Company Titles are another way to divide ownership of a multi-unit dwelling. They work similarly, but differently, to the standard management of a Unit Plan (strata complex), which we see more commonly today.
What is the difference between a Company Title and a Unit Plan?
Company Title was the preferred methodology for ownership structure in multi-unit sites during the 1920s and 1930s. The structure of Unit Plans became prevalent in the 1960s and has since become more popular. They allow owners to have a direct legal interest in the property with no restrictions on the transfer of titles and fewer conditions on lot leasing.
Instead of an Executive Committee who volunteer their time, Company Titles have paid directors. And instead of being an ‘owner’ with ownership of a title within the plan, you’re a shareholder of the Company Title.
Other differences are:
- Some prefer developing a Community Title as government planning requirements can make it challenging to get a unit plan approved,
- Company title buildings are not subject to the same strata laws; some feel they operate with more freedom,
- Directors have more governance authority and control than strata committees,
- They don’t need to appoint licensed strata managers,
- The ability to vett new owners and tenants is applied in Company Titles.
Where would you see a Company Title?
It’s more commonly seen in retirement villages and over 55 communities. While less popular than Unit Plan developments, many are still around and continue to be registered today.
Can Strata Managers manage Company Titles?
As there are directors, the relationship between a strata manager and the directors is slightly different to that of an Executive Committee. However, Strata Managers can support and guide directors and shareholders through finances, invoices payable, meetings, insurance management, and repairs and maintenance. Due to different legislations, only some strata companies will accept to manage a Company Title.
Civium manages several Company Titles in our portfolio and can offer support if needed.