What Is Strata Title? A Complete Guide for Australians (2026)

Updated

What Is Strata Title? A Complete Guide for Australians (2026)

Strata title is a form of property ownership that divides a building or land into individually owned lots and common property. It is the standard ownership structure for apartments, many townhouses, and some commercial properties in Australia.


The Core Structure

In a strata scheme:

Your lot: The individual space you own — typically the apartment or townhouse itself. The lot boundaries are defined by the strata plan and are usually the inner surfaces of walls, ceilings, and floors (though this varies by scheme and state).

Common property: Everything outside the lot boundaries — external walls, roof, common corridors, stairwells, lifts, parking areas, garden areas, shared facilities (pool, gym, BBQ area). Common property is owned collectively by all lot owners.

The owners corporation (body corporate): The legal entity comprising all lot owners that is responsible for managing the common property, maintaining the scheme, and making collective decisions.


What You Own in Your Lot

Strata plan boundary definitions vary:

State / approachLot boundaries
Most Australian statesInner surfaces of walls, floors, and ceilings — you own everything inside the surfaces
Some older NSW schemesMid-point of dividing walls (half of the wall thickness)
Some QLD schemesCentre of floor slabs

What you own inside your lot:

  • Internal walls (non-structural)
  • Floor finishes, window frames, balcony decking
  • Internal plumbing (from the internal tap fittings to the lot boundary)
  • All internal fixtures and fittings

What you do NOT own (common property):

  • External walls
  • Structural walls and columns
  • Roof
  • Common plumbing and electrical infrastructure
  • Lifts, lobbies, corridors
  • Gardens, driveways, visitor parking

Owners Corporation — How It Works

The owners corporation (body corporate) is automatically created when the strata plan is registered. Every lot owner is automatically a member.

Strata committee (executive committee): A smaller elected group of owners that manages day-to-day affairs between general meetings. Typically 3–9 members.

General meetings: AGMs (Annual General Meetings) must be held regularly. Budgets, levy contributions, major works, by-law changes, and appointments are decided at general meetings.

Voting: Owners vote at meetings — generally one vote per lot (some decisions weighted by lot entitlement). Simple majority for routine matters; 75% (special resolution) for major decisions; 100% (unanimous) for the most significant matters (e.g., selling the whole scheme).

Strata manager: Many schemes appoint a professional strata management company to handle administration, record-keeping, insurance, financial reporting, and meeting management. The strata manager is the agent of the owners corporation — not an independent body.


What the Owners Corporation Is Responsible For

ResponsibilityDetail
Maintenance of common propertyExternal walls, roof, garden, lifts, common areas
Building insuranceMust insure the building for full replacement value
Administrative fundManage day-to-day expenses
Capital works fundSave for major future works
By-law enforcementEnsuring owners and occupants comply with scheme rules
Work health and safetyCommon area safety obligations
Meeting legislative requirementsState strata laws compliance

What Individual Lot Owners Are Responsible For

ResponsibilityDetail
Contents insuranceYour personal belongings (building insurance covers the structure)
Internal maintenanceEverything inside your lot boundaries
Levy paymentsPay administrative and capital works fund levies on time
By-law complianceComply with by-laws (noise, pets, Airbnb, renovations)
Notify owners corporationBefore carrying out renovations affecting common property

Unit Entitlement

Each lot is assigned a unit entitlement — a number proportional to the lot’s relative value (in most states, calculated at the time of the strata plan’s creation). Unit entitlement determines:

  • Levy contributions: Higher entitlement = higher levy payments
  • Voting weight: For resolutions requiring weighted voting
  • Share of common property

Example: A scheme with 10 lots. Total entitlement = 100. Lot 1 has entitlement 15; Lot 2 has entitlement 8. Lot 1 pays 15% of total levies; Lot 2 pays 8%.


Frequently Asked Questions

I want to renovate my apartment. Do I need approval?

Yes — for works affecting common property or structural elements. Minor internal renovations (painting, flooring) may not require approval, but the by-laws define what needs consent. Work involving plumbing, electrical, or structural changes, or work affecting common property, generally requires the strata committee’s approval.

Can I rent my apartment on Airbnb?

By-laws in many strata schemes restrict or ban short-term letting. NSW introduced legislation (Strata Schemes Management Amendment (Short-term Rental Accommodation) Act 2018) allowing by-laws to restrict Airbnb in strata schemes. Check the current by-laws of the specific scheme before purchasing if you intend to short-term let.

Who is responsible for a leaking pipe — me or the owners corporation?

Depends on where the pipe is located. If it is inside your lot (e.g., under your kitchen sink): your responsibility. If it is common property plumbing (the building’s main supply pipe, a pipe between floors): owners corporation. Disputes about this are common — check the strata plan boundaries.



This article provides general information about strata title in Australia. Strata legislation varies by state. For advice specific to your strata scheme or property, speak with a licensed conveyancer, strata manager, or solicitor. Find one through MoneySmart.