Title Search vs Deposited Plan: What’s the Difference?

In buying or transacting business in Australia, especially in New South Wales, the main documents in the definition of ownership and boundaries should be in place. The title search and the deposited plan are two documents commonly used in a property transaction. Although they are both connected to land ownership and boundaries, the purposes of these are different, and the information they carry is different.

This article will describe a title search and a deposited plan and their difference, and why each is important to buyers, sellers, developers, and others who have to deal with property deals.

 

What Is a Title Search?

A title search is the official document acquired at the land titles office, which gives the information regarding the legal ownership of a parcel of land. It validates whoever is the registered owner of the property and exposes the legal interests or limitations of the property. Title searches in New South Wales are available in the NSW Land Registry Services.

The title search document contains the name of the registered proprietor, any mortgages or caveats on the property, easements, and other encumbrances, and the number of the title reference. Basically, a title search is a legal establishment of ownership, and it displays any registered claims or rights that impinge on the property.

 

What Is a Deposited Plan?

A deposited plan is a detailed survey plan lodged with the land registry as part of the subdivision process. It shows the precise boundaries and dimensions of individual lots within a subdivision and the layout of the land. Deposited plans are used to formally describe parcels of land for registration and title purposes.

They mark the locations of boundaries, roads, easements, and other features on the land. When land is divided, the deposited plan is the legal document that describes each of the new lots and permits the creation of titles on such lots.

 

Major Differences between Title Search and Deposited Plan.

 

Though related, title searches and deposited plans serve distinct functions and contain different information:

 

1. Purpose

1. A title search confirms ownership and any legal interests registered on the land title.
2. A deposited plan provides the exact physical layout and boundaries of the land parcels.

2. Content

1. Title search includes owner details, title number, encumbrances like mortgages and easements, and registered caveats.
2. The deposited plan includes detailed maps, boundaries, dimensions, and locations of lots, roads, and easements.

3. Format

1. A title search is a textual legal document that summarises ownership and interests.
2. A deposited plan is a graphic survey document, often presented as a map or diagram.

4. Role in Property Transactions

1. Title search verifies who legally owns the land and what restrictions apply.
2. The deposited plan clarifies the physical extent of the property being bought or sold.

 

How Title Searches and Deposited Plans Work Together

These two documents complement each other during property transactions. Title search helps to find out who the registered owner is and any legal claims, and the deposited plan indicates the precise location of the property boundary.

As an illustration, a title search shall be used to prove the ownership and mortgages of a seller when purchasing a house on a subdivided lot. The deposited plan will indicate accurate lot boundaries, which will prevent the occurrence of boundary disputes. Both documents are necessary to make sure a transaction of property goes on smoothly and within the law of the land between conveyancers and solicitors.

 

Understanding Deposited Plan Numbers and Lot Numbers

Every deposited plan has a unique number assigned when lodged at the land registry. In the plan, each lot is numbered, for example: Lot 12 on DP 123456.

These lot and plan numbers identify the property when you do the title search.

 

Why Are Deposited Plans Important?

Deposited plans are crucial for:

1. Subdivision: Defining new lots. The division of a large parcel.
2. Planning and approval: Planning and approval processes are based on well-defined boundary information.
3. Easements: Demarcation of the precise position of rights of way, utility access, and other easements.
4. Boundary Disputes: Depending on the land boundaries where the land is in dispute, this assists in resolving the dispute by availing an official survey.
5. Title Creation: Allows each subdivided lot to be given an individual title.

When title search required?

A title search must be conducted in a variety of situations, such as:

1. Purchasing or selling property to confirm ownership and to check against mortgages or caveats.
2. Applications of mortgage where the lenders demand an ownership demonstration.
3. Solving boundary issues or title defects.
4. Refinancing or transferring ownership interests.
5. Undertaking development or subdivision.

 

When Do You Need a Deposited Plan?

You will encounter deposited plans in these situations:

1. Purchasing a subdivided lot or unit.
2. Applying for council approvals or development permits.
3. Resolving boundary issues or confirming land dimensions.
4. Subdividing land or changing property boundaries.
5. Registering easements or rights of way.

 

How to Access Title Searches and Deposited Plans in NSW

Both title searches and deposited plans can be obtained from the NSW Land Registry Services. These documents can be ordered online by typing in the address of the property or lot and the plan number deposited.

These documents will be accessed and read by most property professionals, such as conveyancers and solicitors, on your behalf to make sure all the legal requirements are met.

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Common Issues Identified in Title Searches and Deposited Plans

In reviewing these documents, you need to be alert to:

1. Mortgages or Charges: Registered debts of which the property is security.
2. Caveats: Notices lodged by parties claiming an interest in the land.
3. Easements: Rights granted to others over parts of the land.
4. Restrictive Covenants: Conditions limiting land use or development.
5. Boundary Inconsistencies: Discrepancies between the plan and actual land features.
6. Unregistered Interests: Be aware that not all interests appear on the title or plan.

 

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Tips for Buyers and Sellers

1. Always obtain a current title search and deposited plan before completing a property transaction.
2. Check through each of the documents thoroughly or make a professional review.
3. Be clear as to encumbrances or easements that might be of effect to your intended use.
4. Use the deposited plan to understand the exact property boundaries and dimensions.
5. Ask your conveyancer or solicitor if any issues arise or for explanations of technical terms.

 

Conclusion

It is important that any person in property transactions in New South Wales and the rest of Australia understands the distinction between a title search and a deposited plan. The title search verifies that a legal ownership of land exists and expresses valuable encumbrances or claims to the land. The deposited plan gives a true visual picture of the limits and characteristics of the land. All of these documents form a complete image of the property and allow buyers and sellers to make the right choice and prevent legal issues.

This is an essential stage, whether you are buying your first property, making an investment in property, or developing land; familiarise yourself with the title searches and deposited plans. To be on the safe side, never engage in a transaction without consulting a qualified conveyancer or solicitor to help you interpret these documents and to help you through the transaction in a smooth and secure manner.