A Bit about Company Title Buildings

A Company Title unit differs from a Strata Title unit in that the Company owns the building and the individual unit Owner owns shares in the company.

The Unit Owner does not own any real estate but ownership of shares gives him or her the right to occupy a certain space in the building.

The Board of Directors is typically empowered to run the company in much the same way as any commercial enterprise. Owners elect the Directors but often have no direct say in decision making.

Advantages

• Pricing, typically less than strata units - because of the disadvantages.
  
• The ability to restrict, or prohibit, unit rental means there is often a higher percentage of owner occupiers.
  Owner occupiers are more likely to be more involved in their building than investors.

Disadvantages

• Finance may be harder to obtain because it is not standard real estate. Not all banks will lend on Company Title Units all the time.
• A purchaser may have to obtain Board approval to even buy a unit. Some companies even require incoming owners provide written references.
• Restrictions on tenancy may mean owners are required to sell rather than rent their apartment even if they move away only temporarily. Even where tenants are permitted they may be required to be individually approved by the Board.
• Individual Owners may not be able to influence Board decisions. A Board may choose to raise a substantial Special Levy for a major building upgrade which is beyond the means of some shareholders. Thus forcing them to sell.
• Disputes may need to be taken to the Federal or Supreme Court rather than the cheaper and less formal Consumer Trader and Tenancy Tribunal, which is expressly available for Strata Scheme disputes.