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Basic Introduction to "Strata Titles"
A strata title comes about when a structure on a property is divided into several (or at the very least more than one) separate units. In
Western Australia, the law regulating residential strata titles is the Strata Titles Act 1985 (WA) ("The Act). A "strata company" (see section 3 of the Act) is the
corporation created when a strata plan is registered: see sub-sections 32(1) and (2) of the Act. The role of a strata company is to administer and maintain the strata
property for the benefit of all of the unit holders and also to enforce the articles of the strata corporation.
Maintenance and Repairs
It is a unit holder’s responsibility to maintain and repair their own unit on the strata title property.
If the strata company is forced to maintain or repair a unit, the individual unit holder is liable for the cost to the company. A strata company representative may
enter a unit to carry out specific work if the unit holder has failed to do so. However, the strata company must first have requested (in writing) that the unit
holder carry out the repairs or maintenance and must also have given the unit holder reasonable notice (ie sufficient time) to comply. In the case of an emergency, a
strata company representative may forcibly enter a unit to carry out repairs, for example a water pipe bursting.
Negligence and Insurance
If a member of the general public, or a unit holder, is injured due to the negligence of the strata
company then the company could be found to be liable. For example, a tree-branch falls onto a parked car on the street. It has fallen from a tree growing on the
strata title’s common property. The strata company may be liable for the damage caused by the tree-branch if it was negligent in not pruning or maintaining the tree
in a safe or adequate manner. Thus, all strata companies have to insure themselves for public liability insurance, in case of an event like this.
Links
For more information on strata titles, see:
http://www.lsc.sa.gov.au/pamphlets/strata_and_community_titles.pdf
Comments from Tan and Tan Lawyers
There are more and more properties falling within the Strata Title Act in Australia. As space becomes a
premium, inner city land is being developed into Strata Title land for maximum benefit to land owners. Hence , it is important that we understand the rules governing
strata title units.
One of the most important rule is that developers of strata title units are not allowed to use funds
collected from potential buyers of strata developments for their building construction. Hence , if you sign a contract for a strata unit which is to be developed in
the future, the developer cannot use your moneys for any of the actual development of the strata property. These rules were implemented to ensure that unscrupulous
developers do not use your funds to commence a multi building development in the hope that they can attract other buyers before the development is completed.
It is important that before you sign any contracts to purchase an "off the shelf " development, a lawyer
be consulted to vet the purchase contract. Tan and Tan Lawyers have extensive experience in settling purchase of "off the shelf" strata development and will be glad
to provide advice.
On the lighter side
Q. Did you hear they just released a new
Barbie doll called "Divorced Barbie"?
A. Yeah, it comes with half of Ken's things and alimony.
Q. What's the difference between a bankrupt attorney and a pigeon?
A. The pigeon can still make a deposit on a Mercedes.
Timing Is Everything
Two lawyers are in a bank, when, suddenly, armed robbers burst in, waving guns and yelling for everyone to
freeze. While several of the robbers take the money from the tellers, others line the customers, including the lawyers, up against a wall, and proceed to take their
wallets, watches, and other valuables.
While this is going on, one of the lawyers jams something into the other lawyer's hand. Without looking
down, the second lawyer whispers, "What is this?"
The first lawyer replies, "it's the $100 I owe you."
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