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What happens with title deeds after paying off a home?

Discussion in 'General Property Chat' started by Mammie, 17th Feb, 2016.

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  1. Mammie

    Mammie New Member

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    Hello. I am looking to tap into everyone's knowledge and wisdom. I recently paid off my home (last week) and on the internet banking the home loan has been removed.
    What happens in regards to the title deeds? Apparently I am going to get a letter in the mail, but after browsing online, I have read that it is important to make sure that the title deeds are registered as a discharged mortgage?
    I am new to all this as it is my first paid for home (think old fibro dump!) but I want to make sure it is done right, I want to have the deeds in my possession and in my name. I do have a fire proof bolted down safe at home and just feel better if the deeds are with me as I have read also online about horror stories about deeds going missing. The loan was via commonwealth bank and I am in NSW.
    If anyone can help me to make sure it is done correctly I'd be most grateful.
    Thanks for any tips.
     
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  2. larrylarry

    larrylarry Well-Known Member

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    The title deed will state that there's no mortgage on it or any dealings. That was how my title deed looked like I think, when I paid it off. I kept it under my bed for a week and I slept so well.
     
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  3. thatbum

    thatbum Well-Known Member

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    If you're just worried about security, its probably better for you to leave them with the bank.
     
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  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    The bank only has a duplicate anyway, the original stays at the land titles office.
     
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  5. larrylarry

    larrylarry Well-Known Member

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    I had the original... Yellowish in colour (NSW property)
     
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  6. York

    York Finance Broker Business Member

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    Does one ever have access to the original? Or does it always stay with the land titles office and the owner gets the copy?
     
  7. larrylarry

    larrylarry Well-Known Member

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    I certainly thought I had the original for few years before I had to sell the townhouse (shouldn't have paid it off) and gave the TD to another bank.
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    Not here in SA. Other states might be different?
     
  9. York

    York Finance Broker Business Member

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    Interesting....I suppose it doesn't really matter. As long as their isn't a mortgage on it. They have electronic records these days backed up off site. So pretty safe regardless.
     
  10. larrylarry

    larrylarry Well-Known Member

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    Yeah it's all electronic copy these days.
     
  11. Perthguy

    Perthguy Well-Known Member

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    Hmm. I am not so sure about that. My investment partner paid off his home loan last year and the bank wanted $50 a month to look after the title deed. He told them to forget it and took out an investment loan secured by the main residence :p
     
  12. larrylarry

    larrylarry Well-Known Member

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    Really? Surely with electronic conveyancing... Title deeds would be scanned and secured. Guess it varies from state to state.
     
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    The lender willbretain the mortgage even though the loan may have been paid out. You can register a discharge of mortgage tobget clear title but this will mean you will more at risk of fraud. Doesnt really matter whether you have title deeds locked up or not as new deeds xould be issued easily to fraudsters. Having a bank have a mortgage will mean extra steps need to be taken so greater asset protection.
     
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  14. thatbum

    thatbum Well-Known Member

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    Agreed. The only "horror" stories I've ever run into are those couple of peeps in Perth who had their houses sold from under them while they were overseas.

    It was only possible because the titles were unencumbered.
     
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  15. Perthguy

    Perthguy Well-Known Member

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    I guess that you are guessing? ;)

    In NSW:

    A Certificate of Title is a valuable legal document and should be stored in a safe place with your other important documents e.g. passports, birth certificates and insurance papers.

    If you have a mortgage and the Certificate of Title has issued to your lender, it is your lender that is responsible for securely storing your Certificate of Title until the mortgage or charge has been discharged.
    http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0007/176848/Keep_Certificate_of_Title_secure.pdf

    Noting of courset here is a move towards Electronic Certificates of Title (eCT), but that is not the same as scanned and securing the Title Deed.

    Electronic Certificates of Title (eCT) - Land and Property Information

    Until then, paper Certificates of Title will be the norm.
     
  16. larrylarry

    larrylarry Well-Known Member

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    Ah thanks. I didn't really give much thought to it.
     
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  17. Perthguy

    Perthguy Well-Known Member

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    This is true in WA. Landgate holds the original and will only issue a duplicate Certificate of Title. It is not true in NSW.

    Can LPI store my Certificate of Title for me?
    LPI is responsible for maintaining the NSW Land Register, not for holding a Certificate of Title on behalf of an owner or lender.​

    http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0007/176848/Keep_Certificate_of_Title_secure.pdf
     
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  18. Perthguy

    Perthguy Well-Known Member

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  19. dabbler

    dabbler Well-Known Member

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    Listen to Terry, I have een someone forge docs and get water, council etc into another name, only the mortgage saved it from being all done, luckily the person/s in the bank that day were paying attention.
     
  20. EyesClosed

    EyesClosed Member

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    Yes do make sure CBA registers the discharge of mortgage at the time you pay off the loan. Banks can (and I know do) sometimes forget to do this step at the time the loan is paid if. It may be many years afterwards that you discover the mortgage discharge has not been registered and then the time, effort and headache of trying to get someone at the Bank to fix their mistake (I've had this happen to a very good friend and it caused all sorts of issues!).