Understanding property title types in Australia.

When you buy a property in Australia, you’re not just purchasing the building or the land — you are also purchasing a specific type of title. The title determines your ownership rights, your responsibilities, and in some cases, what you can and can’t do with the property.

Knowing the difference between title types is especially important for buyers considering apartments, townhouses, new developments or acreage.

At Lumo, we help clients understand how the title affects their lending, costs and long-term plans.

The main property title types

Australia uses several title types depending on the property and state legislation.
The most common are:

• Torrens title

• Strata title

• Community title

• Company title

• Leasehold title

Each type affects ownership, insurance, council requirements and lender assessment.

Torrens title (the simplest form of ownership)

Torrens title is the most common for standalone houses and land.

You own:

• The land

• The dwelling

• Improvements on the land

• Full rights and responsibilities for maintenance

There is no shared ownership or common property.

Why lenders like it:
It is straightforward, low-risk, and usually meets all standard lending policies without restrictions.

Strata title (common for apartments and townhouses)

Strata title is used for properties where you own part of a larger complex.

You own:

• Your individual unit or townhouse

• An entitlement share (unit entitlement) of common areas

The common property — such as hallways, lifts, pools, gardens and driveways — is owned collectively by all owners and managed by the body corporate (owners corporation).

You pay:

• Strata levies

• Sinking fund contributions

• Special levies if required

Lender considerations:
Some lenders have policy restrictions for very small units (typically under 40 m² internal), high-density buildings, or complex strata arrangements.

Community title (estate-style developments)

Typically found in new housing estates, gated communities or large townhouse complexes.

You own:

• Your individual lot (similar to Torrens title)

• Shared responsibility for community facilities such as:

  • Private roads

  • Shared parks

  • Recreation areas

  • Shared gardens

Community title schemes often include by-laws similar to strata, but usually with fewer constraints.

Lender considerations:
Generally positive, but fees and community levies are factored into serviceability.

Company title (older style unit blocks)

Less common today but still found in some older metropolitan buildings.

You do not technically own the unit.
Instead, you own shares in a company that owns the entire building.
Those shares grant you the right to occupy a specific unit.

Key differences:

• You need board approval to sell or rent out your unit

• Renovations require additional approvals

• Some lenders will not accept company-title properties as security

• When lenders do accept them, lower maximum LVRs may apply

Company title can affect resale value due to these limitations.

Leasehold title (you own the building, not the land)

Under leasehold, you own the property for a set period (the lease term), but the land remains owned by another party — for example:

• The state government

• The Crown

• Local council

• A private landholder

Examples include some inner-city developments, retirement communities and rural or regional land parcels.

Important considerations:

• Lease term length is critical

• Value decreases as the lease shortens

• Lenders may restrict LVRs

• Some lenders won’t lend at all if the remaining lease term is too short

Always check lease conditions carefully.

Why title type matters for your loan

Lenders assess title types differently because they influence:

• Marketability and resale

• Long-term value

• Legal complexity

• Ownership rights

• Ongoing fees or obligations

This can affect:

• Maximum loan-to-value ratios

• Borrowing capacity

• Valuation outcomes

• Which lenders are suitable

At Lumo, we assess your title early to avoid contract issues or hidden lending restrictions.

Let’s chat.

If you're unsure which title type applies to a property you're considering — or how it affects lending and ongoing costs — we can explain it clearly and recommend the right approach. Let’s chat.

This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.