The word strata is defined as several portions or divisions. In relation to property development, a Strata plan gives individual owners the ability to own a portion, or a division, of a much larger development.
In real world speak, this means that within a development with multiple dwellings, driveways, open space areas, etc, a person can purchase a portion of that development, with that portion being one of the dwellings, whilst also being benefitted by the common spaces being the driveways, open spaces, waste collection areas, etc.
Strata Plans generally apply to developments such as the ones listed below
· Dual Occupancies – where planning controls prevent Torrens Title Subdivision
· Multi-Dwelling Housing
· Residential Flat Buildings
· Mixed use Commercial/Residential
· Industrial Buildings
Fundamentally Strata Subdivision is governed by the follow legislation:
· Strata Schemes Development Act 2015 and Strata Schemes Development Regulation 2016
· Strata Schemes Management Act 2015 and Strata Schemes Management Regulation 2016
· Real Property Act 1900 No 25
· Conveyancing Act 1919 No 6
Most people are familiar with a Torrens Title subdivision which is the standard house block in which as the property owner, you have ownership of everything within the property boundary. This works for traditional house lots; however, as multi-dwelling developments become more common, it is harder to subdivide using this method. Strata Subdivision provides an effective alternative, allowing individual dwellings to be sold.
Strata Subdivisions can be done on a building in conjunction with a Stratum Subdivision. This type of layered Subdivision can be beneficial for mixed use developments to separate the industrial vs residential section of a building and then allow for further Strata subdivision of Stratum lots. More on that later!
As with everything, there are always exceptions to the rules and property titling is a complicated subject. The team at Landcert have extensive experience in all forms of subdivision, whether Torrens, Strata, Stratum, Community or Neighbourhood schemes.
In upcoming posts we will continue to further break down Strata Subdivisions
If you have any questions about the information above, please do not hesitate to contact the team at Landcert.
