What is a company title property?
Company title is a system of shared property ownership that was widely used prior to 1961, the year that strata title was first introduced in NSW.
With a company title property you own shares in a company instead of a real estate title and so instead of receiving a certificate of title to your property, you’ll receive a share certificate.
Your shares in the company entitle you to exclusive occupation of a defined area of a building that is owned by the company – this is usually an apartment in a building.
Companies are governed by their constitutions, and are regulated by the Corporations Act 2001 – the Strata Schemes Management Act 2015 (NSW) does not apply to company title properties.
Regulations and by-laws for company title properties are called ‘house rules’ and the company constitution sets out the rules for the transfer of shares, which often need to be approved by the Director of the Company.