Types of Property Ownership in Australia Explained

Buying property in Australia is one of the largest financial decisions most people will make in their lifetime. Yet many buyers arrive at the contract stage without a clear understanding of a fundamental question: what, legally, will they actually own? The answer depends on the type of property ownership — and the differences between them are far from trivial. They affect your financing options, your ongoing costs, your tax position, and what happens to the property if you or a co-owner dies.

This guide explains every type of property ownership you are likely to encounter in Australia, from the everyday (freehold Torrens title) to the niche (company title), including the critical distinction between joint tenancy and tenancy in common when you buy with someone else.

Why Ownership Type Matters Before You Buy

The ownership type is not just administrative detail — it shapes almost every practical aspect of property ownership:

• What you actually own: With a Torrens title house, you own the land and building. With a strata title apartment, you own the airspace of your lot and a share of common property. With company title, you own shares in a company — not the property itself.
• Your lending options: Most lenders readily finance freehold and strata properties. Company title properties attract significantly stricter lending criteria, with many lenders applying lower loan-to-value ratios or refusing to lend entirely.
• Ongoing obligations and costs: Strata, community, and company title all involve ongoing levies or fees paid to a shared management body. Freehold does not.
• Your estate planning: Whether you own as a joint tenant or tenant in common determines whether your share of the property can be left via your will.
• Capital gains tax: The Australian Taxation Office (ATO) treats joint tenants and tenants in common differently for CGT purposes on death.

The ownership type appears in the title documents attached to the contract of sale. A conveyancer or solicitor will identify it for you, and you should always ask before signing. The Realestate Lens Contract Analysis tool surfaces ownership type and related flags automatically from uploaded contracts.

Freehold (Torrens Title): The Most Common Type

The vast majority of residential property in Australia is held under Torrens title, also called freehold title. The Torrens system of land registration was first introduced in South Australia in 1858 by Sir Robert Torrens and was subsequently adopted across all Australian states and territories. The Torrens Title Register in NSW was established in 1863, and today all states maintain their own government-backed register of land ownership.

Under Torrens title, ownership is recorded in a folio on the state land registry. Your ownership is guaranteed by the state government — NSW Land Registry Services describes the register as providing a state government guarantee of title. This means that, with limited exceptions, once you are registered as owner, your title cannot be challenged on the basis of prior dealings not shown on the register.

What You Own Under Torrens Title (Freehold)

• The land itself — its surface and, subject to any mining or resource rights, what lies beneath it
• All buildings and permanent improvements on the land
• The airspace above the land to a reasonable height
• Full control over the use and development of the property, subject to local government planning rules

What Is Registered on the Title

The title for a freehold property records the current registered owner(s), the legal description of the land (lot and deposited plan number), and any registered interests that burden or benefit the land — including mortgages, easements (e.g., a neighbour's right to pass over part of your land), covenants, and caveats. When you complete settlement, the transfer of ownership is lodged with the relevant state registry, and the register is updated.

For a deeper comparison of freehold versus strata title, see our dedicated article on strata vs Torrens title.

Leasehold: What It Means for ACT Buyers

Leasehold is the dominant form of land tenure in the Australian Capital Territory (ACT). Rather than owning the land outright, buyers in the ACT hold a Crown lease — a long-term lease from the ACT Government (representing the Crown) that grants the right to use and occupy the land.

According to ACT Planning, Crown leases are typically granted for a term of 99 years, at nominal rent, and are automatically renewable. Leaseholders also retain the right to compensation for the value of improvements if the lease is not renewed, a provision that provides a degree of security comparable to freehold in practical terms.

Key Characteristics of ACT Leasehold

• You effectively own it: ACT Planning states that if you hold a Crown lease, "you effectively own it." You can sell, transfer, mortgage, and improve the property.
• Permitted use is fixed: The lease specifies what the land may be used for (e.g., residential, commercial). You cannot change the use without applying for a lease variation.
• Development covenant: New Crown leases often include a requirement to complete approved building and development work within 24 months of the lease start date.
• Water rights: A Crown lease does not give rights to the use, flow, or control of water under the land (except for rural leases).
• Lesser interest than freehold: Legally, a leasehold estate is a lesser interest in land than a freehold estate. This can be reflected in valuations and should be understood when comparing ACT property to equivalent freehold property in other states.

