Strata 101

This article is based on content from The WA Strata Magazine by LookUpStrata, published in May 2025, pages 36-37. For more information, visit The WA Strata Magazine.

Buying a Strata Property

Purchasing a strata property is different from buying a standalone (freehold) home. In a strata scheme, you own your individual lot, but you also share ownership of common property areas. These can include gardens, external walls, the roof, driveways, lifts and other shared spaces. 

With shared ownership comes shared responsibility, meaning all owners contribute to the upkeep, insurance and maintenance of these areas.

Understanding the Strata Company

When you buy a strata lot, you automatically become a member of the strata company. This is the collective group of all lot owners within the scheme.

The strata company is responsible for tasks such as:

• Managing and maintaining common property

• Overseeing the financial management of the scheme

• Enforcing the scheme’s by-laws

• Arranging insurance for the scheme, where required

While a strata company can have an Australian Business Number (ABN), it is not considered a company under the Corporations Act 2001 (Commonwealth). It is simply the legal entity that manages the strata scheme as a whole.

The Role of the Strata Council (Council of Owners)

The strata council, sometimes referred to as the council of owners, is made up of lot owners elected to represent the interests of all proprietors.

This group carries out the functions and powers of the strata company on behalf of all owners. The number of council members, how they are elected and how meetings are conducted are set out in the scheme’s 

by-laws. The council is responsible for many of the day-to-day decisions relating to the management and operation of the scheme.

Strata Manager

In some cases, the strata council may choose to appoint a Strata Manager to assist with the responsibilities of running the strata scheme. A Strata Manager can only act on behalf of the strata company if there is a written Strata Management Contract in place.

Depending on the contract, a Strata Manager may be responsible for tasks such as:

• Organising repairs and maintenance for common property

• Managing the scheme’s finances

• Maintaining records and documentation

• Providing information to lot owners and the strata company

• Scheduling and running the schemes Annual General Meeting

• Staying informed about, and complying with, relevant legislation

• Issuing notices when by-laws are breached

Final Thoughts

Buying into a strata property means becoming part of a shared community, with collective responsibilities and decision making. Understanding how the strata company, council, and strata manager operate will help you make informed choices and contribute positively to the management of the scheme. Whether you're a first-time buyer or adding to your portfolio, being aware of your rights and obligations will set you up for a smoother and more successful strata living experience.