Forum: Company title – quirky, quaint and quiet

modern-art-deco-interior-design.jpg

A modern art deco lounge (pic filched from this websitehttps://www.decoraid.com/blog/interior-design-style/art-deco-interior-design/)

There’s a sense of the quirky and quaint about company title.  The very idea that you must pass an interview by the “board” of existing owners before you can be allowed to buy in seems like it’s from a different age.

And it is in a way.  Company Title was devised back in the 1920s or thereabouts so that investors could build and buy into apartment blocks in our cities. 

But instead of buying bricks and mortar, you buy shares in the company that owns and runs the building and those shares permit you to live in a specific apartment.

As such it preceded strata title by about 50 years but there are company title blocks around that were built relatively recently and are still going.

However, many of the older company title blocks are lovely old buildings with high-ceiling apartments in an elegant art deco style as well as quirky ancient lifts (if they have any at all).

Some have tiny kitchens because they also had dining rooms where residents would eat together (set meals at set times) or “dumb waiter” lifts that would deliver food directly to the apartments.

Significantly, especially these days, they have their own rules (called articles) and are not subject to strata law.  For instance, that means they can ban pets, tenants and even children, which makes them attractive to owners who want a quiet life guaranteed.

It used to be that company title disputes had to go straight to the Supreme Court for resolution but now disputes can go to the Local Court for claims up to $100,000 or if seeking orders on conduct or clarification of Articles of Association etc.

It is designed to be less formal and there are no costs orders. And at least there are neither mandatory strata mediations nor NCAT tribunals here.

Downsides have included, in the past, reluctance of banks to lend on company title properties – good for buyers if you have, say, a 40 per cent deposit.  Less so for sellers with fewer potential purchasers (although banks are less rigid on this than they used to be).

One of the first things a lot of new company title owners want to do is to convert them to strata, calculating that the costs and hassles will be out-weighed by the increase in potential sale value and the perceived “freedom” from the board’s control.

But many owners like the self-regulation that company title allows and don’t want to convert to strata.

That’s the dilemma facing one Flatchatter whose new neighbours have persuaded a majority of owners to push for conversion to strata title.  But do they have enough votes?  That’s HERE.

NB: This post was edited on 29/7/22 to reflect input from the original Flatchatter.

Elsewhere on the Forum

  • Can we use strata software to force our strata manager to get approval before paying invoices?  That’s HERE.
  • Latest on who pays for mould inspection when common property is affected.  That’s HERE.
  • If somebody is running an online business from home, would they pay the difference if insurance premiums went up as a result?  That’s HERE.
  • Is it time to get litigious with a strata manager who ignores requests and flouts the law?  That’s HERE.
  • Queensland owners getting organised – caretakers preparing for battle.  That’s HERE.

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  • #64362
    Voss
    Flatchatter

    Company Title disputes  can go to the Local Court for claims up to $100,000 or if seeking orders on conduct or clarification of Articles of Association etc. It is designed to be less formal and there are no costs orders.

    Look for the Local Courts Act 2007 No.93, Section 34A

     

    #64367
    Jimmy-T
    Keymaster
    Chat-starter

    Company Title disputes  can go to the Local Court for claims up to $100,000 or if seeking orders on conduct or clarification of Articles of Association etc. It is designed to be less formal and there are no costs orders.

    Thanks for that.  I had a feeling there had been a change in the law but late-night editing got in the way of research.  This has now been amended in the Forum post.

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