Strata titles were first introduced in the early 1960s, where people who owned large plots of land wished to divide the land but some of that land needed to be shared for access-ways. One of the reasons for the introduction of the strata title was to create a mechanism whereby the banks could take security over a part of a high-rise development and finance people to buy flats and townhouses.

Dividing property in this manner means that there will always be a portion of the property for which all strata title owners are jointly responsible and so an owners corporation’ (with owners as members) is formed to handle the decision-making relating to that common property. Since alterations, maintenance and repairs to that common property are often required, levies need to be raised to pay for them.