At a Glance
Strata is a form of property ownership where you own your individual lot, such as an apartment or townhouse, and share ownership of common property, like the roof, lifts and gardens, with the other owners in your building.
- Owners corporation: every owner automatically becomes a member of the owners corporation, which is responsible for the shared parts of the building.
- Strata levies: owners pay levies, usually quarterly, into an administrative fund for day-to-day costs and a capital works fund for long-term maintenance.
- Your share: how much you pay is based on your lot’s unit entitlement, set out in the strata plan.
- Who runs it: decisions are made by the owners and an elected strata committee, usually with help from a professional strata manager.
- An NSW original: strata title was created in NSW in 1961, and the state now has more than 84,000 strata schemes.
If you’ve just bought your first apartment or townhouse, or you’re thinking about it, you’ve probably seen the word “strata” more in the past month than in your whole life before. It turns up in contracts, listings, levy notices and conversations with agents, usually without anyone stopping to explain it.
This guide explains it from the beginning: what strata means, why you pay levies, what you own, and who looks after your building.
What Does Strata Mean?
Strata is a form of property ownership where you own your individual lot, such as an apartment, townhouse or villa, and share ownership of common property with the other owners. Common property includes things like gardens, driveways, stairwells, lifts and the building’s structure. Every strata property in NSW belongs to a strata scheme, which the owners run together.
It’s an Australian invention, and a local one. Strata title was created in NSW in 1961 so people could formally own individual apartments, rather than shares in a company that owned the whole building. The model worked so well it spread around the world. Today, NSW Fair Trading counts more than 84,000 strata schemes across the state, home to more than 1.2 million people.
In NSW, strata is governed mainly by the Strata Schemes Management Act 2015, which covers how schemes are run, and the Strata Schemes Development Act 2015, which covers how they’re created and divided.
How a Strata Scheme Works
When you buy into a strata scheme, you automatically become a member of its owners corporation, the legal entity made up of every lot owner in the building. There’s no application and no opting out. It comes with the title.
Every scheme is set out in a strata plan, the registered plan that shows where each lot starts and finishes and what counts as common property. Each scheme has its own number, such as SP12345.
Each lot also carries a unit entitlement, a number reflecting that lot’s share of the whole scheme. Your unit entitlement determines two things: your share of the scheme’s costs, and the weight of your vote in certain decisions. A larger apartment typically carries a higher entitlement than a smaller one, so it contributes more.
Owning in strata doesn’t change what you can do with your own lot in the ways that matter most. You can live in it, rent it out or sell it. What changes is that the building around your lot is a shared responsibility. That brings obligations, but also real advantages, because you’re never carrying a major repair or an insurance premium alone.
Why Do You Pay Strata Levies?
If you’ve just received a levy notice and are wondering what it’s for, you’re not alone.
Strata levies, often called strata fees, are your share of the cost of running and maintaining the building. Because every owner shares the common property, every owner contributes to looking after it. Levies are usually paid quarterly, and they go into two funds.
The administrative fund covers day-to-day running costs, such as:
- building insurance
- cleaning and gardening
- electricity and water for common areas
- lift servicing and fire safety checks
- routine repairs
- strata management fees
The capital works fund saves for bigger, longer-term work, like repainting, roof replacement, lift upgrades or major fire safety works. NSW schemes must have a 10-year capital works fund plan, which helps owners save steadily rather than face large surprise bills.
Who decides how much you pay?
Levies aren’t set by the strata manager or anyone outside the building. The owners approve the budget and the levies at each annual general meeting (AGM). The total is then divided between owners according to unit entitlement.
What is a special levy?
If a large cost comes up that the funds can’t cover, such as an urgent repair, owners can vote to raise a special levy. A well-planned capital works fund makes special levies less likely.
Levies vs strata management fees
These two often get confused. Your levy is what you pay the owners corporation. Strata management fees are what the owners corporation pays its strata manager, and they’re just one line in the administrative fund.
To see exactly where the money goes, read our guides to understanding strata levies, how much strata fees cost, strata fees vs levies and what strata management costs in NSW.
What You Own and What You Share
The key idea in strata is the split between your lot and common property. Your lot is broadly the space you live in. Common property is everything shared.
In many NSW schemes, your lot boundary is the inside surface of your walls, floor and ceiling. But the boundary can vary from scheme to scheme, and your strata plan is what settles it.
| Usually part of your lot | Usually common property | Depends on your strata plan |
|---|---|---|
| Internal fittings and fixtures | Roof and external walls | Balconies and courtyards |
| Floor coverings and carpets | Foundations and structure | Windows and doors |
| Kitchen and bathroom fittings | Foyers, hallways and lifts | Pipes and wiring |
| Internal paintwork | Driveways and shared gardens | Car spaces and storage |
As a general rule, what’s inside your lot is yours to look after, and what’s shared is looked after by the owners corporation. For common repair questions, see strata repairs and maintenance: who is responsible?, plumbing in strata and who is responsible for fences in a strata scheme.
Who’s Who in Strata
Three groups keep a strata scheme running, and it helps to know which is which.
The owners corporation
Every owner, together. The owners corporation is legally responsible for the scheme: maintaining common property, insuring the building, keeping records and managing its finances. Big decisions are made by vote at general meetings, including the AGM every owner is invited to.
