Professionals Real Estate 
When you go to buy your villa or an apartment or even a townhouse, you are going to find that it comes under a strata title or company title. For those new to this type of purchase these titles can be confusing.
Property has to be sold under a title but there are specific types that have to be used. They each have their own legal obligations which can vary. The state or territory the property is in determines the legalities. You should be using a solicitor or conveyancer for assistance with your property purchase, and they will guide you concerning the legal obligations of the title.
It was Australia that first introduced the strata title in 1961, and since then other countries around the world have adopted its use. It basically is a system for dealing with the legal ownership of a section of the building being purchased. The strata title can be applicable to both commercial and residential properties.
In the case of apartments, villas and townhouses these are privately owned but share the property they are situated on.
Prior to Strata titles those who wanted to buy shares in a building relied on a company title for the legalities. This would allow them sole use of the unit they were buying, but resulted in sharing the property with others. In most cases now the Strata title is used but for older buildings they are still under Company title.
While they sound like they are alike they each have their differences. It is most important that you know the type of title that your proposed purchase of a property is comprised of. Then you need to know what if any restrictions are in place under that title. These are important issues you need to deal with prior to your purchase.
The Strata title purchase:
Once you have determined that the property you are interested in is being governed under a Strata title your first priority is to conduct a strata search. You need to know how the corporation who owns the strata title operates, and that proper management is in place. Learn what the bylaws are and be sure you are ready to abide by them. Know what the regular levies are going to be that deal with expenses like maintenance. Make it a point to attend the general meetings which will be held by the management company.
The good factors of a strata title:
Generally strata title systems are well liked and considered to be fair and just. They used properly formulated diagrams to show exactly how the property is laid out in respect to ownership of units and the common areas. Owners get to have a say in major issues through a voting system. Strata titles have earned the reputation for adding value to the property.
The bad factors of a strata title:
There are ongoing costs like the levies, and specific rules like the bylaws that have to be followed. Attendance at meetings is a must if you want to vote. You also have a liability responsibility as part owner in the building. There has to be strata insurance in place regarding this.
The company title purchase:
These are far less common now but there are still some areas in Sydney for example, that still have the Company title in place. If you are opting to purchase under a company title you need to check the Corporation’s constitution. Be sure to use the proper legal advice regarding any financial or other legal issues that may be present.
The good factors of the Company title:
Properties that are under the company title usually have good value attached to them. It can be a good investment by buying into a company title block that later transfer over to a strata title.
The bad factors of the company title:
The purchase being made here is into a company share and not the actual title.
It can be a little difficult to obtain financing for company title units.
Re-sales are usually slower because of the financing issues.
The directors of the company have no obligation to consult with shareholders on any decisions.
There can be inclusions in the company’s constitution that creates limits, like as to who can buy the property, or whether it can be sub leased, or what changes to the building are allowable.
Stratum titles:
There is a small collection of stratum title properties. These are unique in that they are combination of both company title and strata title. In these cases owners have a title but the company owns the actual property.
