Property titles have different implications on your ownership. This article will give a short introduction to the two most common types of titles that you will encounter when buying a home.
This kind of title of is also called Torrens Title. They are the most common form of title, with the majority of residential and commercial properties falling under this category. The holder of Torrens Title owns the land as well as the property on it. Your ownership will be registered on a Certificate of Title and guaranteed by the state government. Most standalone houses and land are under Torrens Title.
Strata Title is distinguishable from Torrens Title in that while a holder of Torrens Title owns both the property and the land the property is on, a holder of Strata Title only has ownership over what’s within the space of the property or parts of it. Strata Title normally applies to units, townhouses, and apartments, where there are common areas over which all proprietors (holders of strata title on the land) have joint ownership and responsibility. These shared spaces are usually managed through an Owners Corporation which the joint owners must collectively fund. Rights and obligations arising from Strata Titles can be complex. It is wise to do your research or seek legal advice prior to purchasing a property with Strata Title.
When buying property, it is important to know what kind of title is on the property and fully understand the nature of your ownership. This article introduces two of the most common types of land titles but there are numerous more. If you would like to ascertain which title is applicable to your (prospective) property and the legal implications, Straits Lawyers would be happy to assist you.
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Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.