When you buy an apartment or unit in Victoria, you do not own the entire building. You own a lot— the space defined by boundary lines on a registered plan of subdivision — and you share ownership of the common property with every other lot owner in the building. Understanding where your lot ends and common property begins is essential, because it determines who pays for repairs, who needs to approve renovations, and what you can actually do with the space.
How to read a plan of subdivision
The plan of subdivision is registered with Land Victoria under the Subdivision Act 1988 (Vic) and is included in your Section 32. It is the definitive document that shows:
- The boundary lines of each lot (usually drawn to the inner surface of walls, floors, and ceilings)
- Which areas are designated as common property
- Any exclusive use areas allocated to specific lots
- The location of car parks, storage cages, and other ancillary lots
Lot boundaries in apartment buildings typically run from the inner surface of the perimeter walls, the upper surface of the floor slab, and the underside of the ceiling slab. This means the structural walls, floors, and ceilings themselves are common property — not yours.
What is common property?
Common property is everything that is not within a lot boundary. Under the Owners Corporations Act 2006 (Vic), the Owners Corporation is responsible for managing and maintaining common property. Typical common property includes:
- Hallways, lobbies, stairwells, and lifts
- The building’s structural elements — external walls, roof, foundations
- Shared gardens, driveways, and paths
- Building services — plumbing risers, electrical mains, fire safety systems
- Swimming pools, gyms, and other shared facilities
As a lot owner, you pay OC levies to fund the maintenance and insurance of common property. Annual OC fees for a typical Melbourne apartment range from $2,000 to $8,000, depending on the building’s facilities and age. Check the OC certificate for red flags before committing.
What is your lot?
Your lot is the three-dimensional space defined by the boundary lines on the plan. Everything within those lines is yours to use, maintain, and modify (subject to planning permits and any restrictive covenants). This typically includes:
- Internal walls, fixtures, and fittings
- Kitchen, bathroom, and laundry fitouts
- Internal flooring (but not the structural slab beneath it)
- Windows and doors (in most plans, though check yours)
The grey areas: balconies, courtyards, car parks, and storage
This is where it gets complicated. Several areas in apartment buildings can be either part of your lot or common property, depending on how the plan of subdivision was drawn.
Balconies
In most Victorian apartment plans, the balcony is included within the lot boundary. This means you own it and are responsible for maintaining the surface, balustrade, and any fixtures. However, the structural slab beneath the balcony tiles is typically common property, which means waterproofing failures in the slab are an OC responsibility. Always check the plan — some older buildings treat balconies as common property with exclusive use rights.
Courtyards
Ground-floor courtyards are frequently common property with a licence or exclusive use right granted to the adjacent lot. If the courtyard is outside your lot boundaries on the plan, you do not own it — you use it under the terms of the licence. This affects what you can build, plant, or modify.
Car parks
Car parks can be configured in several ways: as a separate lot (with its own lot number on the plan), as part of your apartment lot, or as common property with an exclusive use allocation. If the car park is a separate lot, it will appear on your title and can theoretically be sold independently. If it is common property with exclusive use, it cannot be separated from your lot. Check the plan of subdivision to confirm which arrangement applies.
Storage cages
Like car parks, storage cages may be separate lots, part of your main lot, or common property with exclusive use. In newer developments, storage cages are often separate lots to give developers flexibility in allocating them. Confirm on the plan whether the storage cage is included in your purchase or is an additional cost — in Melbourne, a separate storage cage lot can sell for $10,000 to $30,000.
How the Section 32 discloses this
The Section 32 must include a copy of the plan of subdivision (or the proposed plan, if the building is not yet registered). Under the Sale of Land Act 1962, the vendor must also provide the OC certificate, which details:
- Any licences or exclusive use rights over common property
- The annual OC fees and any special levies
- Outstanding maintenance issues and planned works
- The OC’s insurance coverage
Cross-reference the plan of subdivision with the OC certificate to build a complete picture of what you own, what you can use, and what you share.
Practical implications: repairs, insurance, and renovations
The lot vs common property distinction has real financial consequences:
- Repairs: If a pipe bursts inside your lot boundary, you pay. If it bursts in the common property plumbing riser, the OC pays from the maintenance fund. A burst pipe repair can cost $500 to $5,000 depending on the damage.
- Insurance:The OC’s building insurance covers the structure and common property. Your contents insurance covers your belongings and any improvements within your lot. Improvements to licensed common property areas may fall into a gap between the two policies.
- Renovations:Changes within your lot generally do not require OC approval (though you may need a council permit). Changes that affect common property — such as moving a wall, altering plumbing, or modifying a balcony balustrade — require a special resolution of the OC under the Owners Corporations Act 2006. Budget $500 to $2,000 for the OC application and approval process alone.
Key takeaway
Before you buy an apartment, read the plan of subdivision. Identify exactly which spaces are within your lot boundary and which are common property. If any areas you expect to use — courtyard, car park, storage — are common property, check whether there is a licence or exclusive use right, and review the terms carefully. Understanding the difference between strata and freehold ownership is the foundation for making a smart apartment purchase.
Ready to check your contract? Upload your Section 32 or Contract of Sale at precontractreview.com for a pre-contract check — typically in just a few minutes.