Property title guide
When buying or selling a property, you need to know about property titles as they are an important part of the due diligence involved in any property transaction.
Key takeaways
- Ensure your conveyancer verifies ownership, checks for encumbrances like easements or caveats and confirms registered property changes.
- Understand if your property has a common freehold title or a strata title, which involves shared responsibilities and committees.
- Consider optional title insurance, costing up to $1,000, for protection against issues like unapproved renovations that surface after purchase.
What is a property title?
Most property titles in Australia are either:
- Freehold or Torrens title: This is the most common type of title used for standalone properties in Australia.
- Group or Strata title: This title type is used for apartments or townhouses where there is more than one property located on a single parcel of land, and therefore no one individual holds ownership of that parcel. The name of this title type does vary from state to state. There is usually common property and all owners are responsible for the upkeep. Often a strata or owners committee is formed for this purpose.
What do you need to check on a property title?
When you're buying a property you (or more likely your conveyancer) will review the property's title and the contract of sale.
A conveyancer will:
- Check to make sure you are buying from the registered owner of the property (and not someone pretending to own the property).
- Check to make sure there are no caveats or encumbrances on the property that will affect you taking ownership.
- Check if there have been any changes made to the property that are not registered on the title. This is also something to check with the plan of the property registered with the land titles office.
- Check to make sure all easements have been properly disclosed by the seller.
Ownership details
Make sure that you are purchasing the property from the authorised and registered owner of the property. There could be cases where individuals who aren't registered as the official owners of the properties are putting them on the market. It is best to flag these issues so the issue is resolved before the sale is finalised.
Encumbrances
These are restrictions placed on the land, whether by local council, land zoning or for other reasons. Some examples of encumbrances that may appear on a property title are mortgages held by the owner or easements that affect the use of the land.
Easement
An easement restricts the use of the land you are purchasing. These restrictions can range from the ability to build certain structures to the placement of water pipes or drainage on your land. It's important to check for easements both for any future plans you may have for the property as well as the current structure on the land.
Caveats
A caveat is a notice lodged on the title by someone who claims an interest in the property, for example a buyer under an unregistered contract or a lender with an unregistered security. It stops certain dealings from being registered without notice to them. The owner can't simply remove a caveat: it usually has to be withdrawn by the person who lodged it (the caveator), or removed through the land registry's lapsing process or a court order. Your conveyancer should make sure any caveat is cleared before settlement.
Covenants
If there is a covenant on the property title, you should seek legal advice as they typically restrict what you can do or how you can interact with the property. One example of a covenant would be restrictions on the type of materials you can use to build a structure on that property. If there have been changes made to the property, there may be a note about this marked as a covenant. It will also include a copy of the plan associated with the change.
How to search for a property title
Every state and territory has something like a title office or land registry. In some jurisdictions you can search the government sites and access property titles for a small fee.
There are also private services that conduct title searches for a fee.
Your conveyancer should be able to look up a title for you and should cover this in the fee they charge you.
Do I need title insurance?
When you're in the process of buying a property, your conveyancer may suggest you purchase a title insurance policy.
It's a one-off payment that can cost up to $1,000, and is entirely optional. But it can protect you if legal or property issues arise that weren't apparent at the time of purchase (and which your conveyancer couldn't uncover).
For example, let's say the previous owner of your house made some renovations that weren't council approved and you have to pay to fix them. Title insurance could protect you.
How do I add or remove someone from a property title?
You can add or remove someone's name from a property title, depending on the circumstance. This effectively means you're changing the ownership of the property, either by adding a new owner or removing an existing owner.
It gets complicated if there's a mortgage on the property. And if you're adding someone's name to a property they may have to pay stamp duty.
More resources on Finder
Ask a question
22 Responses
Read more on Home Loans
-
Is title insurance a waste of money?
Title insurance is a minor cost, but it could be a major protection for your property purchase.
-
How to remove someone’s name from a property title
Removing a name from a property title can require the help of a legal expert, and might come with fees depending on the state. Find out how to do it here.
-
Transfer of property title ownership: How to transfer a house title
Transfer of ownership of property is relatively straightforward, but there are a few steps involved. Here’s what you need to know.
-
Adding your partner’s name to your house title
Adding a name to a property title, or transferring house title to your spouse? Our guide walks you through the steps and costs involved.
Hi there,
If I buy a house which has Medium Density Zoning and want to construct 2 additional townhouses behind the existing house,then in this case,do I need to have 3 seperate titles in order to sell them individually?Also how much is the cost of creating 3 different titles.
Cheers
Gary
Hi Gary,
We don’t have the information to help you here, as this is quite a specialised question. You could reach out to your local council or talk to a conveyancer.
I hope this helps.
Kind regards,
Richard
i lost my title , how do i get a new one made up
how do i fnd out who has my title
Hi Martin,
If you want a copy of your property title you can conduct a title search. There should be a website for your state or territory (in VIC it is called landata.vic.goc.au and in NSW it is called the NSW Land Registry Services).
I hope this helps.
Regards,
Richard
if I was released from being a guarantor on a property 3 years ago, but when I paid my mortgage off last week and went to change the title deeds. I was told I had to pay for the release of the title deeds on the other property too, because the bank still had my house connected to it. The other property became mortgage free last year with the title deeds already change over. Is this correct?
Hi Graham,
When you were released as a guarantor from the property 3 years ago, was your name legally removed from the title deed?
This usually happens via a discharge/refinance authority form with your lender. They then order their own valuation of the property, in order to release you as guarantor and move the loan entirely into the rightful owner’s name. You would have signed some forms and there is usually a small discharge fee of around $300. Do you remember going through this process?
Your best best is to contact the bank where you were guarantor to double check what happened. They should have followed this process 3 years ago, so it’s not clear what has happened – hopefully they have some answers for you.
Best of luck!
Sarah
I would like to know how many titles are on the property 104 best street sea lake as it is for sale and I am interested in purchasing it
Hey Robyn,
Thanks for getting in touch with Finder!
It’s nice to know that you are purchasing a property. To get information on how many titles are on 104 Best St. Sea Lake, you can reach out to a real estate agent in your location. As of this time, we don’t have this information on our site.
Hope this clarifies and best of luck on your property!
Best,
Nikki
How do you change a duplex strata to Torrens title?
Hello Julie,
Thank you for your comment.
In order to convert from strata to Torrens, you need to consolidate the entire strata plan, which generally means that you need to own the entire complex. Otherwise, if the lot you own is of a size which would qualify for the title in its own right (refer to the Local Environment Plan & Development Control Plan), then you’d need to submit a Developmental Application for the re-strata titling (new strata sub-division, compliance with any new DA requirements, building upgrades etc).
Best to consult this with the local government agency that handles property titles and deeds to discuss the process.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn