Negligence case shows frailty of title transfer system

The security of the property title transfer system was at the centre of a case against a lawyer who got name suppression this year.

The lawyer had to pay the Law Society $12,000 costs and expenses and a $1300 penalty after pleading guilty to negligence or incompetence using the title transfer system. The society's standards committee ruled on the case.

The lawyer had, when acting for clients in the sale of their farm through the Landonline system, withdrawn a caveat placed over the farm by third parties.

The lawyer had no authority to act for the third parties, did not have their consent to withdraw the caveat and did not hold a Landonline Authority and Instruction from the third parties authorising him to withdraw the caveat, the committee found.

In withdrawing the caveat, the lawyer made certifications in Landonline that were false.

The committee said that unauthorised actions of this kind imperil the electronic system. It said the certified practitioners had to ensure that all relevant matters were in order before instruments were submitted and the Land Register altered.