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A subsidiary proprietor is the holder of a strata title

A worked RES examination question on title types and subdivision, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.

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The question

An owner holds a certificate of title over a landed house that has its own boundaries and shares no land or common area with any neighbour. He has noticed that one document in his file describes him as a "proprietor" while another describes him as a "subsidiary proprietor", and he cannot tell which of the two is the correct description of his position. He has asked his agent to explain the difference between the two terms and to say which one properly applies to an owner in his situation.

Which statement is correct?

  1. A. He is a subsidiary proprietor, every titled owner holding a subsidiary interest.
  2. B. He is both, the two words meaning the same thing for a landed owner.
  3. C. He is a proprietor, the holder of a certificate of title being so described.
  4. D. He is neither until the title is computerised, when the term is assigned.

The answer, and why

Answer: C

The rule. The holder of a certificate of title is a proprietor. A subsidiary proprietor is the holder of a strata title.

Why C is correct. He is a proprietor, holding a certificate of title over his landed house.

The other options.

  • A makes every owner a subsidiary proprietor.
  • B treats the two words as the same.
  • D ties the name to computerisation.

Exam note. Proprietor for a certificate of title; subsidiary proprietor for a strata title. The "subsidiary" belongs to the strata owner.

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