When it comes to property ownership, there are different types of strata schemes in Australia. In this article, we explain what strata schemes are and the different types that exist.
What is a strata scheme?
A strata scheme is a type of property development in which units or apartments are individually owned, but common areas are jointly owned and managed by a strata company. These common areas can include lifts, gardens, car parks, swimming pools and gyms.
The owners of individual units in a strata scheme are known as lot owners, and they each have a share in the ownership of the common areas. The strata company is responsible for managing these shared areas on behalf of all the lot owners.
There are different types of strata schemes, which we will explain in more detail below.
Types of strata schemes
There are three main types of strata management in Adelaide: residential, commercial, and mixed-use.
Residential strata schemes are the most common type of strata scheme. They typically consist of units or apartments but can also include townhouses and villas. Commercial strata schemes, on the other hand, are usually office buildings, shops, or warehouses. Mixed-use strata schemes are a combination of both residential and commercial properties.
The type of strata scheme will determine the rules and regulations that apply to the property development. For example, residential strata schemes will have different rules to commercial strata schemes.
Strata schemes can also be classified according to their size. A small strata scheme typically has fewer than 12 units, while a large strata scheme has more than 100 units.
How do strata schemes work?
Each strata scheme has its own rules and regulations, which are set out in the strata title documents. These documents will outline things like how the common areas are to be used and maintained, as well as the rights and responsibilities of the lot owners and the strata company.
The strata company is responsible for managing the property development on behalf of all the lot owners. This includes maintaining the common areas, collecting levies from lot owners and organising insurance for the property development.
Lot owners are required to pay levies to the strata company, which are used to cover the costs of maintaining the common areas and other expenses associated with running the strata scheme. Levies are usually paid on a quarterly or half-yearly basis.
Strata schemes are governed by state and territory legislation, so it’s important to be familiar with the relevant laws that apply to your property development. These laws can vary from one state to another, so it’s always best to seek legal advice if you have any questions about your rights and responsibilities as a lot owner or strata company.
Strata schemes can offer a great way to live in or own a property in a desirable location, while still having the flexibility and independence of owning your own unit. If you’re thinking of buying a property in a strata scheme, it’s important to do your research and make sure you understand all the rules and regulations that apply.