What is a Company Share Flat?
By Melly Shute
You think you're buying real estate. You're actually buying shares.
A company share flat is one of Melbourne's more unusual property ownership structures and is most commonly found in older apartment buildings throughout East Melbourne, Toorak and South Yarra.
Unlike a standard apartment purchase, the buyer does not receive a Certificate of Title. Instead, they acquire shares in a company that owns the building and are issued with a Company Share Certificate. Those shares provide the exclusive right to occupy the flat
Many company share buildings were constructed before 1960 and remain some of Melbourne's most beautiful Art Deco and mid-century developments.
The key difference is that ownership of land is not transferred to the purchaser. Instead, the purchaser acquires shares in the company that owns the property. The transaction therefore involves a transfer of shares rather than a transfer of land.
Because of this unique structure, additional due diligence is often required. Financing requirements can differ from a standard residential purchase and some buildings may require approval of incoming shareholders.
At MLS LEGAL, we regularly act in company share flat transactions throughout East Melbourne, Toorak and South Yarra. Whether you're buying, selling or simply trying to understand what you're being asked to sign, don't go at it alone.
Property law is full of surprises. Company share flats are one of them.
Share This Blog