Strata Title: Owning Your Lot, Sharing Common Property

Strata title is the form of ownership used for apartments, units, townhouses, and villa complexes where multiple dwellings exist on a single parcel of land. It was introduced in NSW in 1961 and has since been adopted, with variations, across all Australian states and territories.

A strata plan divides a parcel of land into individual lots and an area of common property. Each lot owner receives their own certificate of title for their lot. The boundaries of a lot are typically defined by the structural divisions of the building (floors, ceilings, and walls) rather than by the land itself.

What You Own Under Strata Title

• Your lot: The airspace within the defined boundaries of your apartment or unit, plus any car space or storage cage that forms part of your lot (check the strata plan — some are separately titled, some are common property subject to an exclusive use by-law).
• A share of the common property: Common property is everything outside the lot boundaries — lifts, stairwells, hallways, gardens, pools, driveways, roofs, external walls, and building services infrastructure not exclusively serving one lot.

The Owners Corporation (Body Corporate)

Every strata scheme — no matter how large or small — has a statutory body that manages the common property. In NSW and Victoria this is called the owners corporation; in Queensland it is the body corporate; in WA it is the strata company. All lot owners automatically become members. The owners corporation:

• Administers and maintains the common property
• Holds and manages the scheme's insurance
• Collects levies from lot owners to fund operations and capital works
• Makes and enforces by-laws governing the use of lots and common property
• Makes decisions collectively via general meetings, where each lot typically carries one vote

For a full explanation of how body corporate works, see our guide on body corporate explained for buyers.

Company Title: The Old Alternative to Strata

Company title is an older and far less common form of property ownership, found predominantly in older apartment buildings in Sydney and some other capital cities. Approximately 1,250 company title properties remain in NSW as of early 2025. Before strata legislation existed, company title was the main mechanism used to divide multi-unit buildings between occupants.

How Company Title Works

Under company title, a company owns the entire building. Buyers do not purchase a lot — they purchase shares in the company. Each class of shares corresponds to the right to exclusively occupy a specific unit, plus the non-exclusive right to use shared facilities. Buyers receive a share certificate, not a certificate of title over the property itself.

The company is governed by its own constitution rather than strata legislation. A board of directors manages the building and enforces the company's rules. Critically, the constitution often grants the board the power to approve or block a sale if the directors believe it is adverse to the company's interests — which significantly limits the pool of potential buyers and your ability to sell freely.

Key Risks of Company Title

• Mortgage difficulties: Many lenders are unwilling to finance company title purchases, or apply significantly lower LVRs, because they take security over shares rather than land. This restricts your buyer pool and resale options.
• No statutory protections: Unlike strata schemes governed by consistent state legislation, company title buildings are regulated only by the company's constitution, which varies and may lack important protections for residents.
• Land tax: Company title properties are generally assessed for land tax at the general (non-principal-residence) rate, as the individual shareholder does not hold legal title to the land.
• Transfer restrictions: Sales are subject to board approval, creating uncertainty around resale timing and price.
• Capital growth: Company title properties have historically appreciated more slowly than equivalent freehold or strata title properties, partly because of the lending restrictions and the smaller buyer pool.

Community Title and Neighbourhood Schemes

Community title (called community schemes in NSW, community title in SA and QLD) is a form of land division designed for larger, mixed-use, or staged developments that go beyond what a standard strata scheme can accommodate. Think master-planned estates, residential resort communities, or estates with a mix of freestanding houses and shared amenities.

How Community Title is Structured

According to NSW Fair Trading, community, precinct, and neighbourhood schemes are forms of land title that subdivide land into individual lots together with shared common property. The structure can be layered:

• Community scheme: The overarching scheme covering the entire development. Owners share the community common property (e.g., a main entrance road, parks, shared infrastructure).
• Precinct scheme: A sub-division of the community scheme, grouping related lots (e.g., a cluster of townhouses).
• Neighbourhood scheme: The smallest tier. A neighbourhood scheme typically covers individual lots, often freestanding houses or townhouses. It operates similarly to a strata scheme but typically for low-density housing. A neighbourhood scheme can also exist independently, without sitting within a precinct or community scheme.

