A property title contains the legal information about a property and includes details about the land and who the legal owner is, along with data on anyone who has a mortgage on it.

In Australia, there are a range of different titles that give the owner different rights to the specific property, the house and the land components.

These are the most common types of titles:

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Strata

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Under a strata title, you would typically own the inside of the property, however, the outside or exterior would fall under 'common property'. In many cases, apartments, villas and even townhouses fall under this type of property title.

In many cases, a strata-titled property will have an owners' corporation that is put together to manage various issues and the maintenance that comes with the shared nature of the property. Often, there will be fees that are payable to the owners' corporation that go towards the shared costs, on top of council rates and water rates.

A strata-titled property normally imposes limitations with regard to what alterations or renovations can be undertaken on the property, both internally and externally, as well as other considerations, such as keeping pets and garbage collection.

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Torrens Title

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When you buy land in Australia, traditionally, it includes both the land and the building. This is an example of a Torrens Title (or freehold). The majority of properties fall under this type of title.

Under a Torrens Title, the property is registered in your name, and you take ownership. This also means that you are responsible for the upkeep and maintenance of the land.

If you have a mortgage on the property, the bank or lender will hold the certificate until the debt has been paid in full.

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Company

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Under this title, a company holds the overall ownership of the property. Shares can then be given to other people or companies, for example, a unit in an apartment complex. This is similar to a strata title.

There are many properties in Australia that were built in the 1920s and 30s that are under this type of title. Generally speaking, properties that are under company title might be more affordable, but more restrictions apply than in the case of a strata titled property.

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Retirement Villages

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It is possible to either rent or own a unit in a retirement village, and as a result, there are multiple types of titles that can apply to this type of property.

It’s possible for retirement villages to fall under leasehold, strata, community ownership or other titles. Because they can vary so much, it’s important to get professional advice prior to purchasing a property in a retirement village.

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Leasehold

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Leasehold title properties are normally located in rural areas that are owned by the government but are leased out to an owner for a set period. One example would be a cattle station in a remote area.

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