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Company title

Discussion in 'Legal Issues' started by Cimbom, 21st Sep, 2016.

  1. Cimbom

    Cimbom Well-Known Member

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    Just wanting to get thoughts on this? I have read that there can be restrictions with renting the apartment out but the agent said that it is able to be done and that it was rented out previously. I have seen this online (from previous advertisements). Does this type of title present any possible issues? Is there any type of document I should ask for? Thanks :)
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes heaps of issues.

    You will need to read the constitution of the company and see what restrictions there are.

    You will also need to consider the finance side of things - more difficult, lower LVRs etc.
     
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  3. Cimbom

    Cimbom Well-Known Member

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    Thanks - that's helpful. I will request the constitution. So I presume it's to be avoided unless it's a pretty exceptional property?
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I would never purchase a company title property.

    But it does have some advantages - the owners as a group can control who buys there.
     
  5. Cimbom

    Cimbom Well-Known Member

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    Really? Didn't realise they were that bad. I was thinking it could be a chance to do a low ball offer if lots of people are put off by it.

    But then again, we'd probably have similar issues when selling as well.
     
  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    One of the benefits can be, if a majority of the company directors decide, when the property is converted to strata title, it is then worth significantly more than the cost of conversion.
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If you have a dispute with the company/other shareholders the court for this is the Supreme Court which is very costly. Strata is in the lower courts so not as bad.
     
  8. Cimbom

    Cimbom Well-Known Member

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    Thanks. Will keep these in mind.
     
  9. KateAshmor

    KateAshmor Victorian conveyancing lawyer Business Member

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    100% agree with Terry and we won't act for purchasers of company share / stratum title. Owners have no protection under strata laws.
     
  10. Cimbom

    Cimbom Well-Known Member

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    Thanks, that's interesting. I wonder why this type of title arose?
     
  11. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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  12. Meisterin

    Meisterin Member

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    Some duplex developments are done under company title. It's done this was because it doesn't meet the strata subdivision requirements.
     
  13. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Company titles are avoided by many buyers and prices can reflect that
     
  14. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Many many of the apartments in Elizabeth Bay , Potts Point , Milsons point Are Company Title with no problems !!!!

    If i bought a Company title apartment .... Is there any finance brokers here wouldnt lend me equity ??
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Finance brokers don't lend, but they arrange loans between borrowers and lenders. You also cannot lend equity - but borrow money. Are you talking about borrowing against other property? If so the company title won't be an issue as the other property is being used as security. If you are wanting to borrow secured by the company title then you can borrow up to 80% with a few lenders, maybe even 85% with St G.
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    @Terry_w - you'd have a lend of our mate Darlo wouldn't you ;)

    Not only does he want a load but he wants to borrow some equity as well - does that qualify for 105%+
     
  17. SeafordSunshine

    SeafordSunshine Well-Known Member

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    I know of a Company Title unit block. I believe it is some sort of 'low income' accommodation.
    They applied to Strata twice, and twice rejected.
    They have done some alterations which suit one particular owner ( majority share holder??)
    Also caused serious damage to neighbouring properties.