In property ownership, there are different titles in which the ownership can take form. There are several different property titles in Australia when it comes to purchasing property.
What are the different titles and what do they mean for property owners?
Covenant: Terms, conditions and restrictions noted on the certificate of title regarding a property. Be aware that a covenant could affect future plans or resale of the property.
Company Title: This may exist where owners of units actually own shares in a private company rather than having title under 'strata title'. Buying a certain number of shares in the company entitles you to possession of a particular unit in the block of units.
Strata Title: This is the system of title that applies to ownership of units, apartments and some townhouses. Strata title involves subdivision of airspace above land, you own part of the building not the land.
Torrens Title: This is the most commonly used title, that applies to people purchasing land in Australia. A certificate of title of torrens nature, is guaranteed by the state and issued to the person who is the registered owner at that time. Unless you are registered on the title, you have no legal standing.
Community Title: This is a form of subdivision which allows common property areas to be incorporated into a land division. On a community style plan, an association will be established like a body corporate under strata titles legislation. People entering into this title will receive a torrens title for the lot which they own, membership to the association, and shared ownership of the common facilities.
For further information on these titles or if you need independent & professional advice on your property purchase, please contact our team on 02 9960 1066 or enquiries@pkproperty.com.au.