Land Title Myths; Misinformation and Fear

There is plenty of speculation circulating about Victorian land titles, leading to a mix of myths and misconceptions about property ownership rights. Some believe that without paper Certificates of Title, they no longer own their land. While others believe banks have sold their paper titles, or that all paper titles have been cancelled. Here, we’ll cut through the misinformation and clarify the facts, ensuring you understand your rights, regardless of whether you hold a digital or paper title. 

Myth: The digitisation of land titles means homeowners will no longer own their properties. 

The Claim: Without a physical paper title, you effectively become a tenant; you can’t leave your property to your children, you can’t build on it, or sell it. 

The Verdict: False. This claim is not accurate. 

Even with an electronic Certificate of Title (eCT), property owners retain rights to buy, sell, build on, and pass on their property to a beneficiary. 

The shift to digital titles began gradually, starting with voluntary conversions in 2009, expanding to include banks converting mortgaged paper titles to digital from 2016, and culminating in a 2024 transition to digital titles upon all new conveyancing transactions. The final deadline for converting eCTs back to paper titles occurred on August 3, 2024; Land Use Victoria will no longer issue paper titles upon request since this date.

While this transition to digital has left many property owners feeling uncomfortable, the fact is that since 2009, hundreds of thousands of land transactions involving eCT's have occurred, including purchases, sales, transfers of deceased estates, and more, all without issue. Many new buildings have been constructed on land under an eCT. This claim is without factual basis.

However, if you are still concerned about your property rights, I can assist you in organising the necessary paperwork to strengthen your proof of ownership, and provide you peace of mind.

Myth: On August 3rd 2024, all paper titles were converted to digital. 

The Claim: On August 3rd 2024, Land Use Victoria converted all paper titles to digital, and paper titles are no longer valid. 

The Verdict: False. This claim is not accurate. 

From 3rd August 2024, all new Victorian certificates of title from the Register of land will be electronic. However, existing paper Certificates of Title of legal standing will remain valid until they are next required for a conveyancing transaction. So, if you have an existing paper title, there has been no change for you. 

If you need to perform a transaction and are concerned about losing your paper title, I can instruct you on how to prevent the destruction of your current paper title (so you can keep it as a historical document) when a variation on the title is needed, such as a transferring a property from a sole proprietor to joint proprietors or entering into a new mortgage contract. I can also guide you on the best practices for securing your interests when you only hold a digital title. 

Myth: Banks have destroyed all paper titles.

The Claim: Banks have destroyed all paper titles after converting them to digital format. 

The Verdict: False. This claim is not accurate.

Beginning October 2016, the major banks began the process of converting titles held in their possession to digital form, stored as an electronic Certificates of Title (eCT) within the Register of land. This action effectively rendered the physical paper titles in their possession legally invalid or redundant. However, in most cases, the banks did not destroy the paper titles they held; they retained them as non-legal records.

However, the story that banks had “destroyed all titles” was heavily reported in the media, and many people believe this myth, including industry professionals such as conveyancers, solicitors, and often bank staff themselves.  

Because of this, most people hit a brick wall when trying to reclaim their paper titles from their bank. Knowing the right person to contact and the exact way to word your request makes all the difference. I can help you, 1) identify if the bank has your paper title, and if so, 2) guide you in how to reclaim it successfully. 

Myth: Banks sold everyone’s paper titles 

The Claim: There are multiple versions of this story. One is that banks sold everyone’s paper titles on the stock exchange, another is that they sold them to the Chinese Communist Party (CCP). 

The Verdict: False. This claim is not accurate. 

Banks have not sold paper titles. In many cases, paper titles remain in the banks' possession, often unbeknownst to frontline bank staff. I’ve successfully reclaimed my own paper title from my bank and helped many others do the same by pinpointing the right person to contact and crafting the precise request that works.  If you’re struggling to retrieve your title, I’m here to assist. 

Myth: The Albanese Government has taken away Victorian's ownership rights by changing the language on titles 

The Claim: The Albanese Government has breached the Australian Constitution by changing the wording on land titles from ‘In Fee Simple,’ to ‘Fee Simple.’ This change in wording has changed the nature of ownership from freehold to leasehold, thereby transferring ownership of landowners' properties to the government or the crown. 

The Verdict: False. This claim is not accurate. 

The change in terminology on titles from ‘In Fee Simple’ to ‘Fee Simple’ was not even implemented by the Albanese Government. In fact, it is not a new change at all. In Victoria, it was implemented over two decades ago, prior to the year 2000. Since that time, no derogation of ownership has been observed in the hundreds of thousands of properties sold or inherited in the state due to this change. 

I go into this topic in a lot more detail in the article 'In Fee Simple' to 'Fee Simple'; What it Means for Victorian Property Owners, and I can assure you that as a fellow Victorian landowner, I have absolutely no concerns about my own title reflecting “Estate Fee Simple,” However, I fully understand the reassurance that comes from knowing your property is secure, and I know many landowners are seeking clarity. I’ve helped many Victorian landowners gain peace of mind by obtaining clear, undeniable proof that their land was purchased under 'freehold,' regardless of the exact wording on their Certificate of Title. 

If you have questions or want to strengthen your property rights, I’m here to provide guidance and practical solutions to ensure your confidence and security in your ownership, and give you peace of mind. 

It's time to stop focusing on problems, and start focusing on solutions. Feel free to contact me at info@landtitlehelp.com, or call or text me on 0421 617 232 for a free consultation.

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