Company Title vs Strata Title: What Owners Need to Know (NSW Comparison Guide)

In New South Wales, residential apartment ownership is primarily structured under two systems: company title and strata title. While both relate to multi-unit buildings, they operate under fundamentally different legal frameworks and ownership models.

Understanding the difference is essential for owners, buyers, committees and directors, particularly in older Sydney buildings where company title schemes remain in operation.

Strata & Real Estate Services has a long history in both systems, originally established in 1957 as an accounting practice managing hundreds of company title buildings, many of which continue to be managed by our firm today.

The Key Structural Difference

The most significant difference between company title and strata title is ownership.

Company Title

• Ownership is held through shares in a private company.
• Shares grant a right to occupy a specific unit.
• Governance is controlled by a board of directors.
• Rules are set by the company constitution.
• Transfers often require board approval.

Strata Title

• Ownership is held through a registered Torrens Title lot.
• Owners hold individual title to their unit.
• Governance is managed by an Owners Corporation and strata committee.
• Rules are governed by NSW strata legislation.
• Lot ownership is independently transferable (subject to standard conveyancing).

Legal Framework Differences (NSW)

Company title schemes operate under:

• Corporations Act 2001 (Cth)
• The company constitution
• General corporate governance principles

Strata title schemes operate under:

• Strata Schemes Management Act 2015 (NSW)
• Strata Schemes Development Act 2015 (NSW)
• NSW Land Registry Services framework

These differences affect governance, dispute resolution, ownership rights and compliance obligations.

Ownership and Control

In company title schemes:

• The company owns the building.
• Shareholders occupy units under licence or permission.
• The board has discretion over approvals, including transfers and occupancy conditions.

In strata schemes:

• Owners hold legal title to their individual lot.
• The Owners Corporation manages common property.
• Governance is more structured and regulated by statute.

Buying and Selling Property

Strata title is generally more straightforward for property transactions because:

• Ownership is clearly defined under Torrens Title.
• Lending is widely supported by financial institutions.
• Disclosure and due diligence processes are standardised.

Company title transactions may involve:

• Board approval for share transfers.
• Review of constitution and occupancy rules.
• Additional due diligence on company financials and governance.
• More complex conveyancing processes.

This can make company title properties less liquid in some markets, although they remain highly desirable in certain locations and building types.

Governance and Decision-Making

Company title:

• Decisions are made by directors.
• Governance depends heavily on the constitution.
• Shareholder rights vary by company structure.

Strata title:

• Decisions are made by owners collectively through general meetings.
• The strata committee manages day-to-day operations.
• Decisions are governed by NSW legislation with formal voting rules.

Strata governance is generally more standardised, while company title governance can vary significantly between buildings.

Financial Management

Both systems require financial oversight, but structure differs:

Company title:

• Company maintains building accounts.
• Shareholders contribute via levies or company charges.
• Financial reporting depends on company systems and governance practices.

Strata title:

• Owners Corporation maintains administrative and capital works funds.
• Levies are structured under legislation.
• Financial reporting follows strata compliance requirements.

In both systems, poor financial management can lead to underfunding of maintenance and increased risk of special levies.

Maintenance and Capital Works

Both company title and strata buildings require ongoing maintenance of common property, however:

• Strata schemes generally have clearer statutory obligations for capital works planning.
• Company title schemes rely on board governance and financial planning practices defined in the constitution.

Without structured planning, both systems can experience deferred maintenance and increased long-term costs.

Dispute Resolution

Strata title:

• Disputes are generally resolved under NSW tribunal and mediation frameworks (NCAT).
• Clear legislative pathways exist for enforcement and dispute resolution.

Company title:

• Disputes are typically governed by the constitution and Corporations Act principles.
• Resolution may involve courts or internal governance processes depending on the issue.

Transition and Modernisation

Some company title schemes consider transitioning to strata title over time, however this is a complex process requiring:

• Shareholder agreement
• Legal and financial structuring
• Surveying and planning approvals
• Registration of a strata plan under NSW Land Registry Services

Not all schemes are suitable for conversion, and many continue successfully under company title with appropriate professional management.

How Strata & Real Estate Services Supports Both Systems

We provide long-standing expertise in both company title and strata environments, offering:

• Company title governance and financial management support.
• Strata management across NSW residential schemes.
• CPA-supported financial reporting and budgeting.
• Records reconstruction and compliance assistance.
• Insurance coordination and risk management.
• Contractor and maintenance oversight using TaskFlo.
• Governance advisory for directors and committees.
• Remote-first management supported by video meetings and NSW-compliant eVoting.

Our experience across both systems allows us to support buildings whether they remain company title or transition into strata.

A Practical Perspective for Owners

Neither structure is inherently “better” in all cases. Each has advantages depending on the building type, history and ownership profile.

However, strata title generally offers:

• Greater transparency
• More standardised governance
• Easier property transferability

Company title often reflects:

• Older premium buildings
• Strong internal governance traditions
• Unique architectural or historical assets

The most important factor is not the structure itself, but the quality of management, governance and financial planning applied within it.

Your Building, Our Expertise.

Owners / Shareholders should not consider the above as legal advice, and should seek appropriate independent legal advice.