What is a property title?

A property title is the legally recognised proof of which person, people or business owns a certain property. Where there is a property title, there is red tape. Generally speaking, even a simple search to determine the property title of a block of land will cost you a fee, not to mention the several costs that will be involved to register a new mortgage on that property, discharge the old mortgage or title and complete the transfer of property ownership.

Property titles: Buying a property

Each State of Australia has their own Land Title Office which specialises in all things property titles. When you first choose a property you wish to buy, your conveyancer will perform a title search on the land, to determine whether or not the seller is the legal owner of the property (this would be especially important if the sale was a private sale and not through a registered real estate agent), and if there are any outstanding claims on the property.

A property title is also affected when businesses or partnerships - such as married couples, split the costs of the property price or mortgage, and in a sense, share the title. When one party breaks and is either paid out of the property or decides to use the property as part of a divorce settlement or business arrangement, the property title split can become very complicated.

Usually, it costs several sets of fees to change the property title on a specific property, and you would want your experienced conveyancer to ensure they have taken all of the necessary steps in releasing the property back into your name, and ensuring your former business partner or personal partner no longer appears on, or has any rights to the title of the property.

The system of recording the property title and ownership is known in Australia as the "Torrens Title" and is sometimes also referred to as the "Certificate of Title".

In some cases the property title will be transferred from a large company, such as a development company which had purchased the land for mass sale. Swapping the title on a brand new block of land without a previous mortgage on it is the most straightforward process for your conveyancer, and should result in a lower set of property title fees.