Title Search

Title Search (or certificate of title search) is a legal document that confirms who owns a property and reveals any encumbrances, caveats, or restrictions on the land. It's essential before buying property to verify clear ownership and identify issues like unpaid mortgages, easements, or zoning restrictions. Costs $30-$150 and takes 5 minutes to obtain online.

What is a Title Search?

Basic Information Revealed

A title search shows:

1. Current registered owner(s)

   • Full legal names
   • Ownership type (sole, joint tenants, tenants in common)
   • Ownership percentages (if tenants in common)

2. Property details

   • Legal description (lot number, plan number)
   • Street address
   • Land size (square meters)
   • Title reference number

3. Encumbrances

   • Mortgages/charges (banks with security)
   • Caveats (legal claims preventing sale)
   • Easements (rights of way, utility access)
   • Covenants (restrictions on use)

4. Zoning and restrictions

   • Zoning classification
   • Heritage overlays
   • Tree preservation orders

Example title search result:

Title Reference: 123/456789
Property: 45 Smith Street, Brisbane QLD 4000
Owner: John David Smith & Jane Mary Smith (Joint Tenants)
Land Size: 450 sqm
Zoning: Low Density Residential

Encumbrances:
1. Mortgage to ABC Bank Ltd - $550,000 (Registered 15/03/2020)
2. Easement for sewerage (5m strip along rear boundary)
3. Covenant: No structures over 8.5m height

Caveats: None

Title Reference vs Title Deed

Title reference:

• Number identifying the property in land registry
• Example: 12/345678 or LOT 45 RP123456

Title deed:

• Historical term
• Physical paper document proving ownership
• Most states now electronic (no physical deed)

Modern system:

• Torrens title system (all Australian states)
• Electronic register
• Title search = extract from electronic register

How to Get a Title Search

Online (Fastest, 5 minutes)

Each state has online portal:

NSW:

• NSW Land Registry Services (nswlrs.com.au)
• Cost: $22.40 (standard), $12.70 (historical)
• Instant download

Victoria:

• Land Use Victoria (land.vic.gov.au)
• Cost: $24.10 (standard)
• Instant download

Queensland:

• Titles Queensland (titlesqld.com.au)
• Cost: $24.70 (title search), $14.95 (historical)
• Instant download

South Australia:

• SA Land Services (sailis.sa.gov.au)
• Cost: $30.50
• Instant download

Western Australia:

• Landgate (landgate.wa.gov.au)
• Cost: $26.30
• Instant download

Tasmania:

• Land Titles Office (tasmania.gov.au)
• Cost: $41.80
• Instant download

ACT:

• Access Canberra (accesscanberra.act.gov.au)
• Cost: $35
• Instant download

Northern Territory:

• NT Land Titles Office (ntlis.nt.gov.au)
• Cost: $25
• Instant download

Through Your Solicitor/Conveyancer

Your solicitor orders:

• As part of conveyancing
• Included in conveyancing fee
• You don't need to order separately

Cost:

• Usually included in $800-$2,000 conveyancing fee
• Solicitor pays government fee, builds into their cost

What You Need to Order

To order a title search, you need:

1. Property address, or
2. Title reference number, or
3. Lot/plan number

Example:

• Search by address: "45 Smith Street, Brisbane QLD 4000"
• Portal finds title reference: 123/456789
• Download certificate: 30 seconds

When to Get a Title Search

Before Making an Offer

Smart buyers:

• Get title search before offering
• Identify issues early
• Avoid wasting time on problem properties

Example:

• See property at open home Saturday
• Order title search Saturday evening ($25)
• Discover: Caveat registered by builder (unpaid invoices)
• Don't make offer (legal issues likely)

During Due Diligence Period

After offer accepted:

• You have cooling-off period (5-10 business days)
• Solicitor orders comprehensive title search
• Identifies any issues

Standard timeline:

• Day 0: Offer accepted
• Day 1: Solicitor orders title search, reviews contract
• Day 3: Title search reviewed, issues flagged
• Day 5: Request vendor resolve issues or walk away

Before Auction (Critical)

Auction properties:

• Sold "as is"
• No cooling-off period
• Must do title search before auction

Timeline:

• 3 weeks before auction: Get title search
• Review with solicitor
• Identify any issues
• Decide: Bid or walk away

Example:

• Auction property: $850,000 expected
• Title search: Easement for future road widening (10m strip)
• Affects 30% of land (reduces value)
• Armed with this info: Bid to $680,000 max (not $850,000)

Before Settlement (Final Check)

Solicitor orders:

• Updated title search 1-2 days before settlement
• Ensures nothing new registered (new mortgages, caveats)

Example:

• Original title search (March): Clean title
• Final title search (June, day before settlement): New caveat registered April
• Problem: Vendor has new legal issue
• Delay settlement until resolved

Reading a Title Search

Section 1: Property Identifiers

What it shows:

Title Reference: 45/678901
Property: Unit 3, 12 Ocean Street, Surfers Paradise QLD 4217
Lot/Plan: LOT 3 SP123456
Land Size: 85 sqm (plus 1/50 share of common property)

What to check:

• Address matches property you're buying ✓
• Lot/plan makes sense (unit = strata plan "SP")
• Land size reasonable for property type

Section 2: Current Owners

What it shows:

Registered Proprietor(s):
Sarah Jane Nguyen & David Michael Nguyen
Tenancy: Joint Tenants
Date Registered: 15/08/2019

What to check:

• Owner names match vendor on contract ✓
• If company owned: Check company still exists (ASIC search)
• If trust owned: Check trust name

Ownership types:

Joint Tenants:

• Equal ownership
• Right of survivorship (if one dies, other owns 100%)
• Most common for couples

Tenants in Common:

• Specified shares (e.g., 60/40, 50/50)
• Can sell individual shares
• Common for investment partners

Example issue:

• Contract vendor: "John Smith"
• Title shows: "John Smith & Mary Smith (Joint Tenants)"
• Problem: Mary must also sign contract (both owners must consent)

Section 3: Encumbrances (Critical)

What it shows:

1. Mortgage to XYZ Bank Limited - $450,000
   Registered: 20/08/2019
   Dealing: AA123456B

2. Easement for sewerage in favour of City Council
   Registered: 12/03/2005
   Location: 2m strip along western boundary

3. Covenant: No satellite dishes on external walls
   Registered: 12/03/2005 (building by-law)

What to check:

Mortgages:

• Normal to see vendor's mortgage
• Must be discharged at settlement
• Red flag: Multiple mortgages (vendor in financial trouble?)

Example:

• Mortgage 1: ABC Bank $500,000
• Mortgage 2: XYZ Finance $80,000
• Mortgage 3: Second-tier lender $50,000
• Warning: Vendor likely in distress (multiple lenders)

Easements:

• Rights for utilities, access, drainage
• Check: Does easement affect your plans?

Example:

• Want to build pool in backyard
• Title search: Sewer easement (3m wide) crosses backyard
• Can't build pool over easement ✗

Covenants:

• Restrictions on land use
• Common in estates, strata buildings

Example:

• Covenant: "No business operated from property"
• Your plan: Run home office business
• Check if this violates covenant

Caveats:

• Legal claim on property
• Prevents sale/transfer
• Major red flag

Example:

• Caveat by "ABC Constructions Pty Ltd"
• Reason: Unpaid building invoices $85,000
• Property can't settle until resolved
• Options: Vendor pays builder, or you walk away

Section 4: Registered Plans

What it shows:

• Survey plan numbers
• Subdivision plans
• Strata plans (apartments)

What to check:

• Plan matches property description
• Boundaries clear

Example issue:

• House described as 600 sqm
• Plan shows 550 sqm
• 10% discrepancy (investigate why)

Common Title Search Issues

Issue 1: Caveat Registered

What it means:

• Third party claims interest in property
• Prevents sale/transfer until resolved

Common reasons:

• Builder unpaid
• Family dispute (ex-spouse, inheritance)
• Loan from private lender

Example:

