will be disclosed in the records.
Special levies. Any levies raised or voted on beyond the normal quarterly amounts indicate that an unexpected expense arose that the capital works fund could not cover.
For buyers purchasing off the plan, the strata scheme typically does not exist at the time of purchase, it is established when the building is completed and the first owners take possession.
New buildings generally start with lower strata levies than established buildings because the common property is new and maintenance costs are minimal in the early years. This changes over time as the building ages and maintenance needs increase.
New buildings also come with a statutory defects warranty period, in NSW up to six years for major defects, during which the developer or builder is required to rectify significant building defects. This provides a level of protection that established buildings cannot offer.
For buyers considering off the plan, understanding the estimated levy schedule provided by the developer and getting independent advice on whether those estimates are realistic for the building's size and facilities is worth doing before committing.
Through Coposit, eligible off the plan strata-titled developments can be secured with $10,000 upfront and the remaining deposit paid through weekly interest-free instalments during construction. For renters who are working toward their first strata purchase, Unrent by Coposit offers a pathway where rent accumulates toward a deposit. Find out more at unrent.coposit.com.au.
Browse current off the plan listings on the Coposit projects page, download the app, or contact the team to understand which projects are currently available.
This article is general information only and does not constitute legal advice. Strata laws vary by state. Always seek independent legal advice before purchasing any strata-titled property.
Share this article
Follow Coposit:
© 2025 Copyright Coposit.
