Torrens title simply means the purchaser owns the land and building. This can also be known as ‘freehold.’
Strata title simply means that there are multiple owners of properties on one piece of land where all owners are responsible for the areas that are shared known as ‘common areas.’
When there is units, townhouses or villas on the land it is usually purchased under Strata. The reason for this is because there are common areas that are used by all that reside there. These common areas have the cost bared by all owners equally. This is organised by an owners corporation whilst each individual owner is responsible for everything inside their individual property. When you purchase a property that is strata you need to factor in the costs of these common areas which is usually organised through the owners corporation known as strata levies. This is a fee that is usually charged quarterly.
If you are looking at purchasing a property on Strata enquire about getting a record from the owners corporation about the buildings condition. This can be arranged through your solicitor. The report will tell you how organised the owners corporation is and how much money they have on hand whilst being able to see where the money has been spent previously. This can help you avoid purchasing a property with massive costs associated to the common areas. It can be a common occurrence where someone purchases a property without realising that there is a large cost coming towards them.
You will also find that there may be some ‘by-laws’ about the building that you may not have foreseen. ‘By-laws’ are simply regulations put against the building. They can be simple things like the maintenance of a heating system to things you may not expect like a curfew on noise.
If you purchase a property on either of these titles it is important to understand everything that can occur with that property. Using Real Estate Agents that understand and can communicate the complexities to specific situations is paramount particularly when there are maintenance issues.
Property Management may seem straight forward but when something happens that you are unfamiliar with you need to make sure you have a reliable Property Manager.
Please call G&H Property Group if you require a reliable Real Estate Agent to manage your property. Our Property Management Melbourne team understands what is needed to keep your investment property as safe as possible.