Title Search - Mortgage Listed

This is probably a stupid question, but in the easements, encumbrances and interests section of the title search it lists the following:
1. Rights and interests reserved to the crown
2. Mortgage number....

I just wanted to check that the mortgage being listed here is normal and doesn’t mean I am liable for any outstanding fees or anything for the property? I would guess this is common, but haven’t seen it before.

 

Are you talking about mortgage that secures your home loan? Because that's very normal.

 

Normal - this happens when the mortgage is registered. It just means that anybody planning to buy the property or lend against it as security is aware that the property has been used to secure a debt (ie mortgaged).

 

Not a stupid question at all - it shows that you are on the case!

This is normal. If you are looking at the certificate of title of the property you own, the mortgage listed in the encumbrance schedule is the mortgage securing your loan for the property only.

If you are looking at a certificate of title to a property you are proposing to buy (or have signed a contract to buy), this is the owner's mortgage to their bank. The Seller's mortgage (Mortgage X) will be discharged before the property is transferred to you. At settlement, your bank will register its new mortgage (Mortgage Y) on the title. When the time comes for you to sell, Mortgage Y will be discharged and the buyer's bank will lodge its mortgage on the title.

kind regards
Emma

 

Buying in QLD ??

"rights and interests reserved to the Crown" is on every title search in Queensland and means that the Crown reserves the right to resources that may lie within the property boundary (eg. ... gas, oil, water rights and minerals). You can ignore this notation unless you are buying a property for mining related purposes and then you want to also see the title has a mining permit. If water, a water use permit / license.