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The short answer
In Melbourne, a 'strata title' property is simply a home you own inside a larger complex, where you share parts of the land or building with your neighbours. You own your individual lot outright, and you also share ownership of the common bits, like hallways, driveways, lifts and gardens. Those shared parts are managed by an 'owners corporation' (many people still say 'body corporate'), which collects fees and looks after maintenance, insurance and rules.
That is the gist. The rest of this guide just makes it easier to picture how it works in real life across Melbourne's suburbs and the CBD.
How strata works in Victoria today
'Owners corporation' is the legal term
Victoria's laws use 'owners corporation' for the group that manages the shared areas. If you buy an apartment, unit or townhouse on a plan of subdivision with shared property, you automatically become a member. The owners corporation manages, administers, repairs and maintains the common property, as set out in the Owners Corporations Act 2006.
The plan of subdivision is the map
Every strata property sits on a plan of subdivision. That plan shows your private lot, any roads or reserves, and the sections marked 'common property'. Land Use Victoria registers these plans and any owners corporations created by them.
What counts as common property
Common property is whatever the plan says it is, often including gardens, passages, stairwells, lifts, foyers, driveways and similar areas not inside a private lot. These areas are collectively owned by lot owners as tenants in common and managed by the owners corporation.
Lots, voting and fees, in plain English
Lot entitlement and lot liability
Two numbers matter on your title:
Lot entitlement is your share for voting and ownership of common property.
Lot liability is your share of the bills the owners corporation needs to pay.
The developer sets these when the land is first subdivided. They appear on the plan of subdivision and can be changed by a unanimous resolution or by formal processes.
Annual fees and special levies
Owners corporations set annual fees to cover day to day costs like cleaning, gardening, insurance and administration. When big jobs come up, such as roof works or lift replacement, a special levy can be raised to fund the extra cost. There are rules about notices, payment plans and penalty interest for late payment.
A quick tip from the trenches: if the block has a lift, pool, extensive landscaping or complicated services, expect higher fees than a modest walk up in Brunswick or a two unit block in Reservoir.
Insurance
Except for many two lot subdivisions, the owners corporation must insure buildings on the common property for reinstatement and replacement. Your private contents and certain fixtures inside your lot usually sit outside this cover, so you will often need your own contents and, where relevant, landlord insurance.
Rules, meetings and managers
Rules for day to day living
All owners corporations have rules about things like noise, parking and pets. If your building has not adopted bespoke rules, the model rules in the Owners Corporations Regulations 2018 apply by default. Any new or changed rules should be registered with Land Use Victoria.
Meetings and finances by 'tier'
Since December 2021, Victorian law recognises five tiers of owners corporations, based on the number of occupiable lots. The bigger the complex, the tighter the reporting and audit requirements. For example, tier 1 corporations (more than 100 lots) need audited financial statements and a maintenance plan, while small tier 4 groups have lighter obligations.
Professional managers
Plenty of Melbourne blocks appoint a professional manager to help with budgets, maintenance and meetings. In Victoria, anyone carrying on business as an owners corporation manager for a fee must be registered by the Business Licensing Authority. You can check the public register before engaging or relying on a manager.
Buying a strata property in Melbourne: what to check before you sign
You will hear agents and locals say 'strata', but your contract will talk about an owners corporation and a plan of subdivision. When you are thinking of buying in Southbank, St Kilda, Coburg or Point Cook, a little paperwork homework pays dividends.
The Section 32 and the Owners Corporation Certificate
Victorian sellers must provide a Section 32 vendor statement before you sign a contract. If the property is affected by an owners corporation, the statement must include an Owners Corporation Certificate and supporting documents from the register. If a certificate is old, or things have changed, ask for an updated one before you commit.
What does the certificate and its bundle typically reveal? Fees and balances, special levies struck or proposed, insurance cover, any litigation, minutes and whether there are maintenance plans for bigger buildings. If those papers are thin, or the figures jump around, pause and ask questions.
Read the plan like a detective
Boundaries matter. A balcony might be part of your lot on one plan yet common property on another. The plan of subdivision is the final word on where lot boundaries sit and what is common property, so it shapes both your rights and your responsibilities. If you are unsure, have a professional explain it before you bid.
Fees, future works and the 'special levy' risk
Look for patterns in budgets and minutes. Are there big ticket maintenance items looming, such as façade rectification, roof replacement or lift upgrades, that could lead to special levies? Melbourne owners corporations can raise annual and special fees under the Act, with processes that depend on the amount and circumstances.
