Q&A · Last reviewed 2026-05-01
What is the difference between strata and Torrens title?
Torrens title = freehold ownership of land + building, with no shared property. Strata title = ownership of a unit within a larger building, plus shared ownership of common property managed by an owners corporation. Houses are usually Torrens; units + townhouses + duplexes are usually strata.
Torrens title (introduced in South Australia in 1858, now standard nationwide) is single-owner land registration. The owner holds a Certificate of Title for the entire lot - land + any building. No shared interests, no levies, no by-laws restricting your use beyond council planning rules.
Strata title (1961 NSW Strata Titles Act) is a way of subdividing a building so individual units can be owned separately while common property (foyer, lift, pool, structure) is jointly owned. Each owner pays quarterly levies to the owners corporation; the corporation enforces by-laws (parking, pets, noise, renovation rules).
A third hybrid is community title (gated estates, retirement villages, large townhouse developments). Each lot is freehold but a community-management scheme runs shared roads, gardens, amenities. Levies less than typical strata; restrictions less than HOA in the US.
Investment implications: Torrens-title houses get you 100% land + building (land appreciates); strata gets you a small slice of land + a building unit (depreciates). House yields lower but capital growth typically higher long-run. Strata yields higher but levies eat 1-2 percentage points off gross.
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Informational. Not financial advice. Verify with a licensed adviser appropriate to your circumstances.
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