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The difference between company title and strata title can be unclear. As such, the legal implications of both can be foggy. Let's start by defining company title and how it differs from strata title under NSW law.
Company title is a form of ownership that pre-dates strata title, which was introduced in New South Wales in 1961. Company title entails that the company owns the building of units and land it occupies. Shares for the building are held in groups corresponding to the comparative value of the units as perceived by the original developers based on the size and location of the units in the building. The owner of a group of shares has the right to exclusive occupancy of their unit (subject to the Constitution of the Company). The share-owner does not have a title deed; instead they have a Share Certificate.
Company title differs from strata title in the following ways:
Owning a company title home unit generally means that you have the right to occupy the property through the ownership of a group of shares; owners of company title units must seek the approval of the board of directors of company title apartments to consent to any lease or transfer of company title before it can be executed, and; renovations and other alterations to a company title home unit may also be subject to approval by the company title apartments board of directors. When talking about company title, people often state that “you can’t rent in a company title building” or “the banks won’t lend against company title”. These are generalisations, which, in fairness, are sometimes true. They are also sometimes well and truly false.
Some of restrictions/allowances to look for when considering a company title purchase:
You may find that some company title buildings are quite restrictive and others will allow you to do whatever you please with your company title.
There have been significant changes to Section 34A of the Local Court Amendment (Company Title Home Unit Disputes) Act 2013, which relate to jurisdiction on company title home unit disputes. The amendments include the following:
1.The Court has jurisdiction to hear and determine proceedings involving company title home unit disputes.
2. A company title home unit dispute is a dispute between interested parties about any of the following matters:
3. However, a company title home unit dispute does not include the following:
Note: Section 1337E of the Corporations Act 2001 of the Commonwealth confers jurisdiction on the Local Court in relation to civil matters (other than superior court matters) under that Act. Examples of superior court matters in relation to company title home unit disputes include the winding up of a company title corporation or the oppressive conduct of a company title corporation’s affairs.
In determining proceedings involving a company title home unit dispute, the Court may make any of the following orders:
However, the Court does not have jurisdiction to make an order on a money or other claim in the proceedings that would exceed the jurisdictional limit of the Court under this Part when sitting in the Division concerned.
Our Sydney-based conveyancers at CM Lawyers understand the legal intricacies of living, owning and investing in a company title building. CM Lawyer’s company title conveyancers are familiar with the types of issues, claims and matters and disputes that arise in company title disputes. If you require any assistance with a company title property dispute or you are experiencing problems with your company title neighbor, please contact CM Lawyers.
The CM Lawyers conveyancing team covers the following areas:
Let the benefit of our experience work in your favour; we have years of experience in assisting clients with company title disputes in Sydney’s Inner West and beyond.
Contact the team at CM Lawyers today to get more information on how we can assist you with company title disputes and set up an appointment. You can ring us during business hours or fill out an enquiry form to get a quick response from our solicitors team.