End of an era: What Cessation Day will mean to landowners

Significant changes to NSW property conveyancing commence on 11 October 2021 with the introduction of the Real Property Amendment (Certificates of Title) Act 2021, as part of the transition by the NSW Government to 100% electronic conveyancing.

For over 150 years, the Torrens system of titling provided land owners much comfort by issuing them a paper Certificate of Title (CT) which effectively established indefeasibility of title and ownership to a property in NSW.

From 11 October 2021 the processing and lodgement of all NSW land transactions will become entirely electronic and all CTs will be cancelled. NSW Land Registry Services are calling this Cessation Day.

Accordingly, from Cessation Day, any existing paper CTs will cease to have legal effect and no new paper CTs will be issued by NSW Land Registry Services.

What does this mean for you and your clients?

You will not receive a certificate of title when:

1. you have paid off your mortgage;

2. you have purchased a property (with or without the need for mortgagee finance);

3. a plan of subdivision is registered and new parcels of land are created;

4. any plan that creates a new title is lodged for registration.

In all of the these instances, instead of a CT, NSW Land Registry Services will issue an Information Notice which will confirm the dealings registered and date of registration.

If you have a CT for a property, you are not obligated to return it to NSW Land Registry Services after 11 October 2021, although you may want to keep it for sentimental reasons.

Given the CT will no longer be a legal document but nevertheless remains your property, if it is held on your behalf by a law firm, we recommend you instruct the law firm to return it to you or to destroy it.

How Brown Wright Stein can help

The Brown Wright Stein Property team is available to assist with any enquiries in relation to the impacts of these developments.

If Brown Wright Stein or another firm hold a CT in safe custody, you should consider instructing them to return it to you or to destroy it.

The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.

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