Big Banks and ADI’s are now used to not having physical/paper CTs, the phasing out commenced in September 3 years ago! NSW is about to take another step to all electronic conveyancing.
From 11 October 2021 all paper CTs will be abolished, replaced with electronic system, this means:
- all certificates of title (CTs) will be cancelled and no longer issued
- paper dealings will no longer be accepted for lodgement at the NSW land registry
- the existing CoRD (Control of the Right to Deal) consent process will also be abolished from 11 October 2021. Note that this does not alter the need to continue to obtain mortgagee’s consent for certain transactions, such as a lease of mortgaged premises.
The benefits are that there will be no more hassling with collection of paper CT’s to settle deals in NSW – all CT’s will be digital. This change will also reduce fraud risks that are inherent with paper CT’s falling into the wrong hands. Mortgagee sales will also be able to be performed on PEXA with funds are received immediately at settlement.
If you are holding a CT for safekeeping, or as security get in touch with us as it is about to be cancelled. CTs will cease to be an instrument under the law and will no longer be evidence of indefeasible title. Beware, when CTs are cancelled, they are no longer worth the paper they are printed on.
Now to see if the other jurisdictions follow suit.