The continued and increasing use of strata title and community title is not only occurring because of the trend towards "community living", but also because planners, designers, surveyors, consent authorities, lawyers and a number of other consultants now have a better understanding of the legislation and how strata schemes, precinct schemes, neighbourhood schemes and community schemes interact.

Strata title and community title are mechanisms of land and building subdivision and management/governance of such land and buildings within the Torrens title system. You cannot have strata title or community title under old system title. Each state has its own legislation and they are all subtly different. There is a push for uniform legislation to be enacted across the states and territories, however, that will take time.

The first strata title Act in NSW, the Conveyancing (Strata Titles) Act 1961 (NSW), (which has now been repealed), provided the method of registration of land title to air space lots. Those air space lots became known as strata lots.

Before 1961, apartment or unit ownership in NSW was achieved by either:

• company title schemes — see Company title;

• lease schemes — where a developer or building owner leases the individual apartments for long-term leases (for example 99 years). See Long-term lease; or

• tenancy in common arrangements — where a group of people got together and acquired a building and put in place a co-ownership and management deed between them which set out the rights and obligations of those people living in the building. See Co-ownership.

None of these methods were from statutory systems and that is one of the reasons why the first strata title legislation was introduced in 1961. Strata title is now a well understood type of land-owning title within the Torrens title system.

The community titles legislation (which is a phrase practitioners use to describe the Community Land Development Act 1989 (NSW) and the Community Land Management Act 1989 (NSW) and their related Regulations) was designed to fill the vacuum between conventional methods of Torrens title subdivision and strata subdivision to enable shared property to be created within conventional subdivisions. It opened the way for community based living with houses and parks as opposed to an apartment building. Community title is now an acceptable type of land-owning title within the Torrens title system for finance security purposes and is understood by the major finance institutions in Australia.

The NSW Strata Scheme Laws (a term used to describe the Strata Schemes Development Act 2015 (NSW) and the Strata Schemes Management Act 2015 (NSW) and their related regulations) commenced on 30 November 2016. The new legislation replaced the Strata Schemes (Freehold Development) Act 1993 (NSW) and the Strata Schemes (Leasehold Development) Act 1986 (NSW), which are now combined in the one Act, and the Strata Schemes Management Act 1996 (NSW), together with their regulations.

The NSW Strata Scheme Laws are similar to the previous NSW legislation, but update some aspects of the strata laws to reflect modern standards and language. For example:

• there is a tightening of accountability and transparency for committee members and strata managers;

• communications may now adopt modern technology like email; and

• “proxy farming” is outlawed.

The language has been modernised, for example the “executive committee” is now the “strata committee”, and terms like “original proprietor” and “body corporate” are now replaced by “original owner” and “owners corporation”.

There are two major, and controversial, changes to the NSW Strata Scheme Laws. The first is to allow for a process of collective renewal of freehold strata schemes, by way of collective sale or redevelopment of the scheme, provided the processes are followed and at least 75% of the owners of the lots, other than utility lots, support the scheme: Pt 10, Strata Schemes Development Act 2015 (NSW).

The second major change is the introduction of mandatory defect inspection reports and a 2-year building bond for defects in the amount of 2% of the contract price for construction. The bond is to be provided by developers and lodged with the Commissioner for Fair Trading, Department of Finance, Services and Innovation as security against defective work. These defects provisions are due to commence on 1 July 2017 (see NSW Department of Fair Trading website): Pt 11, Strata Schemes Management Act 2015 (NSW).

The continued and increasing use of strata title and community title is not only occurring because of the trend towards "community living", but also because planners, designers, surveyors, consent authorities, lawyers and a number of other consultants now have a better understanding of the legislation and how strata schemes, precinct schemes, neighbourhood schemes and community schemes interact.

Strata title and community title are mechanisms of land and building subdivision and management / governance of such land and buildings within the Torrens title system. You cannot have strata title or community title under old system title. Each state has its own legislation and they are all subtly different. There is a push to uniform the legislation however that will take time.

In Victoria, prior to 30 October 1989 different types of subdivision were by governed by separate legislation.

The first form of land subdivision was the subdivision of residential land under provisions of the now repealed Local Government Act 1958 (Vic). This type of subdivision only allowed for the subdivision of land along horizontal boundaries.

Company share schemes began to appear in the early 1950s as a means of dealing with multiple ownership of a building. They continue to exist. See Company title subtopic.

The Transfer of Land (Stratum Estates) Act 1960 (Vic) was introduced to enable a subdivision for a three dimensional space, usually a building. There was a title for the common areas and this was separately owned by a service company.

The next stage was the Strata Titles Act 1967 (Vic), which introduced the concept of the body corporate. Separate titles were available for each unit and the body corporate came into existence by virtue of the plan of strata subdivision. Under the Transfer of Land (Stratum Estates) Act 1960 (Vic) owners generally acquired rights of use of a car parking or storage area by way of a contract with the service company, for example lease or licence. The Strata Titles Act 1967 (Vic) introduced the concept of these separate areas, constituting accessory units that had their own title and were owned by unit holders. Accessory units could only be transferred in conjunction with a transfer of the unit. However, strata titles were inflexible in that each unit had to contain a building, and common property always needed to be created.

The Cluster Titles Act 1974 (Vic) was introduced to overcome some of the inflexibility in the Strata Titles Act in that that it did not require the lot to contain a building but there still had to be a common property. Very few cluster developments were ever undertaken.

Since 1989, all methods of subdivision have been consolidated into the Subdivision Act 1988 (Vic) and now all subdivision of land is covered by this piece of legislation. All subdivision carried out before the Subdivision Act continues to exist under transitional provisions. A body corporate created on a cluster or strata plan will now be an owners corporation under the Subdivision Act. Schedule 2 of the Subdivision Act 1988 (Vic) preserves some features of the previous schemes for owners of strata and cluster titles, primarily relating to accessory or restricted unit as these are not available under the Subdivision Act 1988 (Vic).

