Company Title Apartments Australia — What to Know Before Buying (2026)
Company title is an older form of apartment ownership found predominantly in older buildings in inner Sydney, Melbourne, and Brisbane. It works very differently from standard strata title — and has important implications for mortgages, sale, and your rights as an owner.
What Is Company Title?
In a company title building, a company owns the entire building. Instead of owning an apartment directly, you buy shares in the company — and those shares entitle you to the exclusive right to occupy a specific apartment (via a “proprietary lease” or “licence to occupy”).
You do not own real property (the apartment itself) — you own shares in a company that owns real property. This is a fundamentally different legal interest from strata title.
How Company Title Differs from Strata Title
| Feature | Strata title | Company title |
|---|---|---|
| What you own | Freehold interest in the lot | Shares in a company |
| Who owns the building | Owners corporation (all lot owners) | The company |
| Title registering body | Land Registry | ASIC (company register) |
| Transfer of ownership | Conveyance of land | Transfer of shares |
| Mortgage security | Real property mortgage | Shares as security (more limited) |
| Lender availability | Broad | Very limited |
| Approval to sell/sublet | Not required (usually) | May require board approval |
| Lease flexibility | Generally freely leasable | Often restricted by articles of association |
| Stamp duty | Standard real property rates | May differ — check with solicitor |
Mortgage Restrictions — The Biggest Concern
This is the most significant practical issue with company title apartments.
Because you own shares — not real property — most Australian lenders will not accept a company title apartment as security for a home loan. The security interest they can register over shares is far weaker than a registered mortgage over real property.
Lender landscape for company title:
- Big Four banks: Generally will not lend (or apply very low LVR limits and high scrutiny)
- Non-bank and specialist lenders: A small number may lend, often at lower LVR (60–70% maximum) and higher rates
- Lender requirements: May require legal opinion on the company’s articles of association; may restrict subletting or future sale
Practical implication: If you buy a company title apartment with a large cash deposit (or no mortgage), this may not be a problem. But if you need to borrow, your lender options are severely limited — and future buyers of your apartment will face the same constraint, potentially limiting your resale market.
Why Company Title Still Exists
Company title predates strata title legislation (Strata Titles Act in NSW, 1961). Older prestige apartment buildings — particularly in Double Bay, Darlinghurst, and Potts Point in Sydney, and Toorak and St Kilda in Melbourne — were built as company title. Many have not been converted because:
- All shareholders must agree to convert (practically difficult)
- Conversion involves legal cost and complexity
- Some owners prefer the restrictions (which can keep buildings exclusive)
Approval Rights and Restrictions
Company title articles of association typically give the board of directors power over:
- Approval of new shareholders (who can buy)
- Approval to sublet or lease
- Use of the apartment (residential only, no short-term letting)
- Renovations and alterations
These restrictions can be significant — a board can refuse to approve a sale to a buyer they deem unsuitable, and can restrict your ability to rent out the apartment (relevant to investors). Read the articles of association very carefully before buying.
Should You Buy a Company Title Apartment?
Company title can work for cash buyers who plan to occupy long-term, value the prestige of the building, and understand the restrictions. It is generally not recommended for:
- Buyers who need a mortgage (limited lender options)
- Investors who plan to rent the apartment (subletting restrictions common)
- Buyers who may need to sell quickly (narrower buyer pool)
- First home buyers (complexity, limited lender options)
Frequently Asked Questions
Can company title apartments be converted to strata title?
Yes — but it requires unanimous (or near-unanimous) agreement of all shareholders, legal work to create a strata plan, land registry registration, and costs shared across all owners. It is rare but does happen.
Are company title apartments cheaper than strata title?
Often yes — the mortgage restrictions reduce the buyer pool, which can suppress prices relative to comparable strata title apartments. However, prestige company title buildings in premium locations can still command high prices.
What due diligence should I do before buying?
Request and review: the company’s articles of association, current shareholder register, minutes of recent board meetings, financial statements of the company, and any proposed special levies. Engage a solicitor experienced in company title before exchange.
Related Guides
- Strata vs Community Title vs Company Title
- What Is Strata Title? A Complete Guide
- Property Ownership Structures Hub
This article provides general information about company title apartments in Australia. Company title involves complex legal arrangements — always engage a solicitor experienced in company title before exchanging contracts. For mortgage advice on company title properties, speak with a specialist broker. Find one through MoneySmart.