Selling a Company Title Property in NSW

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Selling property in NSW is rarely straightforward, and it becomes even more complex when dealing with company title properties. Unlike strata title or Torrens title, selling a company title property involves unique legal steps, shareholder approvals, and corporate rules that can delay or even prevent a sale if not handled correctly. 

At CM Lawyers in Marrickville, we’ve assisted many clients across Sydney with selling company title properties. We understand the pitfalls, the processes, and—most importantly—how to ensure the sale goes through smoothly. 

In this guide, we’ll explain what company title is, how it affects a sale, and why working with an experienced lawyer is critical. 

What Is Company Title?  

Company title is one of the oldest forms of property ownership in NSW, often found in heritage apartment buildings in Sydney’s Inner West, Eastern Suburbs, and CBD. Instead of owning the apartment outright, you purchase shares in a company that entitle you to occupy a particular unit. 

This means: 

• You don’t own the property directly; you own shares in the company. 

• The company’s constitution and board control who can buy, sell, or occupy a unit. 

• Selling involves transferring shares, not just signing a contract for sale. 

Why Selling Company Title Is Different from Strata or Torrens Title  

When selling a strata or Torrens title property, the process is relatively straightforward: exchange of contracts, settlement, and registration with NSW Land Registry Services. 

With company title: 

• Board Approval Is Needed – The company’s board must approve the incoming buyer. They can reject applications for various reasons, such as financial stability or intended use. 

• Company Rules Apply – Occupancy restrictions, subletting rules, and buyer eligibility are often written into the constitution. 

• Finance Is More Difficult – Many banks are hesitant to lend on company title, reducing the buyer pool. 

The Legal Process of Selling a Company Title Property  

At CM Lawyers, we break the process into clear steps: 

1. Review of Company Constitution: Before listing your property, we review the company’s constitution and by-laws. This ensures you know exactly what conditions apply to prospective buyers.
   
   
2. Preparing the Contract for Sale: Unlike standard sales, your contract must clearly reflect the shareholding arrangement and occupancy rights. We draft contracts that comply with NSW law and the company’s constitution. 
   
   
3. Disclosure to Buyers: We ensure full disclosure of company rules, levies, and restrictions to avoid disputes later. 
   
   
4. Share Transfer Documentation: Once a buyer is approved, share transfer documents must be prepared, signed, and lodged with the company.
   
   
5. Settlement: We coordinate with the buyer’s lawyer, the company’s board, and your agent to ensure settlement happens on time. 

Common Challenges in Selling Company Title Properties  

From our experience in Marrickville and Sydney, these are the most common challenges sellers face: 

1. Board Rejections – Even if a buyer makes a great offer, the board can reject them if they don’t meet financial or personal criteria.

2. Delays in Approval – Waiting for board meetings can stall settlements.

3. Financing Issues – Fewer banks lend for company title, limiting the buyer pool.

4. Incomplete Disclosure – Failing to provide full details of levies or restrictions can result in disputes or contract rescission. 

You may be interested in: What are the risks of selling a property ‘as is’? 

How CM Lawyers Helps Sellers  

We’ve successfully guided many clients through the sale of company title properties by: 

• Anticipating board objections and preparing buyers with the right paperwork. 

• Drafting ironclad contracts that meet both corporate and property law standards. 

• Managing communication between the seller, buyer, real estate agent, and company directors. 

• Avoiding settlement delays with proactive legal planning. 

Case Example: 

A Marrickville client came to us after their buyer was rejected by the board due to concerns over financial stability. We worked with the buyer’s solicitor to prepare additional financial guarantees and resubmitted the application, which was approved. The sale proceeded without further issues. 

For more insight into how title-related challenges can affect property sales, see our article: Ignoring Title Issues Can Lead to Legal Disputes and Sale Delays 

Maximising Your Sale Price Despite Limitations   

Company title properties often sell for less than comparable strata properties due to buyer hesitancy. However, with the right preparation, sellers can maximise value: 

• Provide buyers with clear, upfront disclosure of company rules. 

• Work with an experienced lawyer to streamline the approval process. 

• Highlight the advantages of company title properties, such as smaller buildings, unique character, and strong community governance. 

Why You Need a Lawyer for Selling Company Title    

Selling company title is not a DIY project. Without expert guidance, you risk: 

• Delayed or failed settlements. 

• Rejected buyers. 

• Legal disputes with the company or purchaser. 

• Reduced sale price due to poor presentation of the title. 

At CM Lawyers, we combine local Marrickville expertise with a deep understanding of NSW property law to protect your interests. 

Our End-to-End Service for Company Title Sales     

1. Initial Consultation – We assess your property and the company constitution.

2. Contract Preparation – Drafting contracts tailored to company title requirements.

3. Buyer Pre-Screening – Advising on likely board approval outcomes.

4. Settlement Support – Coordinating the legal, financial, and corporate steps to settlement.

5. Post-Sale Assistance – Ensuring all share transfer and company documentation is correctly completed.

Why Marrickville Residents Choose CM Lawyers     

• Local Knowledge – We know the Marrickville and Inner West property market inside and out. 

• Proven Success – Years of experience in company title sales and property matters across Sydney. 

• Buying and Selling a Business – Whether you’re acquiring a new venture or selling your existing one, our team provides clear guidance and protection at every stage. 

• Full-Service Firm – From strata and Torrens title conveyancing to Wills and estate planning, we provide comprehensive legal support. 

• Clear Fees – Fixed-price conveyancing and upfront cost estimates you can trust. 

Final Word: Sell with Confidence  

Selling a company title property in NSW requires more than just a good real estate agent—it requires a lawyer who understands the unique legal and corporate requirements involved. At CM Lawyers in Marrickville, we’ve helped countless clients sell their company title properties efficiently and profitably.