Unlike many other jurisdictions, the system for subdivision under the current Victoria model does not differentiate between subdivisions of land, air space or buildings.

The continued and increasing use of strata title and community title is not only occurring because of the trend towards "community living", but also because planners, designers, surveyors, consent authorities, lawyers and a number of other consultants now have a better understanding of the legislation and how strata schemes, precinct schemes, neighbourhood schemes and community schemes interact.

Strata title and community title are mechanisms of land and building subdivision and management / governance of such land and buildings within the Torrens title system. You cannot have strata title or community title under old system title. Each state has its own legislation and they are all subtly different. There is a push for uniform legislation to be enacted across the States and Territories however that will take time.

The first community titles legislation was introduced in Queensland in 1965 with the enactment of the Building Units Titles Act 1965 (Qld). This Act enabled the subdivision of a building into separate lots and common property through the registration of a building units plan providing for the subdivision of a building into two or more storeys. The registration of the plan established a “body corporate”, comprising of the owners of the lots, to manage the common property. In 1973, the Group Titles Act 1973 (Qld) was passed which enabled the subdivision of land into lots and common property without the requirement of subdividing a building into two or more storeys.

Both Acts were repealed and replaced by the Building Units and Group Titles Act 1980 (Qld). This Act maintained the two types of plans. That is, a building could be subdivided into two or more lots on common property using a building units plan. Land could be subdivided into lots and common property using a Group Title Plan. A separate title was then issued under the Real Property Act 1861 (Qld), and subsequently after its repeal, the Land Title Act 1994 (Qld), for each lot showing the registered owner of the lot and that the owner of the lot owned a share of the common property in accordance with the relevant lot entitlement.

The Body Corporate and Community Management Act 1997 (Qld) fully replaced the 1980 Act except for those developments registered under the specified Acts referred to in s 326 of the Act. The Body Corporate and Community Management Act 1997 (Qld) contains core provisions dealing with the establishment of community titles schemes and their management. The Act is supplemented by a number of Regulation Modules. A Regulation Module is a set of regulations made under s 21 of the Act which provide the finite details for the management of the individual community titles scheme. There are currently five Regulation Modules in place:

• Standard Module — Body Corporate and Community Management (Standard Module) Regulation 2008 — intended primarily for residential units.

• Accommodation Regulation Module — Body Corporate and Community Management (Accommodation Module) Regulation 2008 — this module may be used where the units are intended primarily to be used predominantly for letting or residential purposes (long-term and short-term).

• Commercial Regulation Module — Body Corporate and Community Management (Commercial Module) Regulation 2008 — this is intended for offices, shops and industrial uses.

• Small Schemes Module — Body Corporate and Community Management (Small Schemes Module) Regulation 2008 — this module can only be adopted for basic schemes with six lots or fewer and where there is no letting agent for the scheme: reg 3 of the Body Corporate and Community Management (Small Schemes Module) Regulation 2008 (Qld).

• Specified two-lot schemes module — Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011 (Qld) — this module applies where there are only two (residential) lots in the scheme, the scheme is not part of a layered arrangement of community titles scheme, there is no letting agent for the scheme and the community management statement (CMS) for the scheme provides that the two-lot module applies: s 111C of the Body Corporate and Community Management Act 1997 (Qld).

Strata title is a mechanism of land and building subdivision within the Torrens title system. You cannot have strata title or community title under old system title. Each state has its own legislation and they are all subtly different. There is a push to uniform the legislation. However, that has not been done yet.

The first strata title Act in Western Australia, the Strata Titles Act 1966 (WA) (which has now been repealed), provided the method of registration of land title to air space lots. Those air space lots became known as strata lots.

Before 1967, apartment or unit ownership in Western Australia was achieved by either:

• company title schemes — see Company title;

• lease schemes — where a developer or building owner leases the individual apartments for long-term leases (for example 99 years). See Long-term lease; or

• tenancy in common arrangements — where a group of people got together and acquired a building and put in place a co-ownership and management deed between them which set out the rights and obligations of those people living in the building. See Co-ownership.

None of these methods were from statutory systems and that is one of the reasons why the first strata title legislation was introduced in 1967. Strata title is now a well understood type of land-owning title.

There is no community titles legislation in Western Australia.

The continued and increasing use of strata title and community title is not only occurring because of the trend towards "community living", but also because planners, designers, surveyors, consent authorities, lawyers and a number of other consultants now have a better understanding of the legislation and how strata schemes, precinct schemes, neighbourhood schemes and community schemes interact.

Strata title and community title are mechanisms of land and building subdivision and management / governance of such land and buildings within the Torrens title system. You cannot have strata title or community title under old system title. Each state has its own legislation and they are all subtly different. There is a push to uniform the legislation however that will take time.

In South Australia, provisions for the creation of strata titles were first inserted into the Real Property Act 1886 (SA) in the 1960s. Before that, apartment or unit ownership in South Australia was achieved by either:

• company title schemes — see the Company title subtopic;

• lease schemes — where a developer or building owner leases the individual apartments for long-term leases (for example 99 years). See Long-term leases; or

• tenancy in common arrangements — where a group of people got together and acquired a building and put in place a co-ownership and management deed between them which set out the rights and obligations of those people living in the building. See Co-ownership.

Company share schemes began to appear in the early 1950s as a means of dealing with multiple ownership of a building. Some continue to exist. See the Company title subtopic.

The strata titles provisions of the Real Property Act 1886 (SA) were repealed and replaced by the Strata Titles Act 1988 (SA).

The strata titles legislation introduced the concept of the strata corporation. Separate titles were available for each strata unit and the strata corporation came into existence by virtue of the deposit of the plan of strata division. The strata titles legislation also introduced the concept of unit subsidiaries, being rights of use of car parking or storage areas which were attached to and could only be transferred in conjunction with a transfer of the strata unit. However, strata titles were inflexible in that each unit had to contain a building, and common property always needed to be created.

