On 11 October 2021, the Real Property Amendment (Certificates of Title) Act 2021 commenced, which abolished the Certificates of Title (CTs) and the control of the right to deal (CoRD) framework. All existing CTs have been cancelled and CTs will no longer be issued. Existing CTs will not need to be produced, and CoRD holder consent will not be required, for a dealing or plan to be registered. All existing Guidelines subject to this change are currently being reviewed and will be updated to reflect these changes. For further information regarding the abolition of CTs, please see https://www.registrargeneral.nsw.gov.au/property-and-conveyancing/eConveyancing/abolition-of-certificates-of-title

Submortgage

ADIS Code - SM

A sub-mortgage uses a mortgage (called the head mortgage) over land as the security.

There is no short form for a sub-mortgage; it must be in the form of a deed.

The head mortgage is not required.

Lodgment requirements

Stamp duty - Required if dated on or after 1.1.1975.  If not marked, Registration insisted upon is prohibited.

Not required if dated before 1.1.1975.

Registration copy - Required. If unacceptable, Registration insisted upon is prohibited.

Statement of Title Particulars form - Not required.

NOS form - Not required.

Index Particulars form (completion)

(A) Lodging Party - Must be completed.

(B) Instrument - Mortgage-Sub-mortgage.

(C) Locality - Not required.

Link Conveyance - Not required.

Principal Deed - The registered affected mortgage.

(D) Indexing - The sub-mortgagor and the mortgagor of the affected mortgage.

(E) Certification - Required.

Document requirements 

Date: must be dated with the date of execution. If not dated advise the lodging party. If a date is not furnished, indicate Registration insisted upon and include the reason.

Name: the full names (initials are acceptable) of the sub-mortgagor and the mortgagor of the affected mortgage are required. Advise the lodging party of any discrepancies in names.

Operative clause:  "... hereby mortgage...".

Tenancy:  where the sub-mortgage does not clearly state the tenancy of the sub-mortgagees, joint tenancy is presumed:

  • contains a joint account clause, joint tenancy is assumed or
  • discloses that the advance was made in shares, tenants in common in those shares is assumed.

Execution:  by the sub-mortgagor.  A power of attorney must be registered.  The mortgagor of the affected mortgage or the sub-mortgagee do not have to sign.

Attestation: required. Must be witnessed by a person of 18 years of age or older who is not a party to the document.

IPF: must be completed.

Staff processing information

If the head mortgage is unregistered, enter the sub-mortgage under the General Frame, ie code "G", with a Noting: "Sub-mortgage affecting unregistered mortgage dated ...".  The Locality and the Link Conveyance are required.  Enter the sub-mortgagor and the head mortgagor as Vendors entries.

CA Not required.

Indexing

Locality:  nil.

Link Conveyance:  nil.

Principal Deed: required. The registered affected mortgage.

Noting: "Affecting [description of the land]".

If Old System land is affected and:

  • an interest, state: "interest in" (or Noting Code: "I"
  • a share, state: "[fraction] share"
  • part of the land, state: "[affected land description]"
  • the land description relies on an attached plan, state: "see attached plan" (or Noting Code: "PL").

V:  the sub-mortgagor and the head mortgagor, deceased estates or trusts, and any variations thereof.

P:  nil.