what is a community titles scheme

3 min read 22-12-2024

Meta Description: Unlock the secrets of Community Titles Schemes! This comprehensive guide explains what they are, how they work, the pros and cons, and what to consider before buying a property within one. Learn about responsibilities, levies, and more. Perfect for homebuyers and investors!

Understanding Community Titles Schemes

A Community Titles Scheme (CTS), also sometimes referred to as a community strata scheme, is a type of property ownership where multiple dwellings share common areas and facilities. Think of it as a shared ownership model, similar to a condominium or apartment complex, but often with a greater emphasis on shared land and recreational facilities. Instead of owning your individual unit outright, you own your unit and a share of the common property.

This differs significantly from freehold ownership, where you own the land your property sits on completely. In a CTS, the common property is jointly owned by all owners within the scheme, governed by a body corporate or similar management entity.

How Community Titles Schemes Work

The core of a CTS lies in its legal framework. Legislation governing community titles varies by location, but generally includes:

A community titles plan: This legal document defines the boundaries of each lot (individual unit), outlines common property areas (e.g., pools, gardens, driveways), and specifies the responsibilities of owners and the body corporate.
A body corporate: This is a legally constituted entity responsible for the management and maintenance of the common property. Owners are typically members, often electing a committee to oversee day-to-day operations.
Levies: Owners pay regular levies to fund the maintenance, insurance, and administration of the common property. These levies can vary depending on the size of your unit and the scheme's financial needs.

What is considered common property?

Common property in a CTS typically includes elements such as:

Gardens and landscaping
Swimming pools and recreational facilities
Driveways and car parks
External building structures and walls
Shared hallways and staircases

Advantages of Living in a Community Titles Scheme

CTS living offers several benefits:

Shared Responsibility: Maintenance of common areas is handled collectively, relieving individual owners of significant upkeep burdens.
Amenities and Facilities: Access to shared amenities like pools, gyms, and community gardens enhances lifestyle and convenience.
Security: Gated communities or other security measures are common in CTS, providing a safer living environment.
Potential for Capital Growth: Well-managed CTS can appreciate in value over time.

Disadvantages of a Community Titles Scheme

Potential drawbacks to consider:

Levies: Regular levies can be a significant ongoing expense. Unexpected special levies for major repairs can also arise.
Body Corporate Decisions: Decisions made by the body corporate can affect all owners, potentially leading to disagreements or conflicts.
Restrictions: Living within a CTS often involves adherence to rules and regulations governing everything from pet ownership to exterior modifications.
Limited Control: Owners have less control over the appearance and maintenance of common areas than they would with freehold property.

What to Consider Before Buying in a Community Titles Scheme

Before purchasing a property within a CTS, carefully review:

The Community Titles Plan: Understand the boundaries, responsibilities, and rules.
The Body Corporate's Financial Statements: Check their financial health and the history of levies.
The Body Corporate's Minutes: Review past decisions and identify potential ongoing issues.
The Scheme's Insurance Coverage: Ensure adequate insurance protects against unforeseen events.
The By-Laws: Understand the rules and regulations governing the scheme.

Frequently Asked Questions about Community Titles Schemes

Q: Who is responsible for repairs inside my unit?

A: You are responsible for repairs and maintenance inside your unit. The body corporate handles the common areas.

Q: Can I make changes to the exterior of my unit?

A: Usually, you'll need approval from the body corporate before making external modifications. They need to ensure it adheres to the overall scheme's aesthetic.

Q: What happens if I can't afford the levies?

A: Failure to pay levies can result in legal action from the body corporate.

Conclusion: Weighing the Pros and Cons of Community Titles

Community Titles Schemes offer a unique blend of shared responsibility and communal living. Understanding the legal framework, the responsibilities, and the potential challenges is crucial before committing to this type of property ownership. By carefully reviewing the scheme's documentation and asking pertinent questions, potential buyers can make an informed decision. Remember, thorough due diligence is paramount to a successful and enjoyable experience within a Community Titles Scheme.