The Community Titles Act 1996 (SA) brought greater flexibility, allowing the creation of community titles and the establishment of community corporations. Since 1 June 2009, no new strata titles can be created in South Australia. All new developments of this nature must be made under the Community Titles Act 1996 (SA). Existing strata title schemes are unaffected by this change and can continue to operate under the Strata Titles Act 1988 (SA), unless an application is made to convert them to community title schemes.

The continued and increasing use of strata title and community title is not only occurring because of the trend towards "community living", but also because planners, designers, surveyors, consent authorities, lawyers and a number of other consultants now have a better understanding of the legislation and how strata schemes, precinct schemes, neighbourhood schemes and community schemes interact.

Strata title and community title are mechanisms of land and building subdivision and management / governance of such land and buildings within the Torrens title system. You cannot have strata title or community title under old system title. Each state has its own legislation and they are all subtly different. There is a push to uniform the legislation however that will take time.

Company and leasehold based schemes were utilised before the introduction of strata titles legislation in the early 1960s under Pt XIA of the Conveyancing and Law of Property Act 1884 (Tas) and Sch 7 of the Conveyancing and Law of Property Act 1884 (Tas).

The Strata Titles Act 1998 (Tas) replaced the Conveyancing and Law of Property Act 1884 (Tas) provisions and introduced typical modern strata titles legislation.

Three types of schemes are permitted under the Strata Titles Act 1998 (Tas):

• strata schemes — the typical and most common form of strata development (s 5 of the Strata Titles Act 1998 (Tas));

• staged development schemes, allowing strata developments to proceed in a series of stages, with a master plan and disclosure statement providing prospective purchasers with full details of ongoing developments; and

• community development schemes, enabling a number of independent developments to be brought together to function as a single entity to meet particular community needs. For example, a community development scheme may contain a mixture of conventional housing for families, strata development for older people, retirement accommodation, shopping, business and recreational facilities.

The Recorder of Titles publishes a useful guide called “Strata Living in Tasmania” on the Department of Primary Industries, Parks, Water and Environment website with a general overview of the current strata laws, explaining the body corporate, common property, unit entitlements, insurance, and the dispute resolution process and including a chapter called “Answers to Some Commonly Asked Questions”.

In 1975, the concept of unit (strata) title was introduced into the Northern Territory through the passage of the Unit Titles Ordinance (NT) and the Real Property (Unit Titles) Ordinance (NT). Both these pieces of legislation were closely based on certain provisions of the South Australian Real Property Act of 1886 (SA).

In the Northern Territory, the relevant term "unit title" is used rather than "community title", "group title", "strata title" or "cluster title" as it is in other states.

The main pieces of legislation regulating the rights and responsibilities of owners of unit titles in the Northern Territory today are the:

• Unit Title Schemes Act (NT);

• Unit Titles Act (NT);

• Real Property (Unit Titles) Act (NT);

• Planning Act (NT); and

• Land Title Act (NT).

Together this suite of legislation governs the subdivision and registration of land into unit titles, condominiums and estate developments.

The Unit Title Schemes Act (NT) is the most recent legislation having being introduced in 26 May 2009, and has changed the landscape of unit title regulation in the Northern Territory. It governs all new unit title developments in the Northern Territory, after its commencement. The Unit Titles Act (NT) remains in force for unit titles developments created prior to the enactment of the Unit Title Schemes Act (NT). The Real Property (Unit Titles) Act (NT) also continues to apply, but only in relation to the registration requirements for developments that are still subject to the Unit Titles Act (NT).

The Unit Titles Schemes (Management Modules) Regulations (NT) prescribe three different types of management modules, which can be utilised by “small schemes” (a basic scheme with less than four unit owners) or “standard schemes” (a basic scheme with at least four unit owners) or a “higher scheme”. These management modules are intended to facilitate the formation, development and administration of unit title schemes and to regulate their operation.

The continued and increasing use of strata title and community title is not only occurring because of the trend towards "community living", but also because planners, designers, surveyors, consent authorities, lawyers and a number of other consultants now have a better understanding of the legislation and how strata schemes, precinct schemes, neighbourhood schemes and community schemes interact.

Strata title and community title are mechanisms of land and building subdivision and management / governance of such land and buildings within the Torrens title system. You cannot have strata title or community title under old system title. Each Territory has its own legislation and they are all subtly different. There is a push to uniform the legislation however that will take time.

In the ACT, strata title is commonly referred to as “unit title” unlike in most other jurisdictions. Unit title property in the ACT includes flats, units, apartments or townhouses, and some office buildings and commercial properties are also unit title properties.

The key legislation for unit titles includes:

• Land Titles (Unit Titles) Act 1970 (ACT);

• Unit Titles Act 2001 (ACT);

• Unit Titles Regulation 2001 (ACT);

• Unit Titles (Management) Act 2011 (ACT);

• Unit Titles (Management) Regulation 2011 (ACT); and

• Unit Titles (Management) Transitional Provisions Regulation 2012 (ACT).

The Land Titles (Unit Titles) Act 1970 (ACT) and Unit Titles Act 2001 (ACT) govern arrangements under which land in the ACT can be subdivided into units and associated common property.

The Unit Titles (Management) Act 2011 (ACT) governs the management of unit plans.

Whenever a practitioner has a matter involving a strata lot or common property, it is imperative that the strata plan itself is examined. The strata plan is a plan that is registered at the relevant titles office (for NSW, this is the LPI)) to subdivide land and the buildings/structures on the land. While a strata plan can subdivide more than one lot in a deposited plan to create the strata parcel, they must be contiguous lots. Strata title subdivision can be of a freehold parcel or a leasehold parcel of Torrens title land.