• Buy property for $750,000
• Title search: Caveat by vendor's brother
• Investigation reveals: Brother lent vendor $100,000
• Settlement can't proceed until brother paid or removes caveat

Resolution:

• Vendor pays debt (removes caveat)
• Court order (if caveat invalid)
• You walk away (if vendor can't resolve)

Issue 2: Multiple Mortgages

What it means:

• Vendor has borrowed from multiple lenders
• Possible financial distress

Example:

• Property value: $800,000
• Mortgage 1: $520,000 (major bank)
• Mortgage 2: $150,000 (second-tier lender, 12% p.a.)
• Mortgage 3: $80,000 (private lender)
• Total debt: $750,000 (94% of value)

Risk:

• Vendor may struggle to settle (needs to discharge all)
• Lenders may not release title (if property declined in value)

Your action:

• Request proof vendor can discharge all mortgages
• Consider walking away (high risk of delayed settlement)

Issue 3: Incorrect Owner Details

What it means:

• Person selling doesn't match title owner
• Can't settle without correcting

Example:

• Title shows: "John David Smith"
• Contract vendor: "John Smith"
• Solicitor requests:
  • Proof John Smith = John David Smith (birth certificate, passport)
  • May need to amend title before settlement

More serious:

• Title: "John Smith Pty Ltd"
• Contract: "John Smith" (person)
• Company owns property, not individual
• Company must sell (directors sign)

Issue 4: Easements Affecting Use

What it means:

• Right-of-way for utilities, neighbours, councils
• May restrict your use

Example 1: Driveway easement

• Property: House with driveway on left side
• Title: Easement in favour of rear property
• Rear neighbour has right to use your driveway
• Can't block, can't install gate

Example 2: Future road widening

• Property: House on busy road
• Title: Council has registered easement for future road widening (8m strip)
• Front 8m of property could be resumed (compulsorily acquired)
• May happen in 5-10 years
• Compensation: Below market value

Your action:

• Reduce offer price (affected land has less value)
• Walk away if too restrictive

Issue 5: Restrictive Covenants

What it means:

• Limits on how you can use/develop property

Example 1: Building restrictions

• Covenant: "No building higher than single storey"
• Your plan: Build two-storey extension
• Can't do it ✗

Example 2: Business restrictions

• Covenant: "Residential use only"
• Your plan: Run consultancy from home
• May violate covenant (check with solicitor)

Example 3: Appearance restrictions

• Covenant: "All fences must be Colorbond in 'Surfmist' colour"
• You want: Timber fence
• Not allowed (covenant enforceable by neighbours)

Can they be removed?

• Sometimes (unanimous consent of all beneficiaries)
• Often: Very difficult
• Assume permanent

Issue 6: Wrong Lot Boundaries

What it means:

• Fences don't match title boundaries
• Neighbour may have encroached

Example:

• Title shows: 15m frontage
• Survey reveals: Fence is 0.5m inside your boundary
• Neighbour is using 0.5m of your land

Resolution:

• Negotiate with neighbour (move fence)
• Legal action (if neighbour refuses)
• Leave it (not worth the hassle for 0.5m)

Prevention:

• Order survey before settlement
• Compare with title boundaries

Issue 7: Heritage Overlays

What it means:

• Property protected due to historical/cultural significance
• Council approval needed for changes

Example:

• Buy Victorian-era home for $900,000
• Title search/planning search: Heritage overlay
• Want to: Demolish and rebuild
• Can't do it (heritage protected)
• Even renovations: Strict approval process

Your action:

• Research restrictions before buying
• Budget for heritage-compliant works (2-3x cost)
• Or walk away

Title Search vs Other Searches

Title Search

Shows:

• Ownership
• Mortgages
• Easements
• Covenants
• Caveats

Doesn't show:

• Zoning details (use planning certificate)
• Rates owing (use rates search)
• Building approvals (use building certificate)
• Contamination (use environmental search)

Planning Certificate

Shows:

• Zoning (residential, commercial, industrial)
• Overlays (heritage, flood, bushfire)
• Proposed developments nearby
• Council requirements

Example:

