By CM Lawyers – Company Title Conveyancing Specialists in Marrickville, NSW
Selling property in Marrickville can already be stressful, but when it comes to company title, the process is even more complicated. Unlike strata or Torrens title properties, company title sales involve share transfers, board approvals, and corporate governance requirements that can delay or even derail a sale if not handled properly.
At CM Lawyers in Marrickville, we’ve seen how sellers can be caught off guard by the unique challenges of company title properties. Selling this type of apartment isn’t always straightforward, and without the right guidance, small oversights can lead to costly mistakes. To help you navigate the process with confidence, we’ve outlined five of the most common legal pitfalls when selling a company title in Marrickville—and how our expert advice can help you avoid them.
1. Not Preparing for Board Approval
In company title sales, the buyer must be approved by the company’s board of directors before the transfer can proceed.
Why it’s a pitfall:
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Even if you have a buyer ready and willing to pay the asking price, the board can reject their application based on financial stability, references, or perceived suitability.
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This can result in failed sales, wasted time, and legal disputes if the buyer has already exchanged contracts.
How CM Lawyers helps:
We advise sellers on the company’s approval criteria upfront and work with buyers and their lawyers to prepare strong applications. This reduces the risk of board rejections delaying settlement.
2. Incomplete or Incorrect Disclosure
Company title sales require full disclosure of the company’s constitution, by-laws, levies, and restrictions.
Why it’s a pitfall:
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Sellers who fail to disclose occupancy restrictions, levies, or upcoming works may face contract rescission or compensation claims.
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Buyers who later discover restrictions (e.g., no pets, no subletting, renovation limits) may withdraw from the deal.
How CM Lawyers helps:
We prepare disclosure statements that meet all NSW legal requirements, ensuring buyers are fully informed and reducing the risk of disputes after contracts are exchanged.
3. Delays in Share Transfer Documentation
Selling a company title apartment involves transferring shares in the company, not just selling real property.
Why it’s a pitfall:
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Incorrect or incomplete share transfer documents can invalidate the transaction.
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If the company’s register isn’t updated properly, ownership disputes can arise later.
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These errors often delay settlement and frustrate both buyer and seller.
How CM Lawyers helps:
We prepare, review, and lodge all share transfer documents, ensuring compliance with corporate law as well as property law. We also liaise directly with the company secretary or board to confirm updates to the register.
Learn more about Ignoring title issues that can lead to legal disputes and sale delays.
4. Underestimating Financing and Market Limitations
Company title apartments often sell for less than comparable strata properties due to financing restrictions.
Why it’s a pitfall:
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Many buyers struggle to secure loans because banks are hesitant to lend on company title.
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Sellers may waste time negotiating with buyers who ultimately can’t obtain finance approval.
How CM Lawyers helps:
We help sellers anticipate this issue by:
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Working with agents to pre-screen buyers for finance approval.
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Advising on realistic timelines and market expectations.
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Providing clear contracts that minimise risks if buyers cannot proceed.
5. Ignoring Upcoming Company or Building Issues
Company title buildings often require ongoing maintenance, and boards may plan special levies or major works.
Why it’s a pitfall:
- Sellers who fail to disclose these issues risk legal claims from buyers after settlement.
- Disputes can also arise if buyers discover additional costs linked to their new ownership.
How CM Lawyers helps:
We review company records for upcoming levies, disputes, or maintenance issues and ensure these are disclosed properly in the contract. This protects sellers from liability and keeps transactions transparent.
Read more about: Common Challenges When Buying or Selling Company Title Apartments in Marrickville
How CM Lawyers Protects Sellers
Selling a company title apartment in Marrickville requires more than just a real estate agent—it requires a lawyer who understands both corporate and property law. At CM Lawyers, we provide:
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Comprehensive Contract Preparation – Tailored contracts that reflect company title rules.
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Disclosure Compliance – Ensuring all legal obligations are met to avoid disputes.
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Board Approval Support – Assisting with buyer applications and liaising with directors.
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Settlement Coordination – Managing the legal and corporate steps for timely completion.
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Local Expertise – Knowledge of Marrickville’s property market and Inner West company title buildings.
Final Word: Avoid the Pitfalls, Sell with Confidence
Selling your company title apartment in Marrickville doesn’t have to be stressful—but it does require expert guidance. From board approvals to disclosure obligations, there are plenty of legal pitfalls that can delay or derail a sale.
At CM Lawyers, we help sellers navigate these challenges with confidence, ensuring your sale proceeds smoothly, legally, and on time.
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