What is a paperless title

Paperless titles are now available

If you own your property but it is subject to a registered mortgage, that title will automatically become an electronic title (or paperless title) controlled by the mortgagee (the bank).

What happens to my title now it may go paperless?

Even if you had paid off your mortgage but the title still remains secured by the bank because the discharge had not been done/paid for, you will move to a paperless title.

Effectively, the paper certificate of title will be cancelled, and “control” of the electronic certificate of title will be given to the registered first mortgagee bank.  Instead of relying on a paper title in your hands for control it will be more or less control by whoever is registered as security holder electronically. Any new owner buying will I suppose only have “electronic control” as well of the paperless title.

Current conversion from paper to electronic title

The current conversion from paper title to electronic title applies to cases where the mortgagee (bank) can officially confirm that it holds the paper title and where a registrable discharge of mortgage has not been provided.

If you have the actual title because the mortgage was in fact discharged, then that paper title is apparently still valid and you won’t automatically change to a paperless or electronic title.

What happens with a paperless title after discharging your mortgage?

Many landowners are still unaware that you cannot automatically obtain your title just because you pay off your mortgage.    You still have to make formal application to discharge the mortgage (and of course pay the Land Titles fee to discharge -together with any bank fees if the bank is assisting in this process).

If you have paid off your mortgage loan and there is no other loan securing your title, you can lodge the paper discharge at the Land Titles Office to remove the mortgagee (bank) on title.  At this stage, you do not need to do it electronically.

As the conversion process takes over more and more titles it seems inevitable one day that all conveyancing/land transactions will end up being fully electronic,  as there won’t be any physical title to hand over.

 

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