When you buy property in Victoria, you're not just buying a building — you're buying a type of ownership. The two most common ownership structures are freehold and strata title(also called “lot in a plan of subdivision”). The type of title affects your costs, your rights, what you can renovate, and even your lending options.
What is freehold title?
Freehold (also called fee simple) means you own the land and everything on it outright. Most standalone houses in Victoria are freehold. You own the building, the land underneath it, and the airspace above it. You are responsible for all maintenance, insurance, and repairs — but you also have full control over the property (subject to planning laws and any easements or covenants on the title).
With freehold ownership, there are no ongoing body corporate or owner's corporation fees. You make all decisions about the property yourself.
What is strata title?
Strata title applies when a property has been subdivided into individual lots and common areas. Apartments, units, townhouses in a complex, and some newer housing developments use strata title.
Under strata title, you own your individual lot (typically the internal space of your apartment or unit) and share ownership of the common property (hallways, gardens, driveways, lifts, pools) with all other lot owners. This shared ownership is managed through an Owner's Corporation (OC).
How ownership type affects your costs
Freehold costs
With a freehold property, your ongoing costs are council rates, water rates, insurance, and maintenance. If the roof needs replacing, the full cost falls on you — but you decide when and how to do it. A typical standalone house might have $2,000 to $4,000 per year in council rates and $1,500 to $3,000 in building insurance.
Strata costs
Strata properties have OC fees on top of council and water rates. These fees cover building insurance, common area maintenance, building management, and contributions to the maintenance fund and sinking fund. OC fees for a standard apartment in Melbourne typically range from $2,000 to $6,000 per year, but can exceed $15,000 for buildings with pools, gyms, or concierge services.
The real risk with strata ownership is special levies. If the building needs major repairs — cladding remediation, a new roof, or waterproofing — each owner may be hit with a one-off levy of $10,000 to $100,000 or more, depending on the scope of the work and the number of lots.
Renovations and modifications
If you own freehold, you can generally renovate as you wish (subject to planning permits and building regulations). With strata title, any work that affects common property or the building's external appearance typically requires OC approval. Even internal renovations in some buildings may need written consent if they involve plumbing, structural changes, or flooring that could affect noise levels.
How to check the ownership type
The ownership type is shown on the certificate of title in the Section 32. Look for the plan reference — a “PS” (plan of subdivision) number usually indicates strata title, while a “TP” (title plan) or “LP” (lodged plan) number typically indicates freehold. If you see a “CP” (common property) reference, the property is definitely part of a strata scheme.
Other ownership types
Less common ownership structures in Victoria include company title (where you buy shares in a company that owns the building, giving you the right to occupy a unit) and stratum title (ownership of airspace above or below land). Company title properties can be harder to finance and sell, so take extra care if you encounter one.
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.