A townhouse or dual occupancy project in NSW can be subdivided under one of three title systems. Torrens title gives each owner a lot of land with no shared property. Strata title, under the Strata Schemes Development Act 2015 and the Strata Schemes Management Act 2015, divides the development into lots plus common property owned through an owners corporation. Community title, under the Community Land Development Act 2021 and the Community Land Management Act 2021, creates lots that include land, with shared association property run by a community or neighbourhood association under a registered management statement. The council’s LEP and DCP decide which subdivisions are permitted and at what lot size. The title chosen then shapes resale value, ongoing levies, insurance and how disputes are managed. For investors, title is a feasibility decision, not a conveyancing detail.
Key takeaways
- Torrens title lots are owned outright with no common property, so each dwelling needs its own frontage or access arrangement, services and compliance with the LEP minimum lot size for the type of subdivision.
- In a strata scheme, buyers own a lot and share ownership of common property such as driveways, gardens, roofs and external walls through an owners corporation that sets levies by vote.
- Community title suits estate-style developments where lots include land and shared roads or open space are held as association property under a registered management statement.
- Strata subdivision of a dual occupancy or townhouse development is often treated differently from Torrens subdivision in LEPs, and some councils restrict one or the other; check the LEP and DCP before choosing.
- For a small project, the title choice affects the end value, the strata or association set-up costs and the buyer pool, so it should be settled at feasibility stage.
Who this is for: investors and small developers planning a duplex, a row of three to six townhouses or a small estate in Sydney or regional NSW, who need to choose the subdivision and title structure before design and DA.
How do the three title types compare?
| Question | Torrens title | Strata title | Community title |
|---|---|---|---|
| What does the owner own? | A lot of land and everything on it | A lot (usually defined by the building), plus a share of common property | A lot that includes land, plus membership of an association that owns shared property |
| Shared property? | None (easements only) | Common property: driveways, gardens, structure, services | Association property: roads, open space, facilities |
| Who manages shared areas? | No one; neighbours rely on easements and covenants | Owners corporation, under the Strata Schemes Management Act 2015 | Community or neighbourhood association, under the management statement |
| Ongoing levies? | No | Yes: administrative and capital works funds | Yes, for association property |
| Typical use | Duplexes, terraces, small lot housing with street frontage | Townhouses on a shared driveway, villas, apartments | Larger estates with private roads or shared open space |
The NSW Government’s strata guidance describes a strata scheme as a building or group of buildings divided into lots such as apartments, townhouses or villas, where buyers also share ownership of common property, and generally common property includes driveways, gardens, roofs, pipes, cables and external walls. Owners maintain what is within their lot; the owners corporation maintains the common property. Levies are set at the annual general meeting, shared according to the unit entitlements on the strata plan, and split between an administrative fund and a capital works fund.
For community schemes, NSW Government guidance states that every scheme must have a management statement, registered with NSW Land Registry Services, which binds the association, every owner and occupier, and covers matters such as access ways, internal fencing, garbage storage, services and insurance of association property.
What does the council need to approve?
Subdivision is development, so it needs consent. For most small residential projects, that means a DA (or, for some dual occupancy and strata subdivisions, complying development where the Codes SEPP allows it). The council checks:
- Minimum lot size. Clause 4.1 of each LEP sets the minimum lot size for Torrens subdivision, and many LEPs have separate clauses (often 4.1A to 4.1C) for dual occupancy and multi-dwelling subdivision. Strata subdivision is frequently excluded from the minimum lot size clause, but councils may have their own controls.
- Frontage and access. Torrens lots need legal access, usually street frontage or a right of carriageway, and DCPs often set minimum frontages.
- Servicing. Each Torrens lot needs its own water, sewer, electricity and stormwater connection; strata lots can share services through common property.
- The built form approved. Subdivision usually follows the approval of the dwellings. Councils will check the subdivision does not create a lot that cannot meet private open space, parking or landscaped area controls on its own.
The common mistake is designing four townhouses on a shared driveway and assuming they can be Torrens titled later. Without separate frontage, services and compliant lots, the realistic outcome is strata, and that affects end values and the buyer profile.
Which title suits which project?
| Project | Usually | Why |
|---|---|---|
| Side-by-side duplex on a standard lot | Torrens | Each dwelling has frontage; buyers in many Sydney markets value freehold land without levies |
| Front-and-back duplex with a shared driveway | Torrens with easements, or strata | Depends on the LEP lot size rules and whether a battle-axe lot is permitted |
| Three to six townhouses on a common driveway | Strata | Shared driveway, visitor parking, bins and landscaping need management |
| Terraces fronting a public road | Torrens | Each terrace on its own lot with frontage |
| Larger estate with private roads and open space | Community title | Lots include land; shared infrastructure held by the association |
The decision steps we follow
- Read the LEP subdivision clauses and the DCP subdivision chapter for the site’s zone.
- Test the Torrens option: lot sizes, frontages, access and separate servicing.
- If Torrens fails or compromises the design, test strata: common property, driveway, bins and visitor parking.
- Get agent advice on end values under each title for the local market.
- Price the set-up: survey and subdivision plans, Section 73 requirements, subdivision certificate, and for strata or community, the by-laws or management statement.
- Lock the title choice into the DA. Changing later usually means a modification and sometimes a redesign.
Definitions
- Torrens title
- The standard NSW system of land ownership in which each lot is registered and owned outright, with no shared property.
- Strata scheme
- A development divided into lots and common property, managed by an owners corporation made up of all lot owners.
- Common property
- The parts of a strata scheme not within any lot, typically driveways, gardens, structure and shared services.
- Community scheme
- A form of subdivision in which lots include land and shared association property is managed by a community or neighbourhood association.
- Management statement
- The registered document that sets the by-laws of a community scheme and binds every owner and occupier.
Frequently asked questions
Are townhouses Torrens or strata in NSW?
Either, depending on the design and the LEP. Townhouses on a shared driveway are usually strata. Terraces or townhouses with their own street frontage, separate services and compliant lot sizes can be Torrens titled.
Do Torrens title townhouses have strata levies?
No. There is no owners corporation or common property, although shared driveways or services are usually covered by easements and positive covenants that carry their own obligations.
Can I convert strata to Torrens title later?
It is possible in some cases but involves a new subdivision, consent, the agreement of owners and compliance with the LEP. It is far easier to decide at the DA stage.
What is community title used for?
Mainly larger estates where lots include land and shared roads, parks or facilities are owned by an association and managed under a registered management statement.
Choosing the right subdivision is part of the feasibility work in our subdivision planning and townhouse planning services, and we set it out in the DA from the start. If you are weighing Torrens against strata for a duplex or townhouse site, request a fee proposal.
Sources and references
- NSW Government, Strata, accessed October 2026
- NSW Government, Your strata levies, finances and insurance, accessed October 2026
- NSW Government, Management statements for community associations, accessed October 2026
- Community Land Development Act 2021, accessed October 2026
- Strata Schemes Management Act 2015, accessed October 2026
- Standard Instrument (Local Environmental Plans) Order 2006, clause 4.1 Minimum subdivision lot size, accessed October 2026
Information disclaimer. This article is general planning information prepared by the URBA Planning Team and is current at the date of publication. It is not planning, legal or financial advice for any specific property. Planning instruments, development control plans, state policies and the National Construction Code are amended regularly and councils interpret them differently; the controls quoted here should be confirmed against the versions in force at the date of lodgement and against the consent authority’s current requirements. Reliance on this article is at the reader’s own risk. URBA Planning, a division of Contrive Consultants Pty Ltd, accepts no liability for loss arising from its use. For advice on a specific site, contact URBA for a fee proposal.