January 31, 2018

A Comparative Analysis Between Strata Title And Individual Property Holding!

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Homogeneous Holding v/s Heterogeneous Holding

When it comes to holding a conventional individual title the size and composition of plot remains homogeneous. To illustrate if a housing unit offers plot or houses for sale the size and composition generally remains same. Every prospective buyer is entitled to purchase same size of plot or property.

In case of strata title holding, there is no compulsion that a person may hold same size or composition. Australian strata law is quite liberal to that. To illustrate where one person is holding title of a bedroom other may hold living room’s title. There is no homogeneity in the size or composition offered.

Existence of Common Holding and Owners Corporation

When it comes to individual holding, every person has its own residential unit and his share and boundaries are defined in the title register. There is unlikely that any common property exists with other individual title holder. Normally facilities that are commonly used such as parks and pools are held and maintained by a government authority. There is no formal requirement of an owners corporation.

In strata title holding there always exist a common property. For example – An apartment divided into distinct strata may have spaces commonly owned such as stairs, lawn etc. Such property belongs to owners corporation separately identified from strata title holders. Sydney strata management companies undertake management and running of owners corporation.

Maintenance and upkeep and services of property managers

Maintenance and upkeep is taken up by individual themselves for the property held by them. They may take outside services or do it by themselves. They do not hold any title on commonly used amenities. Such amenities such as parks are maintained by government agencies. Or there are informal association of all the individuals (not statutory under law) that decides on upkeep and maintenance.

For strata title holding, an owners corporation must exist that has separate legal incorporation and legally entitled to hold common property. Maintenance and upkeep is normally taken up by strata management companies appointed by owners corporation.

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