Tiers and two lot exemptions
A small block in Brunswick West with three townhouses will usually be tier 4, so the governance is lighter. A tower in Docklands is likely tier 1 or 2, with detailed financial statements and a maintenance plan. Two lot subdivisions, like many side by side duplexes in the north west, are exempt from many requirements and often self manage. Make sure that suits your appetite for hands on administration.
Confirm the manager's credentials
If a professional manager is involved, search the public register to confirm they are properly registered. It takes two minutes and gives you peace of mind.
Living well in a strata community
Simple habits that keep the peace
Communicate early. A quick email or a friendly word in the lift about noise, bikes in hallways or parking saves headaches later.
Log maintenance. Report issues through the manager or secretary and keep a note of dates. That paper trail helps if a defect drags on.
Budget for fees. Paying on time keeps the building healthy and avoids penalty interest. If cash flow is tight, speak up early about a payment plan.
When there is a disagreement
Start with the owners corporation's internal complaints process and the model forms. If that does not fix it, the Dispute Settlement Centre of Victoria offers free mediation. As a last step, VCAT can hear owners corporation disputes and make binding orders.
Common myths, gently debunked
'The body corporate owns my apartment.'
No. You own your lot just like a normal title, and you share ownership in the common property through the owners corporation. The owners corporation manages, it does not own your private lot.
'If something breaks, the body corporate pays for everything.'
It depends where the boundary sits. The owners corporation maintains common property and shared services. Your tapware and internal fixtures are usually yours to repair, while a leaking common pipe in a riser is an owners corporation job. Insurance follows a similar path.
'I can renovate anything inside my walls.'
Structural changes, changes that affect common services, or works that encroach on common property almost always need approval and sometimes a building permit. Check the plan and the rules before you book the trades.
'Company title and stratum title are the same as strata.'
They are different. Company title and stratum title do not involve an owners corporation and sit under different legal arrangements. They are less common in Victoria but still pop up in older buildings.
Jargon buster
Owners corporation: the group of lot owners that manages common property for the development. You become a member automatically when you buy a lot.
Common property: any part of the land, buildings or airspace marked as common property on the plan, often including foyers, lifts, driveways and gardens.
Lot entitlement: your share used for ownership and voting.
Lot liability: your share of the fees and charges.
Plan of subdivision: the official map that defines every lot and the common property, registered by Land Use Victoria.
Tier: a category for owners corporations that shapes financial and governance requirements.
Owners Corporation Certificate: a compulsory bundle for your Section 32 when selling a strata property, showing fees, insurance, minutes and more.
Real world Melbourne examples
Southbank high rise apartment.
Expect a tier 1 or 2 owners corporation. Fees are higher than a small block, because lifts, concierge services and complex mechanical systems all cost money to run. You will see detailed budgets, audited or reviewed statements, and a maintenance plan.
St Kilda art deco walk up.
Likely tier 3 or 4. Fewer moving parts means leaner fees, but roofs and façades still need love every so often. Ask whether a special levy is on the horizon for waterproofing or tuckpointing.
Two townhouses on one block in Pascoe Vale.
Often a two lot subdivision with legal exemptions and no professional manager. Great if both owners communicate well, tricky if they do not. You still need to insure appropriately and keep basic records.
A quick buyer's checklist you can use this weekend
Read the Owners Corporation Certificate and papers in the Section 32, and ask for an updated certificate if the one provided looks stale.
Scan minutes for special levies, building defects or cladding issues, and check the insurance summary for cover type and excess.
Confirm the manager is registered using the public register.
Look at the plan of subdivision to understand boundaries, balcony ownership and car spaces.
Ask which tier the building sits in, whether there is a maintenance plan, and how financial statements are prepared and reviewed.
If you want a second set of eyes, we are happy to help.
Final thought
Strata is not scary once you translate the jargon. You own a private home, you share some spaces, and you run those shared bits together through the owners corporation. Buy with your eyes open, keep the communication polite, and your Melbourne strata life can be straightforward.
Talk to Pearson Chambers Conveyancing
If you are weighing up a strata purchase or getting ready to sell, get a complimentary Section 32 contract review and advice tailored to your property. We help Melbourne buyers and sellers every day, from two lot subdivisions in the inner north to larger complexes across the CBD and bayside.
Email: contact@pearsonchambers.com.au