Understanding the various forms of property ownership can be complex, and company titles are no exception. Here at Baulkham Hills Conveyancing, we have specialised knowledge in handling these types of property transactions and are dedicated to providing a seamless service for our clients. Today, we delve into the intricacies of company titles and how they differentiate from other types of property ownership like Strata Titles.
What is a Company Title?
Originating from New South Wales, a Company Title is a unique form of property ownership. Contrary to prevalent property titles such as Torrens Title and Strata Title, Company Title is achieved through owning shares in a corporate entity registered with the Australian Securities and Investment Commission (ASIC). As a Company Title owner, you possess the right to occupy a specific area in the company’s building, for instance, apartment no. 17, through owning a certain number of shares in the company that holds the building.
Strata Title Property Vs. Company Title
Although quite similar to a Strata Title property, Company Title distinguishes itself through its unique share-based ownership structure. In essence, owning “shares” in the company gives you exclusive rights to the home unit or townhouse instead of a conventional Certificate of Title.
Financing the Company Title
For those concerned about securing finances, most Banks and Building Societies are open to lending and mortgaging on the shares, much like with Strata Titles. Each institution will have its distinct lending requirements, which is why we recommend pre-approval before entering into any contract.
Capital Gains Tax and Company Title
If you intend to purchase the unit as your residence, there will be no Capital Gains Tax levied on the sale of the shares, as per the Income Tax Assessment Act. This is applicable to all family homes, including those under Company Title.
Company Title and Land Tax
As for Land Tax, Company Title units are deemed as strata lots. Thus, even though a company would typically be liable to pay land tax, Company Title units are an exception. Individual owners lodge a Land Tax return for their home or unit, treated as any traditionally titled residential property.
Stamp Duty on Company Title
On the matter of stamp duty, the legislation provides for standard ad valorem rates on the stamping of Company Title shares. Hence, stamp duty is paid as if the unit is held under Strata Title. Furthermore, First Home Owners Grants and stamp duty concessions apply equally to Company Title as to other conventional titles.
The Conveyancing Procedure
The conveyancing procedure of a Company Title unit involves numerous considerations that extend beyond the usual scope of a traditional conveyance of strata title property. Therefore, it necessitates solicitors with comprehensive expertise in Company Title.
At Baulkham Hills Conveyancing, we possess the required proficiency to undertake such transactions. We ensure the conveyancing procedure is handled with utmost diligence, considering the unique challenges and requirements associated with Company Title properties. Trust in our expertise to provide a smooth and efficient conveyancing service tailored to your needs.