Certificate of title

[bryn]

Why is this document so important in our modern electronic Torrens title time?

Its not really title anyway, its the current state of title as recorded when they print it. You can't do anything with it directly, so why isn't it simply the banks (in cases of mortgage) talking directly to Lands & Titles electronically?

 

[thatbum]

In practical terms its not that important.

 

[bryn]

In practical terms its not that important.

yet... the bank demands it when they give you a mortgage.

 

[Scott No Mates]

There are projects in the LTO for electronic document control however when they see the light of day is unknown. The hard copy is a record of the transactions and affectations on the property. It is held by the mortgagor to prevent additional transactions being made without their consent ie you have to seek the bank's consent to get the title to have a new dealing lodged - typical example registration of commercial lease or 2nd mortgage.

 

[bryn]

so what happens if I order a new certificate of title from LPI while the bank is holding the current one?

My bet is, the process has provision to prevent me from gaming the system that way- i.e. when they register the mortgage, L&T is notified & its noted on the title. Hence, even if I order a new one its still noted on the title- making the existing one unimportant from that perspective.

Even if they don't take the current one (or I have two copies say- I order another saying its lost before applying for the mortgage), the next lender will register their interest in the property with L&T before paying out. At that point, I'd be found out and they would refuse to settle that mortgage- no title doc required!

I'm really struggling to find a circumstance in which them requesting the title doc actually achieves anything.

 

[alicudi]

Hi

I find this thread interesting. 20 years ago my father would tell me whenever you pay off a property you should always keep the original title in a safe.

Now I just go online and order another and charge it to my credit card and I get to print it out in a few minutes!

Regards,

alicudi

 

[Scott No Mates]

Ah no! You can do a title search but not get a copy of the title with the security features on line. To get a copy of the title reissued you will need a stat dec.

 

[bryn]

Ah no! You can do a title search but not get a copy of the title with the security features on line. To get a copy of the title reissued you will need a stat dec.

Sure- but going over the order of events in my last post, how does that actually help?

Don't get me wrong, I know this isn't really important or actually related to he people here! I'm just trying to work out if I've missed something...

 

[Scott No Mates]

It doesn't. Even if a new copy of the title is issued, the consent of all cavetors must be received in order to register a new dealing or remove a dealing.

 

[Paul@PFI]

Title isnt always that clear and subject to a piece of printed paper. The Govt system is the fall back to paper. If it contradicts its not valid. Before electronic there was printed. Before that it was written. The document passed physically (exchange) and THEN was transfrered (transfer of title). Also the tax point. This isnt unlike the Bills Of Exchange issue or bonds. The exchange is the Reserve bank.

Things have changed. Recently. In time it will be ebay style process. Until then it isnt. You cant put documents that have 220 years of history on a computer if you dont know what they are. Some descendant of Bennelong can walk up tomorrow and demand title to Circular Quay or the Opera House if they have the old title.