Did the Big Banks Really Destroy Our Paper Land Titles? 

On November 1st, 2016, the Sydney Morning Herald reported that Australia's big four banks quietly destroyed all paper land titles they held for 1.6 million Victorian mortgagees, and that any future sales of properties whose titles held by the bank would need to be transacted electronically.

Several media outlets picked up the story, amplifying the message that banks had destroyed our titles. However, the statement 'banks had destroyed our titles' was somewhat misleading.  

Here are the facts to clarify what actually occurred. 

1) The Banks' Transition to Electronic Titles: Beginning October 2016, the major banks began the process of converting mortgaged paper titles to digital form, stored as electronic Certificates of Title (eCT) within the Register of land. This action effectively rendered the physical paper titles in their possession legally invalid. However, in most cases, the banks did not destroy these legacy paper titles; they retained them as non-legal records.

2) The Victorian Titles Office stopped producing paper titles is 2024: On August 3rd, 2024, all land titles undergoing a conveyancing transaction were converted (if not already) to an eCT. From that date, any property subject to a conveyancing transaction—such as a sale, transfer, or mortgage update—was automatically converted to a digital title by the Victorian Register of land. That said, an eCT could be converted back to a paper title (up until August 3rd 2024) if the property had a clear title—meaning it was not under a mortgage.

3) Not All Banks Followed Suit: In some rare instances, particularly with smaller financial institutions, titles held under a mortgage contract were not converted to an eCT. In fact, some paper titles held by these institutions continue to serve as the official record and will possibly do so until they enter the Register of land's digital system when a transaction occurs. 

Debunking the “Destroyed Titles” Myth 

Despite these facts, the belief that banks had “destroyed all titles” persisted—not only among the public but also within the industry, among conveyancers, solicitors, and even bank staff themselves.  

After my own title was converted to an eCT, I converted it back to a paper title once the mortgage had been discharged. I also decided to retrieve the paper title which the bank held. I was repeatedly told this was impossible, with explanations including, “The bank destroyed the title,” “The bank never had the title at all,” “All titles were sent back to the titles office,” and more. 

Yet, I debunked all these myths when I successfully had my paper title returned to me, albeit stamped with ‘Void, cannot be used for any legal purpose’. 

You may wonder, if the paper title that a bank holds is no longer a valid legal document, why even bother getting it back? There are many reasons why property owners wish to retain their paper titles.

• Sentimental and Historical Value: For some, parchment/historical paper titles hold deep emotional significance, symbolising ownership passed down through generations and representing family history. These paper titles provide a tangible link to the past, with unique stamps, signatures, and details preserving the property’s journey and legacy. Such authentic documentation holds intrinsic value as personal memorabilia or heirlooms, especially as these tangible property documents became increasingly rare.

For historically significant properties, parchment titles include unique references to boundaries or conditions that may have changed over time, serving as a comprehensive historical snapshot.

• Data Security Concerns: Some property owners are uncomfortable with the idea of solely digital records. Despite the Victorian Register of land's assurances of its robust security measures, fears of cyber threats, such as hacking or data breaches, raise worries about vulnerabilities in digital ownership. Retaining paper titles as historical documents offers some reassurance, serving as a personal backup, even if they no longer hold legal weight.

• Dependence on Technology: Digital systems rely on stable infrastructure and security protocols. Some fear that power or internet disruptions, technical issues, software obsolescence, or data loss could complicate property dealings. Therefore, the physical presence of paper titles offers a comforting backup in the event of technological failures.

• Trust in Government Control: With titles managed in a government-regulated digital registry, some worry that future policy changes could affect ownership, potentially restricting or altering property rights.

Retrieve Your Paper Title - Free Consultation  and Personalised Guidance

Since then, I’ve helped many property owners successfully retrieve their paper titles from their banks. Each case is unique, depending on when conveyancing transactions occurred. I’ve been able to recover everything from parchment titles to the modern blue A4 titles, and in some cases, even paper titles for properties currently mortgaged.

If you’re interested in retrieving your paper title, I offer a free consultation to discuss your options, assess what the bank may possibly hold, and guide you through the retrieval process. Feel free to contact me at info@landtitlehelp.com, or call or text me on 0421 617 232.

Please note: The information in this article is general in nature and does not constitute legal advice.