Ownership of the Common Property

“Only a fool would say that”

Only a Fool Would Say That by Steely Dan

WHO OWNS THE COMMON PROPERTY? 

It is a common misunderstanding that the Strata owns the Common Property. This is not true no matter how many times it is repeated. The Strata does not own the Common Property. The Owners own the Common Property.

The Strata has powers regarding regulating the use of the Common Property under the Strata Property Act. However, this does not mean the Strata owns the Common Property. We have an article about the power of a Strata because of the Strata Property Act and the authority of a Strata to restrict access to portions of the Common Property.

HOW IS OWNERSHIP OF THE COMMON PROPERTY SHARED BETWEEN OWNERS?

The Strata Property Act provides that the Owners own the Common Property of the Strata as tenants in common in shares equal to the unit entitlement of the Owner's Strata Lot divided by the total unit entitlement of all Strata Lots.

WHAT ARE TENANTS IN COMMON?

The Common Property is owned by all Owners as "tenants in common".

Importantly, for an Owner, a tenant in common can sell their portion of real property without the consent of each other Owner. Otherwise, the sale of any Strata Lot would require the consent of every Owner of a Strata Lot.

Also, for a tenant in common, when they die their share in the property transfer to or through their estate and does not become the property of the other Owners.

THE STRATA DOES NOT OWN THE COMMON PROPERTY

The Common Property is owned by the Owners together as tenants in common. Each Owner’s share of the Common Property is equal to the unit entitlement of the Owner's Strata Lot divided by the total unit entitlement of all the Strata Lots.

The Strata manages the Common Property on behalf of the Owners. The Strata, however, does not own the Common Property.