The strata plan must create two or more strata lots plus the common property. Strata lots are parcels of "airspace" within a building that are bounded by the upper surface of the floor, the inner surface of the walls and the lower surface of the ceiling. Internal walls within a strata lot, although they are physical structures and not airspace, are usually part of the lot unless otherwise so defined on the strata plan. All strata lots have a separate certificate of title and are capable of being owned by different entities. The "common property" is everything within the strata scheme's parcel of land that is not comprised in a strata lot (for example, the common stairwells, entry foyers, lifts, central air-conditioning plant and structural components of the apartment building).

The strata plan contains information regarding the area of the strata lots, whether or not areas such as balconies, courtyards or planter boxers are part of a strata lot or form part of the common property, and also sets out the unit entitlement for each strata lot. The unit entitlement represents the proportionate value that each lot has to the aggregate of all lots. This value is then used to calculate voting rights and the amount of the levies payable by each lot owner in that scheme.

Practitioners should note that strata lots must be sequential, starting at number 1. So, a 100 lot apartment block will have Lots 1 — 100 in SPxxxxx. The common property title does not have a number; it has the reference “CP”. So the folio identifier for the common property title is CP/SPxxxxx. The “common property” is everything within the strata scheme’s parcel of land that is not comprised in a strata lot (for example, usually the common stairwells, entry foyers, lifts, central air-conditioning plant and structural components of the apartment building).

The owners of the strata lots collectively make up the body corporate (also known as the “owners corporation”). The ownership of the common property vests in the body corporate. There will always be some common property created in a strata scheme.

The owners corporation has, for its corporate name, “The Owners — Strata Plan No. xxxxx” (the number inserted being that of the strata plan given on registration of the strata plan). The registered proprietor of the common property is “The Owners — Strata Plan No. xxxxx”.

See Understanding the titles — strata lot and common property.

Whenever a practitioner has a matter involving a lot (note that in Victoria it is referred to as a “lot” rather than a “strata lot”) or common property, it is imperative that the plan of subdivision itself is examined. The plan of subdivision is a plan that is registered at the relevant titles office (for Victoria, this is Land Victoria) to subdivide land and the buildings / structures on the land.

In Victoria, the plan of subdivision contains information regarding the area and boundaries of each lot, the lot liability and entitlement of each lot and the total lot liability and entitlement for all lots on the plan. Lot liability is the proportion of the expenses incurred by the owners corporation that are borne by a particular lot. Lot entitlement reflects the lot owners’ share of ownership in the owners corporation’s assets which primarily comprises the common property. Lot entitlement will also determine voting rights.

The "common property" is everything within the plan of subdivision that is not comprised in a lot (for example, the common stairwells, entry foyers, lifts, central air-conditioning plant and structural components of the apartment building).

The collective owners of the lots make up the owners corporation (note that prior to the Owners Corporations Act 2006 (Vic) the owners corporation was known as the “body corporate”). The collective owners of the lots make up the owners corporation. The owners corporation will be incorporated upon registration of the plan of subdivision and any common property shown on the plan will be owned by the members of the owners corporation in the shares shown as lot entitlement on the plan. However, in Victoria, it is not compulsory for there to be common property in a plan of subdivision.

The owners corporation has for its corporate number, “Owners Corporation — Plan No xxxx” (the number inserted being that of the plan of subdivision).

See Understanding the titles — strata lot and common property.

A community titles scheme consists of at least two lots and common property. To create a community titles scheme, the original owner must prepare and lodge a plan of survey and a first community management statement (CMS): s 24(1) of the Body Corporate and Community Management Act 1997 (Qld). The approval of the relevant local government must be obtained for both the plan of survey and the community management statement: s 60 of the Body Corporate and Community Management Act 1997 (Qld). Section 66 of the Body Corporate and Community Management Act 1997 (Qld) sets out the information that must be contained in the CMS. This includes, among other things:

• a description of the scheme land;

• the name for the scheme (for example, “McIntyre Community Titles Scheme No 1578”: s 22 of the Body Corporate and Community Management Act 1997 (Qld));

• the name of the body corporate (for example, “Body Corporate for McIntyre Community Titles Scheme No 1578”: see s 33 of the Body Corporate and Community Management Act 1997 (Qld));

• the unique identifying number for the scheme, allocated under s 115E of the Land Title Act 1994 (Qld) (not required in the first CMS);

• identification of the Regulation Module that applies to the scheme: s 21(4) of the Body Corporate and Community Management Act 1997 (Qld). Note that the Standard Module will apply if the CMS fails to identify any module;

• the by-laws for the scheme (unless the by-laws in Sch 4 of the Body Corporate and Community Management Act 1997 (Qld) are adopted). The by-laws are the internal management rules for the community titles scheme; and

• contribution schedule and interest schedule entitlements.

On registration of the plan and CMS, a body corporate for the scheme is established: s 30 of the Body Corporate and Community Management Act 1997 (Qld). The land will be subdivided into lots and common property and separate indefeasible titles will be created for each lot and common property. The members of the body corporate are the owners of the lots within the scheme: s 31 of the Body Corporate and Community Management Act 1997 (Qld).

See Understanding the titles — strata lot and common property.

Whenever a practitioner has a matter involving a strata lot or common property, it is imperative that the strata plan itself is examined. The strata plan is a plan that is registered at Landgate to subdivide land and the buildings/structures on the land. While a strata plan can subdivide more than one lot in a deposited plan to create the strata parcel, they must be contiguous lots.

Strata title subdivision only applies to freehold parcels of Torrens title land. There is no leasehold strata in Western Australia.

The strata plan must create two or more strata lots plus any common property.

The strata plan contains information regarding the area of the strata lots, whether or not areas such as balconies, courtyards or planter boxes are part of a strata lot or form part of the common property, and also sets out the unit entitlement for each strata lot. The unit entitlement represents the proportionate value that each lot has to the aggregate of all lots. This value is then used to calculate voting rights and the amount of the levies payable by each lot in that scheme.

