What is Common Property: A Complete Guide for South Australians
When buying into a community title or strata title scheme, one important aspect to understand is the concept of common property. This refers to land or infrastructure shared by all owners within the development. It’s crucial for property buyers and owners to understand what common property entails, their rights and responsibilities, and how it is managed, especially in South Australia. In this guide, we will break down everything you need to know about common property, offering helpful insights for the layperson.
What is Common Property?
Common property is defined as any land or infrastructure within a community title or strata title scheme that is not privately owned by individual owners but is shared by all members of the scheme. According to South Australian law, common property is identified on the community or strata plan, and a certificate of title is issued in the name of the community or strata corporation that manages it.
This property can include areas such as:
- Shared gardens or courtyards
- Driveways and parking spaces
- Hallways, stairwells, and lobbies
- Recreational facilities like swimming pools or gyms
- External walls, roofs, and foundations of buildings
The key point to understand is that while you may own a private lot or apartment, the common property is collectively owned and managed by all owners within the scheme.
Community Title vs. Strata Title: What’s the Difference?
In South Australia, properties can be governed by either a community title or a strata title. Both systems involve the division of land into individual lots, with common property shared by all owners. However, there are some differences between the two.
- Community Title: This applies to land divisions where lots are individually owned, but certain areas (like streets, parks, or common facilities) are collectively owned. Community titles are often seen in townhouse developments or housing estates.
- Strata Title: This is more common in apartment complexes. The building itself is divided into individual units, but common areas like lobbies, stairwells, and exterior walls are owned and maintained by the collective.
Understanding whether your property is under a community title or a strata title is important, as it determines the scope of your responsibility and the role of the managing corporation.
Who Manages Common Property?
The management of common property falls to a community corporation (for community titles) or a strata corporation (for strata titles). These corporations are made up of all the property owners in the scheme and are responsible for the upkeep, repair, and insurance of common property.
The corporation will:
- Collect levies from owners to fund maintenance and repairs.
- Arrange for regular upkeep of shared spaces.
- Ensure compliance with safety regulations.
- Handle any disputes that arise regarding the use of common property.
Every owner within the scheme has a vested interest in the management of common property because its condition affects not only the enjoyment of the property but also its long-term value.
What Areas Are Considered Common Property?
It’s important to know which parts of a development are classified as common property. In South Australia, common property typically includes areas that all owners have access to and are responsible for maintaining.
Some typical examples include:
- Gardens and lawns: Shared outdoor areas that require regular maintenance.
- Driveways and parking areas: Spaces that all owners use but are collectively maintained.
- Hallways and lobbies: In apartment buildings, shared entrances, hallways, and foyers fall under common property.
- Recreational facilities: Pools, gyms, and other amenities shared by residents.
- Building exteriors: In a strata title, the external structure of the building (such as the roof, walls, and foundations) is often considered common property.
These areas are collectively owned by all property owners in the scheme, and decisions regarding their maintenance and use are made by the community or strata corporation.
Legal Rights and Responsibilities of Owners
When you own property within a community or strata title scheme, you have both rights and responsibilities when it comes to common property.
Rights:
- Access: As an owner, you are entitled to access all common areas within the property, whether it’s a garden, a lobby, or a swimming pool.
- Use of Facilities: You have the right to use any shared facilities or amenities, provided you follow the rules set by the corporation.
- Participation in Decision-Making: As a member of the community or strata corporation, you have a say in how common property is managed. This includes voting on repairs, upgrades, and budget allocations.
Responsibilities:
- Paying Levies: Each owner is required to pay regular levies to cover the cost of maintaining and insuring common property.
- Following Rules: The community or strata corporation may set rules about how common property can be used (for example, limiting noise in shared hallways or restricting the use of shared gardens). Owners must comply with these rules.
- Respecting Shared Spaces: As part of a community, owners have a responsibility to keep common property in good condition and to respect the rights of other residents.
Maintenance of Common Property: Who Pays?
Maintaining common property is one of the biggest responsibilities of a community or strata corporation. This includes everything from routine tasks like mowing the lawn or cleaning the hallways to more significant repairs like fixing a leaky roof or replacing a broken elevator.
The costs for maintaining common property are covered by the levies that each owner pays. These levies are determined based on the corporation’s annual budget and are typically divided according to the size or value of each owner’s property. Owners need to be aware that failure to pay levies can result in legal action by the corporation.
In South Australia, it is important for owners to actively participate in decisions regarding common property maintenance, as the quality of upkeep directly impacts the property’s overall value.
Disputes Over Common Property: How to Handle Them
Disagreements about common property are not uncommon. These disputes may involve issues like:
- The fairness of levies.
- The quality or timeliness of maintenance.
- Disagreements about the use of shared facilities.
If a dispute arises, the first step is usually to bring the issue to the community or strata corporation. In many cases, disputes can be resolved internally through discussion and negotiation. However, if a resolution cannot be reached, legal action may be necessary. In South Australia, property disputes can be escalated to the Magistrates Court or the South Australian Civil and Administrative Tribunal (SACAT).
Legal Framework Governing Common Property in South Australia
In South Australia, common property is governed by the Community Titles Act 1996 and the Strata Titles Act 1988. These laws set out the rights and responsibilities of property owners, as well as the role of community and strata corporations in managing common property.
Key provisions include:
- The obligation for corporations to maintain common property.
- The requirement for owners to pay levies.
- The process for resolving disputes over common property.
It’s important for owners to familiarise themselves with these laws to ensure they are complying with their legal obligations and fully understanding their rights.
Why Understanding Common Property is Essential
Understanding common property is crucial for anyone buying or living in a community or strata title scheme in South Australia. It affects not only how you use your property but also your financial responsibilities and your role in the community.
By being aware of your rights and responsibilities regarding common property, you can ensure that you’re contributing to the smooth running of your development and protecting the value of your investment.
For more information on common property and how it may affect your real estate decisions, contact the experts at Broadland Estates today.
When buying into a community title or strata title scheme, one important aspect to understand is the concept of common property. This refers to land or infrastructure shared by all owners within the development. It’s crucial for property buyers and owners to understand what common property entails, their rights and responsibilities, and how it is managed, especially in South Australia. In this guide, we will break down everything you need to know about common property, offering helpful insights for the layperson.
