Company title explained — buying a NSW apartment without strata

The short version

With company title, a company owns the whole building and the land it sits on. You don't buy your flat — you buy a parcel of shares in that company, and those shares give you the exclusive right to live in one particular apartment. There's no separate title to your unit and no owners corporation. Instead, the company's constitution is the rulebook, and a board of directors elected by the shareholders runs the building — including, in most schemes, the power to approve or refuse who buys in. It predates strata, so you mostly see it in older blocks, and it behaves quite differently from the strata title on modern apartments.

What you actually buy: shares, not title

When you buy into a company-title block you become a shareholder in the company that owns the building. Your share certificate, together with the company's constitution and often an occupation agreement, is what entitles you to occupy your flat. That's a real, tradeable right — but it isn't a registered land title in your name, which is the single fact that drives most of the differences below. Because the company is a company, it's governed by the Corporations Act 2001 (Cth) rather than the strata legislation, so a strata buyer's protections don't apply the same way.

The board can say no

In most company-title schemes the board of directors has the power to approve or refuse a proposed purchaser. That's the feature buyers most often don't expect: you can agree a price with the seller and still need the board's sign-off before the sale can complete. Boards commonly ask for references, financials or an interview, and the same approval requirement can apply when you later sell, lease the flat out or renovate. Read the constitution for what needs approval and the grounds on which a board can refuse — it shapes how easily you can live in, let, or resell.

Getting a loan is the hard part

Because there's no individual title to mortgage, many lenders treat company title cautiously. Some won't lend against it at all; others will, but may want a larger deposit or lend a lower proportion of the price than they would on a strata flat. That's the practical catch: a company-title apartment can look like good value, but if finance is harder for you, it will be harder for the next buyer too — which affects how quickly and at what price you can sell later. Confirm your lender will fund a company-title purchase before you commit.

The costs: contributions, not strata levies

There are no strata levies, because there's no owners corporation. Instead the company sets contributions (often still called levies) to cover rates, insurance, repairs and running costs, and you pay your share as a shareholder. The idea is similar to strata levies, and a one-off contribution for a major repair works much like a special levy — so the company's recent accounts, its insurance and any repairs on the horizon are worth reading before you sign, exactly as you would for a strata scheme.

Company title versus strata title

With strata title you own your lot outright on a registered title, join an owners corporation with statutory protections, and can generally sell or lease without anyone's permission. Company title trades that independence away: no individual title, no owners corporation, and a board whose consent you may need to buy, sell, lease or renovate. In exchange, entry prices are sometimes lower. Neither is simply "better" — but the checks and the finance differ, so it matters that you know which one you're buying.

Can it be converted to strata?

Sometimes. A company-title block can be converted to strata title, which usually lifts its value and makes it easier to finance — but conversion needs the shareholders to agree and go through a formal process, and a single buyer can't force it. If a block is talking about converting, that's useful context; if it isn't, buy it as the company title it is today rather than on the hope of a future conversion.

What to check before you sign

1. The company constitution. What needs board approval — buying, selling, leasing, renovating — and the grounds on which the board can refuse.
2. Your finance. Confirm your lender will fund a company-title purchase, and on what deposit, before you exchange.
3. The company's accounts and insurance. Recent financials, the level of contributions, and whether a big repair bill is coming.
4. Approval to occupy or let. If you plan to live in it now and rent it out later, check both are permitted, not just one.
5. The share and occupation documents. That the shares being sold clearly attach to the flat you think you're buying, with nothing unusual in the occupation terms.

Common questions

Is company title safe to buy?

It's a long-established form of ownership and plenty of people live happily in company-title flats. "Safe" is about going in with your eyes open: the ownership is shares rather than a title, finance is more restricted, and a board has a say. Understand those three things and you can weigh it like any other purchase.

Do I need board approval to buy?

In most schemes, yes — the board can approve or refuse a proposed purchaser, so the sale is typically conditional on that approval. The constitution sets out the process and the limits on how a board can exercise that power, which is why it's the first document to read.

Can I rent out a company-title flat?

Often only with the board's consent, and some schemes restrict or prohibit letting altogether. If being able to lease the apartment matters to you — now or as an exit later — confirm the constitution allows it before you commit, rather than assuming it works like a strata flat.

How do I know if an apartment is company title or strata?

The contract will tell you: a company-title sale is a sale of shares and the contract attaches the company's constitution among its documents, rather than a strata plan and an owners corporation certificate. If you're not sure which you're looking at, that's exactly the kind of thing a contract review should make clear before you sign.