Practitioners should note that strata lots must be sequential, starting at number 1. So, a 100 lot apartment block will have Lots 1 — 100 in SPxxxxx. The common property title does not have a number. The “common property” is everything within the strata scheme’s parcel of land that is not comprised in a strata lot (for example, usually the common stairwells, entry foyers, lifts, central air-conditioning plant and structural components of the apartment building).

The collective owners of the strata lots collectively make up the body corporate (also known as the “strata company”).

The strata company has, for its corporate name, “The Owners — Strata Plan No. xxxxx” (the number inserted being that of the strata plan given on registration of the strata plan).

See Understanding the titles — strata lot and common property.

Whenever a practitioner has a matter involving a strata unit, community lot or common property, it is imperative that the strata or community plan itself is examined. The strata plan or plan of community division is a plan that is registered at the Lands Titles Office to subdivide land and the buildings/structures on the land. While a strata or community plan can subdivide more than one allotment in a deposited plan to create the strata or community parcel, they must be contiguous allotments.

The strata or community plan contains information regarding the area of the strata units or community lots, whether or not areas such as balconies, courtyards or planter boxers are part of a unit or lot or form part of the common property, and also sets out the unit or lot entitlement for each strata unit or community lot. The unit entitlement represents the proportionate value that each unit or lot has to the aggregate of all units or lots. This value is then used to calculate the amount of the levies payable.

Practitioners should note that strata units or community lots must be sequential, starting at number 1. So, a 100 lot apartment block will have Lots 1 — 100 in SPxxxxx or CPxxxxx. The common property does not have a lot number but will have its own certificate of title. The “common property” is everything within the scheme's parcel of land that is not comprised in a strata unit or community lot (for example, the common stairwells, entry foyers, lifts, central air-conditioning plant and structural components of an apartment building).

The collective owners of the strata units or community lots make up the body corporate (known as the "strata corporation" or "community corporation", as appropriate). The ownership of the common property vests in the corporation. There will always be some common property created in a strata or community scheme.

The corporation has, for its corporate name, "Strata Corporation No. xxxxx Incorporated" or “Community Corporation No xxxxx Incorporated” (the number inserted being that of the strata or community plan given on registration). The corporation is the registered proprietor of the common property.

See Understanding the titles — strata lot and common property.

Review of a strata lot or common property should begin with examination of the strata plan itself is examined. The strata plan as registered at the relevant titles office, defines the subdivision of the land and the buildings/structures on the land.

The strata plan must create two or more strata lots and common property.

The strata plan contains information regarding the area of the strata lots, whether or not areas such as balconies, courtyards or planter boxers are part of a strata lot or form part of the common property, and also sets out the unit entitlement for each strata lot. The unit entitlement represents the proportionate value that each lot has to the aggregate of all lots. This value is then used to calculate voting rights and the amount of the levies payable.

The collective owners of the strata lots make up the body corporate (also known as the "owners corporation"). The ownership of the common property vests in the body corporate. There will always be some common property created in a strata scheme.

The “common property” is everything within the strata scheme's parcel of land that is not comprised in a strata lot (for example, the common stairwells, entry foyers, lifts, central air-conditioning plant and structural components of the apartment building).

The owners corporation has, for its corporate name, for instance "The Owners — Strata Plan No. xxxxx" (the number inserted being that of the strata plan given on registration of the strata plan). The registered proprie-tor of the common property is "The Owners — Strata Plan No. xxxxx".

See Understanding the titles — strata lot and common property.

In the Northern Territory, unit titles are those titles where there is a sharing, between the owners of at least two units of the property, of common property, assets and of rights and responsibilities regarding the property as a whole. Under the unit titles system, common property is owned by a body corporate in which each unit owner is a member of the body corporate.

A unit title scheme is formed after a development permit (or exceptional development permit) for the subdivision of land has been issued and a plan of subdivision for the land or a plan of consolidation, together with a first scheme statement, have been registered under the Land Title Act: s 4(2) , Unit Title Schemes Act (NT). Accordingly, when a Northern Territory lawyer is handed a matter involving unit title, it is imperative that the lawyer peruses the plan of subdivision and the first scheme statement: Pt 4 Div 4 of the Land Title Act (NT). s 4(2), Unit Title Schemes Act (NT), Pt 4 Div 4, Land Title Act (NT)

The common property of a scheme is described by legislation to be “the part of the scheme land specified as the common property in the scheme statement” which cannot be “a unit or part of a unit or a body corporate asset” (ie essentially the common stairwells, entry foyers, lifts, central air-conditioning plant and structural components of the apartment building): s 33 , Unit Title Schemes Act (NT). See also ss 4 and 18 of the Unit Title Schemes Act (NT). s 4, Unit Title Schemes Act (NT), s 18, Unit Title Schemes Act (NT)

The collective owners of units are each a member of a scheme’s body corporate. The body corporate is formed following the registration of the first scheme statement under the Land Title Act (NT). Each member of the scheme’s body corporate are the owners of the lots within the scheme: ss 11 , 24 of the Unit Title Schemes Act (NT). s 11, Unit Title Schemes Act (NT) , s 24, Unit Title Schemes Act (NT)

A first scheme statement must contain the following information for it to be successfully registered:

• a description of the scheme land by reference to each plan of subdivision and plan of consolidation to which the scheme relates;

• a description of the nature and purposes of the scheme;

• a description of the units and common property;

• the entitlement schedules and a statement of the basis of any inequality between the unit entitlements of different units;

• if the developer intends the scheme to be developed progressively:

• if the scheme is a higher scheme or subsidiary scheme, the information prescribed by the regulations.

