Which is better, community title or strata title?

Neither is better in every case. The sources reviewed do not rank them. What matters is how the particular scheme divides maintenance, insurance and decisions, which are written in its plan and documents. A conveyancer can explain how those apply to a specific lot.

Is a townhouse usually strata or community title?

It can be either. The NSW Government lists townhouses under strata and says neighbourhood schemes typically consist of freestanding houses or townhouses. The Queensland Government uses a townhouse complex as its example of a standard format plan, and SA describes strata title as usually relating to townhouses, units and commercial properties.

Can a development have both?

Yes. NSW community schemes are often subdivided further by strata schemes, WA allows up to three tiers of schemes, and Victoria uses limited and unlimited owners corporations in one plan.

Do the same levies and rules apply in both?

Not necessarily. Each state sets its own funds, voting thresholds and penalties. For example, NSW community associations can charge simple interest of 10% a year on overdue contributions, while Queensland bodies corporate can resolve to charge up to 2.5% a month. Always use the figures from the state where the lot is.

Community title vs strata title: what is different?

Strata title and community title both give each owner a lot and a share of common property run by an owners' body, and the main difference is structure. Strata usually divides a building or group of buildings into lots under one scheme. Community title, where a state has it, can combine land lots, building lots and several layers of scheme in one development. The labels and rules differ by state, so this page compares what government sources say as at October 2026.

For a townhouse, the label matters less than the plan and the scheme documents. They show who maintains and insures each building, and that can differ between neighbours in the same state.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

Side by side

Feature	Strata title	Community title
Typical shape	A building or group of buildings divided into lots, such as apartments, townhouses and villas (NSW)	A development with common property and lots that may be land or buildings, in one or more layers (NSW, WA, SA)
What a lot is	NSW: you own the inside of the lot and share common property such as walls, roofs and driveways. SA: boundaries are defined by the building structures	NSW neighbourhood scheme: individual lots, typically freestanding houses or townhouses. SA community scheme: boundaries are surveyed land measurements
Layers	WA: before community titles, one scheme per freehold parcel	WA: up to three tiers. NSW: community, precinct and neighbourhood schemes, with strata or other schemes below
Group that runs it	NSW: owners corporation. WA: strata company. SA: strata corporation	NSW: association. WA and SA: community corporation. Qld: body corporate
Key documents	NSW: by-laws. SA: articles in the Strata Titles Act 1988 schedule	NSW: management statement with by-laws. Qld: community management statement. SA and WA: by-laws
Shares of costs and votes	Unit entitlement (NSW, SA)	Unit or lot entitlement (NSW, Qld, WA, SA)

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What the words mean in each state

New South Wales. Strata and community land are separate systems, each with its own pages on the NSW Government site. A community scheme must contain two or more development lots, which are often subdivided further by a precinct, neighbourhood or strata scheme. Strata schemes include townhouses, and so can neighbourhood schemes.
Queensland. Most bodies corporate are community titles schemes under the BCCM Act, so the useful split is the plan format. A building format plan is the type usually used for multi-storey blocks, although some townhouses are registered under one. A standard format plan, also called a group titles plan, is the type usually used for low-rise developments such as a townhouse complex where each lot has a building and a yard.
Western Australia. Strata titles and community titles are both on the Landgate site. Landgate says community schemes allow building and land schemes in a single development, which a single strata scheme per parcel did not.
South Australia. The SA Government describes strata title and community title as two forms. Within community title it describes two types, community strata and community scheme.
Victoria. The sources reviewed describe a single owners corporation system, with unlimited and limited owners corporations used when a development needs more than one. Company title and stratum title sit outside it. See what an owners corporation is.

Why the difference matters for townhouses

Building insurance and maintenance. These depend more on the plan type than on the label.

Queensland, building format plan: the body corporate must insure each building that contains a lot, for full replacement value.
Queensland, standard format plan: the body corporate insures each building that shares a wall with another building, and the owner insures a freestanding one. The owner is generally responsible for the exterior walls, doors, windows and roof within the lot boundary.
South Australia, community scheme: each owner maintains and insures the buildings on their lot.
NSW community land: the association must insure association property with a building policy, public liability and other cover, and arrange valuations at least every five years. Members maintain their own lots.

Developer control. In NSW, both systems have an initial period when the developer is in control. A community or neighbourhood association cannot, during the period, change or cancel by-laws to create restricted property or borrow money. A new strata scheme has a similar period, in which the original owner acts as the owners corporation. For neighbourhood and strata schemes the NSW Government says it ends once one-third of the unit entitlement has been transferred from the original owner.

Layered costs. In a layered development, an owner may pay separate levies to more than one body. In Victoria, Consumer Affairs Victoria says that where a lot is covered by more than one owners corporation, each may charge a separate certificate fee.

Costs

No source reviewed says that one title type costs more than the other. The Queensland Government says levies vary with the condition and age of the common property and the shared facilities, and that running costs are likely to rise over time. How much strata and body corporate fees are covers the budget and the funds behind a levy.

What to ask for

The plan type: strata plan, community plan, building format or standard format.
The by-laws, management statement or community management statement.
The proposed or current budget, and the lot entitlements that set your share.
Who insures and maintains the building and the roof.
Whether the lot is in more than one scheme.

Common questions

Which is better, community title or strata title?: Neither is better in every case. The sources reviewed do not rank them. What matters is how the particular scheme divides maintenance, insurance and decisions, which are written in its plan and documents. A conveyancer can explain how those apply to a specific lot.
Is a townhouse usually strata or community title?: It can be either. The NSW Government lists townhouses under strata and says neighbourhood schemes typically consist of freestanding houses or townhouses. The Queensland Government uses a townhouse complex as its example of a standard format plan, and SA describes strata title as usually relating to townhouses, units and commercial properties.
Can a development have both?: Yes. NSW community schemes are often subdivided further by strata schemes, WA allows up to three tiers of schemes, and Victoria uses limited and unlimited owners corporations in one plan.
Do the same levies and rules apply in both?: Not necessarily. Each state sets its own funds, voting thresholds and penalties. For example, NSW community associations can charge simple interest of 10% a year on overdue contributions, while Queensland bodies corporate can resolve to charge up to 2.5% a month. Always use the figures from the state where the lot is.

Keep reading

Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.