What is a Land Title?

Anyone purchasing property for the first time may understandably be unfamiliar with the different stages involved with purchasing land and the legal paperwork that needs to be completed. There are many different types of land titles in Australia, making it important for property owners to know what type of land title they need.

What are Land Titles?

Land titles are official legal documents that state who owns a parcel of land, granting them exclusive use of the land and allowing them to build on it if they wish to do so. A land title will also state any restrictions and interests on the land and what encumbrances are attached to it.

What Encumbrances May be Included

Mortgages

Any land that’s being sold that also has a mortgage will have the bank that granted the mortgage listed on the land title.

Caveats

A caveat is a legal notice lodged with the state land registry that acts as a warning to any parties, alerting potential buyers interested in the land that another party has an interest in that property.

Covenants

A covenant is a written agreement between landowners that restricts how a parcel of land can be used and developed, what can be built on it, what sections of the land can be built on and what building materials can be used.

Easements

An easement is a right given to a party that doesn’t own the property so they can use the property for a particular purpose. This means there may be restrictions on how the land can be used, preventing any parties from building on top of the land.

What Are Land Titles Useful For?

• Conducting research on prospective properties
• Verifying current property ownership
• Due diligence before commencing a building project
• Planning building applications

Who Uses Land Titles?

• Home buyers
• Property investors
• Real estate agents
• Legal practitioners and valuers
• Property developers
• Builders
• Property planners
• Architects

Different Types of Land Titles

Torrens Title

Both the land and property built on it is completely owned by the parties listed on the Certificate of Title.

Strata Title

Parties that have a strata title will only own the unit, apartment, townhouse or villa that is part of a bigger complex. These parties will need to pay fees to the owner’s corporation that manages the maintenance of any common areas of the complex.

Company Title

Pertaining to apartment complexes built prior to 1960, property owners of any apartments and units will have shares in the company that owns the complex rather than an individual title.

Stratum Title

For properties that have been divided into lots that become apartments or units, parties that purchase a lot will own stock in the company that owns and manages the overall property.

Government Leasehold

Parties can purchase ownership of a temporary hold on land previously owned by the government. This commonly pertains to property located in regionals areas.

Retirement Villages

Retirement villages can offer any type of land title with attached purchase and sale restrictions and annual fees.

Contact Us Today

If you’re wondering “what is a land title?” and want to learn how it will affect your purchase of a parcel of land, get in touch with us today.