Common Challenges When Buying or Selling Company Title in Marrickville

By CM Lawyers – Property & Conveyancing Specialists in Marrickville, NSW 

Marrickville’s property market is diverse, featuring everything from new strata complexes to charming older-style apartment blocks. Among these older buildings, company title apartments remain a unique but complex form of ownership. 

While company title properties can offer character, affordability, and community, they also come with legal challenges that make buying and selling more complicated than strata or Torrens title. At CM Lawyers in Marrickville, we’ve worked with many clients navigating these transactions and understand the pitfalls that can cause stress, delay, or even failed deals. 

This guide explores the most common challenges faced by both buyers and sellers of company title apartments in Marrickville, and how expert legal guidance can help avoid them. 

1. The Need for Board Approval

Unlike strata or Torrens title, company title requires the board of directors to approve any buyer before a sale can proceed. 

• For Sellers: Even if you find a willing buyer at the right price, the board has the power to reject the sale if they don’t consider the buyer suitable. 

• For Buyers: Approval isn’t automatic—you may be asked to provide financial statements, references, or other documentation to prove you’re a good fit. 

This approval requirement is one of the biggest causes of delays and failed transactions in Marrickville’s company title market. 

2. Financing Difficulties

Many banks and lenders are reluctant to provide mortgages for company title apartments. Because buyers are purchasing shares in a company rather than real property, financing options are limited. 

• For Buyers: You may need a larger deposit or be restricted to specialist lenders. 

• For Sellers: A smaller pool of buyers with finance approval can reduce demand and lower sale prices. 

Without planning ahead, financing can become a deal-breaker. 

3. Complex Constitutions and Restrictions

Every company title building in Marrickville has its own constitution and by-laws that dictate what shareholders (owners) can and cannot do. 

Common restrictions include: 

• No subletting without board consent. 

• No pets allowed. 

• Limits on renovations or structural changes. 

• Rules about who can reside in the apartment. 

• For Buyers: These restrictions can come as a surprise after purchase if not reviewed carefully. 

• For Sellers: Failure to disclose restrictions can cause disputes and contract rescission. 

4. Delays in the Sale or Purchase Process

Because company title transactions involve share transfers as well as property contracts, the process can take longer than standard conveyancing. 

• Board meetings may only occur monthly, delaying approvals. 

• Paperwork must be lodged with the company in addition to settlement. 

• Share registers must be updated correctly to validate ownership. 

Without careful coordination, these delays can frustrate both buyers and sellers. Be mindful that Ignoring title issues can lead to legal disputes and sale delays. 

5. Valuation and Resale Challenges

Company title apartments in Marrickville often sell for less than comparable strata properties because of the added complexities and financing limitations. 

• For Buyers: You may secure a lower purchase price, but resale in the future could be harder. 

• For Sellers: Expect longer selling periods and potential negotiation pressure from buyers aware of these challenges. 

6. Disputes Between Shareholders

Living in a company title building is essentially being part of a small company. Disputes can arise between shareholders about: 

• Maintenance costs. 

• Use of common property. 

• Noise or lifestyle complaints. 

These disputes can affect both the saleability and value of the property. 

7. Legal Formalities and Documentation 

Company title transactions involve additional documentation beyond standard conveyancing. These include: 

• Share transfer forms. 

• Company resolutions. 

• Updated shareholder registers. 

Errors in documentation can invalidate the transaction or cause legal disputes later. 

Learn more about 5 Legal Pitfalls to Avoid When Selling your company title 

How CM Lawyers Helps Buyers and Sellers 

At CM Lawyers in Marrickville, we simplify the process by: 

• Reviewing company constitutions and advising on restrictions before you commit. 

• Preparing contracts that comply with both property law and corporate law. 

• Assisting buyers with board approval applications. 

• Guiding sellers on disclosure obligations to avoid disputes. 

• Coordinating share transfers, settlements, and registrations seamlessly. 

• Providing strategic advice to reduce risks and delays.

   

Why Marrickville Residents Choose CM Lawyers 

• Local Knowledge – We understand Marrickville’s property landscape and the prevalence of company title buildings in the Inner West. 

• Specialist Experience – Years of handling company title transactions across Sydney. 

• Clear Communication – We explain complex processes in plain English. 

• Fixed Fee Options – Transparent pricing with no surprises. 

• Comprehensive Services – From buying and selling to Wills and estate planning, we cover all your legal needs.
  

Final Word: Expert Help for a Complex Title 

Buying or selling a company title apartment in Marrickville can be rewarding, but the process is rarely straightforward. Between board approvals, financing hurdles, and corporate restrictions, both buyers and sellers face challenges that can delay or derail transactions.