Land Title in South Australia

When buying property in South Australia, be it purchasing land, a house, investment property or even an apartment, you are purchasing a “title” specific to the parcel of land or property which determines the type of ownership. Essentially, the main difference between the types of “titles” is whether or not the land is “shared” or owned in “common” with other owners. There are two main titles in South Australia, Torrens and community.

Torrens TitleA South Australian invention, Torrens title is a system which records and registers land ownership. Your name is “registered” on the Torrens title register when the Certificate of Title is lodged at the Lands Titles Office. You then become the owner of the property to the exclusion of all others.

This means that you, as the property owner, are responsible for everything within and related to, your property. You are wholly responsible for council rates, services of water, sewerage, storm water and any land tax applicable on the land. This title is particularly relevant to free-standing homes and some townhouses.

Community TitleThis an updated version of the older strata title, meaning that you own your block of land (or apartment) but you share aspects as a “community” i.e. responsibility of common areas is shared with other owners. While strata title is still relevant for existing titles, all new common allotments are now community titled.

A property such as a villa, townhouse or unit is often purchased under community title. When you buy one of these properties, there are ‘common areas’ (driveways, gardens, entryways and so on) used by all of the people living in the development or apartment block. These common areas have to be maintained by all of the unit owners collectively, through a community corporation, because they are shared. The individual owner is responsible for upkeep of the inside of their land and property, but they must share the expense of maintaining common areas.

Your lot entitlement (in simple terms the proportional size of your property compared to the entire property) determines your share you contribute to insurance and other fees charged by the corporation. All community schemes have by-laws that include provision for the administration, management and regulation of the use and enjoyment of the common property. The by-laws are an extremely important aspect of community title new purchasers must be aware of – how much are the fees and what rules exist that you must abide by. For example, many community corporations restrict pets to certain sizes or numbers.

Moiety TitleNow rare and sometimes referred to as a cross lease, moiety ownership of a property comes from being the registered owner of a share of the land the property sits on. The owner then leases the right to occupy their property, along with the right to use common areas, from the other unit owners. It is now common for moiety title to be transferred to either community or Torrens title.

Should you have any questions regarding the title of your land or apartment, or are considering purchasing a property and are unsure of the responsibilities that come with the title, please be in contact at info@salistings.com.au.

Justine

Disruptors in Real Estate

We are hearing the word “disruptors” quite frequently these days, used to describe traditional industries undergoing a shake-up to the way they have always done business. Think transportation with taxis and the advent of Uber, or Amazon’s effect on retail shopping. The combination of technology, forward thinking entrepreneurs and low barrier entries to market have seen consumers benefit from more choice. At SA Listings we have introduced a refreshing business model for the transaction of real estate turning the traditional way of selling real estate on its head.

The SA Listings business model is based on a fee for service, not commission. I worked for many years in Industry Superannuation Funds and believe strongly in the fee for service model over the Retail Superannuation Funds commission model and thought “why doesn’t this apply to real estate?” I had a property to sell and my only choice at the time was to sell it myself or pay a ridiculous commission of 2% or higher, inclusive of GST of the sale price, plus marketing and all other necessary expenses on top. Being time poor, selling it myself was not an option and I had little choice but to pay the generous commission to an Agent. It got me thinking……

Why not save people thousands of dollars and offer an exceptional high-quality service based on a fixed dollar amount?

Is this the Real Estate elephant in the room?

Could the successful Industry Super Fund model of charging a flat administration fee also apply to Real Estate? I went to work and over three years analysed available data about the time it takes to list and market a property, negotiate the sale and close the contract to determine the dollar cost average of selling a property based on a fixed hourly rate. The service and marketing was not to be compromised in delivery of the service and these factors were all added to the equation. My background as a CPA enabled me to crunch the numbers and come up with a new model.

The SA Listings model is based on a choice of low cost, fixed price sale packages inclusive of a full agent service with very high standards, all marketing, all Government searches and Form 1 – everything needed for a Real Estate Agent to successfully obtain the best price for your property. I am often asked where is the incentive to obtain the very best price for us if you are not commission based and my answer is simple: “By achieving the very best price and providing you with exceptional service means you will refer us to your friends and family”. The dollar amount is not the driver to do my job as a professional real estate agent.

As a new kid on the block we are often being criticised by other Agents as “ruining the profession” for charging a fixed fee and even some of our real estate professional associations are critics of the fixed fee model. We take all this criticism with a grain of salt, what we know is our model has strong support from the general public and that is all that matters to us. At SA Listings, what we care about, is providing you with an exceptional service in the sale of your home and getting you the very best price for your home whilst protecting your hip pocket from price gouging. Change is in the air and it is refreshing!

If you have a property to sell in SA and like our way of doing business, we would love to hear from you. Currently we are only operating in the SA market, however, if you have a property to sell interstate or are an Agent who resonates with this way of doing business, we are teaming up with like minded Agents interstate to replicate the model. To find out more about SA Listings, please visit, www.salistings.com.au. Please feel free to drop us a line and tell us what you think, we would love to hear from you.

Justine Thomson