Releasing paper certificates of title to clients or other firms

A consistent process, followed every time, is the most effective protection against fraud and the claims that follow.

Release requests may come from a family member, an attorney under a power of attorney or another firm. Time pressure and the apparent simplicity of the task lead practitioners and support staff to skip verification steps. The result is a title released without proper authority or identity checks, creating the conditions for a fraudulent dealing.

Before releasing a paper certificate of title, practitioners must verify the identity of the person requesting it. Clause 3 of the Registrar's Requirements for Conveyancing Transactions (Registrar's Requirements) and clause 6.5 of the ARNECC Model Participation Rules (ARNECC Rules) set out when verification of identity (VOI) must occur, including on release of a paper certificate of title.

A practitioner must take reasonable steps to verify the identity of the client, registered proprietor, or client agent before handing over the title. This means either completing the face-to-face "safe harbour" VOI standard in Schedule 8 of the ARNECC Rules or verifying identity by other “reasonable steps” as permitted under clause 3.1.3 of the Registrar's Requirements and clause 6.5.2 of the ARNECC Rules.

Under clause 6.5.4 of the ARNECC Rules, a practitioner does not need to re-verify a client’s identity if:

• the firm is acting under a current client authorisation and VOI; or
• the firm completed VOI within the previous two years and takes reasonable steps to confirm the person requesting release is the same person.

Complete the following steps before any paper certificate of title leaves the firm.

1. Confirm authority from all registered proprietors

• Check the title to identify every registered proprietor. Obtain a written authority signed by all registered proprietors consenting to the release. Do not release the title on the request of one co-owner alone.
• Where the request is made by an attorney under a power of attorney, confirm the power of attorney authorises the request on behalf of all registered proprietors. Request a certified copy if the original is not held in the deeds system.

2. Verify identity

• Confirm a valid VOI is on file for every registered proprietor or attorney, in accordance with the requirements above. If no current VOI exists, complete one before releasing the title.
• Check signatures on the authority form against known samples, such as the VOI documents on file.

3. Where another firm makes the request

• Confirm the request is in writing on the firm's letterhead and states the name of every registered proprietor the firm acts for.
• Obtain an original signed authority from all registered proprietors consenting to the release.

Do not release the title if there is any concern about the identity of the person making the request or their authority to receive it.

1. Require the person collecting the title to provide identification and sign an acknowledgment of receipt. Retain a copy of the identification and signed acknowledgment in the deed packet.
2. If the title is to be sent by post or courier, use a trackable method with delivery notification and required signature on delivery. Record the tracking code and retain delivery confirmation in the deed packet.
3. Retain a copy of the released certificate of title, all identity documents, any power of attorney, and the signed authority in the original deed packet.
4. Update the firm's deeds records immediately after release.

The following example wording can be adapted for use in a release authority form and an acknowledgment of receipt.

Use this checklist before releasing a paper certificate of title:

Adopt a firm policy requiring this checklist to be completed before any paper certificate of title is released. Train every staff member who handles deeds, including support staff, on the policy. A documented release process protects the firm's clients and reduces the risk of a claim.