Strata, freehold, leasehold – what do they mean? If you’re confused by the definitions of these terms, don’t worry. We’re going to go over them in detail below so that you can make the real estate decisions that are right for you.
A freehold or Torrens title is one of the most common forms of property ownership, so the vast majority of locations you’re considering buying will be under this title.
If you own a property under a freehold title, you have close to total ownership of the land it’s situated on. As a result, you can sell it, lease it, or even mortgage and license the land itself. So long as you own the land and stay within the confines of local council law, you can use it as you see fit.
One point that you do need to keep an eye on, however, is whether or not the government have held onto any rights themselves. They could have done this for any minerals or oil that might be situated below your property.
If you’re operating with a leasehold title, it means that you’re leasing the land from the actual owner – although you’ll likely have it for an incredibly long period, such as 99 years, you won’t actually own it outright.
Although you don’t completely own it, you do, however, have exclusive rights to occupy the land. The lease itself is usually held by the Crown, and is found within the Northern Territory and Queensland more often than not.
Strata or community title
All modern Australian cities are increasingly filling up with apartment buildings, which is property that’s used by a great number of people and usually made up of corridors, lifts, stairs and communal gardens.
Within a strata title, you’d own the apartment that you’d bought, but also have rights towards the common property, which you contribute towards the upkeep of via your corporate body.
This is also often referred to as a community strata scheme. Although regular community schemes are similar in nature, these use land markings as boundaries as opposed to separate appartments.
A strata community will have a common interest in maintaining the good state of your property, but won’t actually hold any specific rights to it.
If you need any extra help with these definitions – or what they could mean for you – it’s best to get in touch with an experienced real estate agent, contact your local Ruralco Property office today for more advice.