Understanding Company Title in Victoria

Company Title is a less common but still important form of property ownership, especially in older inner-city apartment buildings across Melbourne.

As explained by David Dawn, Licensed Conveyancer at Victorian Property Settlements, this type of title gives you shares in a company rather than title to the land itself. In exchange, the company gives you the right to live in a specific unit.

It’s a structure with some real traps — particularly if you’re buying with finance.

What is Company Title?

Under a Company Title arrangement, the property is owned by a private company. Each apartment or unit corresponds to a specific number of shares in the company.

When you “buy” a unit, what you’re actually buying is a parcel of shares — and those shares give you exclusive occupation rights over that particular part of the building.

This structure was common before Strata Title was introduced in Victoria in the late 1960s. Many buildings converted to strata, but some still remain as company title properties today.

Where do you find Company Title?

Company Title is now rare but still found in:

  • Pre-1970 apartment blocks (particularly in St Kilda, Elwood, Carlton, and South Yarra)

  • Older red-brick or Art Deco flats where each unit has its own charm

  • Some tightly held coastal and holiday units

  • Occasionally, small investor co-operatives or intentional communities

Idiosyncrasies of Company Title

Unlike Torrens or Strata Title:

  • You don’t get a land title — your name isn’t registered at Land Use Victoria

  • You’re a shareholder, not a landowner

  • You need board approval to buy or rent a unit — this can be refused

  • Lenders may refuse to lend or require a higher deposit (commonly 30–50%)

  • The constitution of the company governs everything — not the Subdivision Act

If you fall out with other shareholders or the board, it can get very difficult.

How does Company Title differ from other titles?

  • Unlike Strata Title, there’s no Owners Corporation governed by legislation — rules come from the company’s internal documents

  • Unlike Torrens Title, you don’t have a certificate of title or state-guaranteed ownership

  • Unlike Leasehold, you’re not renting — but your occupancy rights can still be revoked in extreme situations (e.g. breaching company rules)

Benefits of Company Title

✅ Often cheaper to buy upfront due to buyer caution and lender limits

✅ Some buildings are beautifully maintained and community-minded

✅ Can be more exclusive or selective — less risk of short-stay lettings or party tenants

✅ Lower risk of investor overcrowding or high turnover

Drawbacks and risks

🚩 Reduced ability to borrow (many lenders won’t touch company title properties)

🚩 Approval delays for buyers, tenants, or renovations

🚩 Fewer protections than under Strata — rules can be arbitrary

🚩 Harder to sell — fewer buyers qualify or are willing to deal with the structure

🚩 Conflicts can’t easily be resolved through VCAT — you’re dealing with corporate law, not strata law

Key Takeaway

If you’re buying Company Title, make sure you’ve reviewed:

  • the company’s constitution

  • the minutes of recent meetings

  • and obtained written confirmation that you’ll be approved as a shareholder and occupier

These buildings can be gems — but they come with strict conditions and limited flexibility.

📞 Buying or Selling Company Title?

We help you cut through the fine print and understand what you're really signing up for. Whether you're buying your first home, selling your unit, or just need guidance on board approvals, we’re here to assist.