Critical: Final Title Searches in Property Transactions
The property settlement process is complex for property lawyers and conveyancers, requiring careful management to protect clients from potential legal and financial risks. A recent New South Wales Supreme Court case has underscored the critical need for conducting final title searches, which serve as a vital layer of security in transferring property ownership.
In this case, the purchasers of a property in Blakehurst, a suburb in the St George area of Sydney, entered a contract to buy a home valued at $4,350,000. They obtained a mortgage loan from Westpac to complete the purchase, which would be secured against the property following the settlement. However, a complication arose when a third party lodged a caveat against the property just before the final transfer. As a result, the New South Wales Land Registry Services (LRS) informed Westpac that the transfer of ownership and the associated mortgage could not be registered. This unexpected caveat highlights the importance of final title searches, especially close to settlement, to reveal any last-minute claims or encumbrances on a property’s title.
Why final title searches are critical for smooth settlements
Final title searches are an essential safeguard for clients. By verifying any interests registered on the title, lawyers and conveyancers can address potential issues before they escalate into delays, cancellations, or legal proceedings. Without this critical step, an unregistered interest, such as a caveat, can surface and prevent a seamless transfer, causing substantial delays for all parties involved.
Enhanced title search protocols at SettleIT
SettleIT has updated its settlement protocols to strengthen transaction security in response to evolving industry needs. From 1 January 2025, every SettleIT purchase matter order will include an automated Title Search before and after settlement to confirm the ownership change. This is in addition to a Title Activity Check that is already part of our process, ensuring an even more thorough and secure settlement experience. These proactive measures create an even more robust layer of protection, minimising the likelihood of settlement delays and offering a secure experience for property lawyers, conveyancers, and their clients.
Supporting seamless settlements for legal professionals
In today’s market, where property transactions demand rigorous due diligence, final title searches have become indispensable for conveyancers and legal practitioners. By prioritising these checks, SettleIT is committed to helping legal professionals manage property transfers with accuracy and confidence. These expanded protocols are designed to meet the stringent standards of today’s property transactions, supporting lawyers and conveyancers in delivering a reliable and thorough settlement process that protects client interests at every stage.
This commitment reinforces SettleIT’s standing as a trusted settlement partner and helps conveyancers stay prepared for an increasingly dynamic property market. Get in touch today to learn more about how we can support your conveyancing needs, streamline your processes, and help you stay ahead in a fast-paced property market.
About SettleIT
SettleIT provides an easy-to-use, end-to-end e-conveyancing solution that gives users complete visibility on their property matters every step of the way, as well as tools to undertake verification of identity and electronic signing. Being much more than just settlements, firms utilise SettleIT as part of standard processes and build their business to handle more volume. SettleIT provides immediate time and cost savings, enabling firms to maximise efficiency and increase profit margins.
