Strata vs Torrens Title: What's the Difference and Why It Matters
Published 16 May 2026
When you buy property in NSW, it comes with one of several types of title — a legal record of ownership. The two most common are Torrens title and strata title. They work very differently, and understanding the difference can save you from expensive surprises.
What is a title?
A title is a legal document that proves ownership of a property. In NSW, titles are registered with NSW Land Registry Services. When you buy a property, the title is transferred to your name — and your ownership rights are defined by the type of title.
Torrens title: you own the lot outright
Torrens title (also called freehold) is the most straightforward type of property ownership. You own the land — a defined parcel of land — along with everything on it (the house, any structures, the trees, the fences). Your ownership runs from the centre of the earth to the sky above, within the boundaries shown on the title.
There is no body corporate or strata committee. You make your own decisions about what to build, how to renovate, and how to use the land — subject to council planning rules, of course. You pay your own council rates, your own insurance, and maintain everything yourself.
Most standalone houses in NSW are Torrens title. So are rural properties and commercial buildings.
Strata title: you own a lot within a scheme
Strata title applies to apartments, townhouses, and villas that share land or infrastructure with other owners. Under strata, you own your individual lot (your apartment or townhouse), plus a share of the common property — the shared areas like the driveway, the pool, the foyer, the roof, and the external walls.
The common property is managed by an owners corporation (also called a body corporate). Every lot owner is automatically a member. The owners corporation is responsible for maintaining the common property, managing insurance for the building, and enforcing the strata by-laws (the rules that govern how the scheme operates).
As a strata owner, you pay strata levies — regular contributions to two funds:
- Administrative fund: Covers day-to-day expenses like cleaning, gardening, and minor repairs.
- Capital works fund (sinking fund): Savings for major future expenses like painting the building, replacing the lifts, or waterproofing the roof.
Key differences at a glance
| Feature | Torrens title | Strata title |
|---|---|---|
| What you own | Land and everything on it | Your lot + share of common property |
| Body corporate | No | Yes — owners corporation |
| Strata levies | No | Yes — regular contributions (frequency varies by scheme) |
| Renovations | Subject to council planning only | May need owners corporation approval |
| Building insurance | You arrange it yourself | Owners corporation arranges building insurance |
| Pets, short-term rental | Subject to council rules only | Also subject to strata by-laws |
Insurance note: Strata building insurance covers the building structure and common property only. As a lot owner you still need your own contents insurance for personal belongings and any improvements made inside your lot.
What to check before buying strata
Buying into a strata scheme requires extra due diligence. Before you exchange contracts, review the strata records — your conveyancer can order a strata search (strata inspection report) from a specialist company. Key things to look for:
- Levy amounts and frequency: What are the regular levies, how often are they billed, and are they reasonable for the size and age of the building?
- Capital works fund balance: Is there enough money set aside for future maintenance? A low fund may mean a special levy is coming — a one-off charge shared among all owners to fund a major repair.
- Pending repairs or litigation: Are there unresolved defect claims, disputes, or legal proceedings?
- By-laws: Do the rules suit how you want to live? Check rules on pets, parking, renovations, and short-term rental (Airbnb, Stayz).
- Building age and condition: Older buildings may have higher maintenance costs coming up.
How DueDili can help
DueDili's property reports show the lot and plan details for NSW addresses, helping you quickly identify whether a property is under strata or Torrens title. For strata properties, the report shows the strata plan number so you can request strata records.
Run a free report for any NSW address, or browse area profiles to understand the mix of property types in a suburb.
Other title types also exist — including Community title, which is common in master-planned estates and some townhouse developments, and Leasehold title. Your conveyancer can confirm which type applies to any property you are considering.