Company Title vs Strata Title Explained

Most apartments bought and sold today are strata titled, but a meaningful number of older buildings, particularly in inner Sydney and Melbourne, are still held under company title. The two structures can look identical from the street and even inside the unit, but the legal mechanics behind them are quite different, and that difference flows through to nearly every stage of a residential purchase.

Two Different Ways to Own an Apartment

Strata title, like Torrens title generally, gives you a registered interest in a specific lot plus a share of common property, recorded on its own certificate of title. Company title works differently again. Rather than owning the unit directly, you own shares in a company that owns the entire building, and those shares carry a right to occupy a particular unit under the company's constitution. There is no separate title document for your unit at all, because legally the company owns the whole property and you own part of the company.

What a Strata Title Purchase Gives You

Under strata title, your lot is registered on a strata plan and you receive your own certificate of title, independent of every other owner in the building. You can generally sell, lease or mortgage that lot without needing anyone else's approval, subject to the scheme's by-laws. Strata title has become the default model for new apartment developments across the country because it gives each owner a clean, independently registrable interest.

What a Company Title Purchase Gives You

Buying into a company title building, as covered in more detail in our guide to buying a share in a company title building, means your conveyancer is transferring shares rather than land. Your right to occupy a specific unit sits in the company's articles of association rather than on a public title, and the company itself, not each individual owner, holds the building's insurance and is responsible for its structure and common areas.

Buying Process and Board Approval

This is where the two structures diverge most sharply for a buyer. A strata purchase proceeds much like buying a house, with a title search, contract review and standard settlement. A company title purchase typically also requires approval from the company's board of directors, who may ask for references, proof of finance or even an interview before approving the share transfer. That approval step sits outside the usual conveyancing timeline and can add real uncertainty to a purchase that would otherwise be straightforward.

Financing Differences

Company title shares are harder to use as loan security than a registered strata lot, and a number of major lenders will not finance them at all. Buyers considering a company title unit are generally well advised to confirm finance is genuinely available before signing anything, which is where speaking with a broker familiar with company title lending, as discussed in MoneySmart's guide to using a mortgage broker, can save time. Valuers may also take longer to assess a company title property because there is no comparable land title to reference in the same way.

Resale, Rules and Ongoing Obligations

Because fewer buyers and lenders are comfortable with company title, the resale market for these units is smaller than for an equivalent strata apartment, which can affect how quickly a sale settles. Building rules under company title sit in the company's constitution rather than in registered by-laws, meaning they are enforced through company law and the board rather than through strata legislation. If you are weighing this decision against another shared ownership structure entirely, our comparison of community title vs strata title covers a third model used in some subdivided developments.

Documents Your Conveyancer Will Request

For a strata purchase, your conveyancer will typically request a strata report covering financials, minutes, insurance and by-laws, along with the usual title search. For a company title purchase, the equivalent documents are the company's constitution or articles of association, recent financial statements, minutes of board and general meetings, and confirmation of the number of shares attached to the unit you are buying. These documents are not standardised in the way a strata report is, so it is worth confirming with the selling agent or company secretary exactly what is available before you rely on a settlement date.

Rates, Land Tax and Ongoing Outgoings

Under strata title, council rates and water charges are usually billed to each lot owner individually, alongside the strata levies that fund the building's upkeep. Under company title, the company itself may be the entity that receives rates notices and other outgoings for the whole building, then apportions those costs among shareholders according to the company's own formula. This is worth clarifying early, since it affects how your ongoing costs are billed and adjusted at settlement, and it differs from the more standardised adjustment process used for a strata lot.

Which Structure Suits Your Situation

Neither structure is inherently better, but they suit different buyers. Company title buildings are often older, sometimes in sought-after inner-city locations, and can come with a tighter-knit ownership group that has more say over who joins them. Strata title offers a more standardised, widely financeable purchase with fewer approval hurdles. Whichever building you are looking at, it pays to have your conveyancer confirm which structure applies before you make an offer, since the due diligence, contract terms and settlement process differ from that point onward. If you are unsure which title type a particular building uses, this is one of the first questions worth asking the selling agent, since it should be confirmed well before you spend money on a building inspection or engage a conveyancer to review a draft contract.