Ian Hales: Privatising SA’s Lands Title Office would be a disaster and could lead to cost rises
THE Weatherill Government’s intention to privatise the Lands Titles Office is a disaster in the making, says former LTO employee Ian Hales.
- Adelaide’s median house price now more than $400,000
- The Adelaide suburbs driving South Australia’s housing price boom
- Sale of Lands Titles Office could mean increased costs
- SA’s land titles system moving to electronic transactions
THE Weatherill Government’s intention to privatise the Lands Titles Office is a disaster in the making.
After serving over 47 years in the LTO and 34 years as a TAFE lecturer in conveyancing, I can confidently say it is also an abomination against the Real Property Act 1886 and other associated legislation.
Important issues that should be addressed before any decision can be made are being ignored by the Government.
The Torrens System of land registration established by Robert Richard Torrens in 1858 and revered around the world provides a solid foundation on which much of the economy of this state depends.
It is not an institution to be messed around with by a Government which appears to be quite naive of its importance to the state. If it was aware, then this sale would not be contemplated.
Through bad administration, the LTO has seen changes such as the elimination of a policy of checking and double-checking transactions lodged for registration.
Another administrative bungle saw the elimination of the need for staff to have academic qualifications considered so necessary by previous Registrars-General. This has led to an increase in the error rate in certificates of title to an unacceptable level.
When staff are placed in the hands of a private entity the level of expertise will drop dramatically.
If the Government is determined to proceed with this sale it must ensure that an appropriate level of education is achieved by staff transferring to the private company and that this is ongoing.
It can be disastrous for lending institutions if a further fall in the accuracy of the Torrens register occurs.
It has been publicly stated by some private organisations that such a fall may result in higher costs to home buyers, with increased fees, mortgage interest rates and/or a need to take out private insurance to protect the interests of the mortgagee.
A question has been asked in NSW – where a similar sale is contemplated – whether a private company collecting lodgement and other fees will be subject to the GST.
If so, then fees will rise by 10 per cent. Treasurer Tom Koutsantonis has stated that fees will not rise. Time will tell.
Without appropriate public consultation, Mr Koutsantonis and Premier Jay Weatherill should abandon this proposal and find other means of balancing the state budget.
They should not attempt to rush this sale through before the next state election.
Safeguarding the best interests of the public over a long term is more important than making a short-term profit for Treasury.
Ian Hales was a long-time Land Titles Office employee and TAFE conveyancing lecturer