Understanding Strata Title in Victoria

Strata Title is one of the most common ways property is held in urban Victoria — especially in townhouses, apartment buildings, and subdivided unit developments.

As explained by David Dawn, Licensed Conveyancer at Victorian Property Settlements, it’s not just about owning your unit — it’s also about owning a share in the land and building that surrounds it.

What is Strata Title?

Strata Title allows you to own a defined part of a building — like an apartment, unit, or townhouse — while sharing ownership and responsibility for the common property.

It’s regulated by the Subdivision Act 1988 (Vic) and the Owners Corporations Act 2006 (Vic).

Common property can include:

  • driveways

  • shared gardens

  • lobbies and stairwells

  • visitor parking

  • building infrastructure (roof, pipes, wiring)

These shared areas are managed collectively through an Owners Corporation (formerly called a body corporate).

Where do you find Strata Title?

Strata is the norm when buying:

  • Apartments or units in a multi-storey development

  • Townhouses with shared driveways or walls

  • Flats converted into strata under older subdivisions

  • Retirement villages and community-style living

If common property exists, the title is probably strata.

Idiosyncrasies of Strata Title

Strata ownership comes with several legal and practical differences compared to standalone land:

  • You automatically become a member of the Owners Corporation (OC)

  • You must pay OC fees to cover insurance, maintenance, admin, and repairs

  • You are bound by rules (e.g. no pets, noise limits, renovation controls)

  • You don’t own the external walls — they're typically common property

You’re also jointly responsible for the OC’s liabilities and decisions — even if you didn’t vote for them.

How does Strata differ from other types of title?

  • Unlike Torrens Title, you don’t own the land underneath — you own a lot within the building and a share of the common areas

  • Unlike Company Title, your ownership is registered on the title and is more easily accepted by banks

  • Strata can’t be “opted out of” — if you own a strata property, you are part of the Owners Corporation whether you like it or not

Benefits of Strata Title

✅ Affordable entry point into desirable suburbs, especially for first-home buyers

✅ Shared maintenance of external areas and insurance simplifies individual obligations

✅ Legal structure offers dispute resolution and management options

✅ Ideal for downsizers or those wanting low-maintenance living

Drawbacks or risks to consider

🚩 Ongoing fees (can increase significantly for older buildings or poor management)

🚩 Special levies — surprise costs for major works can arise quickly

🚩 Limited control over external changes (balconies, roofing, paint, security systems)

🚩 Risk of disputes with other owners or the committee

🚩 Inactive or poorly run Owners Corporations may cause delays, deterioration or legal headaches

Key Takeaway

Strata Title is a practical, secure way to own property in medium and high-density settings — but it comes with extra responsibilities and shared decision-making. Always review the Owners Corporation Certificate, budget, and rules before signing.

📞 Buying or Selling Strata?

We specialise in reviewing and preparing contracts for strata properties across Victoria. If you’re not sure what’s included, or if the rules are fair, we’ll help you get it right before settlement.