As a developer of medium density residential properties a lot of our developments are on Community Titles. In today’s development environment of medium and high density, infill developments knocking down old houses on large blocks and building apartments and town houses, it is now common place to be purchasing a Community Title property.

What's the real difference betwen Torrens and Community Titles?

However there are still a percentage of the current buyers that will not purchase a ‘strata title’ property. Obviously over the years there have been some horror stories regarding strata titles and either having the neighbour from hell or a poor Body Corporate Manager and this may have tarnished the ‘strata title’ type property.

The introduction of the Community Title in 1996 and the updated legislation in 2013 has gone a long way towards addressing some of the problems with the original strata titles. Now there is very little difference between a Community Title and a Torrens Title especially if you are buying into any of the major land estates.

Encumbrances are typical nowadays on any medium to large development.

Think about it, you can buy a Torrens Titled block of land, say 350 square meters and then chose to build with any builder you want. Fantastic, you’re free to do what you want on your own block. Besides the obvious council restrictions and requirements, you are typically told when and what you can build on your block by the encumbrances that are placed on the block by the developer.

Encumbrances are typical nowadays on any medium to large development. An encumbrance is an agreement between the owner and the developer that the house that you build will be constructed within a certain timeframe, for example within 12 months of settlement. In addition you will have to have you landscaping, driveway finished and fences up.

I would welcome that addition to South Australia legislation, just to be able to shut up that neighbour from hell... unfortunately you have to move to achieve the same result with a Torrens Title.

With a Community Title these things will have been done or again you will have to comply with them. A common area is what you are having to have a Body Corporate manager look after, be that the driveway and or the reserve or landscaped areas. Again with a Torrens title the common road and reserves are also managed, but by the council. ‘Ahh, but then I don’t have to pay for it’, they say. That is true, but you also do not have any ownership of the road in a Torrens Title. Land goes up in value, even if it has a road or a reserve on it. Also you have control over the common areas as owners, you collectively choose who to manage it and what is done with it.

Recent changes to Strata Title voting rights in New South Wales, bringing the voting quorum to 75% rather than 100% makes it easier and I think a good amendment to the old voting style of Strata Titles. I would welcome that addition to South Australia legislation, just to be able to shut up that neighbour from hell... unfortunately you have to move to achieve the same result with a Torrens Title.

Would you like to learn more about managing your property? If so, you can find more information here.