Understanding Common Property
A strata subdivision creates two types of ownership. Individual lots belong to their respective owners outright. Common property belongs to the owners corporation, with each lot owner holding a share. Shared driveways, visitor parking, garden areas, and building facades typically fall into the common property category.
This dual structure requires additional legal documentation. Your plan of subdivision must clearly delineate lot boundaries and common property boundaries. The surveyor's measurements become the legal definition of what each owner controls.
The Owners Corporation Framework
Every strata subdivision in Victoria must establish an owners corporation. This legal entity manages common property, collects fees, arranges insurance, and enforces rules. The owners corporation comes into existence when your plan of subdivision is registered.
We prepare the foundational documents that shape how your owners corporation operates. Model rules work well for simple two-lot subdivisions with a shared driveway. Larger developments with common buildings, lifts, or recreational facilities often need custom rules addressing specific maintenance schedules, access arrangements, and financial contributions.
Lot Entitlements and Liability
Each lot in a strata subdivision receives a lot entitlement and a lot liability. These numbers determine voting power and financial contributions. Lot entitlement typically reflects the relative value or size of each lot. Lot liability sets the proportion each owner pays toward common expenses.
Getting these allocations right matters. An unfair allocation creates ongoing disputes and can affect property values. We review the proposed entitlements against the development design and advise whether adjustments should be made before registration.
The Registration Process for Strata Titles
Registering a plan of subdivision for strata title follows a structured process. Your surveyor prepares the plan showing lot and common property boundaries. We review the plan, prepare owners corporation documentation, and lodge through the SPEAR system.
Land Use Victoria examines the application for compliance with the Subdivision Act and relevant regulations. They may raise requisitions requiring additional information or amendments. We respond to these queries and work to resolve any issues blocking registration.
Once approved, the Registrar of Titles creates new titles for each lot and registers the owners corporation. Your strata title registration in Victoria is complete, and individual lots can be sold or transferred.
Off the Plan Sales and Strata Developments
Developers often sell strata lots before construction finishes. Off the plan contract preparation in Melbourne for strata developments requires specific disclosure obligations. Buyers must receive the proposed plan of subdivision, draft owners corporation rules, and estimated fees.
We prepare contracts that comply with the Sale of Land Act and protect your position as developer. Clear contracts reduce settlement disputes and give buyers confidence in their purchase.