Australian properties have many different types of property rights, the most common of which are three:
- Torrance property right (Torrens Title);
- Sub-contract property right (Strata Title);
- Community property right (Community Title)
Torrance property right (Torrens Title):
If you buy a Torrance property, it means you have a permanent title not only to the house itself, but also to the land of the property.
Therefore, in the purchase of Torrance property, in addition to looking at the house itself, the size of the land is a particularly important consideration.
In Australia, most independent villas, as well as some townhouses, belong to Torrance property.
Generally speaking, the property of this kind of property has the land, the price is higher, the value preserves and increases also has the security. Accordingly, however, the cost of holding such properties is also large, more suitable for buyers to live in their own use.
Torrance property, there are no restrictions on pets, barbecues, etc., or few restrictions (local council regulations restrictions). Moreover, this type of property usually has better private space and is less disturbed by the surrounding noise.
After buying the Torrance property, you need to be responsible for the maintenance and management of your land and houses. You can also apply to the local goverment for toppling and rebuilding or adding to the house.
When buying a property owned by Torrance, you should confirm in advance whether there are illegal construction facilities in the property. As soon as the property is transferred to your name, the risk of illegal construction facilities will also be transferred to you. If found by the local goverment, you will be liable for fines, building violations, and so on.
If you intend to overthrow and rebuild or build a house over the land after buying the property in Torrance, you should be fully aware of the restrictions and requirements of the local goverment on housing construction (for example, the height limit of the house) before you purchase it. Material limit, area limit, etc), so as not to lose more than the gain.
Sub-contract property right (Strata Title)
Sub-contract property right is another of the most common types of property rights. In Australia, most apartments and some townhouses belong to sub-ownership.
If you buy a property with sub-title, then you have no direct ownership of the land under the house, you just buy a limited space on the land divided horizontally and vertically, and acquire the permanent property right of the house in that space.
So who does the land under the house belong to? Simply put, it is owned collectively by the owners of all the apartments on this land.
Therefore, when the property of the property right is purchased, it is only necessary to consider the quality of the house itself, the indoor and outdoor area, the house type, the parking space and other factors, regardless of the land area.
Because a piece of land can be divided into two to hundreds of sub-lease spaces and produce many utilities (such as exterior walls, corridors, elevators, etc.), all these need to be jointly maintained by all owners. Therefore, sub-contract property rights will generally be handed over to professional property management companies, owners pay the corresponding property management fees on a quarterly basis.
In addition to the laws and regulations promulgated by goverment, each owner group will have different regulations on sub-lease management. For the owner, the corresponding restrictions are greater.
As the structure of the building belongs to the owners' group, the owners of the sub-contract property should not renovate or decorate their houses at will. If found unauthorised, the owner will face serious consequences (such as fines, restitution or litigation) if the structure of the house is altered without permission. But accordingly, the sub-lease management property company will be responsible for the daily cleaning and maintenance of the building, saving the owners a lot of trouble.
Community property right (Community Title)
Community property rights combine some characteristics of sub-contract property right and Torrance property right. Community property is usually located in a larger community area, and mainly independent housing.
If you buy a community-owned property, you have permanent ownership of both the house and the land, but at the same time, you own and maintain some public areas, such as roads, parks, leisure facilities, and so on, with other owners in the community.
In general, owners' conferences entrust professional property management companies with the maintenance of public spaces within the community, similar to sub-contractual property rights. Therefore, the owners of community property rights also need to pay the corresponding community management fee every quarter.
Which property is better?
In fact, these three property rights have their own advantages and disadvantages, the choice of which house mainly depends on the buyer's own conditions and needs to determine.
