70317 Chap.8 Strata Title, Owners Corporations and By-laws
Strata Title, Owners Corporations and By-laws
Lots and common property
A strata scheme divides a building or community into lots owned individually and common property owned through the owners corporation, which is constituted on registration of the strata plan.
No form of title in Australia is growing faster, and strata is becoming dominant as high-density housing spreads.
The owners corporation and its duty
The owners corporation manages common property and, under s 106 of the Strata Schemes Management Act 2015, must maintain and repair it.
A lot owner who suffers loss from a failure to repair can recover damages.
By-laws and building works
By-laws regulate use of lots and common property, from pets to car spaces, but cannot be harsh, unconscionable or oppressive under s 139. The registered by-laws studied this week set three consent levels for building works: none for cosmetic works, a simple majority for minor renovations, and a special resolution for works affecting common property.
What this chapter covers
- 01
What strata title is
- 02
Lots, common property and exclusive use
- 03
The owners corporation and the strata committee
- 04
The duty to maintain and repair under s 106
- 05
Making by-laws and the limits in s 139
- 06
Consent levels for building works
- 07
Common property rights by-laws
Worked example · free
Matching renovation jobs to the consent each needs
- 1Painting inside the lot is cosmetic work, which needs no consent from the owners corporation.
- 1A new kitchen within the lot is a renovation; as a minor renovation it needs a simple majority of the strata committee or owners corporation.
- 1The roof is common property, so a bracket fixed to it is work affecting common property.
- 1That work needs a special resolution, ideally with a common property rights by-law making Omar responsible for it.
Key terms
- Owners Corporation
- The body of all lot owners in a strata scheme, which manages and must maintain the common property.
- Common Property
- The parts of a strata scheme not within any lot, such as the structure, roof, lifts and grounds.
- Special Resolution
- A resolution of the owners corporation that needs a larger majority than an ordinary vote.
Strata Title, Owners Corporations and By-laws FAQ
What is common property in a strata scheme?
Common property is everything in the scheme that is not part of a lot: typically the building structure, external walls, roof, lifts, car park slab, gardens and shared services. It is owned through the owners corporation, which manages it and must keep it in good and serviceable repair.
Can a strata by-law ban something outright?
A by-law is limited by s 139 of the Strata Schemes Management Act 2015, which prevents by-laws that are harsh, unconscionable or oppressive. That is why many schemes regulate pets through a consent process rather than refusing all animals. The cases on the reading list show courts reading by-laws closely as instruments with legal effect.
Does the strata chapter appear in a quiz?
Yes. Quiz Part B, which closed on 18 September, tested co-ownership and strata together, and the subject set no tutorial preparation exercise in the strata week so students could consolidate for it. Strata can also appear in the final exam as part of a problem question.
Who must repair common property in a strata scheme?
The owners corporation. Section 106 of the Strata Schemes Management Act 2015 requires it to maintain and keep common property in good and serviceable repair, and a lot owner who suffers loss from a failure to do so can claim damages. A common property rights by-law can shift that responsibility to the owner who uses the area.
Exam move
Start each strata question by deciding whether the item is part of a lot, common property or common property subject to an exclusive-use by-law. Then learn the three consent levels for building works and the procedural steps that go with them. Read the registered by-laws used in the course for their structure, and practise one problem on repairs and one on approvals.
Work through the electric vehicle charger problem from the strata tutorial, asking which approval route fits and what concerns a strata committee might raise about shared capacity.
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