Torrens Title vs Community Title

Torrens Title allotments are the most common form of a land parcel in South Australia. A land division to create Torrens Title allotments will generally create allotments with frontage to a public road, and residential allotments will generally have their own services (eg water, sewer) which are independent of other allotments.

A land division for Community Titles will create land parcels called Lots as well as areas of Common Property. Each Lot has its own certificate of Title and can therefore be purchased and sold separately to other Lots, just as Torrens Title allotments can. The Common Property areas can be used for shared driveways, areas of garden or recreational space, or associated with the provision of common service infrastructure to the various lots (e.g. water, sewer, electricity, gas and telecommunication services). A Community Title Scheme also involves the formation of a Community Corporation and Bylaws.

The Bylaws provide for the administration of the common property but also can regulate the use, enjoyment and appearance of the Community Lots and the purposes for which a Lot may be used. A Community Title Division can in some cases provide advantages over Torrens Title and development costs can be less in certain circumstances.

So which is the best type of title for your development? In the majority of land divisions, it is appropriate for the land to be divided into Torrens Title allotments, and these are generally regarded as being superior to comparable Community Title Lots in terms of value and saleability.

However, there are circumstances where a division of land has to be done by Community Title, such as where a group development is planned and there is not enough width to the land for the land parcels to have their own frontage to a Public Road – in such circumstances, a shared driveway in Common Property can be built and the Lots can all abut and have access to the shared driveway instead of having to have frontage to a Public Road.

The service infrastructure to the Lots could be placed within the Common Property in this example.

There are other circumstances where a developer may choose Community Titles for economic reasons, such as when an expensive extension of mains would be required in order to provide individual service connections for Torrens Title allotments. In a Community Title scheme, it may be possible for the Lots to share the existing service connection points and therefore avert the need for a costly mains extension. Some developers choose Community Titles over Torrens Title in circumstances such as these.

So, the choice of Torrens Title or Community Title for your land division can come down to the site characteristics, cost considerations, and other circumstances.

Many options exist within each type of land division proposal and we can advise you on those that relate to your particular circumstances.

To get assistance with your Land Division and to get a tailored costing for your specific project please call our team on (08) 8344 1522. We look forward to helping you with your land division project.

Disclaimer. The information contained in this publication is a guide only and independent professional advice should be sought before beginning the process of dividing land. Sawley Lock O’Callaghan will be happy to discuss your specific land division proposal.