How to Strata a Property in Tasmania: A Step-by-Step Guide

Strata title is a popular form of property ownership in Tasmania, especially for properties like apartments, townhouses, and commercial developments. It allows for shared ownership of common areas while individual ownership is maintained for private spaces. If you're considering strataing a property in Tasmania, it’s important to understand the process, costs, and the likely time frame involved.

Here’s a step-by-step guide on how to strata a property in Tasmania:

Step 1: Understand What Strata Title Is

Before embarking on the strata process, it’s important to understand what strata title means. In Tasmania, a strata title divides a property into individual lots (units or apartments) with shared ownership of common areas (such as hallways, gardens, and lifts). This structure is often used in multi-dwelling buildings.

Step 2: Assess the Feasibility of Strata Title

Not every property can be easily converted to strata. The property must be subdividable, and the existing structure should allow for the creation of separate units with shared common spaces. Factors to consider include:

Zoning: Check whether the property is in an area where strata subdivision is permitted under the local planning scheme.
Building Type: Multi-dwelling properties like apartment buildings or townhouses are typically suited to strata titles, but some commercial properties may be more complicated.

Step 3: Obtain Professional Advice

Before proceeding, it’s essential to consult professionals, including:

Contact the local council: Contact the local council and speak with the Planning Department. They will be able to let you know if the process if feasible and the best next steps.
Land surveyor: A registered land surveyor will be required to create the plan for the the strata which shows how the land will be divided into separate lots and common property. This plan submitted to the council for approval.
Building surveyor: A building surveyor will assess if there is any work that will need to be done to comply with current building codes. If work needs to be completed, then the building surveyor will then sign off on that work and the final paperwork/application can be made to the appropriate council.

Step 4: Apply for Planning Approval and Subdivision Approval

Strata subdivision in Tasmania requires approval from the local council. This process involves submitting an application for both planning approval and subdivision approval. The submission includes:

A detailed site plan outlining the layout of the lots and common property.
Any necessary environmental or heritage reports, if applicable.

The local council will review your application to ensure it complies with zoning laws and development controls.

Time Frame: Planning approval can take 4-8 weeks, depending on the complexity of the application and the local council’s workload.

Step 6: Form a Strata Scheme and Register the Strata Title

After the Strata Plan is created, you’ll need to set up a strata scheme, which involves:

Appointing a strata manager: This person or company is responsible for managing the day-to-day operations of the strata scheme, including the maintenance of common areas and enforcing strata bylaws.
Establishing bylaws: These rules govern the use of common property, maintenance responsibilities, and more.

Once the strata scheme is set up, you’ll need to register the strata title with the Land Titles Office in Tasmania.

Time Frame: This process typically takes 2-3 weeks.

Likely Costs Involved in Strata Title Creation

The costs of strata title creation can vary depending on factors such as the size and complexity of the property. Here are some typical expenses:

Surveyor Fees: Hiring a registered surveyor to prepare the strata plan can cost anywhere from $2,000 to $5,000, depending on the size and complexity of the property.
Strata Management Setup Fees: If appointing a strata manager, initial setup fees can range from $500 to $1,000.
Registration and Council Application Fees: The fees for registering the strata title with the Land Titles Office typically range from $1000 to $2000.

Total Estimated Costs: On average, strata title creation in Tasmania can cost between $15,000 -$30,000, depending on the scale and complexity of the property.

Time Frame for Strata Title Creation

The time frame for strata title creation in Tasmania typically spans 3 to 6 months. The exact time frame can vary depending on the speed at which the local council processes applications, the complexity of the strata plan, and whether any complications arise during the process.

Conclusion

Strataing a property in Tasmania can be a rewarding way to subdivide a property into multiple units, increasing its value and potential for rental or sale. By following these steps and working with the right professionals, you can navigate the process smoothly.

Remember to plan for both the costs and the time frame involved to ensure that you’re fully prepared to move forward with your strata project. With the right approach, you can transform your property into a more versatile and profitable asset!