When it comes to purchasing a property, understanding the various types of title is essential. Two common types of property title are strata title and Torrens title. Each type has its own characteristics and legal implications that owners and potential buyers should be aware of.
| Strata Title | Torrens Title | |
| Definition | Ownership of property under strata is shared through an owners’ corporation. Properties are adjoining or connected in some way with shared common areas. | ‘Torrens’ refers to a land title system where the owner has complete ownership and control over the land and any building or other improvements on it. This type of ownership is sometimes known as ‘freehold’. |
| Ownership Structure | Owners have individual ownership of their unit and shared ownership of common areas. | The owner has sole ownership of the land and any structures on it. |
| Legal Framework | Ownership and use are governed by specific legislation for strata properties. | Governed by a centralised land registration system. |
| Maintenance and Costs | Owners contribute to the costs of maintaining common areas through strata levies or fees. | Owners have sole responsibility for the maintenance and costs of the property. |
| Bylaws and Restrictions | Strata Title organisations govern the use of the property via the passing of bylaws and restrictions may be in place to regulate living within the development. | Subject to local council restrictions, owners have no restrictions on pets, hanging laundry, BBQs, parking etc. |
Understanding the distinction between strata title and Torrens title is crucial for making informed decisions when buying a property. Whether you opt for a strata title with shared amenities or a Torrens title with independent ownership, you can now approach the real estate market with greater confidence and clarity.
How we can help
Andreyev Lawyers has an experienced conveyancing team that can both advise you about the best way to buy and hold your properties, as well as facilitate your property transaction with maximum efficiency. For a discussion about how we can assist you with your property, call us now on (02) 9199 8597 or email us. We’d love to help.
The information contained in this post is current at the date of editing – 18 October 2024.
