We’re talked about Land Titles a couple of times before - specifically, we talked about how to obtain yours (and how our online document search helps with that).
Today we want to take it one step further, exploring all the different types of Land Titles out there - all of which change the ownership structure, as well as all the obligations, rights and responsibilities that come with it.
The vast majority of Australians only ever own a handful of properties throughout their lives, meaning that they’ll only ever encounter one of the more common types.
Needless to say, the discovery that there are different types of Land Titles can throw them for a loop!
Luckily, you don’t have to be one of them - so what kind of Land Titles exist in Victoria?
Let’s start with the most common one: Torrens Title
If you own your house, it’s probably under Torrens Title.
The “Torrens” name comes from Sir Robert Richard Torrens, third Premier of South Australia, who devised the system back in the late 1880s.
Before Torrens, property owners would have to produce a copy of the deed proving their ownership. What’s more, it was also possible for multiple deeds to exist, complicating matters.
Torrens’ innovation was to create a single registry where all transfers are recorded, where each Title has ALL of its relevant information (including owners, obligations, covenants and more) recorded on a single document with a unique identifying number.
The “Torrens” name comes from Sir Robert Richard Torrens, third Premier of South Australia, who devised the system back in the late 1880s.
Before Torrens, property owners would have to produce a copy of the deed proving their ownership. What’s more, it was also possible for multiple deeds to exist, complicating matters.
Torrens’ innovation was to create a single registry where all transfers are recorded, where each Title has ALL of its relevant information (including owners, obligations, covenants and more) recorded on a single document with a unique identifying number.
What’s the deal with this type of Land Title?
The vast majority of privately-owned property in Australia is held under Torrens Title - after all, it’s been almost 140 years since the system was first implemented!
As the most common type of Land Title in Australia, Torrens Title is essentially the “default” type of Title for the vast majority of Australian homeowners.
In practice, a Torrens Title simply means that you own the property and the building - simple as that.
You own everything that falls into the property boundaries, and can do whatever you want with it (provided that you get the right permits and file the correct applications, that is!)
As the most common type of Land Title in Australia, Torrens Title is essentially the “default” type of Title for the vast majority of Australian homeowners.
In practice, a Torrens Title simply means that you own the property and the building - simple as that.
You own everything that falls into the property boundaries, and can do whatever you want with it (provided that you get the right permits and file the correct applications, that is!)
Strata Title
If you’ve bought an apartment block, you’re probably familiar with this particular type of Title.
And with more and more Australians opting for apartment or townhouse living, it’s one that’s bound to become more familiar as the years go on!
Of course, apartments aren’t the only types of property that fall under this type of Land Title - mixed-usage areas can also be stratas, as can caravan parks and shopping centres.
If you hold a Strata Title, you have sole ownership of your allotted unit - NOT the shared property.
Your Title is restricted to the townhouse, unit or apartment itself, and not common areas like:
- Parking spaces
- Corridors, elevators and stairwells
- Entrance halls
- Gardens
Instead, these areas are shared between you and other residents, and are usually managed by a separate legal entity or a property manager.
And with more and more Australians opting for apartment or townhouse living, it’s one that’s bound to become more familiar as the years go on!
Of course, apartments aren’t the only types of property that fall under this type of Land Title - mixed-usage areas can also be stratas, as can caravan parks and shopping centres.
If you hold a Strata Title, you have sole ownership of your allotted unit - NOT the shared property.
Your Title is restricted to the townhouse, unit or apartment itself, and not common areas like:
- Parking spaces
- Corridors, elevators and stairwells
- Entrance halls
- Gardens
Instead, these areas are shared between you and other residents, and are usually managed by a separate legal entity or a property manager.
Your responsibilities under this type of Land Title
While you have full ownership over your corner of a strata, common areas are shared and typically managed by a third party on behalf of all residents like an owners corporation, body corporate, strata company or community corporation.
