What's Mine is Yours? Strata Property & Law

In a recent letter to a New Zealand newspaper requesting guidance on what happens in a strata development when it comes to making physical alterations to one’s property, one member of the public was given a first rate instruction on the distinctions of strata living compared with conventional housing.

The letter sought guidance on an issue they were experiencing with some owners in the run up to Canada Day: some members of the Strata Council had been pursuing a petition to amend bylaws so that they could install flagpoles in their units. Although the amendment hadn’t been accepted, one owner was reported to have already attached a flagpole to the side of his townhouse, and there was a concern that others would begin to install flagpoles and cause damage to the property. In the printed reply, it was pointed out that any use of common property that is not commensurate with strata bylaws could result in a penalty from the strata corporation.

The complexities of living in a strata are not unique to New Zealand. In Australia, strata title is an increasingly popular option for many, however, there are very distinct legal consequences that flow from living on a strata development that are not found as part of other kinds of housing arrangements. In this blog post, we give an overview of how rights in strata property are managed and what this means for you if you have strata title.

Buying into a strata: what should I consider?

Strata living is very attractive for many people, particularly at a time when an increasing number of people miss the neighbourly dimension of owning property which is disappearing in an increasingly metropolitan environment. While the rules applicable to strata schemes are in a state of flux, with reforms due to come into force in November this year, there are certain aspects of strata living which need to be borne in mind.

If you are buying into a strata scheme you are essentially buying a building (or one of many) that has been divided up into a series of so-called ‘lots’. In turn these lots can either be apartments, homes and indeed townhouses too. When you buy one of these lots (regardless of the kind of property) you will own it but also share ownership of the so-called ‘common property’ with other lot owners. ‘Common property’ is a term used to describe different things on the scheme but typically refers to gardens, stairwells and external walls.

By virtue of something being common property, the responsibility for its maintenance and repair is shared among the members of the ‘owners corporation’. The ‘owners corporation’ is a kind of governing body for the strata scheme, and if you own a lot in a strata scheme then you will be a member of this corporation. Another important consequence of something being common property is that it cannot be altered or changed without the permission of the owners corporation. This may lead to practical issues for some people living in a strata scheme long term as it can mean that permissions need to be sought before any internal renovation to your lot can take place in the scheme e.g. install satellite television or perhaps upgrade broadband services, and more substantial changes which involve knocking down walls or changing strata layout.

Maintenance of a strata: what do I need to be aware of?

As was mentioned above, the maintenance of a strata is the responsibility of the owners corporation, which you will be a member of as a lot owner. The maintenance of a strata will require financing which tends to be made up of a series of levies that are agreed by the corporation. This is another dimension of strata living which many people are unfamiliar with, especially when experiencing it for the first time. The owners corporation will have to identify how much money is needed to maintain the strata in a given year, and agree with its membership to impose levies that will provide the necessary monies.

Your owners corporation will have the same kind of expenditure as most conventional householders. In other words, there will be local council rates, utility service (water and electricity) charges and public liability insurance for common areas. Additional costings can arise from time-to-time in a strata complex, such as in respect of resolving any dispute between scheme members or where building valuations are sought.

Dealing with strata issues: what happens if there is a dispute?

Strata schemes are not immune from property disputes, and there will be issues among lot owners from time-to-time in terms of whether or not something is permissible. Generally, it is the case that lot owners are able to do anything with the property that they themselves own, i.e. within the four corners of your lot. The situation is different in respect of common property, where any changes made must be compliant with scheme by-laws. Any infringement of these rules will result in an actionable wrong. In the first instance, it is preferable that the parties discuss the issue amongst themselves, with a view to ensuring that the breach is remedied with as minimal effort as possible. However, in the event that a breach is disputed, then there may be a need to resort to more formal dispute resolution procedures by the owners corporation.

Speak to the experts on strata law

At Szabo & Associates, Solicitors we have developed specialist expertise in assisting clients who live in strata schemes understand the unique set of rules that apply to them. Given their marked difference from conventional housing, strata schemes can be difficult to understand as a concept, let alone the myriad of associated issues concerning their maintenance and administration. This is particularly so in the context of property disputes in strata schemes. If you are concerned that someone is breaching their obligations to the strata or is not taking their responsibilities seriously, contact the team at Szabo & Associates, Solicitors. Our specialist property lawyers are very familiar with strata schemes and have a great deal of experience working with clients to resolve disputes quickly and effectively. Contact us today and learn more about how we can assist you.