Understanding Property Ownership in NSW: Your Guide to Different Titles Explained
As a potential buyer or seller, understanding the different types of property ownership in New South Wales (NSW) is essential.
The type of property ownership you choose will have significant implications for your rights and responsibilities as an owner, the costs associated with owning a property, and the legal requirements you must comply with. In this blog, we will discuss the most common types of property ownership in NSW and their characteristics.
​
Torrens Title
The Torrens Title is the government system of recording land ownership in NSW. It is the most common and cheapest way to buy and sell a property. Once registered on the title, the owner is guaranteed ownership. This means that the owner has complete control over the property, and no one else has any legal right to the property.
​
Strata Title
The Strata Title is common in multi-unit complexes, where the purchaser buys the actual space enclosed by the unit and is required to contribute towards the costs associated with common property areas. The individual owners are legally required to form an owners’ corporation, which controls the general administration and necessary funding of common property.
Common Law Title
The Common Law Title is also known as Old System Title. This title consists of a series of title documents called 'a chain of title'. It can still exist in NSW, although it is less common than Torrens Title. Following a sale, it is possible to convert a Common Law Title to a qualified Torrens Title.
Community Title
The Community Title is a form of sub-division that allows common property areas to be incorporated into a land sub-division. An association is established under strata schemes legislation, and people purchasing into such a scheme receive a Torrens Title for the lot they own and membership of the association.
Company Title
The Company Title is where unit owners are shareholders in a private company that owns the land and buildings. Shareholders vote to decide company rules governing occupation, such as rights to lease, sell or transfer shareholdings. However, lending bodies can be more reluctant to lend for this sort of property because buyers do not actually gain a title to the property but shares in a company.
​
Leasehold Title
The Leasehold ownership is a form of land ownership where an individual or entity has the right to use and occupy a piece of land for a certain period of time, in exchange for regular payments known as rent. This type of ownership is common in commercial properties.
Freehold Title
The Freehold Title is a form of land ownership where an individual or entity owns the land and has full ownership rights, including the right to use, occupy, and sell the land.
​
Crown Lease
The Crown Lease is a unique form of land ownership used in certain countries, including Australia and New Zealand. In a Crown Lease, the government grants the right to occupy and use the land to an individual or entity for a set period of time, usually 99 years. The leaseholder is responsible for maintaining the land and paying rent to the government. At the end of the lease, the land reverts back to the government, and the leaseholder may choose to renew the lease or vacate the property. Crown Lease is commonly used for commercial and industrial properties, such as mines, ports, and airports.
In conclusion, as a buyer or seller, it is important to understand the different types of property ownership in NSW to make an informed decision. Each type of ownership has its advantages and disadvantages, and it is essential to seek legal advice to understand your rights and responsibilities before purchasing or selling a property.
