While some things are worth holding onto (we should perhaps keep our powdered wigs, glasses of scotch and leather inlaid mahogany desks), there are times when change should be warmly embraced with an enthusiastic high five.  Personally, my progressive approach to all things procedural leads me to like things simple and streamlined.  After all, time is money.  It never made any sense to me why, in this digital age, we persisted in the long-winded process of conveyancing.  For those of you who are unaware, this consists of one unfortunate soul physically heading down to a building on Grenfell Street, Adelaide, (at precisely 11:30am) whereupon the said person, would commence what is best described as an adult version of pass the parcel (minus the shiny wrapping and treats along the way).  Not only was this a mind-numbing task, it was an inefficient waste of time that could be better spent doing other things.

I say ‘was’ because soon this will be a thing of the past.  The recent launch of PEXA, the first national eConveyancing platform, means that I can envisage a time when a trip to Grenfell Street will only mean an afternoon of coffee, shopping and perhaps some chocolate.

With PEXA, conveyancing transactions will be undertaken online.  This means no more lines, conveyancing at a mutually agreeable time (between 9-5) and the immediate transfer of funds in real time!  Another important change is the responsibility of the conveyancer to sign your real property documents on your behalf.  This change places increased responsibility upon your Conveyancer and highlights the importance of selecting a Conveyancer with greater care.  As a rule it is critical to confirm that they are fluent with PEXA and willing to undertake transactions using this platform.  Furthermore, your Conveyancer should be a Certified Practising Conveyancer and a member of the Australia Institute of Conveyancers SA Division.

Welden & Coluccio Lawyers is excited to embrace this new challenge.  While we transition across to the new system, not all transactions will be immediately undertaken in this way (with the paper system remaining in some circumstances).  In spite of this, there can be no denying that this is a giant leap forward for the Australian legal profession.

In 2009 Strata Title divisions ceased in South Australia.  These divisions have effectively been replaced with Community Title divisions.

What is the difference between Strata Title and Community Title divisions?

Strata Title

A Strata Unit is defined by structural divisions of a building (ie the inside lining of the wall, bottom of a ceiling), not by reference to the land.  Common property is created as part of this plan and although it does not comprise or form part of a unit, it is usually a shared space (ie driveway, service area).

With Strata Titles, an Administrator is appointed to maintain the common property and enforce rules relating to the Strata Corporation.  All unit owners are automatically members of the corporation.  Funds are raised by contributions charged against all owners usually on a quarterly, half-yearly or annual basis.  Strata fees are calculated based on unit entitlement and capital value.

Building and Public Liability Insurance must be taken out by the Strata Corporation to cover the buildings and common property of the land.  The owner of the unit is personally liable for their own contents insurance.

Community Title

For a Community Title, the land is divided into Lots (as opposed to units) and common property is held in a similar way to Strata Titles.  However, the boundaries of a Community Lot do not necessarily relate to structural boundaries (as with a Strata Title), but rather the Lot measurements as specified on the plan.

With Community Titles a corporation is also appointed, comprising of the registered owners of the Lots.  The corporation is   responsible for the administration of the groups’ By-Laws (rules), maintenance and insurance of the common property.  The cost for the insurance over the common property is shared between the registered owners per their lot entitlement.  However, unlike with Strata Units, owners are responsible for the maintenance and insurance of any structures on their own Lot.  No owner is obligated to provide funds for maintenance to other Lot owners’ buildings.

It is important that potential buyers of properties under a Strata or Community Title clearly understand their obligations (and limitations) as owners prior to purchase.  Welden & Coluccio Lawyers are able to guide you through this process and support you through the sale or purchase of such a property while also ensuring a smooth transfer through our comprehensive conveyancing service.  For more information speak to Anna Arace or the team at www.welcolawyers.com.au .