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Strata subdivision on torrens title

Discussion in 'Development' started by GreatPig, 18th Sep, 2015.

  1. GreatPig

    GreatPig Well-Known Member

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    Talked to council town planning about this today, and the woman explained how it worked, which was not quite how I'd imagined. And now I'm somewhat confused about the land aspect of it.

    She explained that the strata titles are only for the space on the land, and the land itself stays with the torrens title as a single block (the block is too small for torrens subdivision). Even if the two strata titles were sold, ownership of the land would remain with the torrens title, and could potentially be sold separately.

    Which makes me wonder, what value would there be in holding the land after selling the two strata titles? You'd have land you presumably couldn't do anything with, might have land tax to pay on, and would have no income from unless there was a strata fee of some sort. And if you wanted to redevelop it in the future, would you have to buy back the strata titles first?

    Am I missing something here? What would normally be done with the torrens title when selling both strata titles?

    Thanks.

    GP
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Torrens Title is the system used for the identification of land.

    Strata, stratum, community are all forms of titling under the Torrens system.

    The LPI NSW website holds some great resources on land titling.

    Unless thestrata subdivision creates common property there is no leftover land. Any conmon property is owned by all of the owners not separately saleable.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Torrens Title is the system used for the identification of land.

    Strata, stratum, community are all forms of titling under the Torrens system.

    The LPI NSW website holds some great resources on land titling.

    Unless thestrata subdivision creates common property there is no leftover land. Any conmon property is owned by all of the owners not separately saleable.
     
  4. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    I agree with the first and third posts by @Scott No Mates.

    I don't agree with his second post :p
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    @AndrewTDP - unfortunately I had to delete the third post - it was a bit too much ;)
     
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  6. GreatPig

    GreatPig Well-Known Member

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  7. GreatPig

    GreatPig Well-Known Member

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    After more reading on strata titles in NSW, specifically in relation to 2-lot schemes with detached dwellings and no common property (except the joining fence I guess), while I gather there are exemptions in relation to sinking funds, building insurance, and account auditing, it seems there still needs to be an owners corporation with an administrative fund, other insurances, and some meetings and paperwork.

    I'm wondering how onerous this is for the two owners, and whether it's something they'd just manage themselves or would need to pay someone to look after (ie. the paperwork). And if one person owned both lots, would all this still be required?

    GP