Bulk Conversion of Titles NSW | FAQs

[Aoife]

 Hi Community,

New South Wales Land Registry Services (NSW LRS) will be carrying out a bulk conversion of paper certificates of title (pCT) to electronic certificates of title (eCT) on behalf of the Registrar General by the end of September 2018.

The NSW Office of the Registrar General posted an explanation of the transition, including FAQs, on their website. Please contact NSW LRS for any further questions on the bulk conversion process at ctconversion@nswlrs.com.au. 

If you would like to post your questions below, we will pass them on to NSW LRS at the above e-mail address.

When will the bulk conversion happen?

Each Authorised Deposit-taking Institution (ADI) will be converted on the following dates: 

1 Sept.	ANZ
2 Sept.	CBA
8 Sept.	Westpac
9 Sept.	NAB
15, 16, 22 & 23 Sept.	ADIs (on list at bottom of this post)

why is bulk conversion of paper certificates of title happening?

As part of the transition to 100% digital, the major Financial Institutions have agreed with NSW LRS, to lead the way with the bulk conversion of all NSW paper certificates of title in which they are the first registered mortgagee, to electronic certificates of title (eCT). This is a significant step in the industry transformation to e-Conveyancing.

what is an electronic certificate of title (eCt)?

An eCT is a digital record of the land title that is administered by NSW LRS. Every eCT is assigned to a “CoRD Holder”.

What is cord?

CoRD is the Control of the Right to Deal. There are two key concepts that underlie current arrangements in NSW, visit NSW Land Registry Services for more information.

what is a cord holder?

A CoRD Holder is the party that has the right to deal on the title and must be a PEXA Subscriber/Member.

how do you know an ect exists and who controls it?

This is shown on a CT Inquiry or Land Title Search. 

The following text on a land title search indicates that an eCT exists and who controls it:

“NO CERTIFICATE OF TITLE HAS ISSUED FOR THE CURRENT EDITION OF THIS FOLIO.

CONTROL OF THE RIGHT TO DEAL IS HELD BY [mortgagee name].”

How do I complete a ct inquiry?

Navigate to the NSWLRS CT Inquiry page here.

what does this mean for nsw lawyers and conveyancers?

Where an eCT exists, a paper certificate of title will not be available at a paper settlement.

Please review the Circular issued by LRS about eCTs and lodgements of dealings here: http://rg-guidelines.nswlrs.com.au/__data/assets/pdf_file/0019/217216/2017-07_Electronic_Certificate...

how do i as a practitioner know before settlement if the ct is paper of electronic?

When representing a purchaser in a settlement, you can complete a CT Inquiry or Title Search prior to settlement to find out whether a CT is paper or electronic.

Similarly, vendor representatives should provide a printed copy of the CT Inquiry or title search evidencing the title is an eCT and showing a Consent has been lodged.

NOTE: Mortgagees on Title are required to Consent to the details of the transaction, including the incoming proprietor and incoming mortgagee details.  Practitioners should make these details available to Mortgagees on Title where there is an eCT and the settlement is proceeding in paper – this is not required for an online settlement.  You can provide these details using the NSW LRS template here.

What does ect mean for banks or panel lawyers acting on behalf of financial institutions?

When representing the Mortgage on Title, financial institutions (ADIs-only) and/or their panel lawyer representative must complete a CoRD Holder Consent on PEXA. A standalone Consent on PEXA can be completed for paper transactions.

WHAT is a cord holder consent?

A Consent is required for transactions where:

• The CT is electronic and is required for settlement and/or lodgement of dealings (for example refinance, transfer, discharge of mortgage, registration of plans etc). A Consent must be lodged for both paper dealings and PEXA dealings.
• In a PEXA transaction, a Consent must be lodged regardless of the title being paper or electronic.

Note: a Consent can only be lodged electronically. 
Currently in a paper transaction, a pCT must be handed over at settlement and lodged together with other documents for a dealing to be registered on title. The equivalent process where the certificate of title is electronic, is for the CoRD Holder to consent to the paper instrument or PEXA lodgement case via a Consent in PEXA prior to settlement and/or lodgement.  If the CoRD Holder is a party to the transaction, they would lodge a Transacting Party Consent.  If they are not part of the transaction, they would lodge a 3^rd party Consent.

How do i lodge a consent prior to settlement?

Visit this page on the e-Conveyancing Community to learn how. Note, a CoRD Holder Consent cannot be lodged in paper.

How can i confirm that a consent has been lodged in preparation for a paper settlement?

A free CT Inquiry is available on the NSW LRS website here, or by performing a Land Title Search through your Information Broker.

What do i do if there has been no consent lodged prior to settlement?

NSW LRS has provided a template to assist with requesting Consent from CoRD Holders here.

what happens if a paper title has remained undischarged?

A paper Discharge of an ADI Mortgage can be lodged if it is dated:
- before 1 March 2017 and is lodged as a standalone dealing.
- before 1 August 2017 and is lodged as part of a refinance transaction with an ADI.
- before 1 July 2018 and is lodged as part of a refinance transaction with a non-ADI.
- prior to the conversion of the paper CT and is lodged with dealing(s) other than mortgage(s).

In all cases above, the Discharge of Mortgage should be lodged with the paper CT.

as a non-major bank or panel lawyer, do i have to convert my client's pct?

The bulk conversion of paper certificates of title is for Authorised Deposit-taking Institutions. If your client is an ADI, you should familiarise yourself with details and contact your client to discuss. See question one for a full list of transitioning ADIs.

does this mean all transactions will have to go through pexa?

No, some transactions in paper will still occur. The CoRD Holder will be required to create and lodge a CoRD Holder Consent in PEXA, regardless of whether the transaction is electronic, or paper based.

Kind regards

Aoife

 *The above FAQs are adapted from NSW ORGs webpage on the transition with additional explanations of PEXA functionality.