A first scheme statement may also specify:

• a name of the scheme (the scheme name) that ends with "Unit Title Scheme";

• a name of the body corporate (the body corporate name);

• the management module applying to the scheme;

• the by-laws of the scheme; and

• any other matters prescribed by the regulations (such as the information prescribed by r 4 in the Unit Title Scheme (General Provisions and Transitional Matters) Regulations (NT)).

See Understanding the titles — strata lot and common property.

In the ACT, an application for subdivision for the purposes of unit titling is made under the Unit Titles Act 2001 (ACT). The application will also be subject to the zoning conditions of the Territory Plan and, where staged development is occurring, the Planning and Development Act 2007 (ACT).

The lessee of a parcel of land may apply to the ACT Planning and Land Authority, part of the Environment and Sustainable Development Directorate (ACTPLA) to subdivide the land for the purpose of unit titling. The Application for Unit Title is an approved form made under s 180 of the Unit Titles Act 2001 (ACT). The Application for Unit Title must be for no fewer than, where one unit is superimposed on another — two units, or three units in any other case.

See Understanding the titles — strata lot and common property.

Community title is a type of Torrens title subdivision and is also a type of freehold ownership. When a community plan is registered (at the LPI for NSW), it subdivides the land into community property (always identified as "Lot 1" in the community scheme) and lots with each lot is given a folio identifier as it would in a conventional subdivision (for example, Lot 10 in community plan 270270 has a folio identifier of 10/270270). There is therefore no substantial difference in the transfer of ownership of a community title lot, a strata title lot or a traditional Torrens title subdivided lot.

A community plan, which is registered as a “deposited plan” and given a “DP” number by the LPI, must create at least two community development lots and must create one community property lot.

A community scheme is created and a community association formed on the registration of a community plan. The community association has, for its corporate name, “Community Association D.P. No 270xxx” (the number inserted being that of the deposited plan given on registration of the community plan).

The numbering of community development lots starts from lot 2 as lot 1 is always the community property.

This is different to strata title where the common property title is not given a number, but rather the initials “CP”, and the lot numbering for strata title starts at lot 1.

The "community property", also sometimes referred to as "common property", is everything else in the plan of subdivision (for example, access ways, parks and open space, privately owned service infrastructure, swimming pools, tennis courts, and club-house type facilities).

Community property vests in the community association upon registration of a community plan: s 31 of the Community Land Development Act 1989 (NSW). Community property is held by the community association as an agent for its members. The members are the owners of the community development lots.

A precinct plan is a type of deposited plan that is very similar to a community plan however it represents a layer of management of a defined area (ie, the "precinct") within the larger community scheme.

A neighbourhood plan is a type of deposited plan that is very similar to a community plan however it represents a layer of management of a defined area (ie, the "neighbourhood") within either a larger precinct scheme (which itself will be within a larger community scheme) or within a larger community scheme.

The main difference between a precinct plan and a neighbourhood plan is that you can further subdivide a precinct plan to create an additional layer of management (in the form of a neighbourhood scheme or a strata scheme) however you cannot further subdivide a neighbourhood plan to create an additional layer of management.

Neighbourhood schemes and strata schemes sit at the bottom of the layers of management in a multi-tier or multi-layer community scheme.

There are provisions within the community titles legislation for the creation of neighbourhood schemes which are stand alone subdivisions and not part of a community scheme. In these schemes, the neighbourhood plan subdivides the original parcel of freehold land to create neighbourhood property and lots available for separate use or occupation.

See Understanding the titles — Community development lot, precinct development lot and neighbourhood lot.

There are no equivalent concepts in Victoria.

A community titles scheme is established on registration of the survey plan and first community management statement (CMS). There are three types of survey plans (which create the lots in the community titles scheme:

• a building format plan (BFP) — which subdivides a building into lots and common property and defines land using the structural elements of a building, which are defined and limited by floors, walls and ceilings: s 48C of the Land Title Act 1994 (Qld). An example of this is a high rise building.

• A standard format plan (SFP) — which subdivides land into lots. It only becomes part of a community titles scheme if it also creates common property and defines land using a horizontal plane with reference to marks on the ground: s 48B of the Land Title Act 1994 (Qld). An example would be a gated residential community.

• A volumetric format plan (VFP) — A VFP defines land using three dimensionally located points to identify the position, shape and dimensions of each boundary surface: s 48D of the Land Title Act 1994 (Qld). The lots in the plan may be above or below, or partly above and partly below the ground surface.

See Understanding the titles — Community development lot, precinct development lot and neighbourhood lot.

There is no community titles legislation in Western Australia.

Community title is a type of Torrens title land division and is also a type of freehold ownership. After a plan of community division is deposited at the Lands Titles Office and divides the land into common property and community lots, a separate certificate of title is issued for each community lot and for the common property. There is therefore no substantial difference in the transfer of ownership of a community title lot, a strata title lot or a traditional Torrens title allotment.

A community plan, which is registered and given a "CP" number by the Lands Titles Office, must create at least two community lots and common property.

A community scheme is created and a community corporation formed on the deposit of a community plan. The community corporation has, for its corporate name, "Community Plan No xxxxx Incorporated" (the number inserted being that given on registration of the community plan).

The "common property" is everything else in the plan of community division (for example, access ways, parks and open space, privately owned service infrastructure, swimming pools, tennis courts, and club-house type facilities).

Common property vests in the community corporation upon deposit of a plan of community division: s 23 of the Community Titles Act 1996 (SA). Common property is held by the community corporation as an agent for its members: s 75 of the Community Titles Act 1996 (SA).

Community lots within a primary community plan can be further divided by secondary or tertiary plans of community division. Secondary and tertiary community plans create separate secondary and tertiary community corporations on top of the primary community corporation.

A plan of community division may include one or more “development lots”. A “development lot” is an area set aside for future staged development in accordance with a development contract: s 8, Community Titles Act 1996 (SA).