• Title search: Clean (no issues)
• Planning certificate: Flood overlay (1-in-100 year flood zone)
• Property floods every 5-10 years (insurance expensive/impossible)

Rates Certificate

Shows:

• Council rates owing
• Water rates owing
• Outstanding charges

Example:

• Purchase price: $700,000
• Rates certificate: $12,000 unpaid council rates
• Vendor must pay at settlement (comes out of sale proceeds)

Building Certificate

Shows:

• Building approvals
• Outstanding building notices
• Pool compliance
• Asbestos register

Example:

• Title search: Clean
• Building certificate: Pool non-compliant (no fence)
• You must fix (cost $5,000-$8,000)

Your Solicitor Orders All

Comprehensive package:

• Title search
• Planning certificate
• Rates certificate
• Building certificate
• Contamination search (if applicable)

Total cost: $150-$400 (included in conveyancing)

Title Search and Strata Properties

Strata Title Specifics

Strata title shows:

• Your lot number (e.g., LOT 12 SP54321)
• Your share of common property (e.g., 1/87)
• Body corporate plan number

Example strata title:

Lot: 12 SP54321
Address: Unit 12, 45 Ocean Parade, Surfers Paradise
Unit Entitlement: 95 (out of 8,750 total)
Share of Common Property: 95/8,750
Common Property: Driveways, pools, gyms, lifts, rooftop

What to check:

• Unit entitlement (determines strata levies)
• Common property inclusions

By-Laws on Strata Title

Common by-laws:

• No pets
• No short-term rentals (Airbnb)
• No renovations without approval
• Visitor parking restrictions

Example issue:

• You buy unit to Airbnb
• By-law on title: "No short-term letting under 3 months"
• Your plan is illegal ✗

Always:

• Get copy of by-laws
• Read before buying
• Can't be changed easily (75% owner vote often required)

Using Title Search Information in Negotiation

Reduce Offer Based on Issues

Example 1: Easement

• Property listed: $750,000
• Title search: Utility easement affects 20% of backyard
• Reduces usable land
• Offer: $710,000 (reflecting reduced utility)

Example 2: Covenant

• Property listed: $650,000
• Title search: Covenant preventing subdivision
• You wanted to subdivide and build second dwelling
• Walk away (can't achieve your goal)

Request Vendor Resolve Issues

Example: Caveat

• Property: $800,000
• Title search: Caveat from builder ($40,000 dispute)
• Contract condition: "Vendor to remove caveat before settlement"
• Vendor pays builder or you can withdraw

Insurance for Title Defects

Title insurance:

• Covers unknown defects in title
• Cost: $300-$800 (one-off)
• Pays if issue emerges after settlement

Example:

• You buy property
• 2 years later: Neighbour claims easement exists (not on title)
• Title insurance: Pays your legal costs + compensation
• Rare but available

DIY vs Solicitor Title Search

DIY Title Search (Before Offer)

When to do it:

• Viewing multiple properties
• Want to narrow down before engaging solicitor
• Auction properties (need info before auction)

Cost:

• $25-$40 per property
• Instant download

What you can identify:

• Caveats (red flag)
• Multiple mortgages (distressed vendor)
• Major easements
• Restrictive covenants

Example:

• Viewing 5 properties
• Order 5 title searches: $125
• Identify 2 with caveats (eliminate)
• Identify 1 with restrictive covenant (eliminate)
• Down to 2 viable properties
• Engage solicitor for those 2 only

Solicitor Title Search (Due Diligence)

When:

• After offer accepted
• Part of conveyancing process

What solicitor does:

• Orders title search
• Reviews in detail
• Identifies issues you'd miss
• Advises on implications
• Negotiates with vendor's solicitor

Worth it:

• Solicitor experience spots issues
• Legal advice on covenants, easements
• Don't skip this step

Common Questions

Can I see who owned the property before?

Yes:

• Order "historical title search"
• Shows previous owners
• Shows when property last sold

Cost: $13-$25 (cheaper than current title)

Why useful:

• Check how long current owner held (quick flip?)
• Previous sale price (compare to current asking)
• Ownership history (frequent turnover = issue?)

