What is a Community Title
If you’re considering buying a property on a community title, it’s crucial that you have a comprehensive understand of what this can mean for your ownership of the property and how this kind of title could affect your future plans for the property.
Before you commit to buying a property, you need to understand precisely what kind of title you are acquiring. If your sale contract declares that the property you are looking to purchase is part of a community title, it is wise to ensure you understand what this means and how it will affect you going forward.
A common misconception is that a community title is another word for a strata title. However, there are differences between the two that affect how the property can be used and how it is managed. These differences are essential to understand as they will affect you in the long run. You must know What does conveyancer do that is very important to understand
What is a community title?
A community title is similar to a strata title in that when you buy a lot, you own that title and share the ownership and responsibility for common areas on the property. These common areas could be driveways or recreational land.
Properties on community titles are often found on large estates where common areas also refer to commercial and retail outlets.
How is a community title managed?
A community title scheme is managed by a body corporate, much like a strata title. The body corporate consists of all title owners. All common areas, including roads, promenades and parklands, are referred to as Association Property. Each body corporate member has the right to vote on issues or upgrades relating to these common areas. They are also obligated to contribute to any maintenance or insurance levies. Do you know conveyancer fees if not ask for conveyancing company
What are the differences between a strata title and a community title?
Maintenance and developments
When it comes to maintenance, rights and decision making, strata and community titles are the same. All owners must pay levies for upkeep, their share being determined by the size of their unit or lot. All owners also have voting rights in general meetings about any changes and developments. What is conveyancing you must know about it.
Boundaries
Strata titles generally apply to structures like apartment buildings, townhouses and duplexes, not estates. Therefore, the boundaries are defined by structural aspects of the building (such as the depth and height of walls and ceilings). A community title can include several buildings and a great deal of land. Therefore, lot entitlement and boundaries relate to surveyed land measurements.
Insurance
Another significant difference between strata and community titles are the required insurances. In community titles, each owner is responsible for insuring the buildings on their own lot, with no obligation on the owners to insure and maintain other lot owners’ buildings. The community corporation is only responsible for insuring buildings or common areas such as driveways and service infrastructure. What conveyancers do. There are so many things you must know
Insurance is compulsory in a strata title, covering building and public liability, including all common property areas managed by the body corporate. That means that the strata insurance covers the entire building structure, and each unit owner is only responsible for insuring the contents of their own unit.
Where community and strata titles overlap
In some instances, a community title can also include strata-titled buildings, such as if a large gated estate also offers apartments. That means that sometimes, the by-laws of both the strata scheme and community scheme apply to occupants. In that case, all by-laws in a community title scheme are detailed in Management Statement, which differs from each plan. As every community scheme varies, the by-laws are far less standardised than the strata scheme.
Benefits of a community title
A community title gives you shared ownership of common areas. Some of the benefits included in community title ownership can include:
- Use of facilities such as swimming pools, gyms, tennis courts, gardens, and recreational areas;
- Security patrols;
- Walking trails and bike paths;
- Community activities and events;
- A more significant say in the management of common facilities; and
- Community lots and facilities are covered by insurance.
Disadvantages of a community title
Though there are many benefits, there are also some disadvantages to a community title that you should be aware of before making a purchase. These include:
- High community levies;
- Standardised landscaping and buildings can mean restrictive rules and regulations for your lot; or
- The community association’s insurance covers no part of your personal lot.
When choosing between a strata title or a community title scheme, there are benefits and drawbacks that you will need to weigh carefully before deciding to buy. Your decision will ultimately depend on your personal preference.
Before committing to buy a community titled property, ensure you have a conveyancer look over your contract to ensure that you understand your obligations and responsibilities and that you are not paying for anything that you don’t need to.
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