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Unravelling Property Titles
To ensure a smooth purchase, trouble free ownership and a straight-forward transaction come sale time, make sure you’re up to speed on the different types of property titles.
From bearing the name of a property’s registered owner to outlining outstanding easements, a Certificate of Title is often the key to determining the condition and overall value of your property.
While no doubt important to borrowers, titles are also important to your lender.
Traditionally, your lender holds the title deed to your property as security for your mortgage until it is repaid. Lenders can often be wary of caveats or easements – land restrictions and outside claims of interest on your property – which if listed on your title, may impact on your property’s purchase price.
With a number of mainstream titles in use, understanding the differences and how they affect your mortgage can sometimes be confusing. When hunting for your next property, here’s a quick summary of some of the most likely titles you’ll encounter:
Torrens titles
The most common property title in Australia - Torrens titles issue owners with a single, guaranteed Certificate of Title, giving buyers an assurance of a “clean title” as they are officially recognised by the Lands Tax Office.
Old system titles
Also known as common law titles, old system titles are made up of a chain of deeds which have to be placed in order to establish ownership of a particular property. Fortunately for buyers, these titles are now rare and increasingly converted to Torrens titles.
Strata titles
Strata titles are granted to buyers of flats, units and town houses. These titles allow buyers to own a common property and assume responsibility for a wider area through a body corporate.
Company titles
An older form of strata titles, buyers are allocated shares of a company that owns the title of the property units.
Remember, checking a title thoroughly before buying a property can help speed up the overall purchasing process for both you and your lender. If you’re looking for clarification on property titles, or how a title may influence your borrowing capacity, give us a call.
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Did You Know?
We can help sort out finance for your future property.
Contact Lending Hand Finance on
1300 850 545 or
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