Experts warn homeowners to face huge bill under planned land titles privatisation
Announcement posted by The Institution of Surveyors NSW 13 Mar 2017
Concerned experts have joined forces to warn struggling homeowners and first time buyers of the risks posed by the NSW Government’s planned land titles privatisation
PRESS RELEASE
FOR IMMEDIATE RELEASE
Experts warn homeowners to face huge bill under planned land titles privatisation
Concerned experts have joined forces to warn struggling homeowners and first time buyers of the risks posed by the NSW Government’s planned land titles privatisation
Sydney, Australia – 13 March 2017, Members of the Concerned Titles Group, which includes senior property lawyers, surveyors and land titles experts said that under the Government’s plan homeowners will need to take out title insurance costing as much as $4000 per transaction.
“As Australia’s housing prices continue to soar and with no signs of slowing, the sting from the NSW government’s plans to privatise the land titles registry will hit the people of NSW and homeowners hard,” said Michael Green of the Institution of Surveyors NSW Inc.
“We calculate that NSW residents will foot the bill as extra state taxes are required to replace the lost income from LPI.
“With the increasing cost of living, homeowners shouldn’t have to pay $4000 to insure their title deed that currently only costs around $4 per transaction. For the vast majority of homeowners, this is more expensive than car, life and home contents insurance combined.”
John Cunningham, President of the Real Estate Institute of NSW and a member of the Concerned Titles Group said that privatising the world class LPI risks the integrity of the state’s land titles system which underpins billions of dollars’ worth of economic activity and $1.2 trillion dollars’ worth of real estate.
“If we sell it, everyone loses – the government loses the expected yearly profit of $130 million in addition to the huge upside of growth in Strata registrations in the coming years,” said Mr Cunningham.
“And the public loses with the significant profit growth and increased efficiency of this world class facility that is in the peoples’ hands and provides property owners in NSW with the security of title they expect to protect their greatest asset.”
Under the NSW Government’s proposal, the NSW land titles registry will be offered to private operators under a 35-year lease worth an estimated $2 billion, the funds from which will be used to build and renovate two sports stadiums.
Green said that recent survey conducted by the Institution revealed that 84 per cent of respondents believe the sell-off is a poor decision.
“Putting a fundamental public service up for sale to simply develop sporting venues that most of the state won’t use, demonstrates how little respect the Government has to the rule of law,” Mr Green said.
“A vast majority of citizens in NSW won’t have easy access to these facilities and would additionally have to pay a premium fee to use the stadium.
“Would it not be better for the NSW government to privatise stadiums instead of a profitable entity that belongs to the people?” he said.
Pauline Wright, President of the Law Society of NSW, said “the Law Society’s position remains that the land titling function is a vital and core function of government. The national economy, and public confidence in the protection of every individual’s property rights, depend on the absolute security in the administration of the land titling function. This remains the fundamental concern of lawyers, real estate agents and surveyors.”
The move to sell the LPI will see hundreds of experienced staff lose their jobs once their initial employment guarantee period of four years expires.
“The sacrifice of long-term stable revenue, the loss of hundreds of skilled and dedicated staff, the risk of title fraud and the prospect of price increases make the case for privatisation hard to argue. Chasing a short term gain at the cost of long stable revenue seems synonymous with the government,” said Green.
Media contact:
Pamela Philip
+61 2 9818 0929
pamela.philip@ppr.com.au
Note to Editors:
Based on the 2015 lodgement figures for transfers and mortgages in NSW, the costs to the people of NSW and the windfall awaiting insurance companies is reflected below:
Members from the Concerned Titles Group (CTG):
Margaret Hole AM; Solicitor, previously Examiner of Title at LPI, Past President of the Law Society of NSW; Ian McCormack, Former Senior Title Specialist (Projects); Training Officer & Plan & Title Advisor LPI; Barry O’Malley Fellow ISNSW, Former Principal Surveyor of NSW; Tony Proust President -elect, Institution of Surveyors NSW, Registered Surveyor & Certified Practicing Planner; John Cunningham, President of the Real Estate Institute of NSW; Noel Benham, Former Manager & Assistant Director Title Creation Division, NSW Land Titles Office; Bruce Langley, Former Senior Titling specialist (Projects) & Advisor Old System & Crown Land, LPI
-Ends-
FOR IMMEDIATE RELEASE
Experts warn homeowners to face huge bill under planned land titles privatisation
Concerned experts have joined forces to warn struggling homeowners and first time buyers of the risks posed by the NSW Government’s planned land titles privatisation
Sydney, Australia – 13 March 2017, Members of the Concerned Titles Group, which includes senior property lawyers, surveyors and land titles experts said that under the Government’s plan homeowners will need to take out title insurance costing as much as $4000 per transaction.
