There has been an increase in conveyancing activity in the Sydney market recently – for both buyers and sellers. The inner east has been particularly busy, with many company title properties passing hands.
Most people engage a local conveyancer for their property. This generally makes sense for most standard residential sales. After all, lawyers usually cannot compete with prices that conveyancers charge.
However, one type of property title that really needs a lawyer is company title.
Company title is a historical anomaly of property law. It pre-dates the introduction of strata title in the 1960s.
So, what is it? When you own a company title property you never actually own it directly. You never hold the ‘title deed’ with your name on it.
All you ever own are shares in a company. That company owns the title to the whole building – with many apartments – and your shares give you the right to live there. Instead of a title deed, you cherish your share certificate.
The unusual nature of company title means selling those properties is a dual transaction– a share sale and property sale together. The Sale Contract needs to comply with both:
- Requirements under the Corporations Act 2001 (Cth) for selling public company shares;
- Requirements under ASIC’s Regulatory Guide for ‘real estate companies’ which governs the sale of all company title shares in proprietary and public companies; and
- The normal requirements and practices under the conveyancing rules.
No ‘standard Contract’ exists for the sale and purchase of a company title property. There is no equivalent to the ‘NSW Law Society Contract’ conveyancers use for normal strata and Torrens title properties.
All this means selling or buying a company title property is a specialised area, and you need to engage lawyers who have experience dealing with it.
Company title remains relatively common in historical parts of Sydney. They exist particularly in the heart of Sydney CBD across to Double Bay and Darling Point.
If you are thinking of buying or selling a company title property, and would like our fixed fee quote for this, call us on 1300 882 386.