What is the difference between torrens title and community title

A licensed surveyor from Alexander Symonds will be able to advise you on what titling is possible and the cost implications of different options for your land division. A Torrens Title is a property where the owner is responsible for both the building and the land on which it stands. This means you are solely responsible for the maintenance of your block of land and your building, including driveways, gardens, water supply, sewerage and external fixtures. Torrens Title properties are the most common property titles in Australia.

There are two types of Community Titles known as either a community scheme or a community strata scheme. A community strata scheme is usually used for multi-story developments were the building forms part of the common property and is the responsibility of the community corporation to maintain and insure.

This type of title was actually invented in South Australia by Sir Richard Robert Torrens and revolutionised the recording of land ownership! Definition: Strata Titles are generally associated with units, townhouses and commercial properties, in which the land is divided into units owned by individuals, with the common areas jointly shared by all owners. With strata properties, a strata corporation made up of the individual owners of the titles, is created to manage and maintain the common property, such as common areas and driveways.

They also need to meet at least once a year to discuss any relevant matters. This type of ownership is quite a common in units and townhouses, however it can be quite restrictive if the corporation chooses to impose rules, such as not being able to have pets or not being able to change the exterior of the property. It is actually no longer possible to create new Strata Titles, however existing schemes continue to be regulated under the Strata Title Act Definition: A Community Title is evidence of ownership of a lot in a community plan.

Basically, a Community Title can be used when there are at least two allotments with an area of common property, such as a shared driveway or service infrastructure. The owner of each lot is responsible for the building on their lot, and a community corporation is established to look after any infrastructure in common areas. The key difference lies in the way boundaries are defined, insurances you need to pay and how by-laws are enforced. To maintain the common areas, owners in either type of title have to raise funds and contribute based on their unit or lot entitlement — the capital value of their unit or lot compared to the value of all units or lots as the case may be.

In other words, the bigger your unit or lot is, the higher your contribution to the corporation will be. If you own a two-bedroom unit, your unit allowance might be 10 units. Your neighbour owns a three-bedroom unit in the same complex, and due to the increases size of their property, their unit allowance is 14 units.

The total number of unit allowances in the whole complex is The larger property attracts a higher unit allowance, because the property is likely to have more residents who will use common facilities such as pools and parking spaces. When raising administration and sinking funds, you as the owner of a two-bedroom apartment will have lower fees based on 10 units out of , versus your neighbour, who will pay fees equivalent to 14 units out of Regardless of whether the property is attached to a strata titled scheme or a community titled scheme, any decisions made within the body corporate must be done so at committee meetings, which allows all of the owners to have fair input.

A key difference between community and strata titles is insurance. Residential strata insurance applies to the general insurance that encompasses the common property areas and common content that is managed by the body corporate. Strata corporations take care of the building and public liability insurances to cover the whole building and its common properties, typically by sharing the premium insurance costs.

Strata insurance is compulsory, as is the necessary public liability covering that covers anyone injured or harmed on common property. This is because in a community title situation, the individual owner of each lot is responsible for the insurance of any building on their lot.

The community corporation is only responsible for insuring any common area buildings or structures, such as driveways or service infrastructure. This is one of the biggest differences between community title and strata title, and it could potentially expose you as a property owner to some risky outcomes. For instance, can you imagine the potential for financial loss if a complex of 8 apartments catches fire and burns to the ground — and only 5 of those individual property owners have building insurance?

We look at why you're buying a property and tailor a plan to suit your circumstances. That's how we are able to create value on your investment every step of the way and maximise your returns.

Positive gearing occurs when your property is earning you an income from the rent you charge. Meaning you are able to pay back your mortgage or loan repayments plus still earn additional income on top of that gross profit. Negative gearing occurs when the cost of owning a property outweighs the income it generates each year. This creates a taxable loss, which can normally be offset against other income including your wage or salary, to provide tax savings.

KingsCoin is frequently searching for development opportunities which fit several key criteria, beginning with zoning that is conducive to property development. We then assess the lifestyle offered by the location, how the suburb is developing and whether is it currently under-valued. The buyers market and rental market also helps to determine whether a development will be sellable. A final criteria we check is how many other developers are going into that particular area.

Property values can be significantly impacted by increased competition, which can lead to over-valuation or under-selling tactics. Since these can limit your returns, we carefully evaluate whether to invest in these areas. What is the difference between Torrens title and Community title? Torrens Title