Hidden Costs You Might Face When Buying a Company Title in Sydney

By CM Lawyers – Company Title Specialists in Marrickville, NSW 

For buyers looking at Sydney’s property market, company title apartments can seem like an affordable entry point—particularly in older, character-filled buildings across the Inner West, CBD, and Eastern Suburbs. But while the purchase price may look attractive compared to strata apartments, many buyers are caught off guard by the hidden costs that come with this unique ownership structure. 

At CM Lawyers in Marrickville, we’ve seen first-hand how these costs can surprise buyers and affect long-term affordability. This guide highlights the hidden costs of buying a company title in Sydney—and how you can prepare for them. 

1. Higher Legal and Conveyancing Costs

Unlike strata or Torrens title, company title ownership involves both property law and corporate law. When you buy, you’re not just purchasing an apartment—you’re acquiring shares in a company. 

That means your conveyancing lawyer must: 

• Review the company’s constitution and by-laws. 

• Draft and review share transfer documents. 

• Confirm shareholder registers are updated correctly. 

This additional work makes company title conveyancing more complex and costly than standard property transactions. 

Contact CM Lawyers for expert advice!  

2. Loan and Financing Costs

Financing a company title apartment is more difficult because many lenders view them as higher risk. Some banks will: 

• Decline to lend altogether. 

• Require larger deposits (often 30% or more). 

• Charge higher interest rates or additional fees. 

If you’re relying on finance, this hidden cost can significantly affect affordability. 

3. Company Levies and Fees

Just like strata, company title buildings charge ongoing levies to cover maintenance and repairs. However, company title levies can sometimes be higher, as they may include: 

• Building insurance. 

• Council rates (sometimes collected by the company). 

• Water charges. 

• Ongoing maintenance of common areas. 

Unlike strata schemes, these levies are managed entirely by the company’s board, and costs can vary widely between buildings. 

4. Unexpected Special Levies

If the building needs major repairs—such as roof works, structural updates, or heritage restoration—the company can issue a special levy to all shareholders. 

These costs can run into tens of thousands of dollars per apartment, and unlike strata, there may be fewer protections or caps in place. Buyers should always check the company’s financial records for any upcoming works. 

5. Costs Linked to Board Approval

Before you can buy, the company board must approve you as a shareholder. This process sometimes involves application fees or administrative charges. If you’re rejected, you may still face costs for legal advice, lost deposits, or wasted application expenses. 

6. Insurance and Risk Costs 

While company title buildings typically hold building insurance, coverage details can vary. In some cases, shareholders may need to contribute to additional insurance or risk management expenses not typically seen in strata. 

For example: 

• Older buildings may have higher premiums. 

• Heritage-listed apartments may carry unique insurance obligations. 

7. Tax and Stamp Duty Considerations

When buying company title, the transaction involves shares in a company linked to occupancy rights. While stamp duty is still payable, the calculation can be more complex. Buyers should also be aware of potential capital gains tax implications on resale. 

These tax considerations often require specialist legal and accounting advice—another hidden cost. 

8. Limited Resale Market Impact

While not a direct upfront cost, the resale restrictions on company title can affect your future return on investment. Because financing is harder to obtain and board approval is required, fewer buyers are eligible—reducing competition and often lowering resale prices compared to similar strata properties. 

9. Moving, Legal, and Compliance Costs

Company constitutions often contain restrictions on: 

• Renovations. 

• Subletting. 

• Who can live in the apartment. 

Complying with these restrictions may involve additional approvals, compliance costs, or legal advice—expenses buyers may not anticipate at the start. 

10. Moving, Legal, and Compliance Costs

Buying into a company title apartment means becoming a shareholder in a small community. Disputes between shareholders over levies, repairs, or occupancy can lead to legal costs, mediation fees, or ongoing financial strain. 

Learn more about 5 Legal Pitfalls to Avoid When Selling Your Company Titles in Marrickville  

How CM Lawyers Helps You Avoid Costly Surprises  

At CM Lawyers in Marrickville, we help buyers prepare for these hidden costs by: 

• Reviewing constitutions and financials to identify risks early. 

• Explaining levies and upcoming works before contracts are signed. 

• Advising on finance options and lender requirements. 

• Drafting contracts that protect your interests. 

• Providing ongoing legal support if disputes or compliance issues arise. 

By working with us, you’ll go into your purchase with clear eyes and realistic expectations—avoiding nasty surprises down the track. 
 

Why Marrickville Buyers Trust CM Lawyers 

• Local Knowledge – We know the Marrickville and Inner West property landscape. 

• Specialist Expertise – Experienced in both conveyancing and company law. 

• Fixed Fees Available – Clear, upfront pricing for peace of mind. 

• Proven Guidance – Trusted by buyers across Sydney to handle complex company title purchases. 
  
  

Final Word: Budget Beyond the Purchase Price 

Buying a company title apartment in Sydney can be rewarding, but it’s essential to plan for more than just the sale price. From financing challenges to company levies, these hidden costs can add up quickly. 

At CM Lawyers in Marrickville, we help buyers uncover the true costs of ownership before they commit—ensuring no surprises and a smoother purchase process.