Land titles can be a complicated area and the types of land titles can often become confusing and misleading. Here is a breakdown of the most common Australian land titles so that you know what you are signing up for.

By Shariah Whitfield

Of the types of land titles, this one is reserved typically for units and homes within complexes. It is known as a strata title as you effectively own the strata, or layers, of air between your four walls, but not outside. In some cases you will also own a small garden or other such area.

A strata title is created this way as you are purchasing or leasing a portion of land. For units, it is usually no more than a few rooms and maybe a balcony. For a townhouse, you may receive a home, garden and patio. However, in both scenarios, there is a management group that you are leasing off who control multiple homes. Therefore, there are higher fees for living in these areas due to common spaces, paid for and maintained by the management.

To find out more, check out our article, what are strata titles and regulations.

This is the most common of the types of land titles. A Torrens title applies to most standard real estate where you own the structure and the land the structure is on. The difference to a strata title is the ownership of the land as well. This means you have control, you could knock-down, rebuild, plant, grow or extend you home, with council permission.

Similar to strata properties, a stratum is a sub-divided piece of land, of which you own a lot. So you still have some control over the land and what happens on the lot, but you effectively only own part of a companies land. This is sort of like a shareholder, you can make some decisions, but are not the direct owner.

Simply, when the government owns land you can lease it or purchase a ‘hold’ on it for a certain length of time. This is typically how many traditional church and government housing locations were held. This can be problematic, you have the right to build and change your land (with permission), but after the lease, the government can do as they please.

This is typically for older apartments (especially prior to 1970) and is similar to a stratum title. You won’t hold an individual title, instead you will have shares in the company that owns that property. These are typically cheaper, but more restricted, as a company controls what happens to the property.

Hopefully this breakdown of the types of land titles helps you in making a purchasing decision.


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