Company Title

What is a company title?

Company title is a form of land ownership (typically for apartments) where a company holds the title to the land and owns the units on the property. Shareholders, holding shares in the company, enjoy exclusive use and occupation of their individual units as outlined in the company's constitution. It's important to note that while shareholders have exclusive occupation rights, they are not direct owners of the land itself. 

What's the difference between a company title and strata title? 

The distinction between company title and strata title lies in the ownership structure and legal rights. With strata title, individuals own a portion of the property and receive a certificate of title for their specific unit. In contrast, company title involves a company owning the entire property, and individuals hold shares in the company, entitling them to exclusive use of a specific unit without a separate title. They are issued a share certificate rather than a certificate of title .While strata title provides direct ownership, company title offers occupancy rights through shareholding. 

What are some disadvantages of a company title? 

• Less control: you won't have full control over decisions about the property. Big choices need approval from the company, so your say is limited.
• Subject to change: the rules of the company can be changed, affecting what you can and can't do. Changes can happen without everyone agreeing, which might impact your interests.
• Selling can be tricky: Selling a company title property can be more complicated than selling one with strata title. Some buyers might be put off by not having direct ownership and possible restrictions.
• Getting a loan might be tough: It can be harder to get a loan for a company title property. Lenders often prefer the clearer ownership setup of strata titles.