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Guilherme Mazui

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What is the Difference Between Strata and Torrens Title?

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The main difference between strata and Torrens title lies in the type of property ownership and the responsibilities associated with it. Here are the key differences:

Torrens Title:

  • The purchaser owns the land and the building, also known as 'freehold'.
  • The owner is solely responsible for the maintenance and costs associated with the property.
  • Torrens title properties usually offer greater privacy and less noise disturbance.
  • Changes to the property can be made without the permission of an owners corporation.
  • Properties with Torrens title are usually easier to sell, as demand is high and they typically cost more than strata titled properties.

Strata Title:

  • There are multiple owners of properties on one piece of land, and all owners are responsible for the shared areas known as 'common areas'.
  • Strata title properties are usually apartments, townhouses, or units.
  • Owners are subject to strata fees, which are charged quarterly and can change over time.
  • Changes to the property usually require permission from the owners corporation.
  • Strata titled properties are typically easier to sell due to high demand, but they usually cost less than Torrens titled properties.

When purchasing a property with strata title, it is essential to examine the financial health of the owners corporation and be aware of any by-laws in place, such as limitations on pet ownership, visitors' parking, and noise restrictions. In contrast, Torrens title properties offer more independence and freedom in property management, but owners are solely responsible for maintenance costs.

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  • What is the Difference Between Strata and Torrens Title?
  • Comparative Table: Strata vs Torrens Title

    • Comparative Table: Strata vs Torrens Title

    Here is a table comparing the differences between Strata and Torrens Title:

    Feature Strata Title Torrens Title
    Definition Ownership of property under strata is shared through an owners' corporation. Properties are adjoining or connected in some way with shared common areas. Owners have sole responsibility for the maintenance and costs of the property.
    Ownership Structure Owners have individual ownership of their unit and shared ownership of common areas. The owner has sole ownership of the land and any structures on it.
    Legal Framework Ownership and use are governed by specific legislation for strata properties. Governed by a land title system where the owner has complete ownership and control over the property.
    Maintenance Strata fees are subject to change and are likely to increase as new maintenance issues arise. You can determine when and if repairs are made to suit your financial situation.
    Property Changes Changes to property will usually require permission of the owners. You are free to make changes to your property as you wish (with your local council's approval, if required).

    In summary, Strata Title properties involve shared ownership of common areas and are subject to specific legislation for strata properties, while Torrens Title properties involve sole ownership of the land and any structures on it, with the responsibility for all maintenance and costs associated with the property.

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    Guilherme Mazui

    Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.