As this title is comprised of buildings and land, any modification (extension, or demolition and rebuild) to the buildings shown on the strata plan will require the lot to be re-subdivided to show the current building configuration on the lot. So an owner who intends to add to an existing building on the strata plan, add a new building to the scheme, or rebuild will need to go through the subdivision process again and this will need the consent of the other owners in the strata scheme and new unit entitlements and titles will issue.
Built strata developments can only be created on parent green title lots.
Strata plans show the relative proportion of each owner’s share in the scheme. This is called unit entitlement and is set by a Licensed Valuer.
The Strata Titles Act defines unit entitlement as establishing the following:
- The voting rights of a proprietor
- The undivided share of each proprietor in the common property
- The proportion payable by each proprietor of contributions levied under Section 36 of the Act
In a built strata scheme, the unit entitlement of strata lots is calculated to take into account the capital value of buildings on strata lots, as well as the land (whether it is common property or individually owned).
- The benefit of built strata is that the cost to create titles is typically cheaper than Survey-strata. Developers often find this process easier to manage and is most used by builders.
- Services are in the ground when the Strata Scheme is registered and as such are automatically protected by implied easements
The issues which make it less attractive are:
- Building(s) need to be constructed first
- The site needs to be re-subdivided in the event the buildings change in the future
- The consent of the other owners is needed to change unit entitlements when the buildings are changed
- Titles do not issue until around 8 to 10 weeks after construction is complete due to council and Landgate timeframes.
- Council inspection of the buildings is required as part of the strata title process
- No building encroachments are allowed without easements