Understanding Community Title in New South Wales
16th January, 2025
In New South Wales (NSW), Community Title allows owners to hold individual lots while sharing responsibility for common areas. These areas may include gardens, driveways, and recreational spaces. This concept is becoming increasingly popular, particularly in areas like the Northern Rivers, where eco-villages and sustainable living are gaining traction. If you’re considering purchasing property in a Community Title scheme, it’s important to understand the basics and the responsibilities involved.
What is Community Title?
Community Title allows individual property ownership while sharing the upkeep of common spaces. Unlike Strata Title, which applies mainly to apartment buildings, Community Title typically covers larger developments, such as eco-villages or gated estates.
In these developments, each owner is part of a community association. This association manages the common areas and infrastructure. A Community Management Statement (CMS) sets out the rules for the community. It ensures harmony and smooth operation within the development. Owners pay levies to maintain shared spaces, and the amount depends on the size and amenities of the development.
Benefits
Community Title offers a range of benefits for those seeking both private ownership and communal living:
- Cost-Sharing for Sustainability: Many schemes prioritise eco-friendly practices, such as solar panels, water treatment systems, and waste management. By sharing resources like these, residents reduce costs and collectively lower the community’s environmental impact, promoting sustainability across the development.
- Social Interaction and Support: Community schemes often encourage close-knit relationships. Shared spaces for socialising help foster strong support networks among residents.
- Private Ownership with Shared Amenities: Owners enjoy the benefits of private property while also having access to high-quality communal amenities. These can include gardens, recreation areas, and swimming pools, which might otherwise be unaffordable or difficult to maintain alone.
In a Community Title development, owners are responsible for their own property, just like in Torrens Title ownership. Torrens Title means an individual owns the land and buildings outright, without shared common areas. However, in a Community Title scheme, owners also contribute to the maintenance of shared spaces through levies. The levies vary depending on the size and amenities of the development. Special levies may also apply for major repairs or upgrades.
While owners maintain their own properties, they may also share responsibility for common infrastructure, such as private roads or community gardens.
By-Laws
Every Community Title scheme has its own set of by-laws. These rules ensure smooth operation and may cover:
- Use of shared spaces (e.g., parks, gardens, and clubhouses)
- Noise levels and conduct within the community
- Parking, renovations, and modifications to properties
Failure to follow these rules can result in fines or legal action. Therefore, it’s important to carefully review the by-laws before buying property in a Community Title scheme.
Why Choose Community Title?
Community Title offers a unique combination of private ownership and communal living. It’s ideal for buyers who value both privacy and social connection. Whether you’re considering an eco-village or a more traditional development, this model offers access to shared resources while maintaining your own private space.
At Bangalow Conveyancing, we can help you understand the Community Management Statement, review the by-laws, and clarify your financial obligations. Our expertise ensures a smooth and stress-free property transaction.
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