Company Title
Company Title
When buying “Company Title” Unit, you are in effect buying shares of a Company which own the whole Building and all units. The shares that you brought in turns give you a right of exclusive possession of a particular unit and carpsace/garage.
The conveyancing process of buying a company title unit may be similar to that of buying a strata unit, there are additional issues you need to consider:
Review the Constitution of the Company. In particular, you need to checks that the shares you are going to buy will give you exclusive possession of the unit and carpsace/garage you intend to buy.
- The Rules and Regulations (i.e. By Laws) are more stringent than most strata properties.
- Company title units are not ideal for investment because Company Constitutions usually prohibit you from renting the unit out.
- You do not have absolute right to sell your shares in the unit. All sales (i.e. transfer of shares) must be first approved by Company. You should check the Company Constitution for the transfer process.
- Generally banks will lend less money compared with a strata property as the security for the loan is only the shares not the real property. You will need to prepare extra fund for your purchase.
- Conduct a company search on the company to see if there are any existing charges on the Company or the Building.
- Most companies engage a strata manager to help managing the Building. Ideally just like buying a strata property, you should consider ordering a “strata” report in order to see the status and conditions of the Building.
Please refer to Residential Property Strata
Sale
When sell a company title property, we will prepare the Share Sale Agreement in accordance with your instructions and the applicable laws. Please note that the Sale is conditional upon the approval from the Board of Directors of the Company which is a standard requirement for all company title properties.
Once approval is obtained, we will ensure that the sale is completed on time.
