On 11 October 2021, changes to NSW’s land titles system will be introduced to transition NSW away from paper-based processes. These changes will be implemented under the Real Property Amendment (Certificates of Title) Act 2021. The main amendments are:
- The cancellation of certificates of title (“CTs) and the control of right to deal framework; and
- 100% eConveyancing of land dealings.
No more Certificates of Title
From 11 October, existing CTs will be cancelled and CTs will no longer be issued. Currently CTs are a duplicate of the title which is held by the New South Wales Land Registry Services (‘NSW LRS’). The original title will continue to be held by the NSWLRS in electronic form as a folio of the Torrens Title Register.
What does this mean for landowners?
For landowners, your title will be unaffected by this change.
If you currently hold a CT, no action needs to be taken in response to this change.
If you currently hold a CT and plan to deal with your land in the next 6 months, NSW LRS has advised that should hold onto your CT, even after 11 October 2021. This is because a transaction may begin before this date, but not yet be finalised and the CT may be needed to satisfy requisitions or other administrative notices that were issued before 11 October 2021.
If you own unencumbered land but have someone else holding or storing your CT, you may wish to request to have it back. From 11 October, there will no longer be any remedy under the Real Property Act to get your CT back from others as it has no legal effect.
If your property is encumbered and a bank or other Authorised Deposit-Taking Institution currently holds your CT, you should note that you will not receive a CT when your mortgage is discharged. Instead, the bank will pass on an Information Notice confirming registration of the dealing.
100% Electronic Dealings
From 11 October, all electronic dealings listed in the Schedule of eDealings are mandated to be lodged electronically. Lodging land dealings in paper form will no longer be permitted.
Are there any exceptions?
The schedule of eDealings accounts for 99% of all land transactions including:
- Leases
- Transfers of property, lease, mortgage or charge
- Priority notices
- Applications for preparation of lapsing notices
- Extinguishments of easement, positive covenant or restriction on use of land
- Caveats
- Surrenders of Lease
The full Schedule of eDealings can be found here.
The remaining 1% of transactions are outside the scope of E-conveyancing for technical reasons. These dealings will still be prepared on paper but will need to be lodged electronically with a ‘Dealing of Exception’. Once this exception has been lodged, NSW LRS will then examine the paper dealing. The Lodgement Rules have yet to be updated to specify the scenarios where the Dealing of Exception can be used, but NSW LRS will provide comprehensive guidance before 11 October. These rules are likely to provide exceptions for less common dealings and dealings executed before 11 October.
What does this mean for me?
The shift to 100% eConveyancing means that you will need to engage a lawyer or licensed conveyancer who is a subscriber to an Electronic Lodgement Network to register land dealings.
Hunt & Hunt has extensive experience with eConveyancing and lodging a wide range of land dealings. If you would like discuss what these changes mean for you, please get in touch with our Property team.
Article prepared by: Shannon Walsh, Graduate
