Dealing with unencumbered titles

[Louise]

In a stand alone discharge scenario where the title is no longer encumbered, is there any requirement for mortgagees ensure that a paper title is produced to give to the client?  Or can the outgoing mortgagee select for the unencumbered title to remain as an eCT (i.e. where the client has elected not to receive a paper title)?

[Kate_Camilleri · Accepted solution]

Hi Louise,

Thanks for the question. In Victoria, a certificate of title must be issued after a discharge, it can either be electronic or paper. The Outgoing Bank decides  which, so yes they can elect to either retain a paper certificate of title or retain control of the electronic certificate of title. However, they need to be aware that in the event of a subsequent transaction, they will need to provide the paper certificate of title or transfer control of the electronic certificate of title.  Let me know if you need this question answered in the context of another jurisdiction.

Thanks,

Kate.

[Louise]

Thanks Kate!

[lucy_chapman]

Hi Kate,

It is possible for the outgoing bank to not retain control of the Title after it's mortgage has been discharged and also convert to electronic.

Who would have control of the Title if this was to occur?

Lucy

[Kate_Camilleri]

Great question Lucy - in New South Wales only an authorised deposit-taking institution who is also a PEXA subscriber can hold control of right to deal on an eCT, however in Victoria, any PEXA Subscriber can hold control of an eCT, so for example a legal practitioner could hold control of an eCT on behalf of their client after a mortgage has been discharged. Does that help?