Community title and strata title both describe property divided into individual lots that share common areas of the property and may share services.

Community title is far more complicated than strata title and can impose a greater financial burden on the lot owner. It was developed to deal with the growing complexity of multi-dwelling structures. Some schemes are so big that they even have their own postcode! One example of a famous community title scheme in NSW is Breakfast Point which is located in the heart of Sydney. This complexity makes it very important to understand the differences between the collective responsibility of all lot owners and your individual responsibility.

Sometimes you can have multiple strata plans and neighbourhood plans within one community scheme. Examples of community schemes include:

• gated communities;
• rural subdivisions;
• residential/commercial resorts; and
• retirement villages.

Each state and territory in Australia has its own legislation governing the area of community title and the law can be quite complex. For example if you own an apartment within a community scheme it will be covered by strata or unit title laws as well as community title laws. In a typical community scheme there can be many level. These are also called tiered or subsidiary schemes. The laws about who is responsible for what can be difficult to interpret as many different rules apply. For example if you own an apartment within a community scheme:

• under basic property law you are individually responsible for everything inside your lot. This is known as your air space;
• you have membership of the owners corporation under strata title law which is responsible for everything outside your lot such as the external walls, hallways, driveways, garages and other ‘common areas’ or ‘common property’;
• under community title law you are also part of an association that is collectively responsible for all common areas in the community. This is called ‘association property’ and may include:
  • roads;
  • garbage areas;
  • pools;
  • gyms;
  • club house;
  • tennis courts;
  • parks; and
  • gardens.

While there may be many benefits to living in a community title such as the shared cost of expensive facilities like a pool or gym it is important to remember that a community scheme is not suitable for everyone. It can bring with it lots of restrictions, obligations and social and legal complications. You need to fully understand your obligations and responsibilities before purchasing into a community scheme so you can decide if it is the right choice for you. Even if you are purchasing an investment property you will still need to ensure that your tenants are informed of and follow any by-laws (rules) and abide by the management statement of the scheme.

This Legal Guide on Community Title provides property owners in New South Wales with information about community title schemes. It may also be useful for people in other states or territories. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.