Bank requiring the original Title to be posted to them.

[Tim86]

Currently we own a property outright.

We are getting it mortgaged through homeside.

My broker (Aaron) has just told me homeside will not lend us money unless we first take the original title out of the titles office and then post it to them.

This sounds like a total load of rubbish to me. Why would we need to take a title out of the titles office, send it to the bank, so that they can then send it to the titles office and put a mortgage on it?

And why would we in our right minds send them the Title to our property without them first giving us the money? They aren't providing us with a form 24 or anything, they are just saying, "hand over your title and we will probably give you a loan, but still no guarantees".

This seems very strange to me. My broker Aaron has said that the lawyers at Nab Homeside have confirmed that they need us to post the title to them.

Does anyone know what is going on here?

Thanks

Tim

 

[Tim86]

http://www.nrm.qld.gov.au/property/titles/titlecertificate.html

This bank is full of ****.

 

[oc1]

Simple really, find another lender or send the title to Homeside. You won't get anywhere arguing your case. Just the way it is.

Oscar

 

[Tim86]

Simple really, find another lender or send the title to Homeside. You won't get anywhere arguing your case. Just the way it is.

Oscar

It's taken over 4 months to get to this point, we have tried 3 lenders so far.

 

[oc1]

It's taken over 4 months to get to this point, we have tried 3 lenders so far.

Send the title over. Sounds less painful than going through another finance application.

 

[THEGREAT888]

Currently we own a property outright.

We are getting it mortgaged through homeside.

My broker (Aaron) has just told me homeside will not lend us money unless we first take the original title out of the titles office and then post it to them.

This sounds like a total load of rubbish to me. Why would we need to take a title out of the titles office, send it to the bank, so that they can then send it to the titles office and put a mortgage on it?

And why would we in our right minds send them the Title to our property without them first giving us the money? They aren't providing us with a form 24 or anything, they are just saying, "hand over your title and we will probably give you a loan, but still no guarantees".

This seems very strange to me. My broker Aaron has said that the lawyers at Nab Homeside have confirmed that they need us to post the title to them.

Does anyone know what is going on here?

Thanks

Tim

you may feel more secured if a solicitor is involved. Hire a socicitor on this occasion.

t

 

[Terry_w]

Currently we own a property outright.

We are getting it mortgaged through homeside.

My broker (Aaron) has just told me homeside will not lend us money unless we first take the original title out of the titles office and then post it to them.

This sounds like a total load of rubbish to me. Why would we need to take a title out of the titles office, send it to the bank, so that they can then send it to the titles office and put a mortgage on it?

And why would we in our right minds send them the Title to our property without them first giving us the money? They aren't providing us with a form 24 or anything, they are just saying, "hand over your title and we will probably give you a loan, but still no guarantees".

This seems very strange to me. My broker Aaron has said that the lawyers at Nab Homeside have confirmed that they need us to post the title to them.

Does anyone know what is going on here?

Thanks

Tim

This is standard practice - still. Deeds could possibly given to someone else as security - without registration.

 

[Qlds007]

Hate to say might sound silly but all lenders will require it.

 

[Jamie M]

Agree with Richard - this is standard practice.

Cheers

Jamie

 

[Colin Rice]

SOP. Its what will give them legal right to the property if you don't pay! If no loan is granted then they have no rights to the property.

 

[Terry_w]

I think Tim is implying in this electronic day and age what need is there for the physical document.

 

[Tim86]

I think Tim is implying in this electronic day and age what need is there for the physical document.

Exactly, and the Department of Natural Resources website says it's not required for settlement. Also we rang the Titles Office and they said that the banks request doesn't make any sense. We rang Homeside and their customer service team said the request doesn't make any sense. Suncorp said their request doesn't make any sense. And we have previously settled on a property with Westpac in the same conditions and didn't require the original Title Document to be taken out of the Titles Office and posted to them, it was left at the Titles Office and a mortgage was simply added to the title.

Aaron had a chat to my Dad last night about it all (my parents and me are co borrowers). And I'm yet to hear what the reasoning behind the request is. I was briefly told it may be a case that because Homeside is in NSW and not QLD like our other settlements, they do things differently down there?

