Strata vs Torrens Title
Buying a property is a very important decision in life especially to ensure the future of your family. When you are buying an apartment or a flat, it is necessary to check the title that you will get upon buying the property to make sure that your investment is a secure one. In Australia and many other countries, various ownership titles for multistoried buildings are followed such as strata title, stratum title, company title, and Torrens title. Not many are aware of the differences between strata title and Torrens title and need consultation with an attorney to safeguard their investments. This article attempts to highlight the features of the two types of titles, to make it easier for potential buyers.
Both strata and Torrens titles confer ownership rights of the unit being purchased by the buyer in a multistoried building, and the main difference lies in the rights and obligations delineated by them for the owner. In case of strata title, the buyer gets ownership of the unit he purchases and gets shares in the servicing company that is more of a responsibility, as it requires coughing up maintenance fee every three months in proportion to the size of the unit in the multistoried building bought by the owner.
Torrens title is a type of strata title and is practiced in NSW of Australia. This is a system where a government office records and keeps all documents pertaining to ownership of property in NSW. Whether a property is being sold or bought, all documents must be produced in the office that has been named after Sir Robert Torrens, the former Premier of South Australia. All those who get their properties registered in this system have inalienable rights over their properties. This system has become common in many countries including entire Commonwealth. Torrens system uses a single register to record all details such as easements, caveats, resumptions, mortgages, and covenants. You are not the owner of a property in the eyes of the government until you have produced documents to the effect in the government office where you get registered as an owner.
|
What is the difference between Strata Title and Torrens Title? • Property that is strata title becomes Torrens title as soon as it is registered with the government office for the purpose of keeping records and their documentation. • Property that is strata title also includes vertical subdivision and the issue of common property such as driveway, stairs, entrance, elevators etc are well explained with responsibilities and contributions from the buyers of units for the maintenance of the common property. • On the other hand, Torrens title keeps mum about common property and leaves it upon individual owners to fight it out amongst each other.
|