05 October 2018

The NSW bulk conversion to electronic Certificates of Title

Last month, the NSW Land Registry Service (NSWLRS) began undertaking the monumental task of the bulk conversion of paper Certificates of Title (pCT’s) to electronic Certificates of Title (eCT’s). The conversion involves titles where a mortgage to an Australian Deposit Taking Institution (ADI) is recorded on the current edition of the title. By the end of September, close to two million paper titles were replaced by eCT’s.

eCT’s were designed to replace the pCT’s in an electronic environment to provide a higher level of security. eCT’s have been issued since 2013 as and when ADI’s registered first mortgages over existing pCT’s. The current bulk conversion is the next step in the timeline to the mandated take-up of electronic settlements in NSW.

Below is the timeline for the conversion, starting with the four majors and followed by the remainder of the smaller ADI’s:

 

Date ADI
Sat September 1    ANZ
Sun September 2       CBA
Sat September 8   Westpac
Sun September 9        NAB
Sep 15, 16, 22 and 23     The ADIs listed in this spreadsheet.

 

How is the NSWLRS determining which titles are converted?

The bulk conversion affects all paper titles where an ADI has a registered mortgage over the subject title. ADI’s have provided exclusion lists to the NSWLRS to minimise the impact on any transactions currently in progress. Along with the exclusion lists provided by the ADI’s, the NSW LRS will automatically exclude CT’s with the following statuses:

  • Multiple Entitlement
  • Productions
  • In Use
  • Special Lease – where CT is permanently produced. (Please note that this option is being phased out)
  • CT not issued (State of NSW – RP)
  • A Search Stopper (Titles which a search stopper has been placed on by NSW LRS)
  • A Postponement of Mortgage registered on the title

However, even with these additional measures, there may be instances where a title has been converted, potentially impacting a current or future transaction. An example may be where a person or their solicitor is holding a paper CT and an unregistered discharge, which was released in the past by an ADI. Information on these scenarios can be found here.

How do I know if a title is an eCT?

A search or a CT Inquiry should be obtained to ascertain whether a title is a pCT or an eCT; this should be done for any transaction to avoid issues arising at settlement. The CoRD Holder Consent must specify all dealings in the settlement case, not just the mortgage being discharged. Typically, the dealings would include a discharge, transfer (including correct transferee and spelling) and mortgage, but may consist of many other dealings as well (for example - a Withdrawal of Caveat).

It is essential to verify that the CoRD holder consent has been created accurately to allow all applicable dealings to be registered on the title following settlement – any minor misspellings or omissions of transactions will result in an eCT not issuing in the correct owner’s name & requisition fees applied. The CoRD holder consent must be lodged via PEXA before settlement, and it cannot be lodged in paper with NSW LRS.

The following text on a land title search indicates that an eCT exists and who controls it:

"NO CERTIFICATE OF TITLE HAS ISSUED FOR THE CURRENT EDITION OF THIS FOLIO. CONTROL OF THE RIGHT TO DEAL IS HELD BY [mortgagee name]."

 

If the title is an eCT does that mean I must settle electronically?

Not at all, it is important to note that the status of the title does not determine the type of settlement which must occur. That is, if a CT is electronic it does not mean the settlement must be completed electronically. Settlement may still occur manually subject to existing mandates.

If however you need assistance with electronic lodging of standalone transfers or caveats, contact our Settlement team at eSettlementTeam@infotrack.com.au.

More information and FAQ’s can be found here:
http://www.registrargeneral.nsw.gov.au/eConveyancing/bulk-conversion

 

 

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