Each tier has its own association with its own budget, levies, and by-laws. As a lot owner in a community title development, you may be paying levies at multiple levels — for example, a neighbourhood levy, a precinct levy, and a community levy.

What Community Title Means for Buyers

• You own your individual lot in fee simple (freehold), plus a share of the common property at each applicable tier of the scheme
• You are bound by the by-laws and rules of each association tier
• You pay levies at each applicable tier, which fund the maintenance and administration of shared infrastructure and amenities
• Service infrastructure (roads, utilities, stormwater) serving more than one lot forms part of the common property and is the association's responsibility to maintain

Joint Tenancy vs Tenancy in Common: Buying With Someone Else

When two or more people buy property together in Australia, they must choose how to hold the ownership between them. There are two options: joint tenancy and tenancy in common. This choice has profound implications for estate planning, tax, and what happens if the relationship between the co-owners breaks down.

Joint Tenancy

Under joint tenancy, two or more people own the property together as a single, undivided interest. The NSW Registrar General's Guidelines describe the defining characteristic of joint tenancy as the right of survivorship: upon the death of one joint tenant, that person's interest automatically passes to the surviving joint tenant(s). It does not form part of the deceased's estate and cannot be left via a will.

For a joint tenancy to be created, four legal "unities" must be present:

• Unity of time: All joint tenants must acquire their interest at the same time.
• Unity of title: All must acquire their interest from the same transaction or document.
• Unity of interest: All interests must be identical in nature, extent, and duration — each joint tenant owns an equal share.
• Unity of possession: Each owner has an equal right to possession of the whole property, but not exclusive possession of any part.

Joint tenancy is the most common holding structure for married couples and domestic partners buying their primary residence together. For more detail on how buying as a couple works in practice, see our guide on buying property with a partner in Australia.

Tenancy in Common

Under tenancy in common, each co-owner holds a distinct, defined share of the property. That share does not need to be equal — it is possible to hold as tenants in common in any proportions, such as 50/50, 60/40, 70/30, or any other split. Crucially, there is no right of survivorship: when a tenant in common dies, their share passes according to the terms of their will (or, if they die intestate, under the relevant state intestacy laws).

Tenancy in common is often preferred by:

• Investors buying together who have contributed different amounts and want their proportionate share protected
• Friends or siblings buying together who each want to be able to leave their share to their own family
• People in second relationships who wish to protect their share for children from a prior relationship
• Business partners purchasing commercial or investment property

Severing a Joint Tenancy

A joint tenancy can be converted to a tenancy in common (a process called "severing" the joint tenancy) unilaterally by one joint tenant, without the consent of the other. This is done by registering the appropriate dealing at the state land registry. Once severed, the property is held as tenants in common in equal shares. The other joint tenant must be notified.

How Ownership Type Affects Finance, Tax, and Resale

Financing

The ownership type directly affects your ability to borrow and on what terms:

• Freehold (Torrens title): Standard lending. Lenders take a first mortgage over the land as security. Generally the most straightforward to finance.
• Strata title: Standard lending, though lenders may apply restrictions for very small buildings (fewer than 4 lots) or buildings with a high proportion of investor-owned lots, commercial uses, or identified building defects.
• Leasehold (ACT): Lenders will lend against ACT Crown leases — the market is mature and leasehold is the norm in the ACT. However, some lenders apply conservative valuations depending on the remaining lease term and permitted use.
• Company title: Many lenders refuse or apply significantly lower LVRs. You should confirm finance-ability before signing a contract for a company title property.
• Community title: Lenders generally treat community title lots similarly to strata title. Confirm with your lender that they will lend on the specific community title structure.

