Company title is a form of property ownership used mostly in older apartment buildings — particularly in Sydney and Melbourne — where the building is owned by a company, and residents buy shares in that company rather than owning their apartment on a separate title. Instead of receiving a certificate of title for your apartment, you receive a share certificate and an exclusive right to occupy a specific unit. Company title predates strata title (introduced in the 1960s) and is now relatively rare — but tens of thousands of company title apartments still exist in inner-city areas.
How is company title different from strata title?
| Feature | Company title | Strata title |
|---|---|---|
| What you own | Shares in a company + occupancy rights | A registered lot on a strata plan (a real property title) |
| Title document | Share certificate | Certificate of title |
| Financing | Difficult — many lenders won’t lend, or lend at lower LVR | Standard residential financing |
| Renting out | Often requires company/board approval | No approval required (subject to owners corp rules) |
| Renovating | May require company/board approval | Requires owners corporation approval for structural work |
| Resale | Smaller buyer pool due to financing challenges | Normal buyer pool |
Why is company title financing so difficult?
Most major Australian lenders (the Big 4 banks and many second-tier lenders) do not lend on company title properties or will only lend at LVRs of 60-70%, requiring a larger deposit. This is because the lender cannot take a mortgage over real property — they can only take a charge over the shares. In a default scenario, recovery is more complex. The restricted buyer pool also makes the security less liquid, which lenders price into their lending decisions.
What are the risks of buying a company title property?
- Financing risk: Refinancing later may be difficult if lenders tighten company title policies
- Rental restriction: The company’s articles or shareholder agreement may restrict your ability to rent the property without board approval
- Renovation restrictions: Any significant works may need company/board approval
- Liquidity risk: Smaller buyer pool means longer sale times and potentially lower prices
- Company governance: You are subject to the decisions of other shareholders — a dysfunctional company board can make ownership very difficult
Can a company title building convert to strata title?
Yes — conversion to strata title is possible and can significantly increase the value of individual units by making them easier to finance and sell. However, conversion requires unanimous or supermajority agreement of all shareholders, a surveyor to prepare a strata plan, and lodgement with the relevant state authority. It is complex and not always achievable.
Frequently asked questions
Should I avoid company title properties altogether?
Not necessarily — but you need to understand the risks and price them in. Company title properties in desirable inner-city locations often trade at a discount to strata title equivalents precisely because of the financing challenges. If you can buy with a large deposit or cash, and the property is in a well-run building with no rental restrictions, it can represent good value.
How do I know if a property is company title?
The Section 32 (Victoria) or contract of sale documentation will identify the title type. Ask your conveyancer to confirm whether the property is company title, strata title or Torrens title before signing anything.
Are there company title apartments in Melbourne?
Yes — company title apartments are found mostly in inner suburbs like St Kilda, South Yarra, Prahran, Fitzroy and Carlton, typically in pre-war or 1950s-1970s walk-up blocks. They can be good value for cash buyers but require careful due diligence.
GeeVee verdict: Company title is not automatically a deal-breaker — but it is a specialist purchase that requires a larger deposit, a lender that accepts company title, and careful review of the company’s articles and financials. Avoid if you are relying on a high-LVR mortgage or planning to rent the property without restriction.
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