Qualifed and Limited Titles

The Registrar‐General has a policy compulsorily converting old system titles to the Torrens title system. – triggered by the lodgement of a document, usually a conveyance, in the general registry of deeds.

When this occurs, the Registrar‐General subsequently issues a Torrens Certificate of Title with two notifications:

• A caution indicating that the folio is “qualified” and that the land is held subject to any subsisting interests;
• A notation that the folio is a “limited”, indicating that the Registrar‐General does not have sufficient survey information to precisely identify the boundaries of the land.

Once a qualified or limited folio is created,subsequent dealings the same as any other Torrenstitle.

Qualified Title

Qualified title is a warning that the title has been recently converted from the old system and that ownership of the land is held subject to any “subsisting interests” that may exist under the old system.

Where the dealing which caused the issue of the qualified folio was a purchase for value, the caution recorded on the qualified folio will lapse:

• Six years after creation of the folio, if within that time there has been another purchase for value; or
• At the time that a purchaser for value becomes registered if that is more than six years after creation of the folio; or
• If neither of the above occurs, then 12 yearsfrom the creation of the Torrens title.

Limited Title

Limited title is a warning that the boundaries of the parcel of land have not been adequately defined via a plan and/or have not been investigated by the Registrar‐General. Accordingly, the boundaries of the parcel of land are not guaranteed until defined in a new plan of survey. The Registrar‐General is concerned that the boundaries are accurately delineated to avoid possible future claims of adverse possession.

The limitation can be removed by lodgement of a “plan of delimitation”. Many lenders insist upon this as condition of loan approval. These plans require a detailed delineation of the boundaries. The processtakes several months.

The owner will require a surveyor to prepare a “delimitation plan”. This can be costly, so it is recommended that an owner make its own enquiries asto the costs involved in preparing and lodging a plan.

WRITTEN by Paul Denny

Paul denny has over 45 years conveyancing experience and has assisted over 30,000 clients with their property transactions.

Contact us today on 02 48 111 554 or email info@bowralconveyancing.com.au to discuss how we can assist you with your conveyancing needs