Quick Summary
Before you buy property, it’s essential to understand what type of title you’re purchasing. Property titles define ownership rights, restrictions, and legal responsibilities. From Torrens titles to strata and company titles, knowing the difference can help you make a confident, informed decision.
What Is a Property Title?
A property title is the official legal record of who owns a piece of land and what rights or restrictions apply to it. It also outlines details such as mortgages, easements, and caveats.
When you buy a property, the title is transferred to your name at settlement. In most cases, your lender will hold the title as security until your loan is fully repaid.
For help understanding how property titles can affect your finance options, contact info@pinpointfinance.com.au.
Types of Property Titles in Australia
Each title type represents a different form of ownership. Here are the most common ones you’ll encounter.
Torrens Title
The Torrens system is the most common form of property ownership in Australia.
You own the land and the property built on it outright, with full control (subject to local council regulations). This is typical for standalone homes.
Key Features
- Ownership is registered with the state government.
- You have full responsibility for the property, including maintenance and insurance.
- Changes in ownership or mortgages are recorded directly on the title.
Related Reading: Property Titles – Co-Ownership Explained
Strata Title
Strata titles apply to apartments, townhouses, and units that share common property such as driveways, gardens, or lifts.
You own your individual unit and share ownership of the common areas with other owners through a body corporate.
Key Features
- You pay strata levies for maintenance of common property.
- You must comply with body corporate rules (by-laws).
- Major repairs or improvements are voted on by all owners.
Related Reading: Buying a Smaller Apartment
Company Title
An older and less common structure.
Instead of owning the apartment itself, you own shares in a company that owns the building. Those shares give you the right to occupy a specific unit.
Key Features
- Requires company approval to buy or sell shares (and occupy the property).
- Financing can be more difficult since the property is not individually owned.
- Increasingly being converted to strata titles for simplicity.
Stratum Title
A hybrid between Torrens and company title.
You own your individual lot and also hold shares in a service company that manages the common areas such as car parks, gardens, or hallways.
Key Features
- Ownership includes both individual and collective responsibilities.
- Common property is owned by the service company, not directly by you.
- Less common today but still found in older developments.
Community Title
Used for large estates, lifestyle developments, or rural subdivisions.
Owners hold individual property titles but share responsibility for larger communal spaces such as roads, parks, or recreation areas.
Key Features
- Governed by a community association similar to a body corporate.
- Suitable for developments with shared facilities or infrastructure.
Old System Title
Also known as common law title.
Ownership is proven through a chain of historical documents (deeds) rather than through a government-registered system.
These are now rare and usually converted to Torrens titles when properties are sold.
How Titles Affect Your Finance Options
The type of title you buy can influence your borrowing power, loan approval process, and even your property’s resale potential.
Lenders prefer clear, marketable titles like Torrens or Strata.
Less common titles such as Company or Old System can be harder to finance, and may require a larger deposit or additional legal review.
Related Reading: Buying a Rural or Lifestyle Property | Buying a Smaller Apartment
What to Check Before You Buy
Before signing a contract of sale, have your conveyancer or solicitor review the property’s title to confirm:
- Ownership details are correct
- There are no undisclosed easements or restrictions
- Any caveats, mortgages or encumbrances are properly disclosed
- The title type suits your long-term goals and finance structure
How Pinpoint Finance Helps
At Pinpoint Finance, we help you understand how property ownership structures impact your lending options.
We’ll work closely with your conveyancer and lender to ensure your loan is structured appropriately and no title issues cause settlement delays.
Whether you’re buying your first home, investing, or refinancing, our goal is to make sure every step of your property journey is seamless and informed.
Contact info@pinpointfinance.com.au to discuss your next property purchase.