Title Types for Property: A Guide for Australian Buyers

You’ve found the perfect home in Queensland. The location’s right, the price fits your budget, and you’re ready to make an offer. But first, you need to check if it’s the right type of property for you.

The property type can significantly impact your ownership rights, ongoing costs, and future options available for the property.

TL;DR – What You Need to Know

• Standard Residential Property (Freehold Land) : You own the land and building outright. Most common for houses.
• Standard Unit (Freehold Land): You own your unit, but share common areas. Standard for apartments and townhouses.
• Gated Community & Parks : Similar to strata but for larger estates with shared facilities like pools, tennis courts, or gated entry.
• Leasehold Title: The government owns the land, you lease it for a set period (common on rural and commercial properties in Queensland).
• Company Title: You buy shares in a company that owns the building, not the property itself (rare, mostly older buildings).

Why The Type of Property Matters

A property title is your legal proof of ownership. It clearly defines what you own, the restrictions that apply, and the responsibilities you’re taking on. Get this wrong, and you could face unexpected costs, usage restrictions, or even ownership disputes down the track.

Here’s what you need to know about each type of property before you buy.

Standard Residential Property (Freehold)

This is what most Queenslanders envision when they think of property ownership. Purchase of standard residential property means you own both the land and any buildings on it outright. Your name appears on the certificate of title as the registered owner, recorded by the Queensland Titles Office/.

You have complete control over the property (renovate, extend, knock down, and rebuild), subject only to Council approvals and local planning laws. There’s no body corporate, no shared facilities, and no restrictions from other owners.

Standard Unit (Freehold) 

If you’re buying an apartment, townhouse, or unit in a complex, you’ll almost certainly encounter strata title. Strata, also commonly known as strata scheme allows you ownership of part of a Property such as a lot (unit). You own the interior of your dwelling (everything within your four walls), but the exterior walls, roof, common areas, gardens, driveways, and shared facilities belong to the body corporate.

A body corporate (or owners corporation) manages these common areas. You’ll pay regular levies to cover maintenance, insurance, repairs, and management fees. You will also need body corporate approval for changes that affect common property or the building’s exterior.

In Queensland, strata properties operate under the Body Corporate and Community Management Act. This means strict rules about what you can and can’t do, regular meetings, and shared decision-making.

Gated Community & Parks 

A gated community is generally a large residential development, such as a gated estate, retirement community, or mixed-use development with extensive shared facilities.

You own your individual lot (which might include a house and small yard), plus receive the benefits of the common property. The key difference from a standard unit? The scale. Gate community schemes often include roads, parks, recreational facilities, and sometimes even their own infrastructure.

Management fees tend to be higher than standard strata because there’s more to maintain. However, you gain access to amenities that you wouldn’t have with a standalone property.

Leasehold Title

In Queensland, roughly 64% of land is held under leasehold title, which is significantly higher than the national average. Under this arrangement, the Crown (Queensland government) owns the land, but you hold the lease for a specified period, often 99 years, for a specific purpose.

Leasehold is common for rural properties, such as cattle stations and farming land, but also applies to some commercial properties and tourist developments. Any significant changes to the property typically require government approval, and you’ll pay annual rent to the state.

When the lease expires, ownership reverts to the Crown unless the lease is renewed. This can affect resale value and financing options.

Company Title

Company title is rare these days, mostly found in older apartment buildings built before strata title was introduced in the 1960s. Instead of owning your unit, you own shares in the company that owns the entire building. Your shares give you the right to occupy a specific unit.

This creates complications. You’ll need approval from other shareholders to sell or lease. Banks are often reluctant to finance company title properties. And the company’s directors (often the building residents) make decisions affecting your home.

Retirement Villages

Retirement villages deserve special mention because they’re often a complex mix of leasehold, strata, or other arrangements with unique restrictions.

You might have the right to occupy a unit, but not own it outright. Exit fees can be substantial when you sell, and changes to the property or how you use it typically require village management approval.

Retirement villages operate under specific Queensland legislation, which includes distinct rules regarding pricing, contracts, and residents’ rights.

Getting Professional Support

Property types and corresponding titles are complex legal documents with serious implications for your ownership rights and financial obligations. Before you sign a contract, speak with aconveyancer in Cairns who understands Queensland property law.

Yourbuyer’s conveyancer will conduct thorough title searches, explain exactly what you’re buying, identify any restrictions or encumbrances, and protect your interests throughout the purchase process. It’s a small investment that can save you from costly mistakes.

Don’t leave your biggest financial decision to chance. 

Contact our conveyancing team today for expert advice on your Queensland property purchase.

Disclaimer: This blog is intended for informational purposes only and does not constitute legal advice. For guidance tailored to your specific circumstances, please consult a qualified legal representative.