No more paper certificates of title from 1 October 2019 No more paper certificates of title from 1 October 2019

No more paper certificates of title from 1 October 2019

17 April 2019 | General

Do you have a paper certificate of title for your property?

Only about 11% of owners do.

If you are part of the 11%, be warned – paper certificates of title will become worthless on 1 October 2019.

What are the changes?

Amendments to the Land Title Act 1994 (Qld) were passed on 26 March 2019 which mean that, from 1 October 2019, existing paper certificates of title:

  • will no longer have any legal effect;
  • will cease to be evidence of indefeasible title for the property to which they relate; and
  • will not need to be lodged with the Titles Registry in relation to any future dealings.

Further, paper certificates of title will no longer be issued.

Why is this happening?

The State Government wants to promote efficiency, prevent unnecessary duplication and allow the electronic conveyancing environment to continue to evolve.

What was the point of certificates of title?

The land registry in Queensland was computerised in 1994. Paper certificates of title have (technically) not been needed since this time.

So why are they still around?

Paper certificates of title still exist because (when they are issued) they will (ordinarily) prevent anyone from dealing (or trying to deal) with the property. For example, if a paper certificate has been issued for a property, the transfer of that property can only be registered when the certificate of title is presented.

They have also been used/held by lenders over the years as a form of security to ensure the repayment of debt – on the basis that the property cannot be sold or transferred by the property owner without it. Being in possession of the paper certificate also allowed lenders to rely on the equitable mortgage provisions in the Land Title Act 1994 (Qld) – which are now being removed.

What will this mean for me?

Probably not much – unless you hold a paper certificate of title as a form of security. If you do, you will need to give consideration before 1 October 2019 to what alternative forms of security you can put in place to ensure you are protected moving forward.

What these changes will also mean is that if you want a paper certificate of title after 1 October 2019, you won’t be able to get one.

Need help?

BN can assist you to review any arrangements you might have involving paper certificates of title and identifying appropriate alternative security options.

Please get in touch if you have any questions or require any help.

Michael Donnelly

Michael Donnelly

Lawyer