Most people are familiar with strata title home units that have been around since the 1960’s in NSW. They involve a person owning a unit (lot) and having an interest, along with all the other owners, in the common property comprising the home unit building and the surrounding land. Although strata properties are much more prevalent now, company title properties preceded them in the early part of the 20th century and a fair number still exist.
It’s not unusual for someone to find the perfect apartment in a desirable location only to be told by the agent or their solicitor that it is company title. So, what does that mean and what are the implications? The main ones are as follows:
* You will not own the apartment. Instead, you will purchase shares in a
company that owns the building and land and under the company’s
Constitution you will have a right to exclusively occupy the apartment
and to use common areas;
* The board of directors of the company has to approve your purchase.
This is to ensure you will be compatible with your neighbours!
* Company title is mainly governed by the Corporations Act (Cth) and any
unresolved disputes may end up in the courts system and be determined
under corporations law which can be complex;
* A board of directors manages the building, enforces house rules and
controls who can buy shares;
* Some lenders are more cautious when providing finance for a property
which involves shares rather than an interest in land. This can affect
borrowing capacity and therefore resale value; and
* There are different and additional considerations to be taken into account
before purchasing as compared to buying a strata unit such as reviewing
the Company’s Constitution, the relevant Share Certificate, the Sale of
Shares Agreement and any Shareholders Agreement.
Legal advice before you buy will help you understand whether the company title environment is for you or whether you would be more comfortable with the more common strata title type of property.
February 2026