Example:

• Current asking: $750,000
• Historical search: Last sold 18 months ago for $720,000
• Owner seeking quick profit (only $30K gain after costs)
• Market hasn't moved much
• Offer $730,000 max

What if the title search shows an error?

Contact Land Titles Office:

• Request correction
• Provide evidence (contracts, ID)

Example:

• Your name: "Jane Smith"
• Title shows: "Jane Smyth"
• Submit correction (free, 2-4 weeks)

Can I get a title search on any property?

Yes:

• All properties have public title information
• Anyone can order a search
• No restriction

Uses:

• Check your neighbour's property (see easements affecting you)
• Research comparables (see past sale dates)
• Due diligence before offering

How long is a title search valid?

Point in time:

• Shows status as at date of search
• Could change tomorrow (new mortgage, caveat)

Solicitor practice:

• Order updated search 1-2 days before settlement
• Ensures nothing new registered

Example:

• Title search May 1: Clean
• Settlement June 15
• Updated search June 14: New caveat registered June 10
• Problem identified, settlement delayed

Title Search and Settlement

Clear Title Required

At settlement:

• Vendor must provide clear title
• All mortgages discharged
• No caveats or restrictions

Discharge process:

• Vendor's bank prepares discharge documents
• Registered on settlement day
• Your lender registers new mortgage (replaces vendor's)

Example settlement day:

• 9am: Vendor's bank discharges mortgage (balance $520,000 paid from sale proceeds)
• 10am: Title clear (no mortgage)
• 11am: Transfer of ownership registered (you become owner)
• 11:30am: Your bank registers new mortgage (your $600,000 loan)

What Happens if Title Not Clear?

Settlement delayed:

• Can't settle until title clear
• Penalty interest may apply
• Your moving plans affected

Example:

• Settlement date: June 15
• June 14: Vendor's bank hasn't prepared discharge
• Settlement delayed to June 22
• You pay penalty interest: $200/day × 7 days = $1,400
• Vendor owes you $1,400 (deducted from sale proceeds)

How NIK Finance Uses Title Search Information

Pre-Purchase Analysis

NIK Finance shows:

• Common encumbrances in area
• Typical easements
• Covenant risks

Example:

• You're looking in specific estate
• NIK Finance flags: "Properties in this estate have restrictive covenants (no clotheslines, specific fence colours)"
• You're aware before viewing

Loan Application

Lender requirements:

• Title search submitted with application
• Lender reviews encumbrances
• May decline if issues

Example:

• You apply for loan
• Title shows: Large easement for future infrastructure
• Lender: "We can't lend on this property" (easement risk)
• NIK Finance finds alternative lenders that accept it

Settlement Coordination

NIK Finance helps:

• Ensure title clear before settlement
• Coordinate with solicitor
• Flag any title issues to lender

Example:

• Settlement in 2 weeks
• Updated title search: Shows vendor's mortgage still registered
• NIK Finance flags: "Vendor's discharge not yet prepared"
• Proactive follow-up prevents settlement delay

Final Thoughts

Title search is the simplest, cheapest, and most critical check before buying property:

• Cost: $25-$40 (tiny compared to property price)
• Time: 5 minutes (instant download)
• Reveals: Ownership, debts, restrictions (critical info)

Always get a title search:

• Before making offer (DIY for $25)
• During due diligence (solicitor orders comprehensive package)
• Before settlement (updated search to ensure nothing new)

Red flags to watch for:

• Caveats (legal disputes)
• Multiple mortgages (financial distress)
• Easements affecting large portions (reduces value)
• Restrictive covenants (limits your plans)

Don't skip this step:

• Some buyers rely on real estate agent info (wrong)
• Some assume "it'll be fine" (risky)
• $25 search can save you $100,000+ in problems

Use NIK Finance for:

• Understanding title search results
• Identifying common issues in your target area
• Connecting with solicitors for review
• Ensuring clear title before you commit to purchase

Remember:

• Title search = ownership proof
• No title search = buying blind
• 5 minutes and $25 can prevent disaster
• Always, always order a title search