Very odd - I am confused as to why your client cannot apply for a new title. If there is no mortgage then why does CBA still have the right to deal with the title ? Have you done a title search ? If CBA are not noted then surely you can lodge a request for a new title ? Also are you dealing with the eConveyancing Team at LRS or just the call centre ? If just the call centre, I would get in touch with eConveyancing Team. Good Luck !
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