Do you own the land in a townhouse?

On a Torrens title you own the land under and around your home outright. On a strata title you own your lot, which usually includes the building and courtyard, and a share of the common property with the other owners.

Do all townhouses have strata?

No. Most new townhouse projects are strata or community title because they share a driveway or other common property, but some are subdivided onto individual Torrens titles with no owners’ group at all.

Which is better, strata or Torrens title?

Neither is better in every case. Torrens gives you full control and no levies but all the maintenance and insurance is yours. Strata spreads shared costs and insurance across the owners but comes with levies and rules.

How do I tell which title a townhouse is on?

Ask the developer or agent, then check the plan of subdivision in the contract. A lot number on a strata plan, or a reference to an owners corporation or body corporate, means strata.

Do you own the land? Strata vs Torrens title townhouses

“Do you actually own the land?” is the question people ask most about townhouses, and the answer is: it depends on the title. New townhouses come on one of two kinds, and the difference changes what you own, what you pay and what you’re allowed to do.

Torrens title: you own the lot

Torrens title (often called freehold) is the same title a standalone house has. The land under your townhouse and the land around it — courtyard, front garden, driveway — is yours. There’s no owners’ group and no levies. You insure the building, you fix the roof, and you decide what colour to paint the front door.

Townhouses on Torrens title are usually small groups — two to four homes on a block that’s been subdivided — where each home has its own street access. If homes share a driveway, it’s normally handled by an easement written into the titles rather than by an owners’ group.

Strata title: you own your lot and a share of the rest

Most new townhouse projects are strata or community title. Your lot is usually the building and its courtyard, defined on a strata plan. The shared driveway, visitor parking, landscaping, bin store and the like are common property, owned jointly by all the owners and run by an owners corporation (called a body corporate in Queensland and Tasmania, and a strata company in WA).

What that means day to day:

You pay regular levies that cover shared insurance, maintenance of common areas, management and a fund for big future repairs. See body corporate fees.
The scheme’s rules apply: pets, renovations that change the outside, parking and short-term letting are the usual ones.
Insurance is often shared. In many schemes the building is insured by the owners corporation and you insure your contents.

Strata is also why Victoria’s temporary off-the-plan stamp duty concession applies: it’s only for lots in a strata subdivision with common property.

Survey-strata and built-strata

Western Australia has two kinds of strata. In a survey-strata scheme your lot is defined by survey, like a block of land, so you own the land and whatever is built on it. In a built-strata scheme the lot is defined by the building. It changes what you insure and what you can alter, so ask which one applies.

How to tell which you’re buying

Ask the developer or agent directly: “Is this strata or Torrens title?”
Check the contract. A plan of subdivision with a strata or community plan number, or any mention of an owners corporation or body corporate, means strata.
If it’s strata, ask for the proposed budget, levies and rules before you sign.
If it’s Torrens, ask how any shared driveway is handled and whether an easement is registered.

Which suits you?

Torrens suits people who want total control and don’t mind handling all the maintenance. Strata suits people who’d rather share the cost and effort of looking after the shared parts, and who want the building insured as one. Price-wise, Torrens title townhouses often sell for a little more in the same suburb because buyers value the independence, but the market for both is deep.

For the basics, start with what a townhouse is.

Common questions

Do you own the land in a townhouse?: On a Torrens title you own the land under and around your home outright. On a strata title you own your lot, which usually includes the building and courtyard, and a share of the common property with the other owners.
Do all townhouses have strata?: No. Most new townhouse projects are strata or community title because they share a driveway or other common property, but some are subdivided onto individual Torrens titles with no owners’ group at all.
Which is better, strata or Torrens title?: Neither is better in every case. Torrens gives you full control and no levies but all the maintenance and insurance is yours. Strata spreads shared costs and insurance across the owners but comes with levies and rules.
How do I tell which title a townhouse is on?: Ask the developer or agent, then check the plan of subdivision in the contract. A lot number on a strata plan, or a reference to an owners corporation or body corporate, means strata.

This is general information, not financial or legal advice. Get advice that suits your situation before you buy.