Company Title
Company Title
Company Title
Company title is an older form of property ownership that predates the introduction of strata title in New South Wales. While less common today, company title arrangements continue to exist in a number of established residential buildings, particularly in older apartment blocks.
Under a company title structure, ownership of the land and building is held by a single company, rather than by individual lot owners.
Ownership Structure
In a company title building:
- The company holds legal title to the land and building.
- Individual residents do not own their apartment as real property.
- Instead, a purchaser acquires shares in the company, and those shares confer the exclusive right to occupy a specific unit within the building.
The number of shares allocated to each unit is typically based on factors such as size, location, or relative value. Ownership rights are evidenced by a share certificate, rather than a Certificate of Title.
Governance and Management
Company title buildings are governed by:
- The company constitution (Articles of Association)
- The board of directors, elected from among the shareholders
The board is responsible for managing the building, making decisions on maintenance, finances, and governance matters, and enforcing the rules set out in the constitution. Shareholders vote on major decisions at company meetings in accordance with corporate governance principles.
Unlike strata schemes, company title buildings are not regulated by the Strata Schemes Management Act. Instead, they are primarily governed by corporations law, with oversight by the Australian Securities and Investments Commission (ASIC).
Rules, Restrictions, and Approvals
Company title buildings often impose stricter controls than strata schemes. These may include:
- Board approval for the purchase or transfer of shares
- Approval requirements for leasing or sub-letting
- Restrictions on occupants, pets, or renovations
These rules are specific to each building and are set out in the company constitution. Prospective purchasers should carefully review these documents before committing to a purchase.
Finance and Sale Considerations
Because company title does not provide a registered property interest:
- Some lenders apply stricter lending criteria, and fewer banks offer finance
- Resale may take longer due to approval requirements and financing limitations
- Property values may perform differently compared to strata-titled properties
These factors make due diligence particularly important when buying or selling a company title unit.
Insurance and Maintenance
The company is generally responsible for:
- Insuring the building
- Maintaining and repairing common areas and shared services
Shareholders typically contribute to these costs through levies or contributions determined by the company. Individual owners may still need separate contents or landlord insurance, depending on occupancy arrangements.
Key Differences Between Company Title and Strata Title
- Company Title: Shares in a company
- Strata Title: Ownership of a lot and common property
- Company Title: No individual Certificate of Title
- Strata Title: Registered title for each lot
- Company Title: Governed by company constitution
- Strata Title: Governed by strata legislation
- Company Title: Board approval often required
- Strata Title: Generally fewer transfer restrictions
Company title is a distinctive form of property ownership that offers a more controlled, community-focused environment but comes with additional restrictions and considerations. While suitable for some owners, it requires careful review of governance documents, financing options, and ongoing obligations.