Banks are destroying your land titles
Last week we had a couple of days hold up with a refinance matter with one of our clients; the reason was that the banks are destroying your land titles and there may be some hicups in going digital!
It is reported today in the business section of the Sydney Morning Herald –
read more here https://goo.gl/FzUOk2
(Please contact us at [email protected] for further information or the chance to discuss this and other issues in the comfort of your own home)
The old Title deeds will disappear as banks are destroying our land titles
All of the old paper certificates of title have been converted to electronic as part of a national push for conveyancing to go on a new PEXA system. It was not a big surprise to learn that PEXA is owned by state governments, the ANZ, CBA, NAB, Westpac, Macquarie Bank and private equity.
What was a surprise to me is the fact that all my title deeds, being held by a couple of the big banks have probably now been destroyed and no one bothered to inform me that this was being done to my title deeds. I can, we are assured, request a paper print out now from the electronic records.
What is not a surprise is that, moving forward, all future sales of properties whose titles are held by the bank will need to be transacted, at least in part, electronically and of course, the fees for the service will increase.
We have been dependant on the old Torrens title system since around the middle of the 19th century and some property lawyers are questioning this move by the big Banks as they fear it may compromise the security of the system.
While it is not yet fully implemented in NSW, it is now ‘working’ in Victoria where The Law Institute of Victoria has been an outspoken critic of the electronic system. They are arguing it is increasing costs for transactions and undermines those holding titles for security against other assets, as well as adding complexity and legal uncertainty to a what was once a simple, safe system.
One thing is for sure, you will be hearing a lot more about PEXA which is likely to become another new acronym with which we will all be familiar in the future.
The chief executive of PEXA said paper titles were cumbersome to use. “People keep losing them, including banks,” so maybe in the long term it will prove more efficient as well as more expensive!
If you want to know more about this or discuss buying new property investment contact: [email protected].