And as a strata resident, you’ll have to follow some special rules:
- Your owner corporation’s rules and by-laws
- Attend general meetings where decisions are made
- Pay levies and fees for upkeep of common areas
When it comes to your specific Lot, you’ll still maintain complete autonomy over what goes on inside.
And as a strata resident, you’ll have to follow some special rules:
- Your owner corporation’s rules and by-laws
- Attend general meetings where decisions are made
- Pay levies and fees for upkeep of common areas
When it comes to your specific Lot, you’ll still maintain complete autonomy over what goes on inside.
Company Title
While no longer as common as it once was thanks to the development of Strata Title, if you look hard enough, you can still find apartments and units that operate under Company Title.
Before Strata Titles became common, the way ownership of apartment blocks was handled was to have the entire block and all the property owned by a company.
Instead of buying a unit, flat or apartment outright, residents would buy shares in that company proportionate to the floor size of their apartment, unit or flat.
Before Strata Titles became common, the way ownership of apartment blocks was handled was to have the entire block and all the property owned by a company.
Instead of buying a unit, flat or apartment outright, residents would buy shares in that company proportionate to the floor size of their apartment, unit or flat.
The disadvantages of owning shares, rather than owning property outright
Owning a share in a company comes with a range of issues that you wouldn’t experience if you owned your apartment or unit outright.
Since you technically don’t “own” the land, a lot of people try to avoid Company Titles in favour of Strata. However, just because it’s a Company Title doesn’t mean that you have no control - it all depends on the specific company arrangement.
Just like Strata Title, you’ll also have to abide by certain conditions for occupation, called a constitution.
Unlike Strata Title however, companies are allowed to make decisions regarding shared areas (as well as make changes to the constitution) without consulting residents. While it’s a bit of an underhanded move, it’s also completely legal.
Little wonder the vast majority of Company Titles have converted to Strata!
Since you technically don’t “own” the land, a lot of people try to avoid Company Titles in favour of Strata. However, just because it’s a Company Title doesn’t mean that you have no control - it all depends on the specific company arrangement.
Just like Strata Title, you’ll also have to abide by certain conditions for occupation, called a constitution.
Unlike Strata Title however, companies are allowed to make decisions regarding shared areas (as well as make changes to the constitution) without consulting residents. While it’s a bit of an underhanded move, it’s also completely legal.
Little wonder the vast majority of Company Titles have converted to Strata!
Leasehold Title
If you live in Canberra (or anywhere in the ACT, really), you’re probably familiar with this type of Land Title.
If not however, this might be the first time you’re ever hearing of it!
In the early days of Australian settlement, the vast majority of land was held by the Commonwealth and distributed to settlers for a set period of time.
While not as common as it used to be (most Commonwealth land was eventually converted into Freehold Land, complete with Torrens Titles), Leasehold Titles can still be found here and there - farmland and pastoral land is a common example!
With a Leasehold property, you’re essentially renting government land. And that comes with a range of unique responsibilities…
If not however, this might be the first time you’re ever hearing of it!
In the early days of Australian settlement, the vast majority of land was held by the Commonwealth and distributed to settlers for a set period of time.
While not as common as it used to be (most Commonwealth land was eventually converted into Freehold Land, complete with Torrens Titles), Leasehold Titles can still be found here and there - farmland and pastoral land is a common example!
With a Leasehold property, you’re essentially renting government land. And that comes with a range of unique responsibilities…
Your responsibilities under this type of Land Title
A lot of people confuse leasing or renting arrangements to mean that they hold a Leasehold Title - this is plain wrong!
That’s because when you rent a shop or house, the actual owner - that is to say, the landlord - still usually owns the property in their name.
By contrast, a true Leasehold Title involves government-owned land.
And since the land involved in Leasehold Titles are granted by a state, all mineral rights are reserved to the Crown. If you strike oil, you can’t claim it!
It’s also worth mentioning that in most cases, Leasehold Titles are granted with specific conditions or purposes in mind. Many Leaseholds are granted for pastoral use, for example.
