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’. A conversion to a strata title from company title, is not easy. 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. People came to realize
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
can become costly and time consuming. And as per the rules of a company title,
there cannot be multiple owners. These problems led to the rise in a new kind
of title called strata title which gives allowance to have multiple ownerships.
How can you convert company title 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 an approval, you can wind up your
company as the ownership gets distributed to multiple individuals who bought
it.
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