One significant difference between lodgment of paper and electronic registry instruments is the treatment of supporting evidence required for the instrument.
With paper instruments, the supporting evidence is usually required to be lodged with NSW LRS with the instruments, or be subsequently produced.
With electronic instruments, the subscriber retains the evidence and certifies as such within the registry instrument.
Electronic discharge of mortgage
The subscriber may need to retain evidence if providing a justification for name discrepancy. See Justification for a name discrepancy.
If there is a paper Certificate of Title (CT) for the land title, the subscriber must retain the CT for the CoRD Holder Consent (see below).
An electronic mortgage lodged via PEXA consists of two counterparts:
- an electronic counterpart, known as a Mortgage (Electronic Counterpart) Instrument, prepared and signed by the subscriber representing the mortgagee and
- a paper counterpart on the same terms as the electronic mortgage signed by or on behalf of the mortgagor.
Both counterparts are required to form the legal Mortgage instrument. Only the electronic counterpart is lodged for registration. The paper counterpart must be held by the mortgagee.
If there is a paper CT with a Certificate Authentication Code (CAC) for the land title, the subscriber must retain the CT for the CoRD Holder Consent (see below).
However, there are restrictions for unencumbered land titles issued prior to 1 January 2004, see Restrictions for unencumbered land titles.
CoRD Holder Consent
If there is a paper CT for the land title, the subscriber must retain the CT for the CoRD Holder Consent.
The CT should not be marked as cancelled or destroyed.
Supporting evidence and document retention
Supporting evidence for electronic instruments must be retained for at least seven years, as per the Model Participation Rules.
For more information about supporting evidence and document retention requirements for PEXA subscribers, see the Model Participation Rules at www.arnecc.gov.au.