Buying a Strata or Community Titled Unit

Do Your Homework Before You Sign

Buying into a strata or community titled property is different from buying a standalone house. You're not just buying a home — you're joining a corporation with shared finances, shared responsibilities, and shared rules. Understanding how that corporation operates before you sign a contract is essential.

The Corporation Search

The selling agent or your conveyancer can obtain a search from the corporation. This document is your window into how the group is run and should include:

• Minutes from committee and general meetings over the past two years
• The financial position of the corporation — bank balances, liabilities, and any levies owing on the unit you're buying (or any known future levies)
• The current plans and Articles (for strata titles), including any existing approvals for pets, air conditioners, pergolas, etc.

For community titled lots, you should also receive:

• The current plans and by-laws
• A scheme description (required where the group has more than 6 lots)

The Benefits of Unit Ownership

There's a lot to like about unit living: shared property upkeep, access to amenities, a sense of community and security, typically lower council rates and insurance costs, and a framework of rules that protects everyone's investment.

But It's Not for Everyone

You'll be living close to other people — possibly sharing walls, ceilings, and facilities. That works well if you value community, if you're out and about a lot, or if you're buying as an investment. But if you need a lot of space or independence, think carefully about whether unit living suits your lifestyle.

How the Corporation Works

Every group of units or lots has a corporation — a legal entity similar to a company. As soon as you buy in, you're automatically a member. You're bound by the corporation's rules (its Articles or by-laws) and by the relevant legislation — either the Strata Titles Act or the Community Titles Act.

• Strata titled units and community strata lots — The corporation is responsible for maintaining and repairing the common areas, including the building exterior and shared gardens.
• Community titled lots — You're responsible for the maintenance and insurance of your own lot and everything on it.

Get Independent Advice

Engage your own conveyancer or lawyer. Don't rely on the vendor's or the developer's legal representative for advice — their interests aren't the same as yours. Review the body corporate plans carefully and make sure you understand exactly which structures and areas are included in the sale.

Buyer's Checklist

If you're uncertain about anything to do with the corporation, get professional advice. Here's what to work through before you commit.

Finances and Governance

• Have you received and reviewed the corporation search document?
• What are the ongoing levies for upkeep, maintenance, and management — including any arrears?
• What are the corporation's assets and liabilities?
• Are there any expenses recently incurred or about to be incurred?
• Have you read the minutes from the last two years of meetings?
• Have you reviewed the financial statements?
• Do you understand the Articles or by-laws currently in force?
• Have you sighted the current insurance policies?
• For community titles: is this a strata division (units stacked vertically) or a community plan (units side by side)?
• Have you had the search documents independently reviewed?
• Are there any unpaid contributions on the unit you're buying?
• How do the levies compare with similar groups?
• Is there a sinking fund or reserve for emergencies and large planned expenses?
• Is the corporation planning any major expenditure you'd be asked to contribute to — such as painting or driveway works?

Day-to-Day Living

• What are the rules around visitors and parking?
• Is there visitor parking on-site?
• Is the property accessible for wheelchair users or those with mobility aids? If not, can modifications be made?
• What maintenance services are provided, by whom, and at what cost?
• What restrictions apply to the use of your unit and the common property?
• Can you store a caravan, boat, or bicycle on-site?
• Are pets allowed? If not, what's the application process?
• Are there any known structural issues that could affect your unit down the track?
• How does the corporation handle disputes?
• If the group uses a professional manager, what's their reputation?