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WHAT IS THE TORRENS SYSTEM?

The Torrens System is generally attributed to Sir Robert Richard Torrens and was first introduced in SA in 1858 and subsequently used in other Australian states and around the world. It was introduced to NSW with the commencement of the Real Property Act on the 1st January 1863.

Since then all land granted by the Crown is subject to the provisions of that Act.

'It is a land registration and land transfer system ... '

It is a land registration and land transfer system, in which a state creates and maintains a register of land holdings, which serves as the conclusive evidence of title of the person recorded on the register as the proprietor, and of all other interests recorded on the register.

The greatest advantage of the Torrens Title system is that it is a single document guaranteed by the State Government of New South Wales. A Certificate of Title (CT) is a copy of the related Folio of the Torrens Land Title Register.

The Torrens Title system has always been a paper based process property settlement involving the exchange of all legal documents and cheques between the buyer and seller of a property.

The closure of the sale is usually conducted via a meeting of an Agent on behalf of the Bank and the Conveyancer on behalf of the Vendor and Purchaser in exchanging Titles, discharges of Mortgages, Transfers and Bank Cheques. Until 2015 all ex- changes were100% paper based.

This system has been successful for 160 years!


WHAT HAS CHANGED?

Computer Technology and the internet have changed the way Settlements are now conducted and starting in 2015 properties were able to be settled online via a secure platform known as PEXA. The PEXA platform has digitally transformed the property exchange experience allowing property transactions to be completed quickly and easily eliminating the paper-based process.

In NSW by July 2019 it will become mandatory for all Settlements to be conducted online via PEXA through an extensive network for property lawyers, conveyancers and financial institutions. After that date Conveyancers and Lawyers who are not using the online settlement system will not be able to carry out NSW Conveyancing work and must follow or develop a new Law Practice specialty.

This online method of property settlements is referred to as eConveyancing.

HOW THE PEXA PLATFORM OPERATES

• All the Land Title data that is the subject of a Sale or Purchase is transferred to the PEXA online Settlement Platform

• Internal Checks are completed by the system to confirm street addressees line up with Titles contained on Contracts.

• Identities of all parties are confirmed to prevent Identity theft and ensure the correct Title has the correct Vendor or Purchaser

• Banks join the PEXA workspace to supply funds for the Purchase or to advise a Mortgage Payouts for Vendors.

• Settlement Figures are calculated.

• Both Vendors and Purchasers can track how their Settlement is progressing online via a FREE App called SettleMe.

• Council, Water, and Strata Payments are completed online via Bpay and paid instantly at Settlement.

• Agents and Conveyancers for Purchasers and Vendors are all notified via email when a Settlement is complete!

• Surplus money after a Mortgage is paid out can be transferred to a Vendors Savings account at Settlement. 
  
  
  THE KEY UNDERPINNINGS OF THE PEXA PLATFORM

1. Identity for each Vendor and Purchaser on Title or about to place on Title.

2. Conveyancers are authorised to sign documents on behalf for Vendors and Purchasers.

3. High security measures are in place for authorised Conveyancers/ Lawyers to access the PEXA Platform. Please note high security measures have been dramatically improved by PEXA over the last two months to prevent exploitation from email hackers.