All to know about Strata Title!
When you own a strata name asset, you have character ownership over your rental or townhouse and
shared possession over the ‘common assets,’ such as the driveway, lobby, and garden. The
commonplace assets are then managed with the help of a legal corporation.
This legal entity might be known as a proprietors corporation, frame corporate, stratum corporation, or network corporation depending on the kingdom or area the assets are in and the type of scheme under which assets are organized.
More than 270,000 strata plan in Australia now, with more than 2 million lots. Caravan parks, serviced flats, retirement villages, and commercial, retail, and mixed-use properties can all be found beneath strata plans in Western Australia.
Why is it necessary for homeowners to have a strata name?
It’s critical to have the stratum name because:
• It is used as a fee device to banks for loans, and it acts as proof of possession of the rental/condo.
• The issue of the stratum name will prompt the creation of a management corporation (MC) with the help of the rental/condo owners.
• It serves as proof of your unit’s built-up area and the distribution of your share among the general combination units. This permits the upkeep expenses to be calculated with the help of the Management Committee.
• If the developer goes into insolvency or becomes insolvent, having a strata name might save you a lot of grief.
The essential outcome of any delay in issuing the stratum name is that, according to the strata name, the property legally belongs to the developer (or the registered proprietor). The owner of a home has the best use of their plots. This can get complex if, due to a perfect storm of events, the owner of a property discloses that they cannot prove ownership of their piece because the strata name is not recorded beneath their name.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