See Understanding the titles — Community development lot, precinct development lot and neighbourhood lot.

Tasmania enables Community Development Schemes under s 51 of the Strata Titles Act 1998 (Tas). A community development scheme must include two or more of the following elements:

• strata scheme;

• sealed plan;

• some other form of land division;

• establishment of a retirement village; or

• a marina or water based development.

The two or more required elements may be made up of multiple elements of the same kind, for example two sealed plans.

A community development scheme is documented by:

• a master plan;

• a management statement; and

• constituent documents for the body corporate, for example the by-laws.

See Understanding the titles — Community development lot, precinct development lot and neighbourhood lot.

There are no equivalent concepts in the Northern Territory.

Community title schemes in the ACT are governed by the Community Title Act 2001 (ACT). This legislation provides for land to be parcelled allowing for separate ownership of a primary lease, while having a shared interest and responsibility over common land on an adjacent crown lease. A community title scheme must include one or more lots that are common property and two or more lots that are not common property. Each lot under the community title scheme will have its own Certificate of Title and Crown Lease.

In the ACT, the land involved in a community title scheme must:

• be in a single area;

• not be divided by anything other than a road, a body of water (other than a lake within the meaning of the Lakes Act 1976 (ACT)), or an area defined by the relevant regulations; and

• be registered and include each of the lots involved in the scheme.

The common property of a community title scheme vests in the body corporate of that scheme, upon registration of the community title scheme against the title of each of the lots included in the scheme.

See Understanding the titles — Community development lot, precinct development lot and neighbourhood lot.

The collective owners of the strata lots make up the body corporate (also known as the “owners corporation”). The ownership of the common property vests in the body corporate. There will always be some common property created in a strata scheme.

The owners corporation manages the common property for and on behalf of all the owners of the strata lots. The owners corporation can engage third parties to look after administrative aspects, such as levy collection and repairs and maintenance.

The owners corporation must repair and maintain the common property in a state of good and serviceable repair for the benefit of all owners. The owners corporation must also hold a general meeting, at least once a year, to agree on a budget for the expenses for the scheme for the year ahead.

The collective owners of the community development lots make up the body corporate, (also known as the “community association”). This can become quite technical in NSW, as the community schemes legislation also has the flexibility to create “subsidiary schemes” — that is, additional layers of management — in the form of precinct schemes and neighbourhood schemes. Strata schemes can also be a part of a community scheme (in which case both the Strata title legislation and the Community title legislation will apply to that strata scheme).

Community property vests in the community association upon registration of a community plan: s 31 of the Community Land Development Act 1989 (NSW). Community property is held by the community association as an agent for its members.

The control, maintenance and management of community property is regulated by the by-laws contained within a document called the community management statement.

See Role of the owners corporation, community association, precinct association and neighbourhood association.

In Victoria, the owners corporation will be incorporated upon registration of the plan of subdivision and any common property shown on the plan will be owned by the members of the owners corporation in the shares shown as lot entitlement on the plan.

It is not necessary for all lots on the plan to be part of the owners corporation or be entitled to share in the common property. It is also possible to create more than one owners corporation but a lot cannot be affected by more than one owners corporation unless one of those is unlimited and the others are limited.

The Owners Corporations Act 2006 (Vic) impose a number of obligations and duties on the owners corporation, including obligations relating to the maintenance of the common property, insurance obligations and obligations to hold meetings. An owners corporation is entitled under the legislation to engage a manager.

An owners corporation is also required to issue an owners corporation certificate which is required to be provided in a vendor’s statement under s 32 of the Sale of Land Act 1962 (Vic).

There is no such concept of community development lots and community property in Victoria.

See Role of the owners corporation, community association, precinct association and neighbourhood association.

The body corporate comes into existence when the community titles scheme is created: s 30 of the Body Corporate and Community Management Act 1997 (Qld) (BCCMA). Pursuant to s 35(1) of BCCMA, the common property for the scheme is owned jointly by the owners of lots, as tenants in common, in shares which are proportional to their interest schedule lot entitlement. Common property is land in the community titles scheme which is not comprised in any lot: s 10 of BCCMA. Although ownership of the common property is vested in the lot owners, it is the body corporate which is vested with the power and duty to control the use, occupation and dealings with the common property: see s 35(6) , s 36 and s 94(1)(a) BCCMA. A body corporate is a separate legal entity and is capable of suing and being sued in its corporate name: s 33(2) BCCMA.

The functions, powers and duties of the body corporate are regulated by BCCMA, the community management statement (CMS), the applicable Regulation Module and the by-laws made under the Act. Section 94 of BCCMA sets out the general functions of the body corporate, which are as follows:

• administer the common property and body corporate assets for the benefit of the owners of the lots included in the scheme;

• enforce the community management statement (including any by-laws for the scheme); and

• carry-out the other functions given to the body corporate under this Act and the community management statement.

A body corporate may own real or personal property which does not become part of the common property: ss 11 and 45 of BCCMA. Such property is referred to as “body corporate assets”. The body corporate must repair and maintain the common property in good order and condition. Specifically, the body corporate is under a duty to administer, manage and control common property and body corporate assets reasonably and for the benefit of lot owners: s 152 of the BCCMA.

See Role of the owners corporation, community association, precinct association and neighbourhood association.

The collective owners of the strata lots make up the body corporate (also known “strata company”). The ownership of the common property vests in the body corporate. There will always be some common property created in a strata scheme.

Since there is no community title in Western Australia, there is no concept of a community association, precinct association and neighbourhood association.

See the Role of the owners corporation, community association, precinct association and neighbourhood association.

The collective owners of strata units in a strata title scheme make up the strata corporation. The ownership of the common property vests in the strata corporation. There will always be some common property created in a strata scheme.

The strata corporation manages the common property for and on behalf of all the owners of the strata units. The strata corporation can engage third parties to look after administrative aspects, such as levy collection and repairs and maintenance.

