What's happening?
Company title is an older ownership structure, more common in some older apartment buildings, where owners hold shares in a company that in turn owns the building, rather than owning their unit directly under strata title. Transactions involving company title generally require both a share transfer and compliance with the company's constitution or by-laws.
What could it mean for me?
- Lenders may have different or more limited finance options for company title property
- The company's constitution may restrict who can buy, use or lease a unit
- Approval from the company or its directors may be required before a transaction proceeds
- Due diligence differs from a standard strata purchase
What are my options?
- Confirm the company's rules on transfer, use and leasing before committing
- Check finance options early given lending can be more limited
- Ensure any required company approvals are obtained as part of the transaction
What happens next?
- Review the company's constitution and any relevant by-laws
- Confirm approval requirements for the transaction
- Prepare share transfer and associated documentation
- Complete the transaction and update company records
How can MGE Lawyers help?
We assist buyers and sellers navigating the additional steps involved in company title transactions, including reviewing constitutions and coordinating necessary approvals.