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

Charge pursuant to State Debt Recovery Act 2018

Pursuant to section 5 of the State Debt Recovery Act 2018 (NSW) (the ‘Act’), the Chief Commissioner of State Revenue (‘Chief Commissioner’) may take debt recovery action for the purposes of recovering a State debt. This includes applying for a debt recovery order to be registered as a charge on the debtor’s land (see sections 50, 56(1) and 56(5) of the Act).

The Chief Commissioner’s application must define the land and may not be made unless the amount payable under order(s) exceeds $1,000.00 (see section 56(2)-(3) of the Act).

The application may be made by the Chief Commissioner on a Request form 11R, referring to section 56 of the Act, and must be accompanied by a copy of the debt recovery order. On registration of the Request, a charge over the land is created.

The Request does not require marking by Revenue NSW.

NOTE: This dealing type must be lodged as Dealing with Exception and be accompanied by a completed Lodgment Rules Exception form.

NOTE: The charge is subject to every mortgage, lease, or other interest recorded in the Register (see section 56(7) of the Act) and has no effect until it is registered (see section 56(10) of the Act).

A Request to cancel the charge may be lodged when the charge ceases to have effect under section 56(6) of the Act in the following circumstances:

  • on the application of the Chief Commissioner, or
  • on the sale or other disposition of the property with the consent of the Chief Commissioner, or
  • on the sale of the land to a purchaser in good faith for value who, at the time of the sale, has no notice of the charge,

whichever occurs first.

A person who acquires land, or an interest in land, after the charge is registered is deemed to have had notice of the charge.

If the Chief Commissioner cancels debt recovery action under section 83 of the Act, the Chief Commissioner may apply to NSW LRS to cancel the registration of the charge by lodgment of a Request form 11R, and referring to section 83 of the Act.

The Request for cancellation does not require marking by Revenue NSW.

NSW legislation can be accessed at www.legislation.nsw.gov.au/

Staff processing information

Refer all cases to Legal through the Senior Examining Officer.
 

Publication Date: March 2024