If you’ve recently bought into an apartment complex, townhouse, or any other shared living arrangement, you might be curious about common property.
Which parts of the property are considered ‘common,’ and which are private? Where exactly do the boundaries lie? Who is liable for what?
To keep you up to speed, we’re covering everything you need to know about private and common property in this post.
What is common property?
Common property refers to any portion of land or infrastructure jointly owned by lot owners in a shared complex.
In residential buildings, such as apartments, townhouses, villas, duplexes, and retirement villages, typical common property examples include:
- Structural: Foundations, main roofs, external boundary walls, retaining walls, load-bearing pillars.
- Access infrastructure: Walkways, stairs, lifts, lobbies, driveways, parking lots.
- Amenities: Swimming pools, gyms, barbecues, children’s playgrounds.
- Gardens: Landscaping, flower beds, hedges, shrubbery, vegetable gardens.
- Utilities: Plumbing, electrical wiring, gas lines, telecommunications cables.
Common property used for recreation and well-being is generally accessible to all lot owners. However, the Owners Corporation (OC), formerly known as a ‘body corporate’ in Victoria, may set certain rules governing its use, such as time and age restrictions.
In Victoria, all lot owners collectively own common property as ‘tenants-in-common,’ a legal framework that allows multiple people to co-own property. Ownership is allocated according to lot entitlement, meaning some lot owners may own a larger share of common property than others.
Who is responsible for common property?
Although the lot owners collectively own it, the OC is responsible for common property maintenance, repairs, and gardening, as well as investigating potential issues.
An OC will need to organise and fund maintenance for:
- Common areas: Stairwells, driveways, roads, footpaths, fences, railings and walls, gates, intercom systems, pools, gyms, barbeques, etc.
- Structural issues: Roofing, external walls, foundations, railings, balcony balustrades, waterproofing, external windows, and shared doors/entryways, etc.
- Utilities: Plumbing and drain cleaning (serving multiple lots), building-wide wiring, electrical systems, fire alarm systems, etc.
- Landscaping: Gardens, landscaping, vegetable gardens, etc.
The OC collects funds to cover maintenance costs through mandatory annual levies, which are typically charged quarterly. Lot owners vote on and approve budgets during an Annual General Meeting.
An OC can charge special levies for unexpected or urgent expenses, including maintenance and repairs. Special levies require formal approval through an ordinary or special resolution.
What is private property?
Private property refers to an individual unit, commonly known as a lot, belonging exclusively to one owner.
Private property includes interior components such as carpet, paint, fixtures, furniture, and fittings, as well as any associated areas specified on the Plan of Subdivision, including balconies, car parks, and storage cages.
Who is responsible for private property?
Lot owners are responsible for their own private property; any part of the building that is exclusively theirs. Therefore, lot owners must pay out of pocket to replace appliances when they break down, lay new carpets, and repaint interior walls, among other things.
Under Section 126 of the Owners Corporation Act 2006, lot owners are generally responsible for utilities that exclusively serve their property, even when located outside the boundaries of their property.
Lot owners are also responsible for any external areas not shared by others, such as an exclusive-use courtyard. Note that the Act obliges lot owners to adequately maintain any part of their property that is externally visible, which could include watering plants and trees.
Should a lot owner wish to alter the external appearance of their property, they must first acquire written permission from the OC.
How do you know what is common property and what is private property?
In Victoria, some shared structural elements, such as roofing and external walls, are not necessarily classified as common property. In some situations, they might be considered the private property of a specific lot owner.
The only way to know for sure is to review the Plan of Subdivision, a document that defines the precise boundaries between private property and common property. You may be able to obtain a copy from your OC Manager or a third-party service such as LANDATA.
Understanding lot entitlements
When reviewing the Plan of Subdivision, lot owners can also learn about their lot entitlements and liabilities.
Lot entitlement
Based on the relative market value of an individual lot compared to the total value of all lots. Lot entitlement is used for calculating interest on common property and voting power on resolutions.
Lot liability
Based on the size of the lot or the consumption of common utilities. Lot liability is used to calculate OC levies.
Expert OC Management That Goes Above & Beyond
Whether you need to define common property boundaries or access a Plan of Subdivision, AboveOCM is here to help. Our expert team of Chartered Accountants and SCA-Certified Strata Community Managers provides customised OC services and advice to help Victorian communities thrive.
Contact us today to start managing your OC the easy way.
