The legal framework for strata title schemes was an Australian legislative innovation, first used in New South Wales in the year nineteen sixty one. The concept of strata title was developed because there had not previously been a satisfactory solution for the ownership of units and apartments. Prior to the development of strata title in the year nineteen sixty one, the two main options for owning a flat were company title or tenancies in common. A company title consisted of a company that held the possessory interest in the land. Each owner of a lot on the land would own a share in the company that would give them the use of a residence on the property as well as an indirect interest (through their shareholding in the company) in the property itself.
A tenancy in common provided each owner with a separate, but not exclusive, interest in the land and then a separate contract would be drawn up to grant the tenant exclusive use of one of the residences on the jointly owned land. The main disadvantage with either of these forms of unit ownership when compared with strata title management type solutions that are used today is that banks were very reluctant to lend money on the basis of a unit owned through one of these schemes, and they did not provide a participant with a distinct and direct possessory interest in their lot – essentially, in terms of possession they treated all of the property as a common area and then layered agreements to allow owners exclusive enjoyment of bits of property that was legally common on top.
Today, there are a wide range of body corporate services that can be contracted out in order to make ownership of a lot within a strata title scheme essentially as simple as owning a detached property. As strata title schemes have become more and more popular, there has been an increase in both the size and the complexity of the sorts of properties in the market that are utilising strata title schemes under the Conveyancing (Strata Titles) Act 1961 (NSW) and the Strata Titles Act 1978 (NSW), or locally equivalent legislation.
The practical meaning of this is that there are now a much larger number of strata title properties that would benefit from the services of professional strata manager Sydney. Strata title managers are much better able to get to grips with the reams of lengthy and complex legislation and regulations that are applicable to strata title schemes than occupier managers, which decreases the administrative burden for occupiers within a strata title property and provides confidence that the strata title scheme is being managed effectively and in accordance with the relevant law. For this reason, more and more strata title schemes are making use of strata title managers to manage the legal and administrative aspects of their strata title scheme.