5 Essential Reasons Why You Must Have A Strata Title
If you are a unit owner in shared property such as executive apartments, commercial buildings or penthouses, it’s important to have a strata title.
Here five points to make you understand why it is important to have a strata title.
Exercise Control over Property
To qualify to take part in the formation of a management corporation, which will have the authority to administer the affairs of the entire property on behalf of individual unit owners, you must have a strata title. Once you are registered with the management corporation, you can rest assured that your concerns will be addressed.
For example, the management corporation may make laws that set usage limitations in shared areas such as playgrounds, driveways, and footpaths. Until you are registered under the management corporation, you won't have a say in many things including the fixing of property, maintenance rates, and how the levies collected from such charges are spent.
Avoid Loss of Property In Case of Insolvency or Liquidation
In case the strata title of the building block that you live in is yet to be transferred to you, it follows that the common property on which it lies still belongs to the initial developer. If the developer becomes insolvent or is liquidated before you have obtained the strata title, then you risk losing your unit to the developer's creditors.
Because of the potential risk of loss, you should always ask the property developer to provide you with a strata title before you agree to any purchase deal.
Legal Proof of Ownership
If you are a landowner, you need to have a title deed to show for it. Likewise, if you own a condominium, flat or apartment in some subdivided property, you need to have legal documents to prove that it belongs to you.
For that reason, having a strata title will serve as the ultimate evidence that a section or block of the total aggregate units is indeed yours.
Right to Sell the Property Freely
In many cases, real property owners require a third party to administer the signing of a sales agreement. These third parties often charge administrative fees when negotiating deals. If you have a strata title you will not need to get the approval of a third party, if and when you choose to sell your property.
Form of Collateral for Creditors
Many creditors such as commercial banks require collateral when giving loans to their customers. When you need a financial boost, you can use a strata title as a dealing instrument to guarantee payment of bank charges for loans advanced.
For more information on strata titles, contact Strathfield Strata Management Pty Ltd.
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