Strata title. Strata scheme. Strata plan. If you are new to strata living, it’s easy to get lost between these words. Well, you may have heard them in your dealings, but other than that, they remain a puzzle. Let’s establish their differences below.
It is an ownership structure for multi-level apartment buildings with horizontal subdivisions that feature shared or common sections.
It is ultimately any establishment under different Strata Schemes Acts.
Every strata scheme is illustrated in a strata plan. Any land used as a commercial or residential property, where a strata building scheme is built, has to be subdivided into a strata plan. Quite simply, it is the subdivision of Real Property Land to produce individual lots and some common properties.
They are in no way similar to conventional subdivisions, and here is why:
- Each strata plan must have a building on the parcel of land.
- All lots represent cubic space, with limits to its height and depth.
- Everything within the parcel of land that does not attribute to the lot is deemed common property.
- Lots are outlined on the floor plan of the building or other non-temporary structures within the land.
- The owners’ corporation has to keep up with the maintenance and repairs within the common property. The owners’ corporation is the body corporate of all lot owners in the scheme.
- All lots in a strata plan are allotted a unit entitlement respective of its value relative to other lots in the same scheme. The unit entitlement defines the lot’s share of common property.
In simpler terms, the building’s common property and land are owned by separate title holders.
Types of strata plans
A strata plan is the initial plan which brings life to the scheme after registration. So, what happens after registration? A unique code is given, which you will find on the AGM documents and levy notices. After the plan is processed, it will be placed in the public record. It means the Owners Corporation is in effect too!
The various types of strata plan include:
· Strata plan of subdivision
It subdivides lots, lots, and common property, or common property to produce new lots or new lots and common property.
· Strata plan of consolidation
It integrates two lots or more into one single unit. In instances where the common property is represented by a wall floor, ceiling, or other such feature, to separate the initial lots, these areas are deemed part of the consolidated lot. The land will also be placed in the name of the consolidated lot’s owner.
· Building alteration plan
As the name suggests, the building alteration plan outlines the lots’ boundaries to state that they have been changed from the previous layout. It extends to when a structure defining the lot boundary is demolished. Or when the structure is built and coincides with the lot boundary.
Every strata scheme has a strata plan, and the owners’ corporation is fully responsible for the maintenance and repairs in the common property. Additionally, any common property or land is owned by separate title holders. The excellent news is that the body corporate can opt for strata management services to make their work easy.