Paper Certificates of Title

Do you currently own land or property in Queensland? There have recently been changes to the rules that surround Certificates of Title by the Land Registry.

What is a Certificate of Title?

A Certificate of Title (‘CT’) is a paper record of the current particulars of ownership and interests of a property.

The CT must be deposited with the Titles Registry when a transaction is lodged over the property.

In this way, if you have a mortgage over your property, a CT limits your ability to deal with your property without your bank’s knowledge (ie: you will need the original CT if you wanted to lodge a second mortgage over the property).

In the past, those who do not have a mortgage registered over their property would often request a paper CT so that they can safeguard their property against anyone lodging any dealing against their property, (ie: a mortgage, easement, or other encumbrance).

However, from 1 October 2019, the paper CT will no longer have any legal effect. An electronic title will be recorded, stored, and managed by the Titles Registry and will be the only point of reference of ownership.

What is the impact for property owners?

It was previously standard practice to require a CT as a form of security, particularly in loan agreements, because the CT had to be deposited with the Titles Registry when a transaction was lodged over the property. This is particularly common in family or private lending arrangements to hold the CT as security so no-one can sell the property without the consent of the holder of the CT.

If you currently hold a CT as security, it is vital you make URGENT arrangements to amend the terms of your agreement and/or the type of security to ensure your interests and loaned money are protected.

As the paper CT will no longer have any legal value, it will no longer be able to provide any security for your property.

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Disclaimer
This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.