That’s because when you rent a shop or house, the actual owner - that is to say, the landlord - still usually owns the property in their name.
By contrast, a true Leasehold Title involves government-owned land.
And since the land involved in Leasehold Titles are granted by a state, all mineral rights are reserved to the Crown. If you strike oil, you can’t claim it!
It’s also worth mentioning that in most cases, Leasehold Titles are granted with specific conditions or purposes in mind. Many Leaseholds are granted for pastoral use, for example.
Get all the property information you need - Land Titles included - with PSI’s all-in-one reporting
We’ve barely scratched the surface - each of these types of Title have so many different pros and cons that we’d have to spend hours going over them!
And that isn’t the only complicated part about buying a property, either - in addition to your Land Title search, you’ll also have to obtain a huge range of other information before you can make your move.
And what if you’re buying an empty plot with the intention of building something of your very own on it?
In these cases, you’ll need to apply for a whole bunch of permits, and obtain a range of important property information like flood reports.
It’s enough to drive someone insane!
Luckily, getting the property information you need is simple with PSI.
Our all-in-one system allows you to get all the information you need with a single account:
1. Register on our website
2. Select the property information you need
3. Receive your property information
And that’s all there is to it!
Our automated system works in the background, getting into contact with appropriate service providers and automatically verifying the information received, before forwarding it to you to use.
Make your next purchase or construction project easier. Conduct a Land Title search in Victoria now!
Have questions or need assistance? Get in touch with PSI today on (03) 8527 6300 or click here to reach out online.
And that isn’t the only complicated part about buying a property, either - in addition to your Land Title search, you’ll also have to obtain a huge range of other information before you can make your move.
And what if you’re buying an empty plot with the intention of building something of your very own on it?
In these cases, you’ll need to apply for a whole bunch of permits, and obtain a range of important property information like flood reports.
It’s enough to drive someone insane!
Luckily, getting the property information you need is simple with PSI.
Our all-in-one system allows you to get all the information you need with a single account:
1. Register on our website
2. Select the property information you need
3. Receive your property information
And that’s all there is to it!
Our automated system works in the background, getting into contact with appropriate service providers and automatically verifying the information received, before forwarding it to you to use.
Make your next purchase or construction project easier. Conduct a Land Title search in Victoria now!
Have questions or need assistance? Get in touch with PSI today on (03) 8527 6300 or click here to reach out online.
How PSI makes your document search easier than ever before
Liaising with assessors. Choosing an expert with the right certifications and experience. Vetting the reports to ensure that they include all the vital information you need.
These steps can be quite time-consuming. Fortunately, our process can do much of that work for you.
We turn the business of getting your Energy Report a simple set-and-forget process, doing all of the legwork for you:
- Contacting the relevant authorities
- Liasing and providing documentation
- Verifying the report they generate
In just a few clicks, you’ll have laid the foundation - our team will do the rest.
Whether you need an Energy report on its own or as part of the mountain of documents that go into planning a new construction or renovation project, PSI is here to make the process as easy as possible.
Get your Energy Report faster - order online now
Need assistance? We’re happy to talk. Call us on (03) 8527 6300 or click here to get in touch online.
These steps can be quite time-consuming. Fortunately, our process can do much of that work for you.
We turn the business of getting your Energy Report a simple set-and-forget process, doing all of the legwork for you:
- Contacting the relevant authorities
- Liasing and providing documentation
- Verifying the report they generate
In just a few clicks, you’ll have laid the foundation - our team will do the rest.
Whether you need an Energy report on its own or as part of the mountain of documents that go into planning a new construction or renovation project, PSI is here to make the process as easy as possible.
Get your Energy Report faster - order online now
Need assistance? We’re happy to talk. Call us on (03) 8527 6300 or click here to get in touch online.
The information in this article is general in nature and does not constitute legal advice. As with all things property, we strongly recommend consulting a professional to ensure that all stages of your building project (including the Title search) go smoothly.