 

[Terry_w]

Exactly, and the Department of Natural Resources website says it's not required for settlement. Also we rang the Titles Office and they said that the banks request doesn't make any sense. We rang Homeside and their customer service team said the request doesn't make any sense. Suncorp said their request doesn't make any sense. And we have previously settled on a property with Westpac in the same conditions and didn't require the original Title Document to be taken out of the Titles Office and posted to them, it was left at the Titles Office and a mortgage was simply added to the title.

Aaron had a chat to my Dad last night about it all (my parents and me are co borrowers). And I'm yet to hear what the reasoning behind the request is. I was briefly told it may be a case that because Homeside is in NSW and not QLD like our other settlements, they do things differently down there?

Have you heard of the 'golden rule'? Those with the money make the rules. You are borrowing Homeside's money so you may have to play by their requirements.

 

[Rolf Latham]

And I'm yet to hear what the reasoning behind the request is. I was briefly told it may be a case that because Homeside is in NSW and not QLD like our other settlements, they do things differently down there?

Do understand the concern

The reasons is........

they hold gold, they have some requirements to secure that gold to provide it to you for the long term.

All lenders have quirks - Homeside is just another

Send it registered mail or signature courier and move on with the real focus - sorry for the lack of diplomacy - but Id guess its distracting you from what you really want to be doing, and you certainly dont want more hits on your Credit file.

ta
rolf

 

[Tim86]

Do understand the concern

The reasons is........

they hold gold, they have some requirements to secure that gold to provide it to you for the long term.

All lenders have quirks - Homeside is just another

Send it registered mail or signature courier and move on with the real focus - sorry for the lack of diplomacy - but Id guess its distracting you from what you really want to be doing, and you certainly dont want more hits on your Credit file.

ta
rolf

Yeah it's just very hard to get things straight when everyone is telling you conflicting things. I don't know how brokers stay sane while dealing with banks all the time.

 

[Marty McDonald]

Yeah it's just very hard to get things straight when everyone is telling you conflicting things. I don't know how brokers stay sane while dealing with banks all the time.

I would have thought it was a standard bank requirement to hand over the original. I have never heard of them relying on the unencumbered title at the titles office.

 

[Terry_w]

Yeah it's just very hard to get things straight when everyone is telling you conflicting things. I don't know how brokers stay sane while dealing with banks all the time.

Its very simple and no conflicting information. If Homeside want the title deeds you must give it to them to borrow the money. It is irrelevant that the land titles office is saying this is not necessary as they have nothing to do with the lending.

 

[TMNT]

um, I thought that was perfectly normal and reasoanble,

the bank needs teh title before they disperse funds, because if you dont send the title , then the bank has just paid out and they have nothing to hold on to it,

or stopping you from selling ti again?

 

[Tim86]

um, I thought that was perfectly normal and reasoanble,

the bank needs teh title before they disperse funds, because if you dont send the title , then the bank has just paid out and they have nothing to hold on to it,

or stopping you from selling ti again?

It's my understanding that the bank can put a claim on the title without the original title document. As the Department of Natural Resources website says, the original title is not needed for settlement. Remembering that the original title document is electronic and held by the Department of Natural Resources, and a print out of the original title document is just a certificate of title, but the original is still the electronic copy.

The prior 3 settlements I've done did not require a title certificate, just a title search and the transfer papers for ownership.

The only thing I can think of is that in the absence of the transfer papers, maybe the bank needs a title certificate in order to put a mortgage on the property.

Anyway it sounds like it's not an unreasonable request according to people here so we will do it. I just wanted to make sure before I put the title in the post.

 

[Peter_Tersteeg]

As already indicated, physically handing over a title isn't necessary in the electronic age, but you're going to have a tough time finding a lender who doesn't ask you to do this.

Look at it from the other end of the mortgage life cycle. Most people are delighted when they've paid of their home and the bank posts the title to them. Imagine how they'd feel if they were told that they don't get a piece of paper because it's all digital.