Strata Title vs Freestanding (aka Torrens Title): What NSW Property Buyers Need to Know
- JLAJLA
- Apr 20
- 3 min read
Updated: Apr 22
Intro
You’ve found a great investment property, but the contract mentions “strata title” and suddenly you’re not sure what you’re really buying. Is it different to a standalone property? Does it affect what you can do with it—or how much it costs to own?
This post breaks down the difference between strata-titled properties and freestanding (aka Torrens title) properties in NSW, so you can make a confident decision before you sign.
Why It Matters
Plenty of buyers—especially investors—get caught out because they assume all property titles are the same. But the type of title can significantly affect your rights, responsibilities, and long-term costs.
From levies to renovations to resale value, understanding the legal and practical implications of the title is essential. Miss it, and you might end up with ongoing costs, restrictions, or obligations you didn’t expect.
What You Need to Know
Strata vs Torrens Title in NSW: Legal Differences That Matter
Strata Title: Defined Space, Shared Ownership
Strata title means you own a defined space within a building, usually described by reference to the building’s physical structure (for example, from one wall to another or between floors). You also own a share in the common property—the land, building structure, and shared areas like lifts, driveways, and gardens—which is managed by the owners corporation.
You’ll need to pay regular levies and comply with by-laws that might limit renovations, pets, or use of common areas. Strata title often applies to apartments, townhouses, and some commercial buildings.
Freestanding Property (Torrens Title): More Autonomy, Still Some Boundaries
What people commonly refer to as a "Torrens title property" is typically a freestanding house or standalone commercial site. Technically, Torrens title just means the property is registered under NSW's system of title by registration—which includes strata, community, company, and freestanding titles. But in common usage, it's often used to describe properties where you own the land and building outright.
Even with a freestanding property, you might still share infrastructure or responsibilities—like driveways, pipes, or boundary fences—through easements or rights of way.
This type of ownership usually offers more control and fewer restrictions, but with that comes full responsibility for maintenance, insurance, and compliance.
Other Title Types
Community and company titles exist in NSW but are less common. They involve more complex ownership and management arrangements. If you’re looking at one, early legal advice is a must.
Commercial Insight
Strata properties can be appealing for investors focused on rental yield and entry price—but strata levies, by-law restrictions, and limited control can reduce flexibility. Freestanding properties tend to suit those seeking more autonomy, redevelopment potential, or fewer constraints—though they come with full responsibility.
If you’re planning renovations, want to future-proof for value-add opportunities, or prefer to avoid shared governance, a freestanding property might better support your long-term strategy.
| Worth Knowing: Strata levies aren’t fixed—they can increase if the building needs major upgrades. Always review the strata report before you commit.
What to Do Next if You are Considering Buying a Strata Title Property
If you're looking at a property, ask:
Is it strata, community, company or freestanding title?
What are the ongoing costs (levies, insurance, shared infrastructure)?
Can you renovate or redevelop—and what approvals will you need?
Reviewing the contract with a lawyer will help you understand the title, assess risks, and plan for what ownership actually looks like.
Closing Wrap
Title type isn’t just a technical detail—it shapes what you can do with your property and how much it’ll cost you over time. I help buyers and agents spot these issues early so they can move quickly and confidently. If you're reviewing a contract and want a second set of eyes, get in touch.
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