If a home doesn’t even come with a Certificate of Title, how do I know the property is mine? What happens if I want to sell it later? Are there any other implications?
These are likely the common questions most people have about the abolition of paper Certificates of Title. From 11 October 2021, New South Wales has fully abolished paper Certificates of Title. This article addresses these questions in the context of the latest changes to NSW real property policy.
It All Starts With NSW’s Real Property System Reform
Real property, as a key asset class, has long attracted widespread attention. The Certificate of Title — commonly known as the title deed — has served as an important legal document evidencing ownership of real property. From 11 October 2021, New South Wales introduced significant changes to its real property system. NSW real property transactions and the corresponding evidence of title have been fully transitioned to electronic form, eliminating reliance on paper-based processes. In other words, paper Certificates of Title will no longer exist in NSW.
What Changed — and How It Affects Your Home Purchase
The Real Property Amendment (Certificates of Title) Act 2021 introduces the following changes to the current real property regime, including the abolition of paper Certificates of Title and the move to fully online land transactions in New South Wales. From 11 October 2021, paper Certificates of Title and the Control of the Right to Deal (CoRD) have been abolished, and all real property transactions in NSW must be lodged online — this is referred to as 100% electronic conveyancing. In particular:
1. Paper Certificates of Title have been abolished, and no new paper Certificates of Title will be issued in the future.
2. Existing paper Certificates of Title are no longer recognised as valid legal documents and do not need to be produced for real property transactions.
3. Banks and other financial institutions will no longer be granted Control of the Right to Deal (CoRD).
4. The Torrens title register (the existing system for registering real property ownership and transfers, which serves as conclusive evidence of registered ownership) will continue to be the sole authority for verifying title to real property.
Impact on Four Categories of Owners
1. Owners with a mortgage will no longer receive a paper Certificate of Title once the mortgage is discharged.
2. Purchasers buying outright — i.e. without a mortgage — will no longer receive a paper Certificate of Title after settlement.
3. Owners who subdivide their land will no longer receive a separate paper Certificate of Title or CoRD for the newly registered lots following subdivision. All parties involved in the title change will receive notifications confirming the registration status and registration date of the transaction.
4. Owners who currently hold paper Certificates of Title are not affected by this policy change, provided that the relevant property is not subject to a mortgage or any other third-party interest. No action is required after 11 October 2021.
NS Legal Analysis and Conclusion
From 11 October 2021, paper Certificates of Title will no longer be treated as valid legal documents.
Owners transacting real property around 11 October 2021 who already hold a paper Certificate of Title should continue to retain it, to address any uncertainties that may arise during the policy transition period. If the transaction commenced before 11 October 2021, the paper Certificate of Title may still be required to respond to requests from the Land Registry or other administrative notices.
From 11 October 2021, if a paper Certificate of Title is currently held or kept by another party on the owner’s behalf, the law will no longer support the owner in seeking its return, as it no longer has legal effect.
NSW real property has entered a new era through 100% electronic conveyancing. The abolition of paper Certificates of Title relieves both owners and mortgagee banks of the pressure and responsibility of safekeeping title deeds. At the same time, electronic conveyancing significantly improves transaction efficiency and imposes higher demands on property lawyers, conveyancers and other practitioners. For owners, the abolition of paper Certificates of Title does not affect their ownership of real property. However, for parties currently in the midst of a real property transaction, the uncertainties arising from adapting to the new policy may have a negative impact on transaction efficiency.
As a real property owner, you should pay closer attention to the Torrens title register — the sole authority for verifying title to real property — to safeguard your rights and interests from being infringed.
