Strata vs Community Title vs Company Title — What’s the Difference? (Australia 2026)

Most Australian apartments, units, and townhouses are sold under one of three title structures: strata title, community title, or company title. Understanding the differences is important — they affect your legal rights, ongoing costs, and access to mortgage finance.

Quick Comparison

Strata Title — The Standard

Strata title is the most common form of multi-unit ownership in Australia. It was introduced in NSW in 1961 and adopted by all states. The overwhelming majority of apartments and many townhouses are strata-titled.

Key features:

• Registered on the Torrens title system — the land registry records your ownership
• You hold a Certificate of Title for your lot
• Common property is owned by the owners corporation as a whole
• Governed by state Strata Titles legislation (each state has its own Act)

Lending: Mainstream — all major lenders will lend on strata-titled properties, subject to standard serviceability and LVR requirements. Some restrictions apply (floor area, postcode, high-rise concentration).

Community Title — Estates and Mixed Developments

Community title (also called “community property scheme” or “community scheme”) is used for larger mixed-use developments — a residential estate with houses, townhouses, and shared facilities (roads, parks, community centres).

Structure:

• Individual lots (like strata) with individual title
• Shared “community property” managed by a community association
• Can have multiple layers — a community scheme may contain strata lots within it (nested schemes)
• Often used for masterplanned estates, retirement villages, and townhouse estates

Key features:

• Individual lot owners have title (similar to strata)
• Community association manages shared infrastructure
• By-laws (community rules) govern use
• Levies paid to the community association for shared costs

Lending: Similar to strata — mainstream lending available from major lenders.

Company Title — The Oldest Structure

Company title predates strata title. It was the original mechanism for apartment ownership before the Strata Titles Act 1961. It is now rare in new developments but still exists in older apartment buildings — particularly in inner Sydney and Melbourne.

How it works:

• A company owns the whole building
• “Owners” purchase shares in the company entitling them to occupy a specific apartment
• There is no Torrens title for the individual apartment — the company holds title to the land
• The shareholder has a proprietary lease (right to occupy a specific apartment)

Key features:

• No individual Certificate of Title
• Sale involves transfer of company shares + assignment of lease
• The company (effectively all shareholders) controls who can buy shares — giving existing owners significant power to approve or reject new buyers
• Company constitution sets rules — which may be restrictive (e.g., approval of new owners by committee vote)

Lending — the major limitation: Most major Australian banks will not lend on company title properties. The reasons:

• No Torrens title to register a mortgage against
• Company constitution may restrict transfer of shares (limits sale options = higher security risk for lender)
• If the company is wound up, the shareholder’s rights are complex

Specialist lenders may lend on company title — typically at:

• Maximum LVR: 60–70%
• Higher interest rates than standard mortgages
• Shorter loan terms in some cases

Important for buyers: If you are considering a company title apartment and need a home loan, verify lender willingness and terms before exchanging contracts. It is one of the most common due diligence failures for first-time buyers of older inner-city apartments.

Comparing the Three — Buyer Decision Guide

Choose strata title if:

• You want the widest lending options
• You want a clear Certificate of Title
• You want the protections of state strata legislation

Consider community title if:

• The property you want is in a community scheme
• The community association is well-managed and financially sound
• Lending is the same as strata — no disadvantage

Be cautious with company title if:

• You need a standard home loan — financing is severely restricted
• You want to sell to the widest possible buyer pool in future
• You are not aware of the company’s rules (constitution) and what they permit

Frequently Asked Questions

I found an affordable inner-city apartment — how do I know if it’s company title?

Review the contract of sale — a company title property will show “shares” in a company rather than a Certificate of Title on the Torrens register. The contract will reference a proprietary lease rather than a standard property transfer. Ask your conveyancer to confirm.

I own a company title apartment. Can I convert to strata?

Conversion from company title to strata is possible in most states — but requires: a unanimous (or near-unanimous) vote of all shareholders, significant legal and administrative work, council approval, and registration of a strata plan. It is a complex process but has been done successfully in some buildings.

Is a community title property in a masterplanned estate harder to sell?

Not typically — community title is widely understood by lenders and buyers. The key consideration is the financial health and management quality of the community association, which affects ongoing levies and the condition of shared infrastructure.

Related Strata Guides

• What Is Strata Title? A Complete Guide
• Strata Levies Explained — Admin Fund and Capital Works Fund
• Buying an Apartment in Australia — What Lenders Look For
• Strata Title Australia Hub

This article provides general information about title structures for Australian multi-unit property. Company title lending is particularly complex — always verify lender willingness before exchanging contracts. Engage a licensed conveyancer or solicitor. Find one through MoneySmart.