Strata vs Torrens Title: What Every Australian Buyer Needs to Know

When buying property in Australia, one of the most fundamental distinctions you will encounter is the difference between strata title and torrens title (also known as freehold title). The type of title determines what you own, what you are responsible for, what ongoing costs you will pay, and how much control you have over the property. Understanding this distinction is essential for making an informed purchase decision — especially when comparing apartments and townhouses (typically strata) with standalone houses (typically torrens).

What Is Torrens Title?

Torrens title (or freehold title) is the most common form of land ownership in Australia. When you own a property under torrens title, you own both the land and the building on it outright. You have full control over the property and are solely responsible for its maintenance, insurance, and management.

The Torrens title system was invented in South Australia in 1858 by Sir Robert Torrens and has been adopted across all Australian states and territories. It provides a government-guaranteed register of land ownership — your ownership is recorded on the title at the relevant state land titles office, providing certainty and security.

Key characteristics of torrens title:

• You own the land and everything on it (subject to any easements or covenants registered on the title)
• You are solely responsible for all maintenance, repairs, and improvements
• You control the use of your land (subject to local council planning rules)
• You arrange and pay for your own building insurance
• There are no body corporate or strata levies
• You can make alterations and renovations without needing approval from other owners (though you may need council approval)

What Is Strata Title?

Strata title is a form of ownership designed for multi-unit properties — apartments, units, townhouses, and some villa complexes. Under strata title, you own your individual lot (your apartment or unit) but share ownership of the common property with all other lot owners in the scheme.

Common property includes shared areas like hallways, lifts, stairwells, gardens, swimming pools, car parks (unless individually titled), driveways, roofs, and external walls. The strata scheme is managed by an owners corporation (called a body corporate in Queensland) which all lot owners are automatically members of.

Key characteristics of strata title:

• You own your individual lot (the airspace within your unit's boundaries)
• You share ownership of common property with other lot owners
• You pay ongoing strata levies (also called body corporate fees) to fund maintenance, insurance, and management of common areas
• The owners corporation manages the building and common areas collectively
• By-laws govern what you can and cannot do with your lot and the common property
• You typically need owners corporation approval for renovations that affect common property or the building's exterior

Key Differences: Strata vs Torrens Title

Strata Levies Explained

If you buy a strata title property, you will pay regular strata levies (fees) to the owners corporation. These levies fund:

Administrative Fund (Operating Expenses)

• Building insurance (a single policy covering the entire building)
• Common area cleaning and gardening
• Lift maintenance
• Lighting in common areas
• Strata management company fees
• Fire safety and compliance
• General repairs and maintenance

Capital Works Fund (Sinking Fund)

• Major repairs and replacements (roof, plumbing, painting, waterproofing)
• Building upgrades (lift replacement, fire system upgrades)
• Long-term maintenance planning based on a 10-year capital works plan

Typical Strata Levy Costs

Strata levies vary enormously depending on the building's age, size, location, and amenities:

• Small block (6-12 units, no lift): $500-$1,200 per quarter
• Medium block (20-50 units, lift, basic amenities): $1,000-$2,500 per quarter
• Large building (50+ units, pool, gym, concierge): $2,000-$5,000+ per quarter
• Luxury high-rise (concierge, pool, gym, common areas): $3,000-$8,000+ per quarter

Body Corporate / Owners Corporation Explained

When you buy into a strata scheme, you automatically become a member of the owners corporation (called the body corporate in Queensland). For a full explanation of how body corporate works, see our guide on body corporate explained for buyers and our glossary entry on what is body corporate. This is the collective entity that manages the building and common property.

