As some of you may be aware, land transactions have been moving over to an electronic platform called PEXA. This involves the settlement and registration of a land transaction into the new owners and mortgagee’s name, instantaneously on settlement.
It is anticipated that by 1 July 2019, electronic settlements will be compulsory in NSW.
All paper titles of land held by about 150 banks were converted to electronic certificates of title called eCT’s in September this year. The conversion of the titles was undertaken by the banks and other financial institutions, the NSW Land Registry Services and the legal and conveyancing peak bodies with many people working behind the scenes for months.
As there are now over 2 million eCT’s and more solicitors and conveyancers becoming registered PEXA subscribers, there is a greater chance of your purchase or sale being settled through the PEXA system.
If you own a property and have a paper title, how do you deal with your land if you wish to sell it?
Currently in the paper world, if a person wanted to sell their land or give consent to their title being used, they would physically hand the title over to the party who wishes to use it, or produce the title at the Land Registry. In the world of eCT’s, there is no physical paper title to hand over.
Under the PEXA system, a registered proprietor is given the Control of the Right to Deal (“CoRD”) and this is where the registered owner has the authority to consent to the registration of a subsequent interest in land.
If land is mortgaged, the registered proprietor has the right to deal with their land but the control of that right to deal (CoRD) is held by the first registered mortgagee (the bank) or party in legitimate possession of the certificate of title. A mortgagee now provides a CoRD Holder consent electronically in transactions.
If land is not mortgaged, the registered proprietor has both the right to deal and the CoRD and provides CoRD holder consent to that transaction.
In order for a vendor to deal with a paper title and use the CoRD, they need to contact a PEXA subscriber.
Everingham Solomons is a registered PEXA subscriber and we are continuing to extensively invest in training our solicitors and staff to ensure a seamless transition.
At Everingham Solomons, we aim to provide expert advice and manage your transaction with due speed and minimum inconvenience to you, because Helping you is Our Business.
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