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Did you know that it’s not the keys or the contract that make you the official owner of a property; it’s the title deed.
Yes! It might seem like just an ordinary piece of paper, but believe us, it’s a big deal. It doesn’t matter if you’re buying your first home, investing in property, or just trying to wrap your head around the legal side of things; knowing what a property title deed is and why it matters is crucial.
So, let’s break it down in simple terms.
What Is a Property Title Deed?
So, what is property title deed? A title deed is the official paperwork that proves you own a property. Think of it as your property’s ID card. In Australia, the title deed contains crucial information like the legal description of the property, its boundaries, any rights attached to it (like easements), and any claims or issues that could affect it.
If you’re buying or selling property, you’re bound to come across this document at some point, and it’s important to know what it means.
In short, a deed of property is proof that YOU own the property and that YOU have the right to make decisions about it, be it selling, renting, or just renovations.
Why Title Deeds Matter
As we said, title deeds aren’t just for show. They’re important for a few reasons:
- They prove ownership: This is a big one. Without a title deed, you can’t prove that you actually own the property. It’s the legal confirmation that you’re the rightful owner.
- They ensure a clear title: The deed of property confirms that the property is free from any issues, like unpaid taxes or legal disputes. It gives you peace of mind that there’s no one else making a claim on the property.
- They’re essential for selling or buying: When you’re buying or selling a property, the title deed is a must. It has to be transferred to complete the deal.
- They’re required for financing: If you’re getting a loan for your property, lenders will want to see the deed of property to make sure everything is above board. It basically confirms that the property can be used as collateral for the loan.
Property Title vs Title Deed
Now, you might hear a lot of people use “property title” and “title deed” interchangeably, but they’re actually two different things.
- Property title is the legal right to own the property. It’s the right to possess, use, and transfer the property.
- A title deed, on the other hand, is the actual document that proves you have that ownership.
Bottom line: The property title is your claim to the property, and the title deed is your “proof” of that claim.
Types of Title Deeds in Australia
If you’re thinking about buying an investment property in Australia, you’ll most likely come across a few different types of title deeds.
Let’s go over the main ones:
- Torrens Title: This is the most common system. The government guarantees ownership, and if the title is registered, you’re legally the owner of the property. Any changes to the title must be officially recorded. As simple as that.
- Strata Title: This one’s used for apartments and units. Each unit has its own title deed, but the owners also share ownership of the building’s common areas (like hallways, gardens, etc.).
- Company Title: This deed of property is used for units in buildings owned by a company. Instead of owning the physical unit, you own shares in the company that owns the land.
Once you understand these different types, you might also want to know how to verify a title deed before moving forward with your purchase. Well, it’s actually pretty simple these days.
How to View & Verify a Title Deed
- Online registers:
Every state in Australia has an online system where you can search for title deeds. Just enter the property address or title number, and you can usually download a copy for a small fee.
- Land Titles Office:
If you can’t find it online, you can always head to your state’s Land Titles Office in person. They’ll usually provide digital copies for purchase.
- Get help if required:
If you want to be extra sure everything’s in order, you can hire a solicitor or conveyancer to double-check the deed. They’ll make sure everything looks good and there are no hidden surprises.
Common Title Issues & How to Resolve
No matter how confident you are, you can still encounter some issues with title deeds. So, it’s important to be aware of them.
Here are a few common title issues, along with ways to resolve them:
- Ownership dispute – If there’s confusion over who owns the property (for instance, if the title wasn’t updated after a sale or inheritance), a legal expert can help sort things out.
- Encumbrances and liens – If the property has any debts (like unpaid taxes or mortgages), these will show up on the title deed. Before you buy or sell, make sure all these issues are dealt with.
- Easements – Easements give someone else the right to use part of your property for things like utility access or a shared driveway. Make sure you understand these properly before making any major decisions.
- Fraudulent claims – In rare cases, someone might make a fake claim against the deed. If you suspect fraud, reach out to the relevant office immediately.
Conclusion
So there you have it – the answer to “What is property title deed”.
Understanding title deeds is an absolute must if you’re getting into real estate investment in Australia. Whether you’re buying, selling, or just keeping an eye on your own property, the title deed is necessary for proving ownership and making sure everything’s legally sound.
At InvestorKit, we’re here to guide you through every step of the property investment process. From explaining the importance of documents like title deeds and laying down your financing investment property options to helping you make smarter, more confident investment moves – We do it all.
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References:
[1] – Firstmac.com.au – Understanding different types of property titles in Australia
[2] – Search-x.com.au – Title deed vs property title