Capital Gains Tax (CGT)

The ATO's treatment of CGT differs depending on whether you are a joint tenant or tenant in common:

• Joint tenants for CGT purposes: The ATO treats joint tenants as if they each own an equal share of the asset (even though legally the interest is undivided). If one joint tenant dies, the ATO treats the deceased's interest as passing in equal shares to the surviving joint tenants. If the property was the deceased's main residence, the surviving joint tenant may be entitled to the main residence exemption for the acquired interest.
• Tenants in common for CGT: Each tenant in common's share is treated as a separate CGT asset. When a tenant in common dies, their share passes as an asset of the deceased estate. CGT consequences are calculated based on each owner's specific interest and cost base.
• Main residence exemption: For your primary home, the main residence CGT exemption applies regardless of whether you own as joint tenants or tenants in common, provided the property is your main residence. The ATO has specific rules where spouses or partners nominate different homes.

Foreign Buyers: FIRB Approval Requirements

Foreign persons — including temporary residents, foreign-incorporated companies, and foreign government investors — are subject to foreign investment rules administered by the ATO on behalf of the Foreign Investment Review Board (FIRB).

As of the 2026–27 Federal Budget, the Australian Government has extended the temporary ban on foreign purchases of established residential dwellings by a further two years and three months, until 30 June 2029. An established dwelling is an existing dwelling that is not a new dwelling.

Until 30 June 2029, foreign persons (including temporary residents and foreign-owned companies) generally cannot buy an established dwelling in Australia, unless an exception applies. Limited exceptions include investments that significantly increase housing supply or support the availability of housing.

Foreign persons can still buy new dwellings and vacant land, subject to obtaining prior approval from the ATO before entering any contract. Application fees apply and are generally based on the value of the property. New Zealand citizens have existing exceptions under the foreign investment framework.

If you are a foreign person or buying through a foreign-owned entity, consult the ATO's foreign investment guidance at ato.gov.au and obtain specialist legal advice before proceeding.

Resale Considerations

Ownership type affects your future resale market:

• Freehold properties have the broadest buyer pool — any buyer can purchase, including with standard lending.
• Strata properties are widely traded, but buyers will scrutinise the strata report, levies, and body corporate finances, which can affect price and negotiation.
• Company title properties have a materially smaller buyer pool because of lending restrictions and board approval requirements. Plan for a longer sale campaign and lower comparative price.
• Community title properties are generally well-received by buyers, though the layered levy structure requires clear disclosure and understanding.

How to Check the Ownership Type of a Property

You can verify the ownership type of any property before purchase by searching the relevant state land registry. Each state provides online title search services:

• NSW: NSW Land Registry Services (nswlrs.com.au) — title searches show the registered proprietors, lot and deposited plan number, and any registered dealings, including whether the title is a strata lot, community title lot, or Torrens title.
• Victoria: Land Victoria via LANDATA® (land.vic.gov.au) — provides a Register Search Statement showing current owners, title type, and registered interests.
• Queensland: Titles Queensland (titlesqld.com.au) — title search results include the ownership structure.
• Western Australia: Landgate (landgate.wa.gov.au) via Land Enquiry Services — the Certificate of Title shows ownership details and registered interests.
• South Australia: Land Services SA via SAILIS (the SA Integrated Land Information System) — certificates of title are purchasable online.
• ACT: Access Canberra — land title searches and Crown lease details are available through the ACT Government's online services.

A conveyancer or solicitor conducting your due diligence will perform a title search as a standard step. If you want to check independently before engaging a professional, most state registries charge a modest fee (typically $15–$30) for an online title search.

The contract of sale will also identify the title type. Our Contract Analysis tool reads uploaded contracts and flags the ownership structure, co-ownership arrangements, and any title encumbrances automatically.

For a comprehensive walkthrough of what a title search reveals and how to interpret it, see our article on property title searches explained.

Related Resources

• Strata vs Torrens Title: What Every Australian Buyer Needs to Know— a deeper dive on the most common comparison
• Body Corporate Explained for Buyers— how owners corporations and body corporates work
• Buying Property With a Partner in Australia— including how to choose between joint tenancy and tenancy in common
• How to Research a Property Before Buying— full due diligence checklist including title checks
• Contract Analysis— upload any Australian property contract and get an instant plain-English breakdown

This guide is for general information only. Property ownership structures have significant legal and tax implications that vary by state and individual circumstance. Always obtain independent legal and financial advice before purchasing property. Reviewed by Sarah Thompson, Licensed Conveyancer.