Conversion of Manual Commercial Lease Titles By Paul Anderson | November 2006
Land and Property Information NSW has announced the proposed conversion of manual commercial lease titles to the Integrated Titling System (“ITS”) with the process expected to be completed by the end of December 2006. It is estimated that there are approximately 600 manual titles for shopping centres, retirement villages and office complexes involved.
Present System One title is issued for the land in the name of the registered proprietor, e.g. Volume 8663 Folio 42 being Lot 1 in DP 1058663. Each separate lease (and any subsequent dealing with that lease) is noted on the Second Schedule of the same title deed. In the case of a large shopping centre, the title deed quickly grows to many pages in length. Each lease is ruled through as it expires but if there are subsequent dealings, e.g. a Transfer of Lease, it is not always clear at first sight who is the current proprietor of the Lease. The title deed to the land also needs to be produced at LPI NSW each time there is a new lease.
New System Conversion will result in the creation of an ITS Folio for the land (called the Head Title) and an ITS Folio (called the Lease Folio) for every lease contained within the commercial lease title, so that a separate folio of the register exists for each Head Title and Lease Folio. Following the example given above, the Head Title would be converted to Folio Identifier 1/1058663 and Lease Folios would be created for each folio in the title, e.g. 1/LF1, 2/LF1, 3/LF1 etc, where LF stands for Lease Folio. Each Lease Folio corresponds to a shop, for example, in a shopping centre. A description of the premises will also be shown on the Lease Folio. The name and address of the commercial complex will be collected and shown in searches. The description of the premises will be shown on the Lease Folio and a Lease Premises Index Search.
Issue of Certificates of Title At the moment, Certificates of Title will issue for the Head Title. Interests relating to the whole of the land, e.g. mortgages, easements or leases of the whole (rather than leases of individual shops) will be recorded on the Head Title only.
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CertiďŹ cates of Title will not physically issue for the Lease Folios. This will avoid the need to produce the title deed for a Lease Folio each time there is a dealing with the Lease, e.g. a Transfer, Surrender, Variation or Mortgage.
Searches A Lease Premises Index Search will be provided to assist in identifying the Lease Folio for the relevant premises. This Index will be accessible through the Lot/Plan number of the Head Title, the Lease Folio Number or the name of the commercial complex.
Search Fees Lease Premises Index Searches will generally be provided at no charge either online or via public enquiry terminals at Queens Square. A search of a Head Title or a Lease Folio will attract the standard search fee whether ordered online or over the counter.
Conclusion The changes are a necessary step in the continued integration of all titles into the ITS and can only be welcomed. However, there will no doubt be a period of initial, if minor, confusion while all relevant parties get used to the new system.
For more information please contact: Paul Anderson Partner T: 02 8257 5742 paul.anderson@turkslegal.com.au
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