Strata Title is a uniquely Australian concept, developed over 60 years ago to address the challenges of shared property ownership. While it first emerged in New South Wales in 1961, Victoria soon adopted its own legislation to govern this form of property ownership. Today, strata title is widely used across Melbourne and regional Victoria, particularly in apartment buildings, townhouses, and mixed-use developments.
Before strata title existed, many multi-unit dwellings were sold under a “company title” system. Under that model, purchasers bought shares in a company that owned the building, rather than owning their property outright. This complicated financing and made transferring ownership difficult, as shareholder approval was typically required for major decisions or property sales.
What is Strata Title?
In Victoria, strata title (officially governed by the Owners Corporations Act 2006) allows you to own a specific unit or “lot” — such as an apartment or townhouse — along with a shared interest in the common property. Common property includes spaces like foyers, driveways, stairwells, gardens, car parks, lifts, and shared facilities such as pools or gyms.
When you purchase a strata property, you become a member of the Owners Corporation (formerly known as the Body Corporate), which is the legal entity responsible for managing the common property.
Lot Owner Rights and Responsibilities
As a lot owner in Victoria, you have the right to quiet enjoyment of your property, as well as access to shared amenities. However, you are also expected to:
- Comply with the Owners Corporation rules (by-laws)
- Maintain your individual lot
- Obtain contents insurance for your property
- Pay strata levies on time
- Notify the Owners Corporation of any change in ownership or tenancy
- Attend general meetings or appoint a proxy to vote on your behalf
Owners Corporation Duties
The Owners Corporation manages the common areas and ensures legal and financial compliance. Its responsibilities include:
- Managing finances, including collecting levies and setting budgets
- Maintaining common property and arranging repairs
- Holding insurance for the building
- Keeping accurate records (financials, meeting minutes, lot ownership)
- Enforcing rules and resolving disputes between lot owners
- Complying with the Owners Corporations Act 2006 (Vic)
Thinking of buying a strata property in Victoria? Understanding how strata works is key to making a smart investment and enjoying harmonious, low-stress living. Reach out to one or our qualified strata managers or explore local resources to learn more about your rights and obligations.
