Title Searches are a critical part of the conveyancing process. It's that simple.
They provide information relating to how a property is currently held, any interests, encumbrances or easements registered, and provide insight into the status of a property that can deeply impact potential buyers and property contracts.
With that in mind, let's break down what everything is and what you can expect.
The sample title search below from Titles Queensland is what you can expect to see when you (or your lawyer or real estate agent) perform a title search.
Title Reference
A unique eight-digit number assigned to each property in Queensland. It is used to retrieve information about the property from Titles Queensland, and when obtaining notices from council (e.g. water usage or council rates)
Lot & Plan Number
The lot and plan numbers refer to the specific location of a property. A lot number is assigned to a specific piece of land (a lot), whilst a plan number is the number assigned to the survey plan that will show the property’s location.
A Title Search will also tell you the plan type, which can provide further information how the property is held and managed. Click here to learn more about body corporates.
Registered Owner
This is who is legally registered as the owner of the property, and can be an individual, multiple individuals, company(s), trust(s), other business structures or government.
If the property has more than one owner, it will also show you how the property is currently held. In the example above, John and Jane own the property as tenants in common in unequal shares (99% and 1% respectively). To learn more about joint tenants vs. tenants in common, click here.
Easements, Encumbrances & Interests
This section will detail any registered interests that will affect the property.
Easements
Put simply, an easement is a right for someone to access or use a section of the land for a specific purpose, without being the owner of the land.
One or more party will benefit from the easement, and one or more party will be burdened by it.
Easements are generally granted to council and government, and may include access rights, drainage, sewerage or supply of water or gas. Another example, common on rural properties and sub-divided lots, may allow a neighbouring property to access their own land by building a driveway on part of yours
It's important to understand exactly what any registered easements allow and relate to, as it may substantially limit any future plans you may have or impact existing infrastructure.
For example, if there is an easement granted to Urban Utilities that allows them to run drainage infrastructure on a section of your land, then you (as the owner) will be restricted in what you can and cannot place on that area. In this example, let's say this easement area is on an section of your land where you'd like to construct a driveway. Should Urban Utilities need to conduct maintenance, they could (should they need to) pull up that driveway if it is an obstruction.
You will see in the sample above that the first easement listed relates to 'Rights and interests reserved to the Crown by Deed of Grant No …' This is standard for all properties in Queensland, and simply means that the Crown reserves the right to resources that may lie within the property boundary (e.g. oil, gas and minerals). For residential transactions, this encumbrance can be safely ignored, but if you are planning on buying a property for mining related purposes, you will need to obtain a separate mining permit.
Property Contracts generally must disclose easements, but this is not always the case (whether intentionally or not), and it is always recommended you get a professional contract review prior to signing any document.
Encumbrances
An encumbrance is a claim or interest made against a property by a party who is not the property owner. A common type of encumbrance is a lender of a mortgage.
When you borrow money to buy a property, a lender (usually a bank) will register their mortgage on title, and take an interest in your property. This way, should you fail to meet the terms of your loan, the bank has recourse to recover their losses by taking possession of your property.
It's important to note that when you go to sell a property, any mortgage will need to be released (also known as a mortgage discharge) so that the buyer (the new owner) is free from it.
Caveats
Caveats are used to protect an interest in land, and essentially serve as a warning that someone other than the owner claims some right over, or interest in, the property. Rather suitably, it comes from the latin word for 'beware'.
Caveats are commonly registered during ongoing court cases and/or bad debts against the owner, and preserve the current status of the property, meaning it cannot be sold or transferred to a new owner until such caveat is removed.
If you perform a title search and see a caveat has been registered on your property, you need to immediately seek legal advice.
Administrative Advices
This section will detail any advices for the property, which may include zoning information, heritage listings, vegetation or contaminated land notices, water allocations and more.
Unregistered Dealings
This section will list any dealings or advices that have been lodged with Titles Queensland, but are awaiting registration. You can check the status of a dealing using Titles Queensland's free checker.
You Don't Know What You Don't Know
If you want to understand more about the property you intend to purchase, don't hesitate to contact and engage RHC Solicitors. Whether you're looking for a conveyancer or just need some specific advice relating to your property, our experienced property lawyers can guide you through what everything means and how it may impact you.
Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.
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