One of life’s greatest mysteries….well strata mysteries; is knowing who is responsible for what, who pays for what and who has to insure what. We get it, there is a lot of ‘what’s’ to consider.
However, the basics of the who’s who in the zoo, will usually be narrowed down to very distinct characteristics of the boundaries of a strata scheme and the lots or part lots contained within it. Understanding scheme types and their boundaries is the one of the fundemental steps in strata ownership and management.
The following (whilst not exhaustive) should provide you a simple guideline when navigating fiscal, maintenance and insurance issues.
Built-Strata Scheme:
Built-strata schemes, often referred to as conventional strata, represents the most common form of strata title ownership. Generally speaking, the individual ownership will extend to the internal boundaries of the unit or apartment within a multi-unit building (think a block of apartments). Common property, such as the building structure (walls and roof), shared amenities and communal areas (walkways, stairs etc), will fall under the responsibility of the Strata Company (all owners).
Anything deemed common property will be the responsibility of the Strata Company to repair, maintain, replace and renew and also to insure.
Single-Tiered Strata Scheme:
Single-tiered strata schemes (opposed to single story) differs from built-strata in as much that the boundaries of the building part-lots will extend to the external surface of the building – therefore removing all common property from the building structure.
This type of scheme will generally offer more autonomy and control over one's property and also remove the requirement for joint insurance on building structures. Often the cost associated with common property maintenance will be significantly less than that of a built-strata.
Survey-Strata:
Survey-strata, distinct from built-strata and single-tiered strata schemes, is prevalent in land subdivisions. Survey-strata allows for the creation of multiple properties within a larger parcel of land. One of the unique differences is that the survey-strata plan does not show any buildings and is very similar to a freehold parcel of land. As with built-strata and single-tiered strata, all owners share ownership and responsibility for the common property. Insurance will be isolated to the common property.
Conclusion:
Understanding your scheme type and its boundaries will provide you a greater understanding of who’s responsible, who pays and who insures. However, if you are still in doubt – call us.