Understanding Strata

Understanding strata is an important part of the real estate industry. Strata refers to the ownership of a property that is shared by different people who have rights to make decisions concerning how they use their portion of the property and what happens with it in case of sale. This post will discuss 3 types of strata and owners corporations in Victoria. 

The 3 Types Of Strata: 

1) Units – These are properties where each owner has exclusive use over his or her unit, but also shares responsibility for certain aspects like maintenance and insurance fees for communal areas. 

2) Townhouses – These are similar to units, except that they do not have as many shared spaces and often come with a backyard. 

3) Houses – These do not fall into either of the two categories above, but are still considered strata because they share certain features in common with both condominiums and townhouses. For example, the house may have individual units that come complete with their own bathrooms and kitchens while also having communal spaces like an outdoor entertainment area.

At least half of all plans registered by Land Victoria in 2013 and 2014 were owners corporations.

Victorian body corporate/ owners corporation terminology differs from other states. Owners Corporation Managers manage the common property of the owners corporation, as detailed in the Plan of Subdivision, with the help of an owners corporation committee.

When buying and selling property, the vendor disclosure document for the Owners Corporation is the Owners Corporation Certificate, which will be in the Vendor’s Statement (Section 32).

The Victorian dispute resolution body is the Victorian Civil and Administrative Tribunal (VCAT).  

Some of the legislation affecting owners corporations in Victoria are the Owners Corporations Act 2006, Subdivision Act 1988, Owners Corporations Regulations 2007, Subdivision (Permit and Certification Fees) Regulations 2000, Subdivision (Procedures) Regulations 2000, and Subdivision (Registrar’s Fees) Regulations 2004.

McKie Group has been a member of the state institute, Strata Community Australia (Vic), since 2000. 

For more information on owners corporations, please browse Useful Links

Or, for more information about the services that McKie Group provides for owners corporations and residents living in strata communities across Victoria, please browse our site.