From 3 August 2024, all new titles issued in Victoria will be in electronic format. This is perhaps the last step in the move to a fully electronic title system.
This is an emerging issue of concern to some clients and we will cover the rights of purchasers when a vendor defaults next week.
The option to get a paper title will no longer exist after the 3rd of August and when there is a transaction involving a paper title the paper title will be cancelled and a new electronic one will be issued. Over time, the few paper titles that remain will be phased out.
Over the last few years, most paper titles have already been cancelled. Paper titles held by the banks (i.e. when the owner had a mortgage over the title) were cancelled en masse years ago. As new transactions are lodged – most titles are converted to the electronic format. This means that there are already relatively few paper titles in the system.
Concerns and Conspiracies
As a historical side note – Victoria was one of the first jurisdictions to move to the Torrens system of land titles – originally introduced in South Australia in 1858. This, over time, did away with the previous system of land titles based on copies of transfers and other documents going back to the original Crown Grant. That is the original transfer of the land from the Crown to a settler usually in colonial times.
The replacement system was based on a central registry of land ownership maintained by the state governments – the Land Titles Office. This meant that the old parchment titles that land owners received were a copy of the title – hence a “Duplicate Certificate of Title” – held by the Land Titles Office. In itself it wasn’t really absolute ownership – rather it was effectively an approved copy of the Title held by the Titles Office. The copy held by the Titles Office was the true record of ownership.
The move to electronic titles is in many ways a much less substantial change.
Most titles are already in electronic format and clients typically receive a “Register Search Statement” after their purchase settlement is completed. This is an A4 printed page and is much less substantial and impressive than the old A3 parchment titles.
However, I am aware that many clients are deeply concerned by this move and the loss of paper titles. Whilst I don’t personally share the more extreme views of conspiracy theorists and the sovereign citizens, I do acknowledge that our governments and politicians have not covered themselves in glory and some degree of skepticism is well and truly warranted.
Eligibility for a Paper Title
To be eligible for a paper title you must own the property and have a clear title – that is, the property cannot be subject to a mortgage.
This means for the vast majority of homeowners that they will not be able to obtain a paper title as clearing their mortgage before 3 August, 2024 will not be possible.
Clearly if you already hold the paper title you don’t need to do anything – the paper title you hold will remain valid until you sell or mortgage the property.
How to Get a Paper Titles
If you do have an unencumbered title and you do want a paper title please contact us and we will arrange for the required paperwork to be prepared and lodged. There is a small fee for this service.
Once the paperwork is lodged a new paper title will be issued to you.
Retaining Old Paper Titles
It is worth knowing that when the time comes to give up your paper title it is possible to retain it. This is often of interest to those selling properties after a long time and that still hold the old parchment titles.
If you do wish to retain the old title – let us know when you sell the property. Whilst we are required to annotate the paper title to make it clear that it has been converted to electronic format we can return the original paper to you – just ask!
Concluding Thoughts
For most Victorians, the process of conversion to electronic conveyancing will continue in the background with no real impact on their lives.
For those that want to retain a paper title for as long as possible – if you don’t already hold one you have until the 3rd of August to get one!
Lewis O’Brien
Your Preferred Property Lawyer