Company Title Explained for Property Buyers
Company title means you own shares in the company that owns the building, giving you the right to occupy a specific unit, rather than owning that unit under its own separate title.
What Does Company Title Mean?
Company title is an older form of property ownership where the building itself is owned by a company, and buying a unit means buying a parcel of shares in that company. Those shares come with the right to occupy a specific unit, set out in the company's articles of association, but you do not hold a separate title to the unit the way you would under strata or Torrens title.
Buyers usually come across company title in older apartment blocks, particularly ones built before strata title legislation became the standard way to subdivide buildings in NSW. It is far less common than strata title today, but it still turns up in pockets of older unit stock, and it is worth recognising early in a search because it changes how the purchase actually works.
The practical trade-off is that buying into a company title building is not just a property purchase, it is also becoming a shareholder in a private company with its own rules, its own board or committee, and often more discretion over who can buy in, rent out, or renovate a unit than a strata scheme allows. That extra layer of control can suit some buyers and frustrate others, and it has real consequences for finance and resale.
Why This Matters for Buyers
Company title changes two things buyers usually take for granted: how easy the property is to finance, and how easy it will be to sell later. Many lenders are cautious about company title because there is no individual certificate of title to secure the loan against, only a shareholding, and some lenders will not lend against it at all or will only do so at a reduced loan-to-value ratio.
The company's constitution can also give the board real power over a sale, including the right to approve or reject an incoming buyer, restrict short-term or long-term renting, or set conditions on renovations. This is very different from a strata scheme, where by-laws exist but an owner cannot usually be blocked from selling to a willing buyer.
Because the pool of both willing lenders and willing buyers is smaller, company title units tend to sell for less than an equivalent strata title unit nearby, and they can take longer to sell. That is not necessarily a reason to avoid one, but it needs to be priced into your offer and your expectations around timing.
None of this means company title is a bad structure, only that it demands more upfront checking than a standard strata purchase. Buyers who understand the constraints going in are far better placed than those who discover them during finance approval.
Common Mistakes Buyers Make
Company title catches buyers out most often when they assume it works the same way as strata title, because on the surface a company title unit can look identical to any other apartment.
- Not confirming finance early — assuming any lender will approve a loan against company title, then finding out during the process that options are limited or the deposit required is higher.
- Skipping the company constitution — not reading the articles of association, which set out the real rules around subletting, renovations, and board approval of buyers.
- Underestimating resale constraints — not factoring in that a smaller buyer pool and lender caution can mean a longer time on market when it comes time to sell.
- Assuming rental flexibility — some company title schemes restrict or ban renting out the unit altogether, which can derail an investor's plans if not checked first.
- Treating the price discount as pure upside — a lower purchase price can look attractive, but it usually reflects the added friction of the ownership structure, not a bargain.
How This Shows Up in the Illawarra
Company title is uncommon across the Illawarra compared with strata and Torrens title, but it does appear in a handful of older unit blocks, particularly in established pockets of Wollongong close to the CBD and the coast where some buildings predate the widespread use of strata subdivision. Buyers searching purely by price or location can come across one of these without immediately realising the ownership structure is different.
Because private treaty is the dominant sale method across most of the Illawarra unit market, company title listings do not always stand out the way they might in an auction-heavy market, where the ownership type is usually flagged prominently in the contract disclosure. It pays to check the title type on any older unit listing rather than assuming strata by default.
For buyers focused on the Illawarra's more established, walkable pockets near the town centre or waterfront, an older company title building can sometimes be one of the few options at a given price point. That can be a reasonable trade-off for an owner-occupier who plans to stay long term, but it is a harder proposition for anyone who may need to sell or refinance within a few years.
Practical Takeaway
If a property you are considering is company title rather than strata or Torrens title, treat that as a first-order fact about the purchase, not a footnote. Confirm with your lender or mortgage broker early whether they will finance it at all, and on what terms, before you get emotionally invested in the property.
Ask for the company's constitution and any board approval requirements as part of your due diligence, alongside the usual contract review. Understand whether renting the unit out is permitted, since that affects both investors and owner-occupiers who may want that flexibility down the track.
In short: company title can still be a sound purchase, particularly for an owner-occupier planning to stay put, but it needs to be priced and financed with its constraints in mind rather than assumed to behave like any other unit purchase.
Frequently Asked Questions
What does company title actually mean?
It means you own shares in the company that owns the whole building, with those shares giving you the right to occupy a particular unit, rather than owning a separate title to that unit.
When does company title come up for buyers?
It mainly shows up in older apartment blocks built before strata title became the standard way to subdivide buildings, so it is worth checking the title type on any older unit listing.
Is company title risky?
It is not inherently risky, but it carries more constraints than strata or Torrens title, particularly around finance approval and the board's ability to influence who buys in or how the unit is used.
Is company title negotiable?
The ownership structure itself is not something you negotiate, but the purchase price often reflects the added friction of company title, so it is a factor worth weighing in your offer.
Should first home buyers care about company title?
Yes, mainly because it can affect loan approval and deposit requirements, so it is worth confirming finance options before falling in love with a company title property.
How does company title affect timing?
Finance approval can take longer if your lender needs extra steps to assess a shareholding rather than a standard title, and resale can also take longer due to a smaller buyer pool.
How does company title relate to the NSW buying process?
The contract of sale should disclose the title type, and your conveyancer or solicitor should review the company's constitution alongside the usual contract terms as part of standard due diligence.
Does a buyers agent help with company title?
Yes, a buyers agent can flag the title type early in a search, help you understand what it means for finance and resale, and make sure it is factored into your offer and decision-making.
If you're weighing up a company title property against a strata title alternative, we can walk you through what it means for your finance and resale position before you commit. Get in touch and we'll talk it through.
