What to Expect When You Acquire a Strata Title
You have been saving for that big investment of your life and finally, the opportunity presents itself. A piece of property in an upmarket environment promising some good returns. What is the next step for you? Check out the place, transact and bingo! The title comes your way. It sounds straightforward until you need to process the legal implications of some of the types of property titles.
Some investors do not understand the legalities surrounding the items they buy. Don't be one of them! Take your time to learn about things like strata developments, as you rightfully should by reading the following piece:
Defining Strata Development
A strata development refers to a unique way of subdividing real estate property such as building and land to enable the ownership of different units by several individuals. Essentially, strata development projects are the solution for a property owner who cannot sell his whole property to one person but is capable of dividing it into several units that buyers can own individually. They are also the solution for buyers interested in small sections of a larger piece of property.
The Aspect of Common property
When you get a title for your strata lot, you agree to own a piece or pieces of larger property. So how do you access and use basic amenities like roads, shopping and entertainment areas without trespassing? Your answer is common property and assets. You can use these sections without fear of trespass because you co-own them with the other parties who have strata titles on that property. All of you own a proportionate interest in these facilities. It would help if you ensured that you have as much access to these facilities as is possible, just to be sure that you don't get a raw deal.
The Element of Self-Enforcement
Having a strata title makes you privy to the benefits and obligations that come with owning a strata lot within the larger property. For example, if the local councils charge certain fees for property owners in the area, then you must meet such obligations by owning a strata lot. Such obligations arise under the title. The councils do not need the services of third parties to help them enforce this.
Sinking Fund
Most strata titles will give rise to the need for a sinking fund. Here, you have to make periodic contributions to a fund set aside for the maintenance or replacement of a wasting asset. The fund covers significant repair works and upgrades required to maintain the property to the required standards.
