Company Share
A form of property ownership where you buy shares in a company that owns the building, with the shares entitling you to occupy a specific unit or apartment.
What is a Company Share?
Company share (also called company title) is an older form of ownership found in some New Zealand apartment buildings, particularly those built before the Unit Titles Act came into effect. Instead of owning the apartment directly, you own shares in a company that owns the entire building. Your shares come with a licence or lease that entitles you to occupy a specific unit.
This structure means you don't appear on a property title at LINZ — you appear on the company's share register. The company owns the building and the land, and you own a piece of the company. The company's constitution and shareholder agreement set the rules for how units are used and managed.
Company share is relatively uncommon in New Zealand and is generally considered less desirable than unit title because it provides fewer legal protections, can make financing difficult, and has a thinner market of potential buyers.
Why It Matters for Due Diligence
Company share properties require specialist due diligence beyond standard conveyancing. You need to review the company's constitution, shareholder agreement, financial statements, and licence to occupy. Check whether the company has any debts, legal disputes, or deferred maintenance issues.
Banks are often reluctant to lend on company share properties, or may offer less favourable terms. Check your financing options early. Also verify whether the company is considering converting to unit title — this can add significant value but also involves costs and complexity.
How to Check
The property listing or real estate agent should disclose company share ownership. Your lawyer needs to review the company's constitution, shareholder agreement, financial statements, and the specific licence or lease for your unit. A search of the Companies Office register will confirm the company's status and any filed documents.
Unlike standard property, you won't find a certificate of title at LINZ for your individual unit.
Frequently Asked Questions
Can I get a mortgage on a company share property?
It's difficult. Many banks won't lend on company share properties at all, and those that do may require a larger deposit or charge higher interest rates. Check with lenders early in the process to avoid wasting time and money on due diligence.
Can a company share building convert to unit title?
Yes, and many have. Conversion requires a shareholder resolution, a unit plan survey, and registration with LINZ. It can cost $50,000-$100,000+ for the building but typically adds significant value to each unit by making them easier to finance and sell.
Related Terms
Unit Title
GlossaryA form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
Body Corporate
GlossaryThe legal entity made up of all unit title owners in a multi-unit development, responsible for managing common property and shared affairs.
Freehold
GlossaryThe most complete form of property ownership in New Zealand, giving the owner full rights to both the land and any buildings on it.
Leasehold
GlossaryA form of property ownership where you own the buildings but lease the land from a separate landowner for a set period.
Certificate of Title
GlossaryThe official legal document registered with LINZ that proves who owns a property and records all registered interests affecting it.
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