Abolition of certificates of title in NSW

Conveyancing has taken a huge leap forward in the electronic world, streamlining its process in NSW with paperless solutions under s33AAA of the Real Property Amendment (Certificates of Title) Bill 2021. As a result, the below changes took effect in NSW from 11 October 2021:

• Paper Certificates of Title and the Control of the Right to Deal (CoRD) framework were abolished; and
• Every land dealing must now be lodged electronically, with the aim of achieving ‘100% eConveyancing’.

Below, we explain the abolition of Certificates of Title and the implications for landowners, as well as how our Property and Conveyancing team can help you to navigate these legislative updates.

 

Abolition of Certificates of Title

Following recent changes to the law governing land titles, the paper Certificate of Title is not required to establish your ownership of your land anymore. The Registrar General has ceased issuing new Certificate of Titles to landowners and CoRDs to Authorised Deposit-Taking Institutions, such as banks. Additionally, any existing paper Certificates of Title are no longer viewed as legal documents. 

As always, the Torrens Title Register will remain the exclusive source in determining land ownership. This information is stored securely by both the Office of the Registrar General and NSW Land Registry Services.

 

100% eConveyancing

The Registrar General no longer accepts the lodgement of paper dealings. Rather, a subscriber (e.g. Lawyer, Conveyancer or financial institution) must lodge the land transaction with NSWLRS using an Electronic Lodgment Network.

Once a dealing is registered, the Registrar General will now issue an ‘Information Notice’ instead of a Certificate of Title. This document will include details such as the folio identifier, subscriber’s reference, registered dealing(s), their registration number(s) and date(s) of registration.

 

What do these legislative changes mean for land owners?

There are three main implications of the abolition of Certificates of Title on land owners. In contrast to previous practice, a Certificate of Title will no longer be issued if you:

• Pay off your mortgage;
• Purchase a property outright with cash, and therefore have no mortgage to begin with; or
• Register a plan of subdivision and create new parcels of land, which customarily would have received their own Certificates of Title (or CoRD).

Note that if you already hold a paper Certificate of Title, you do not need to do anything. However, if someone else has been storing your Title for you, it may be difficult to reclaim it now that 11 October 2021 has passed. As it is no longer deemed a legal document, its retrieval cannot be enforced under the Real Property Act 1900. 

Lastly, as it is an inherently more secure and efficient solution, a completely electronic Conveyancing system will bring quicker transactions, shorter settlement delays, and greater protection against lost, illegal and fraudulent Certificates.

 

Take the next steps with O’Hearn Lawyers

An Information Notice is not considered a final statement of the state of the Register. Therefore, if you are lucky enough to own your own property without having a mortgage, you will need to have your conveyancer order a title search which will show that you are the registered proprietor and prove your ownership. 

If we hold your old Certificate of Title in our safe custody, you can either: 

1. Visit our office to collect your title deed if you would like to keep it for historical interest (please provide 48 hours notice so we can retrieve it from our safe custody)
2. Instruct us to mail your title deed to you (postage costs will apply) or 
3. Instruct us to destroy it on your behalf. 

Please note that in the case of Option 1, you (both/all of you) will need to attend this office to collect your Certificate of Title and provide identification. Please contact us to make an appointment.

If you would prefer Option 2 or 3 you (all of / both of you) will need to sign and return an Authority to our office together with your identification.

If you have any queries regarding the above or the changes to the legislation, please feel free to contact our Property and Conveyancing lawyers today. You can also find more information about the abolition of Certificates of Title on the Office of the Registrar General website.