Land Services Victoria no longer issues duplicate paper certificates of title for properties and is slowly phasing them out in favour of electronic certificates of title (ECT). However, conveyancing practitioners still need to consider what to do once a paper certificate of title is converted into an ECT during a property transaction. Critically, once a paper certificate of title is converted to an ECT (via a nomination in PEXA), the paper certificate of title is no longer valid.
Certification requirements in PEXA
When a practitioner lodges a relevant property transaction for registration in PEXA and the paper title has been converted to ECT, one of the certifications that the practitioner must give is that:
“The Certifier has:
(a) retrieved; and
(b) either securely destroyed or made invalid,
the (duplicate) certificate(s) of title for the folio(s) of the Register listed in this Registry Instrument or Document.”
(herein referred to as the “Certification Requirement”)
The Certification Requirement stems from clause 6 of schedule 4 of the ARNECC Model Participation Rules.
Options to make a redundant paper certificate of title destroyed or invalid
Once a paper certificate of title has been converted to an ECT and the paper certificate of title is invalid, there are a number of ways to comply with the Certification Requirement.
For example, many law firms stamp an invalid paper certificate of title that has been converted to ECT, with such markings as:
- “Destroyed - cannot be used for any legal purpose”
- “Invalid – converted to ECT”
- “Cancelled”
Similarly, invalid paper titles may also be physically destroyed via secure shredding.
Key recommendations
To ensure compliance with the Certification Requirement, once a paper certificate of title is converted into ECT and is no longer valid, practitioners should:
mark the paper certificate of title with some sort of stamped notation that makes it clear to practitioners, legal staff and the client that the paper certificate of title is no longer valid
seek the client’s instructions whether they wish to retain the invalid paper certificate of title, before physically destroying it. In some cases, the client may wish to retain the invalid paper certificate of title for historical or sentimental value, even though it no longer has any legal purpose.
Further information
For further information on Land Services Victoria’s phasing out of paper certificates of title, the Certification Requirement, or the PEXA nomination process, please refer to the links below:
Land Services Victoria – Phasing out paper certificates of title
ARNECC Model Participation Rules Guidance Note 3 – Certifications
PEXA – Title Management Documents