How It Works

• Annual general meetings (AGMs): All lot owners are invited to attend and vote on matters affecting the building — budgets, levies, by-law changes, major works, and appointments.
• Committee: The owners corporation typically elects a committee (or executive committee) to make day-to-day decisions between meetings. As a lot owner, you can volunteer for the committee.
• Strata manager: Most schemes appoint a professional strata management company to handle administrative tasks, financial management, and maintenance coordination.
• Voting rights: Each lot typically has one vote. Decisions are made by majority vote for ordinary resolutions and a higher threshold (75% or unanimous) for special resolutions (e.g., changing by-laws, major renovations).

Common Issues in Strata Schemes

Strata living involves shared decision-making, which can sometimes lead to disputes or frustration:

• Disagreements over spending and levy increases
• Slow decision-making on urgent repairs
• Noise complaints and by-law enforcement
• Building defects (particularly in newer buildings) and disputes over rectification costs
• Special levies for unexpected major repairs (which can be tens of thousands of dollars per lot)
• Restrictions on renovations, pets, or short-term letting (e.g., Airbnb)

Pros and Cons

Torrens Title: Pros

• Full ownership and control of your property and land
• No strata levies or body corporate fees
• Freedom to renovate, extend, or develop (subject to council approval)
• Land appreciates over time — historically stronger capital growth
• No by-laws governing your behaviour or property use
• No reliance on other owners for building maintenance decisions

Torrens Title: Cons

• Higher purchase price (you are paying for land)
• You are solely responsible for all maintenance and repairs
• No shared amenities (pool, gym, security)
• Higher building insurance costs (you pay the full premium yourself)
• More maintenance work required (gardens, external painting, gutters, fencing)

Strata Title: Pros

• Lower entry price — more affordable way to buy in desirable locations
• Shared maintenance burden — the owners corporation handles common area upkeep
• Access to amenities you might not afford individually (pool, gym, gardens)
• Building insurance is handled collectively (and often cheaper per lot)
• Security features (intercoms, security doors, concierge) in many buildings
• Often located closer to CBDs and transport

Strata Title: Cons

• Ongoing strata levies that increase over time
• Less control over your property — by-laws and owners corporation decisions apply
• Risk of special levies for major unexpected repairs
• Potential for disputes with other owners or the committee
• Restrictions on pets, renovations, and short-term rentals
• Building defect risk (particularly in buildings constructed after 2000)
• Generally slower capital growth than equivalent houses (though this varies by location)

Which Is Better for You?

The right choice depends on your circumstances, priorities, and investment goals:

Choose Torrens Title If:

• You want full control over your property with no restrictions
• You prioritise long-term capital growth (land value appreciation)
• You plan to renovate, extend, or develop the property
• You prefer not to deal with body corporate meetings and collective decision-making
• You want to avoid ongoing strata levies
• You are comfortable managing all maintenance yourself (or hiring tradespeople directly)

Choose Strata Title If:

• You want to buy in a location where houses are unaffordable
• You prefer lower-maintenance living (no gardening, no external painting)
• You value amenities like a pool, gym, or security
• You are an investor seeking strong rental yields (units in good locations can yield well)
• You are a first-time buyer looking for an affordable entry point
• You want the convenience of apartment living close to work and amenities

What to Check Before Buying Strata

If you decide to buy a strata title property, always check:

1. The strata report: Review the financial statements, sinking fund balance, minutes from recent meetings, any outstanding or planned special levies, and the 10-year capital works plan.
2. Current and projected levy amounts: Ask for a history of levy increases and the proposed budget for the coming year.
3. By-laws: Read all by-laws carefully, especially regarding pets, renovations, parking, and short-term letting.
4. Building defects: Ask whether there are any known building defects, ongoing defect rectification proceedings, or warranties still in effect.
5. Upcoming major works: Check if any major works are planned (e.g., roof replacement, waterproofing, lift upgrade) that could result in special levies.
6. Insurance coverage: Confirm the building insurance is adequate and check what you need to insure separately (contents, fixtures you have installed).

For a deeper dive into the property titles and terminology, see our glossary entry on strata vs torrens title. If you are a first-time buyer weighing your options, our first home buyer guide walks through the entire purchase process.