Common Property Explained for Property Buyers
Common property is the shared area of a strata scheme — such as driveways, gardens, foyers, and external walls — that is owned collectively by all lot owners and managed by the owners corporation.
What Does Common Property Mean?
In a strata scheme, the property is divided into individual lots and shared areas known as common property. Common property includes anything outside the boundaries of an individual lot — typically external walls, roofs, driveways, stairwells, lifts, gardens, foyers, pools, and other shared facilities. Every lot owner in the scheme has a share in the common property, and responsibility for its upkeep falls to the owners corporation collectively.
The precise boundaries between a lot and common property are defined in the strata plan, which is a registered document lodged with NSW Land Registry Services. In some schemes, the boundary runs along the inner surface of exterior walls, meaning the walls themselves are common property. In others, the lot boundary includes the structural components. Getting this right matters when something goes wrong — because whether you or the owners corporation pays for a repair depends on where the damage falls.
For buyers, the condition and management of common property is just as important as the condition of the lot they're purchasing. A scheme with poorly maintained common areas, or an owners corporation that has deferred maintenance for years, can mean significant costs down the track — either through special levies or reduced capital value across the building.
Why This Matters for Buyers
When you buy into a strata scheme, you're not just buying the space inside your walls. You're also buying a share of the common property and an obligation to contribute to its maintenance. Your quarterly strata levies fund the ongoing upkeep of common areas, and the amount you pay is tied to the lot entitlement assigned to your lot.
The financial health of the common property tells you a great deal about the scheme's overall management. An owners corporation that has kept the common areas in good condition, maintained a healthy capital works fund, and addressed maintenance issues promptly is a sign that the scheme is well run. Conversely, crumbling foyers, leaking roofs, neglected gardens, or ageing lifts that haven't been serviced can signal years of deferred spending that will eventually come due — potentially through a special levy.
Disputes over common property are one of the most common sources of conflict in strata schemes. Whether a balcony is a lot or common property, who is responsible for waterproofing a terrace, or whether a leak in an external wall is the building's problem or the unit owner's — these questions can be genuinely complex, and they matter far more when there's a repair bill attached.
Before purchasing any strata property, reviewing the strata report, the strata plan, and the capital works fund balance will give you a reasonable picture of the state of the common property and the financial capacity of the scheme to maintain it.
Common Mistakes Buyers Make
Many buyers focus entirely on the lot they're purchasing and underestimate how much the condition of common property affects their experience and costs as an owner.
- Not reading the strata report before purchase — the strata report contains meeting minutes, maintenance records, levy history, and financial statements. Skipping it means buying without knowing whether the common property is in good shape or heading for a major spend.
- Assuming the owners corporation will fix everything — while the owners corporation is responsible for common property, they can only act on available funds and majority decisions. If the capital works fund is low and the majority vote against spending, maintenance can stall indefinitely.
- Not checking the capital works fund balance — a low capital works fund relative to the age and condition of the building is a warning sign. It can mean either a large special levy is coming or that maintenance has been deferred.
- Confusing lot features with common property — balconies, car spaces, storage cages, and driveways can be either lot property or common property depending on the strata plan. Buyers sometimes assume these belong to them outright without checking the plan.
- Overlooking aesthetic condition as a financial signal — peeling paint, cracked paths, and tired gardens aren't just cosmetic. They often indicate a scheme that has underinvested in maintenance, which tends to create larger problems and higher costs later.
How This Shows Up in the Illawarra
The Illawarra has a substantial stock of older strata units, particularly in coastal suburbs like Wollongong, Fairy Meadow, Thirroul, and Shellharbour. Many of these buildings were constructed in the 1970s and 1980s, and their common property — including roofs, waterproofing, lifts, and driveways — can be approaching or past the point of major expenditure. A well-maintained older building in this region is a solid buy; a poorly maintained one in the same price range can become a significant liability.
Coastal proximity adds another dimension. Salt air accelerates corrosion of metalwork, balustrades, roofing, and concrete in strata buildings. Buyers looking at beachfront or near-beachfront buildings in suburbs like North Wollongong, Bulli, or Coledale should pay careful attention to the condition of external common property and the maintenance schedule the owners corporation has in place for corrosion-prone materials.
In smaller strata schemes — which are common in the Illawarra, including townhouse groups and villa complexes in suburbs like Figtree, Dapto, or Albion Park — the dynamics of common property management can be more informal. Smaller schemes often have lower running costs, but disputes can also be harder to resolve when the committee is small and opinions are divided. Reviewing the meeting minutes in the strata report before purchase gives you a clear read on how the scheme is being managed.
Practical Takeaway
Before committing to any strata purchase, request and read the strata report. Pay particular attention to the maintenance history of common property, the capital works fund balance, recent meeting minutes, and any outstanding maintenance items. A walk-through of common areas before exchange is also worthwhile — trust what you can see as well as what the documents say.
Ask your solicitor or conveyancer to confirm the lot boundaries against the strata plan, especially for features like balconies, car spaces, and storage. Knowing what is genuinely yours versus what is shared helps you understand your rights and obligations as an owner — and avoids surprises after settlement.
If you're buying in an older coastal building, consider commissioning a building inspection that specifically covers the condition of external common property, including roofing, waterproofing, balustrades, and drainage. This is one area where a small upfront cost in due diligence can prevent a very large cost later.
Frequently Asked Questions
What is common property in a strata scheme?
Common property is everything in a strata scheme that sits outside the boundary of an individual lot. This typically includes external walls, roofs, foyers, stairwells, driveways, gardens, lifts, and shared facilities. It is owned collectively by all lot owners and managed by the owners corporation.
How do I know what is common property and what is part of my lot?
The strata plan — lodged with NSW Land Registry Services — defines the boundaries between each lot and the common property. Your solicitor or conveyancer can help you read the plan and identify what is included in the lot you're purchasing.
Who is responsible for maintaining common property?
The owners corporation is responsible for maintaining, repairing, and renewing common property. Costs are funded through strata levies paid by all lot owners. Individual owners are responsible for repairs within their own lot boundaries.
Can I make changes to common property?
Any work affecting common property requires approval from the owners corporation, typically by a majority vote at a general meeting. This includes things like installing a satellite dish on the roof, altering a shared garden, or making structural changes to an external wall.
What should I check about common property before buying?
Read the strata report carefully. Look at the maintenance history, the capital works fund balance, recent meeting minutes, and any outstanding maintenance items. A walk-through of common areas before exchange is also worthwhile — trust what you can see as well as what the documents say.
What is the capital works fund and how does it relate to common property?
The capital works fund (also called the sinking fund) is the reserve account set aside for major repairs and renewals to common property — things like re-roofing, repainting the building exterior, or replacing a lift. A healthy fund means the scheme can afford major works without hitting owners with a special levy.
Is this relevant to first home buyers?
Very much so. First home buyers often gravitate toward units and townhouses as entry points, and understanding common property — and its associated costs — is essential for making an informed decision. Low strata levies can be appealing, but they sometimes indicate an underfunded capital works account rather than an efficiently run scheme.
Can a buyers agent help with common property due diligence?
Yes. A buyers agent can help you interpret the strata report, identify red flags in the maintenance history or financials, and assess whether the condition of common property reflects fair value for the asking price. This due diligence step is one of the most valuable parts of the buying process for strata properties.
If you're considering a strata property and want to understand exactly what you'd be responsible for before signing, we're happy to help. Get in touch with The Shoreline Agency to talk through what the common property situation means for a specific property you're looking at.
