We often hear some terms related to the
industrial market but very less people know what they mean. A few of us
actually know the terms ‘strata title’ or ‘company title’. Before moving on how
to have a conversion to a strata title, let us look at what these terms
mean.
What is a company title?
Company title refers to the process of gaining
ownership of a land or property where the ownership cannot be distributed or
divided. A single individual or a single company can hold the title only. The
land or flat can be given at rent but can never be sold.
What is strata title?
Strata title means a person can buy a share or
a flat from the owner holding a company title. It refers to the fact that there
can multiple owners of a land or a multilevel block. This process was first
introduced in 1961, in Australia.
Why do we need strata title?
Strata title came into action from 1961. People
realized that in the modern era where families are becoming nuclear, it is
impossible for a single individual to hold the entire ownership by themselves.
Maintenance becomes costly and time consuming. And as per the rules there
cannot be multiple owners. These problems led to the rule where shares can be
purchased and not rented so the ownership doesn’t belong to any single person
and the office or resident can function smoothly.
How to convert company to strata title?
To have a conversion to strata title from
company title you need to:
- Get approval from 75% of the shareholders for the conversion.
- Get a development consent from the local council.
- Obtain a DA, get the votes of the members for the lodgement of the strata plan and get it signed by the company or the owner.
- Lodge your strata plan at the Land and Property Information and wait for its approval.
- Finally, after approval, wind up the company as the ownership gets distributed to multiple individuals.
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