Vendor & Purchaser Information
Types of Property Holdings
Joint tenancy is the most common way in which people that are married or in a similar relationship register when acquiring property that is to be their home.
It is when an individual purchases property as an investment or with several parties that they would consider the other types of property holding.
It is important to understand the differences prior to the preparation of transfer documents to ensure that individual interests are being correctly recorded & protected.
Vendor & Purchaser Information
Joint Tenants
Each person is in fact the owner of the whole of the land, when holding a property as a joint tenant, individuals do not have a separate and distinctive share in the land. Joint tenants are considered to be one person under the Real Property Act 1926. A joint tenant is unable to deal with the land independently of the other joint tenant. Both parties would need to agree in order to deal with the land. However under the terms of Joint Tenancy when one party dies, the surviving owner is automatically entitled to become the owner of the deceased interest.
Vendor & Purchaser Information
Tenants in Common
The Tenants in Common holding is more commonly used when individuals are purchasing property with friends or as a business transaction. Each party holds a share in the property, this share does not automatically transfer to the remaining tenant upon the death of the other party. Unlike Joint Tenants, the Tenants in Common allows each party to have individual titles issued for their share.
Where there are multiple parties involved in the purchase there is the provision to combine both the Joint Tenants and the Tenants in Common holdings.
Vendor & Purchaser Information
Strata Title
Town houses, units and some types of commercial property generally fall under this category. Each unit and common property comes from one large parcel incorporating property and land. Each unit or allotment is given its own title as well as the common property (shared between all members of the group). The difference is in the way the land boundaries are defined. A Strata Title unit's boundaries are defined by reference to parts of the building, not by the land.
Strata Title groups also have a Strata Corporation assigned to the group. The role of the Strata Corporation is to manage the needs of the unit owners. They ensure that the grounds and common areas are maintained. They also hold quarterly meetings at which all unit holders are encouraged to attend. These meetings ensure that all parties are aware and can have their say in relation to any proposed changes and needs of the group.
Vendor & Purchaser Information
Community Title
Similar to that of a Strata Title holding, Community Titles are defined by lot boundaries & surveyed measurements of which are unlimited in height and depth, as well as reference to parts of the building.
Community Title Corporations are also appointed and comprise of the registered owners of the Lots in the community scheme. The Corporation is responsible for the administration of the groups by-laws and to maintain the common property and any fixtures on the property, Apartment Complexes generally fall into this category.
When purchasing either Strata or Community Title properties, individuals need to be aware of the by-laws of the Corporations and ensure that they are prepared to live in accordance with them. There can be certain limitations, such as having to obtain permission from all the unit holders in order to make any exterior changes to the property.