“As Australia’s housing prices continue to soar and with no signs of slowing, the sting from the NSW government’s plans to privatise the land titles registry will hit the people of NSW and homeowners hard,” said Michael Green of the Institution of Surveyors NSW Inc.
“We calculate that NSW residents will foot the bill as extra state taxes are required to replace the lost income from LPI.
“With the increasing cost of living, homeowners shouldn’t have to pay $4000 to insure their title deed that currently only costs around $4 per transaction. For the vast majority of homeowners, this is more expensive than car, life and home contents insurance combined.”
John Cunningham, President of the Real Estate Institute of NSW and a member of the Concerned Titles Group said that privatising the world class LPI risks the integrity of the state’s land titles system which underpins billions of dollars’ worth of economic activity and $1.2 trillion dollars’ worth of real estate.
“If we sell it, everyone loses – the government loses the expected yearly profit of $130 million in addition to the huge upside of growth in Strata registrations in the coming years,” said Mr Cunningham.
“And the public loses with the significant profit growth and increased efficiency of this world class facility that is in the peoples’ hands and provides property owners in NSW with the security of title they expect to protect their greatest asset.”
Under the NSW Government’s proposal, the NSW land titles registry will be offered to private operators under a 35-year lease worth an estimated $2 billion, the funds from which will be used to build and renovate two sports stadiums.
Green said that recent survey conducted by the Institution revealed that 84 per cent of respondents believe the sell-off is a poor decision.
“Putting a fundamental public service up for sale to simply develop sporting venues that most of the state won’t use, demonstrates how little respect the Government has to the rule of law,” Mr Green said.
“A vast majority of citizens in NSW won’t have easy access to these facilities and would additionally have to pay a premium fee to use the stadium.
“Would it not be better for the NSW government to privatise stadiums instead of a profitable entity that belongs to the people?” he said.
Pauline Wright, President of the Law Society of NSW, said “the Law Society’s position remains that the land titling function is a vital and core function of government. The national economy, and public confidence in the protection of every individual’s property rights, depend on the absolute security in the administration of the land titling function. This remains the fundamental concern of lawyers, real estate agents and surveyors.”
The move to sell the LPI will see hundreds of experienced staff lose their jobs once their initial employment guarantee period of four years expires.
“The sacrifice of long-term stable revenue, the loss of hundreds of skilled and dedicated staff, the risk of title fraud and the prospect of price increases make the case for privatisation hard to argue. Chasing a short term gain at the cost of long stable revenue seems synonymous with the government,” said Green.
Media contact:
Pamela Philip
+61 2 9818 0929
pamela.philip@ppr.com.au
Note to Editors:
Based on the 2015 lodgement figures for transfers and mortgages in NSW, the costs to the people of NSW and the windfall awaiting insurance companies is reflected below:
- For 213,000 transfers attracting $4,000 each the additional annual cost would be $852M
- For 281,000 mortgages attracting $1,200 each the additional annual cost would be $337.2M
Members from the Concerned Titles Group (CTG):
Margaret Hole AM; Solicitor, previously Examiner of Title at LPI, Past President of the Law Society of NSW; Ian McCormack, Former Senior Title Specialist (Projects); Training Officer & Plan & Title Advisor LPI; Barry O’Malley Fellow ISNSW, Former Principal Surveyor of NSW; Tony Proust President -elect, Institution of Surveyors NSW, Registered Surveyor & Certified Practicing Planner; John Cunningham, President of the Real Estate Institute of NSW; Noel Benham, Former Manager & Assistant Director Title Creation Division, NSW Land Titles Office; Bruce Langley, Former Senior Titling specialist (Projects) & Advisor Old System & Crown Land, LPI
-Ends-