Strata Title FAQ - What is the difference between strata title units and company title units?

Date: March 03, 2011

Q. I'm looking at two home units to buy. One is a strata title unit while the other is a company title unit. What's the difference?

A. With strata title units, you have an ownership of the land. By contrast, with company title units, you own a parcel of shares, and by owning that particular parcel of shares, you have a right to occupy a particular designated home unit. It is usual with company title units for the board of directors' approval to be required before any transfer or lease can be made. However this is not the case with strata title units where there is freedom of transfer, lease, and other kinds of transactions concerning the property. It is also more difficult to carry out alterations to the unit where company title is concerned. Because of the restrictions there is often, but not always, a discount on the market price of company title home units compared with strata title units. Therefore they are usually cheaper to buy but consequently the resale value is often (but not always) lower.