The strata committee
Because it isn’t practical to call a meeting of every owner for every decision, owners elect a strata committee, a small group of owners who handle day-to-day decisions between general meetings. Committee members are volunteers, elected each year at the AGM. From 1 October 2026, NSW committee members need to complete introductory training. Read more about strata committee training in NSW.
The strata manager
Most schemes also appoint a professional strata manager to handle the administration: issuing levy notices, keeping the books, arranging insurance, coordinating repairs and helping the scheme meet its legal obligations. Here’s our full guide to what a strata manager does. The short version: the committee decides, and the manager makes it happen.
Each year, owners corporations also report key details about their scheme through the NSW Government’s Strata Hub.
Living with By-Laws
Every scheme has a set of by-laws, the rules that make shared living work. They typically cover pets, renovations, noise, parking and use of common areas, and they apply to owners and tenants alike. They vary from building to building. One scheme might welcome pets with minimal fuss, while another might require approval first.
By-laws sound more intimidating than they are. Most exist for practical reasons, and most owners never have an issue with them. They’re also not fixed forever. Owners can change them by vote at a general meeting, which is how buildings adapt as their communities change.
It’s worth reading yours early, ideally before you buy. Our guide to strata by-laws explains how they work, and we’ve also covered pets in strata and getting renovation approval.
Insurance in Strata
The owners corporation must insure the building, including common property, and the premium is paid from the administrative fund. Building insurance doesn’t cover your own belongings, so owners usually arrange their own contents insurance, and landlords usually add landlord insurance.
Strata Title vs Other Property Types
If you’ve only ever owned or rented a freestanding house, the main contrast is with Torrens title.
| Title type | What you own | Shared areas managed by |
|---|---|---|
| Strata title | Your lot, plus a share of common property | Owners corporation |
| Torrens title | Your land and home outright | You (no shared areas) |
| Community title | Your own land, plus shared estate facilities such as private roads or parkland | Community association |
| Company title | Shares in a company that owns the building | The company’s board |
With Torrens title, there’s no shared property, no levies and no owners corporation, but you carry every cost and decision alone. With strata title, you share costs and decisions with your neighbours. That means less individual control, but shared responsibility when the roof needs replacing.
Neither model is better. They suit different properties and different lives. What matters is knowing which one you’re buying into. Read more about what strata title means and how community title differs from strata title.
Buying Into Strata? What to Check First
A strata property comes with a financial and legal history, and you can read it before you commit.
- Section 184 certificate: an official statement from the owners corporation covering the lot’s levies, the health of the scheme’s funds and other key details. You can request a certificate from us for schemes we manage.
- Pre-purchase strata report: goes deeper, drawing on the scheme’s records to show maintenance history, finances and any disputes. See why strata reports matter when buying, or book a strata search.
- By-laws: tell you whether the building suits how you want to live, especially if you have a pet or renovation plans.
- Recent AGM minutes: show how the scheme actually runs, what’s being discussed, what’s being put off, and whether upcoming special levies are likely.
None of this needs to be daunting. It’s simply due diligence, and it’s how buyers avoid surprises.
Talk to Jamesons
Strata can be complex. It doesn’t need to be overwhelming.
Jamesons has been helping NSW owners corporations since 1963, managing residential, commercial, mixed-use, industrial, retirement village and large strata schemes.
We have local teams across NSW, including Sydney CBD & Inner West, Eastern Suburbs, Parramatta & Western Sydney, Sutherland Shire, Wollongong and Newcastle. Find your nearest branch.
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Frequently Asked Questions
What does strata mean?
What does strata mean?
Strata is a form of property ownership where you own your individual lot and share ownership of common property, such as the roof, lifts and gardens, with other owners in the building.
Why do I have to pay strata fees?
Why do I have to pay strata fees?
Strata fees, or levies, cover your share of running and maintaining the building, including insurance, cleaning, repairs and saving for future major works. Every owner contributes because every owner shares the common property.
How are strata levies calculated?
How are strata levies calculated?
The owners corporation sets a budget at its AGM, and the total is divided between owners based on each lot’s unit entitlement, which is set out in the strata plan.
What is an owners corporation?
What is an owners corporation?
The owners corporation is all the lot owners in a strata scheme, acting together as one legal body. It’s responsible for managing and maintaining the common property.
What's the difference between strata and Torrens title?
What's the difference between strata and Torrens title?
With Torrens title, you own your land and home outright and look after it yourself. With strata title, you own your lot and share ownership and costs of common property with other owners.
Is strata the same as body corporate?
Is strata the same as body corporate?
Yes, broadly. “Body corporate” is the term used in some other states. In NSW, the equivalent is the owners corporation.
Do I need a strata manager?
Do I need a strata manager?
It’s not required, but most owners corporations appoint one to handle finances, repairs, meetings, insurance and compliance, which saves committee members significant time.
Who is responsible for repairs in strata?
Who is responsible for repairs in strata?
Generally, owners look after their own lot and the owners corporation looks after common property. Your strata plan sets out exactly where the boundaries are.
What is strata?
Strata is a form of property ownership where you own your individual lot, such as an apartment, and share ownership of common areas like the roof, lifts and gardens with other owners through an owners corporation.
What are strata levies for?
Strata levies pay for a building’s running costs and long-term maintenance. They go into an administrative fund for day-to-day costs and a capital works fund for major future work.
Who runs a strata building in NSW?
The owners corporation makes key decisions, an elected strata committee handles day-to-day decisions between meetings, and a professional strata manager is usually appointed to handle administration.
