A strata title is created by the division of a structure into separate units. The boundaries of a unit are defined by reference to the structural divisions in a building, not by reference to the land. There must be an area of common property, for which everyone is responsible.

The law concerning residential strata titles is contained in the Strata Titles Act 1988 and the common law, which is made up of the principles which courts have used to decide cases in the past.