Purchasers interests consist of what?

• A. Fee Simple in the Strata Lot and Tenant in Common in the Common Property
• B. Leasehold Interest in the Strata Lot
• C. Strata Lot Ownership Only
• D. The Entire Property is Owned by the Developer

Answer: (A)

In a strata development, purchasers’ interests consist of two parts: exclusive ownership of their own unit and an undivided interest in the common property with the other owners. The unit is held as a fee simple estate, giving the purchaser outright ownership of that strata lot. At the same time, they own a proportionate, undivided share of the common property as tenants in common with the other owners, with that share typically determined by the unit entitlement. The strata corporation manages the common areas, funded by the owners through strata fees. This combination—the fee simple in the strata lot plus a tenancy in common in the common property—best captures the purchaser’s twofold ownership in a strata scheme. The other options miss this shared ownership aspect or refer to leasehold or developer ownership, which aren’t the standard, ongoing arrangement for completed strata ownership.