When purchasing a home, the type of title your property falls under can affect your right of use, so it’s important to understand the differences between each title. Whether buying an established property or building a new property, your home will generally fall into one of these categories; green title, purple title, community title, strata title or survey strata. Here’s a breakdown of what each title means and how it might affect you as a homeowner.

Green Title

A green title property is the most straightforward form of property ownership in WA. It signifies that you own the land and everything on it outright - no shared areas or ongoing fees for communal spaces. Here’s what you need to know:

• Full Ownership: When you have a green title, you own the land and everything on it outright. This means you’re free to make changes to your property (like renovations or extensions) without needing approval from a body corporate or community committee. However, keep in mind that some changes might still need council approval.
• Maintenance and Costs: With a green title, you’re in charge of all maintenance and repairs. This includes looking after your property and paying council rates. You’ll also need to cover utility charges like power, gas, water, and telecommunications. Basically, you’re responsible for keeping everything in good shape and for all the associated costs.
• Restrictions: While you have a lot of freedom, there can be restrictions. For instance, if the Water Corporation needs access to a sewer line on your property, this could limit your ability to add features like a swimming pool or to extend your home. Additionally, local government authorities might have rules about where you can build on your land, known as a ‘building envelope.’

Purple Title

Purple titles are less common these days, and they generally represent a share in a larger piece of land. Here’s what you should know:

• Limited Use: A purple title typically means you own a portion of a property along with other people. This type of ownership isn’t usually preferred if you’re looking to secure a loan because the shared nature of the title can complicate things. There aren’t many purple title properties in Perth, but there are some new developments that are being created under purple title – particularly in retirement villages.
• Conversion: Many purple titles in WA are being converted to strata titles. This change makes ownership clearer and often more straightforward, which can be beneficial if you’re looking to get a mortgage or want a more defined ownership structure.

Strata Title

If you’re buying an apartment, townhouse, or unit in a multi-unit complex, it’s likely under a strata title. Here’s how it works:

• Ownership Structure: With a strata title, you own your individual unit or apartment and share ownership of common areas like gardens, parking spaces, and recreational facilities with other residents. You might also have private areas like a balcony or carport.
• Fees and Maintenance: You’ll need to pay strata levies, which are regular fees that help cover the maintenance of shared areas like swimming pools, gyms, and BBQ facilities. These fees ensure that all communal spaces are kept in good condition and that costs are shared among all owners.
• Rules and Regulations: Living in a strata-titled property often comes with a set of rules designed to keep things harmonious. These might include restrictions on pets, noise levels, and modifications to your property. A strata committee typically oversees these rules and manages the shared facilities.

Survey Strata

Survey strata is a hybrid between traditional strata titles and green titles, typically used for properties side-by-side within one lot. Here’s what to expect:

• Ownership and Sharing: With survey strata, you own your individual property but share certain common areas like driveways and gardens with other owners. Each owner is responsible for maintaining their own property and contributing to the upkeep of shared spaces.
• Levies and Regulations: Survey strata properties usually involve levies for things like maintenance and insurance of shared areas. The rules for survey strata are often less strict than those for traditional strata schemes, giving you more flexibility in managing your property.

Community Title

Introduced in WA in 2021, community titles are used for larger developments that mix residential, commercial, and retail spaces. Here’s how they work:

• Mixed Use: Community titles allow for a combination of building and land schemes within the same development. This is particularly useful for large, staged developments or complex properties.
• Ownership and Fees: You own your individual property, while shared amenities and areas are managed collectively by the community. Fees are used to maintain these amenities, and there’s often a management committee to oversee the upkeep.
• Three-Tier Structure: Community schemes can have up to three tiers, with fees allocated based on the benefits received. For example, residential owners might cover the costs for maintaining residential elevators, while retail owners contribute to the upkeep of escalators in retail areas.

Knowing the ins and outs of each property title is important for making the right decision. Whether you’re looking for a hassle-free lifestyle, shared facilities, or complete control over your property, each title has its own perks and responsibilities. Before you commit to buying, have a chat with your real estate agent to make sure the title suits your needs and budget. Get in touch with one of our Property Consultants if you want to learn more about property titles.