The strata corporation must repair and maintain the common property in a state of good and serviceable repair for the benefit of all owners. The strata corporation must keep all buildings and improvements within the scheme insured to their replacement value. The strata corporation must also hold a general meeting, at least once a year, to agree on a budget for the expenses for the scheme for the year ahead.

The collective owners of the community lots in a community title scheme make up the community corporation. This can become quite technical in South Australia, as the community titles legislation also allows secondary and tertiary schemes to be created — that is, additional layers of management.

Common property vests in the community corporation upon deposit of a community plan (see s 23 of the Community Titles Act 1996 (SA)). Common property is held by the community corporation as an agent for its members.

The control, maintenance and management of common property is regulated by the by-laws, which must be lodged with the application for community division.

See Role of the owners corporation, community association, precinct association and neighbourhood association.

The collective owners of the strata lots make up the body corporate (also known as the "owners corporation"). The ownership of the common property vests in the body corporate. There will always be some common property created in a strata scheme.

The owners corporation manages the common property for and on behalf of all the owners of the strata lots. The owners corporation can engage third parties to look after administrative aspects, such as levy collection and repairs and maintenance.

The owners corporation must repair and maintain the common property in a state of good and serviceable repair for the benefit of all owners. The owners corporation must also hold a general meeting, at least once a year, to agree on a budget for the expenses for the scheme for the year ahead.

See Role of the owners corporation, community association, precinct association and neighbourhood association.

In the Northern Territory, a body corporate is formed after a scheme statement is registered under the Land Title Act (NT). A body corporate is made up by the collective owners of the unit lots (in accordance with their interest entitlements) and enjoys ownership of the common property of the scheme land. A body corporate has the responsibility of managing the common property of a scheme land for and on behalf of all the owners of the unit lots. A body corporate can engage third parties to look after administrative aspects, such as levy collection and repairs and maintenance and can sue and be sued like any legal entity: ss 10(1) , 24 , 27 , 28 , 29 , 30 , 34 of the Unit Title Schemes Act (NT). s 10(1), Unit Title Schemes Act (NT) , s 24, Unit Title Schemes Act (NT) , ss 27-30, Unit Title Schemes Act (NT) , s 34, Unit Title Schemes Act (NT)

A body corporate must repair and maintain the common property in a state of good and serviceable repair for the benefit of all owners. A body corporate must also hold a general meeting, at least once a year, to agree on a budget for the expenses for the scheme for the year ahead: Unit Title Schemes (Management Modules) Regulations (NT).

There is no such concept of community development lots and community property in the Northern Territory.

In the Australian Capital Territory, the collective owners of the units make up the owners corporation. The owners corporation is formed upon registration of the units plan. The ownership of the common property vests in the owners corporation as agent for all of the unit owners. There will always be some common property created in a units plan.

A management statement (whether a community management statement, precinct management statement or neighbourhood management statement) has seven parts dealing with:

• the theme and essence of the development and the architectural and landscape standards and works;

• restricted association property (being areas within the lot 1 association property that are intended to be used by a specifically identified group of lot owners within the scheme) (this is similar to exclusive use and special privilege by-laws in the Strata title legislation);

• mandatory matters including fencing, garbage collection, insurance and meetings of the association;

• optional matters such as keeping animals, parking, signage, and laundry;

• by-laws required by authorities;

• definitions and interpretations; and

• plans.

The type of resolution required to amend or change a by-law will depend on which part of the management statement the by-laws comes under. For example, if the by-law is under the part of the management statement dealing with mandatory matters, the by-law can only be varied by special resolution. The types of resolutions are set out in the Community Land Management Act 1986 (NSW). See Interpreting and amending by-laws and management statements.

There is no equivalent concept of a management statement in Victoria.

In Queensland, the by-laws can be found in the community management statement (CMS) or if there are none contained in the CMS, then the by-laws set out in Sch 4 of the BCCMA will apply. The by-laws can be amended by the body corporate passing an appropriate resolution and recording a new CMS: s 62 of BCCMA.

See Interpreting and amending by-laws and management statements.

A management statement can be registered in relation to a strata scheme in Western Australia. A management statement has the effect of by-laws. A management statement is binding on the lot proprietors and the strata company. See Landgate’s Guide to Strata Titles, which is now current at April 2016.

In South Australia, a set of by-laws and a scheme description must be lodged with the Registrar-General together with the application for community division. A scheme description does not need to be lodged if the community plan does not create more than six community lots, does not create a development lot and the community lots are intended to be used solely or predominantly for residential purposes.

The purpose of the scheme description is to provide a brief description of the nature of the scheme to which the relevant development authority has given its consent.

The by-laws must be consistent with the scheme description. They can regulate the use and enjoyment of the common property, the purposes for which community lots can be used and the design, construction and appearance of buildings and landscaping.

The by-laws can be amended by a special resolution of the community corporation, unless the amendment affects the number of votes that may be cast in respect of each lot, in which case a unanimous resolution is required: see s 12 of the Community Titles Act 1996 (SA).

See Interpreting and amending by-laws and management statements.

Management statements are required in Tasmania for staged development schemes and community development schemes, but not for a standard strata scheme.

See Interpreting and amending by-laws and management statements.

In the Northern Territory, a scheme statement may specify by-laws which have been registered as being applicable to scheme land. These by-laws may be in relation to the obligations and rights of a body corporate, unit owners and unit occupiers as in regards to use or control of the scheme land, the body corporate assets and services & amenities provided by the body corporate.

If no by-laws are specified by a scheme statement, the by-laws specified in Sch 2 of the Unit Title Schemes Act (NT) apply: s 95 of the Unit Title Schemes Act (NT). Sch 2, Unit Title Schemes Act (NT), s 95, Unit Title Schemes Act (NT)