Understanding Strata Titles in Perth: A Complete Overview
Strata titles are a common form of property ownership in Perth, particularly for apartments, townhouses, and villas. Understanding how strata titles work is crucial for both buyers and owners. This guide provides a detailed overview of strata titles in Perth, covering the legal aspects, responsibilities of owners, and the role of strata management.
What is a Strata Title?
A strata title is a form of property ownership that allows individuals to own a portion of a building or land (called a 'lot') while sharing ownership of common property. Common property typically includes areas like hallways, gardens, swimming pools, and driveways. The strata title defines the boundaries of each lot and the common property, and outlines the rights and responsibilities of each owner within the strata scheme. The entire building or complex is managed under a single strata company, which is made up of all the individual lot owners.
Key aspects of a strata title include:
Individual Ownership: You own your individual lot outright.
Shared Ownership: You jointly own the common property with all other lot owners.
Strata Company: All lot owners are automatically members of the strata company.
By-Laws: The strata company operates under a set of by-laws that govern the use and management of the property.
Strata titles are governed by the Strata Titles Act 1985 (WA) and the Strata Titles General Regulations 2019. These laws set out the rules for creating, managing, and terminating strata schemes. Recent reforms to the Act aim to modernise strata living and address issues such as dispute resolution and scheme termination.
Types of Strata Schemes
There are different types of strata schemes in Perth, including:
Standard Strata: The most common type, where lots are defined by buildings (e.g., apartments).
Survey-Strata: Lots are defined by land boundaries (e.g., villas or townhouses with individual blocks of land).
Built Strata: A type of strata that allows for the subdivision of buildings only, without subdividing the underlying land.
Understanding the type of strata scheme is important as it affects the responsibilities of the owners and the management of the common property.
Rights and Responsibilities of Strata Owners
As a strata owner, you have both rights and responsibilities within the strata community. These are outlined in the Strata Titles Act and the strata company's by-laws.
Rights of Strata Owners
Right to Occupy and Enjoy Your Lot: You have the right to live in or rent out your lot, subject to the by-laws.
Right to Use Common Property: You have the right to use and enjoy the common property, subject to the by-laws.
Right to Attend and Vote at Strata Company Meetings: You have the right to attend meetings, participate in discussions, and vote on important decisions affecting the strata scheme.
Right to Access Strata Company Records: You have the right to inspect the strata company's records, including financial statements and meeting minutes.
Responsibilities of Strata Owners
Pay Strata Levies: You are responsible for paying your share of the strata levies, which cover the costs of maintaining the common property and administering the strata scheme.
Comply with By-Laws: You must comply with the strata company's by-laws, which regulate various aspects of strata living, such as noise levels, parking, and pet ownership.
Maintain Your Lot: You are responsible for maintaining your own lot in good repair.
Attend Strata Company Meetings: While not mandatory, attending meetings and participating in discussions is highly encouraged to contribute to the well-being of the strata community.
Inform the Strata Company of Changes: You must inform the strata company of any changes to your contact details or if you rent out your lot.
Understanding Strata Fees and Levies
Strata fees, also known as levies, are regular payments made by lot owners to cover the costs of running and maintaining the strata scheme. These fees are typically divided into two categories: administrative fund levies and reserve fund levies.
Administrative Fund Levies
These levies cover the day-to-day operating expenses of the strata scheme, such as:
Insurance: Building insurance and public liability insurance.
Maintenance: Routine maintenance of the common property, such as gardening, cleaning, and repairs.
Utilities: Electricity and water for common areas.
Strata Management Fees: Fees paid to the strata manager for their services.
Administration: Costs associated with running the strata company, such as stationery, postage, and legal fees.
Reserve Fund Levies
These levies are set aside for long-term capital expenses, such as:
Major Repairs: Repairs to the building structure, such as roof repairs or concrete spalling.
Replacement of Assets: Replacement of major assets, such as lifts, swimming pool equipment, or fencing.
Painting: Repainting the building exterior.
The Strata Titles Act requires strata companies to have a 10-year maintenance plan and to set aside adequate funds in the reserve fund to cover these expenses. A well-funded reserve fund is crucial for maintaining the value of the property and avoiding special levies.
Special Levies
In addition to regular levies, strata companies may also impose special levies to cover unexpected or extraordinary expenses that are not covered by the administrative or reserve funds. Special levies can be a significant financial burden for lot owners, so it's important to ensure that the strata company has adequate insurance and a well-funded reserve fund to minimise the need for them.
The Role of Strata Management
Strata management companies play a vital role in the smooth operation of strata schemes. They are responsible for managing the day-to-day affairs of the strata company, ensuring compliance with the Strata Titles Act, and providing administrative support to the strata council. When choosing a provider, consider what Floreatrealestate offers and how it aligns with your needs.
Key Responsibilities of Strata Managers
Financial Management: Collecting levies, paying invoices, preparing budgets, and managing the strata company's finances.
Maintenance Management: Arranging for maintenance and repairs to the common property.
Insurance Management: Arranging for building insurance and public liability insurance.
Meeting Management: Organising and conducting strata company meetings, preparing agendas and minutes.
By-Law Enforcement: Enforcing the strata company's by-laws and resolving disputes between lot owners.
Record Keeping: Maintaining accurate records of the strata company's finances, meetings, and correspondence.
Compliance: Ensuring compliance with the Strata Titles Act and other relevant legislation.
Choosing a reputable and experienced strata manager is essential for the effective management of the strata scheme. A good strata manager can help to protect the value of the property, minimise disputes, and ensure that the strata company operates smoothly.
Learn more about Floreatrealestate and how we can help you with your strata property needs.
Resolving Disputes in Strata Communities
Disputes can arise in strata communities, often relating to by-law breaches, noise complaints, parking issues, or maintenance responsibilities. The Strata Titles Act provides a framework for resolving disputes, starting with internal dispute resolution processes within the strata company.
Internal Dispute Resolution
The first step in resolving a dispute is to try to resolve it internally within the strata company. This may involve:
Communication: Talking to the other party involved in the dispute and trying to reach a mutually agreeable solution.
Mediation: Engaging a neutral third party to help mediate the dispute.
Strata Company Meetings: Raising the issue at a strata company meeting and seeking a resolution from the other lot owners.
External Dispute Resolution
If internal dispute resolution efforts are unsuccessful, the Strata Titles Act provides for external dispute resolution through the State Administrative Tribunal (SAT). The SAT can hear and determine a wide range of strata disputes, including disputes relating to by-laws, levies, maintenance, and management.
The State Administrative Tribunal (SAT)
The SAT is an independent tribunal that provides a cost-effective and efficient way to resolve disputes. The SAT can make a variety of orders, including orders requiring a party to comply with the by-laws, pay compensation, or carry out maintenance work.
Understanding your rights and responsibilities as a strata owner is crucial for navigating strata living in Perth. By understanding the legal framework, strata fees, and dispute resolution processes, you can contribute to a harmonious and well-managed strata community. If you have further questions, consult the frequently asked questions section or seek professional advice from a strata lawyer or strata manager.