Over 45 years experience in Company Title Law
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Company Title was introduced in New South Wales in 1961 and refers to the purchasing of shares, allowing the occupation of units or spaces within a building which is owned by a company.
This ownership system is less common nowadays, making the regulatory and legislative components of Company Title less known and confusing to many. At Hones Lawyers we guide, assess and advise on the stability of the company and any legal requirements you will have to adhere to if you choose to purchase the “shares.”
Purchasing shares within a Company Title does not necessarily make it more volatile compared to buying a regular property or property under strata title. As the company owns the building and land, and you own shares within the company, it makes matters a little trickier than buying a property which includes the land. To ensure the security of your shares, the legal requirements need to be thoroughly dissected to make sure you understand your requirements, obligations, and rights.
With our 45 years of experience in Company Title Law and all things property, Hones Lawyers are here to answer your questions, evaluate the company, and explain your obligations and rights to make sure you know exactly what you are investing in.
Hones Lawyers have a Company Title Constitution that has been tried and tested and is accepted by a number of leading financial institutions, alleviating many of the roadblocks that arise from Company Title buildings.
Company Title FAQs
What's the difference between Company Title and Strata Title?
With Company Title, the owner owns shares in a company, as opposed to owning any real estate. They have the right to occupy the apartment in a building owned by the Company. With Strata Title, the owner receives a Certificate of Title to the property they have purchased, as opposed to a share certificate.
Can I convert a Company Title to a Strata Title?
Yes the conversion process can be time-consuming and expensive, but this is possible. There are a few steps involved, including ensuring at least 75% of the shareholders agree, gaining council approval and winding up the Company. The team at Hones can advise on what is involved.
What are the disadvantages of a Company Title?
Instead of owning the title, owners simply own a share in the company which owns the title. The value of the unit will probably not increase at the same rate as similar units owned under Strata Title. And some banks can be more reluctant to lend money for units under a Company Title. There are several advantages too – contact Hones for more advice.
For more information on Company Title Law, and the requirements and obligations involved, call us today on 02 8999 6115 to speak with one of our experienced lawyers.
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