The key differences between a strata and community title
Although both strata title and community title entail shared ownership and management of common areas, they do have significant distinctions. Therefore, it is essential for prospective buyers and investors to conduct thorough research to fully understand the rules, fees and responsibilities associated with each title. At ASSM, we strongly recommend that individuals consult with the appropriate legal and financial professionals when dealing with either type of property ownership.
A strata title is a property ownership model that enables individuals to purchase units within a larger property or building, such as an apartment complex, duplex or townhouse development.
This arrangement involves shared ownership and collective responsibility for common areas within the same building or development.
A community title refers to a property with at least two lots, including common shared areas such as gardens, recreational land or driveways. This broader form of property ownership is applicable to various types of developments, including residential, commercial and mixed-use projects.
Boundaries and common facilities
Strata titles define boundaries based on building structures, dividing them into units based on walls, ceilings and floors rather than land parcels. They incorporate common property shared among residents, like driveways and gardens. In contrast, community titles define boundaries by allotments of parcels of land, typically with surveyed measurements and more flexibility in depth and height. Gated estates and properties with shared infrastructure often use community titles.
Both strata and community titles offer shared amenities and facilities accessible to all members, with exclusivity options available. In strata title developments, shared facilities typically include areas like hallways, gardens and parking lots.
On the other hand, community title properties often provide more extensive shared amenities such as swimming pools, tennis courts and recreational spaces, depending on the nature of the development. In a community title, there are multiple schemes (sub-schemes), and each scheme has its own common areas. Owners not only own their lot but also hold a share in the community corporation that manages the common property for their scheme.
Management, rules and costs
An owner’s corporation oversees strata properties, taking care of decisions related to maintenance, rules and finances for the building or complex. In a community title setting, management is more intricate as there may be multiple schemes within the development. Each scheme has a community corporation, which is responsible for managing its respective common property. Additionally, a master community corporation may exist to supervise shared facilities and services that benefit all the schemes.
The owner’s corporation determines rules and bylaws concerning matters like pets, renovations and noise levels in a strata title scheme.
Similarly, community title schemes have their own rules and bylaws, but they involve added complexity due to the presence of individual scheme corporations and master community corporations.
When it comes to expenses and fees, individuals in a strata title scheme contribute levies to the owners corporation, which handles the expenses associated with the upkeep and administration of common property. In the case of a community title, owners also make levy payments, typically calculated based on unit entitlements. However, the structure varies based on the presence of multiple schemes, and the expenses can differ depending on the specific amenities and services available within each individual scheme.
Basically, while both strata title and community title are methods of property ownership that deal with shared spaces and facilities, the main difference lies in the flexibility and scope of application.
Why choose All Suburbs Strata Management?
Before buying into a strata title or community title scheme, it’s essential to be familiar with local laws and regulations, and we are your local specialists.
ASSM has over 40 years of strata management experience servicing New South Wales. We are large enough to provide rock-solid stability and small enough to ensure old-fashioned service and build long-lasting relationships.
We are not just experts in residential, community, commercial and industrial strata schemes.
At ASSM, we assist numerous developers in preparing for registration and provide strata reports and inspections.
We will ensure your strata scheme runs as smoothly as possible. When considering buying into a strata scheme or wanting to engage a professional and qualified team, contact ASSM today and experience the difference that 40 years of successful strata management will make.
