We’re seeing a rise in Family Law Valuations for properties held under Company Title, a structure that remains uncommon in Queensland, ACT, and WA but is far more prevalent in NSW, Tasmania, and Victoria.
What is Company Title?
Unlike strata title, where owners hold direct ownership of their unit and share responsibility for common areas, Company Title works differently. Here, a company owns the entire property—including all land, common areas, and buildings. Buyers purchase shares in the company, not the unit itself. These shares grant the right to occupy a designated space, such as a unit, car park, or storage area.
The overall management of the property is not via a body corporate structure but handled by a Board of Directors who are elected by the shareholders. The company is governed by a Company Constitution which dictate the rules and regulations.
Why Valuation is Complex
The valuation of Company Title Property is specialised and a valuer must get the following information in order to complete the assessment:
- Recent copy of the Company Constitution/Memorandum of Association & Articles of Association
- Share Certificates for the relevant areas the valuation pertains to (unit, car park, storage areas)
- Share Register detailing recent transactions. This is critical for direct comparison, as it details any sales in the particular development, this data isn’t available on platforms like CoreLogic and must be sourced from the Company Secretary.
Once these details are gathered, the valuer can determine the value of the shares held by the entity.
This is a more complex valuation that is best handled by an experienced valuer.