Strata title explained — what you actually own when you buy a NSW apartment

The short version

Strata title is the way NSW divides a single building or complex into individually owned lots — your apartment or townhouse — sitting on shared common property. When you buy, you own your lot outright, and you own a share of the common property together with every other owner. That shared ownership is run by the owners corporation, which you join automatically at settlement. So you're not just buying a home; you're buying into a small collective that has finances, rules and repairs of its own — all of which become partly yours.

What you actually own: your lot

Your lot is the part you own exclusively. In most NSW strata schemes the lot boundary runs along the inner surface of the walls, floor and ceiling — so, broadly, you own the space inside your apartment and the internal fixtures, while the structure around it is common property. That's the general position, but boundaries can be defined differently, so the strata plan registered for your building is the document that says precisely where your lot stops. Some lots also include a car space or storage cage, either as part of the lot or as a right to use part of the common property.

What you share: common property

Everything outside the lot boundaries is common property — typically the roof, the external and structural walls, the foundations, the shared pipes and wiring, the lifts, the lobby, the stairs, the driveway and the gardens. You don't own any of it individually; you own a share of all of it, held with the other owners. That's why the building's insurance, repairs and upkeep are a shared responsibility funded through levies, not something you sort out lot by lot.

The owners corporation

Every strata scheme has an owners corporation — all the lot owners together — which manages the common property under the Strata Schemes Management Act 2015 (NSW). Membership isn't optional: it comes with the lot at settlement. The owners corporation holds the building insurance, keeps the accounts, enforces the by-laws and votes on repairs and spending, usually through an elected strata committee and often with a professional strata manager doing the day-to-day work. The scheme itself is created under the companion Strata Schemes Development Act 2015 (NSW), which is where the strata plan and lot boundaries come from.

Your share: unit entitlements

Your slice of the scheme isn't guessed at — it's a fixed number called the unit entitlement, set on the strata plan and based broadly on the value of your lot relative to the others. It decides your share of the levies, your voting weight on a poll, and your share of the common property. Two apartments in the same building can carry quite different entitlements, so it's worth knowing yours before you assume your levies match the neighbour's. There's more in our unit entitlements guide.

The costs that come with it

Strata ownership carries a recurring bill. The owners corporation charges levies — usually quarterly — split by unit entitlement, feeding an administrative fund for day-to-day running costs and a capital works fund for major repairs down the track. When the funds can't cover a big job, owners can be hit with a one-off special levy, and that can land shortly after you buy. Our strata levies guide explains how both work and how a special levy can catch a new owner.

The rules that come with it

Each scheme has its own by-laws — the rulebook for pets, renovations, parking, noise and short-term letting. They bind you from settlement, whether or not you've read them, so if you have a dog, plan to renovate or intend to let the place out, check the by-laws allow it first. Our strata by-laws guide covers what the recent pet reforms changed and which renovations need approval.

Strata title versus a freehold house

Buying a freestanding house on its own block is usually Torrens title — you own the land and everything on it, and there's no owners corporation, no levies and no by-laws. Strata title trades some of that independence for shared upkeep: you get a building looked after collectively, but you also inherit its finances, its rules and its repair history. Neither is "better" — they're different, and the checks you do before signing differ too.

What to check before you sign

1. The strata plan. Confirm your lot boundaries, and that any car space or storage you're expecting is actually part of the lot — not just an informal arrangement.
2. The levies. The current quarterly figure and what it covers, budgeted in as a permanent cost.
3. The fund balances and any special levy. A thin capital works fund in an older building often signals a special levy ahead; ask whether one has been struck or discussed.
4. The by-laws. Pets, renovations, parking and letting — confirm they suit how you'll live before you commit.
5. The scheme's records. A strata records inspection and the section 184 certificate reveal arrears, disputes, insurance and looming works before you exchange.

Common questions

Do I own the land under my apartment?

Not individually. The land, like the structure, is common property owned by all the owners together in shares set by unit entitlement. You own your lot — broadly the space inside it — and a share of everything held in common, rather than a separate parcel of land.

Is strata title less secure than owning a house?

No — strata title is a full, registered form of ownership, and your lot is yours to sell, mortgage or live in like any other. The difference isn't security; it's that some decisions, costs and maintenance are shared with the other owners rather than yours alone.

Is a new strata building safer to buy into?

Not automatically. New schemes can have low levies early because few major repairs are due yet, but newer buildings carry their own risk — defects can drive special levies. See our guides on building defects in new strata and strata insurance for the extra checks.

Is strata the same as an owners corporation in Victoria?

The idea is the same — shared ownership of common property run collectively — but the law and the terms differ. Victoria calls the body an owners corporation and discloses it through the Section 32 vendor statement; see our Victorian owners corporation guide. For a full pre-signing run-through, the NSW contract review checklist pulls the strata checks together with everything else.