At their recent AGM, a number of owners in a “Company Share” apartment complex thought that although their building was a “Company Share” apartment complex, that they were still bound by the Unit Titles Act.  They asked their lawyer for advice.

The owners were not correct.  Only unit titled properties are covered by the Unit Titles Act (“the Act”).

Although less common, there are apartments and town house complexes which are not unit titled.  They will generally be:

  1. Company Share apartments – where a company owns the land and buildings and owners acquire shares in the company rather than title to their apartment; or
  2. Cross leases – where all owners ‘lease’ their property from the other owners in the development.

When selling a Company Share apartment or a cross leased property, the Act does not apply. This means that there is no need for the disclosure required under the Act (called pre-contract disclosure, pre-settlement disclosure and additional disclosure) to be provided.

There are of course still obligations on vendors selling these properties to disclose any defects or issues with the property, regardless of what sort of property it is, but the specific disclosure obligations from the Act don’t apply.

If you are unsure about your obligations, your experienced property law professional or real estate agent will be able to advise you.