The Act directly affects every person or entity with an interest in land in New South Wales.

• Registered proprietors (including the State of New South Wales for Crown land under Part 3) enjoy indefeasibility subject to the s 42 exceptions. They must comply with execution and lodgment requirements when selling, mortgaging, or leasing.
• Buyers, sellers, and their legal representatives rely on the Register for due diligence. A purchaser for value without notice of fraud obtains indefeasible title on registration (ss 42, 43).
• Mortgagees, chargees, and covenant chargees obtain statutory powers of sale on default (ss 57–60) and must observe s 56C identity verification before registration.
• Lessee and lessors are bound by the implied covenants in ss 75–80 and the registration requirements of s 53. Short-term leases (≤3 years) may bind without registration (s 42(1)(d)).
• Caveators and priority-notice holders obtain temporary protection against registration of inconsistent dealings (ss 74H, 74W). A caveator who lodges without reasonable cause risks liability under s 74P.
• Crown and public authorities interact with the Act through Part 3 (Crown lands), native title recordings (s 12C), and resumption procedures (s 31A).
• Surveyors, information brokers, and electronic network operators are regulated by the conveyancing rules (s 12E) and the Surveying and Spatial Information Act 2002.
• The Registrar-General and authorised operators exercise broad administrative powers (Part 2) and are protected from personal liability (s 146) but may be ordered by the Supreme Court to correct the Register (s 138) or pay compensation from the Torrens Assurance Fund (Part 14).

Accountants, valuers, and financiers are indirectly affected because mortgage and lease documentation must comply with the Act, and title defects can trigger claims on the Assurance Fund or professional indemnity policies.

Registered proprietors have the right to deal with their land (s 41) and enjoy indefeasibility (s 42), but must observe statutory covenants (ss 75–80) and permit registration of valid interests. They may apply to cancel a caution on a qualified folio (ss 28MC–28MF) or remove a limitation on a limited folio (s 28V).

Mortgagees and chargees must verify mortgagor identity (s 56C) and, on default, serve notice under s 57(2)(b) before exercising power of sale (s 58). They enjoy priority according to registration order (s 36(9)) and may record a mortgage of a mortgage (s 52A).

Caveators have the right to prevent registration of inconsistent dealings while the caveat remains in force (s 74H), but must withdraw it once the protected interest is satisfied (s 74M) or face liability under s 74P if the caveat was lodged without reasonable cause.

The Registrar-General is under a duty to maintain the Register (s 31B), to register dealings in registrable form (s 36), and to give effect to court orders (s 138). The Registrar-General may correct errors (s 12(1)(d)), record caveats on his or her own motion (s 12(1)(e)–(f)), and issue computer folio certificates that are conclusive evidence (s 40(1A)). The Registrar-General’s powers are constrained by natural justice (s 12A) and by the obligation to pay compensation for certain losses (Part 14).

Owners of servient land must not interfere with registered easements (s 47); owners of dominant land may enforce them. A party-wall easement created under s 88B of the Conveyancing Act 1919 is deemed to include cross-easements of support (s 48).

The State holds an estate in fee simple when recorded as proprietor of Crown land (s 13J) and may execute instruments through authorised Ministers (s 13L).

All parties must comply with the conveyancing rules (s 12E(8)) and lodgment rules (s 12F). Breach may result in rejection of the dealing or suspension of lodgment rights (s 12E(9)).

The Act creates both civil and criminal sanctions.

Criminal offences are contained in s 141. Fraudulently procuring the creation of a folio, a recording in the Register, or the alteration of an instrument carries a maximum penalty of 10 penalty units or imprisonment for three years. Knowingly misleading the Registrar-General or a person authorised to demand information is likewise an indictable offence. A conviction does not bar civil remedies (s 142).

Civil enforcement is primarily through the courts. A registered proprietor may bring proceedings for possession (s 118) and may plead improvements under s 119 where the claim is based on misdescription. Mortgagees may enter into possession, appoint receivers, or sell after serving notice (ss 57–60). A purchaser from a mortgagee takes free of the mortgagor’s equity of redemption once the transfer is registered (s 59).

Caveats are enforced by the Registrar-General’s refusal to register inconsistent dealings (s 74H). A caveator who fails to withdraw a caveat after request may be ordered to do so by the Supreme Court (s 74MA) and may be liable in damages under s 74P.

Compensation is available from the Torrens Assurance Fund for loss caused by fraud, Registrar-General error, or the bringing of land under the Act (s 129(1)). The Fund is funded by contributions from lodgment fees, recoveries, and Consolidated Fund advances (s 134). Claims are first pursued administratively (s 131); court proceedings lie against the Registrar-General as nominal defendant (s 132). The Registrar-General is subrogated to the claimant’s rights against third parties (s 133).

Administrative sanctions include rejection of non-compliant documents (s 39), suspension of lodgment rights for breach of conveyancing rules (s 12E(9)), and cancellation of a caveat or priority notice that has lapsed (ss 74I–74MF, 74X).

The Supreme Court may order the Registrar-General to cancel or amend folios, create new folios, or take other corrective action (s 138). Failure to comply with a requisition under s 117A may result in refusal to register.

The Act is not a code; it operates in tandem with the Conveyancing Act 1919, the Electronic Conveyancing National Law (NSW), the Crown Land Management Act 2016, the Strata Schemes Development Act 2015, and the Real Property (Application of Laws) Act 1983 (Cth) for Commonwealth land.

• Conveyancing Act 1919: Sections 88–88B (easements, covenants, and s 88B instruments) feed directly into the Register (s 47). Section 23F prohibits registration of plans that contravene subdivision controls. The Conveyancing Act also supplies the general law of fixtures, waste, and implied covenants that the Torrens system overlays.
• Electronic Conveyancing National Law: Sections 3, 12E, and 12F of the Act incorporate the national law’s rules for electronic lodgment, digital signing, and client authorisations (ss 107–108).
• Crown Land Management Act 2016: Part 3 of the Act brings perpetual leases, purchases, and other Crown dispositions into the Torrens system (ss 13A–13N). Restrictions on use or public positive covenants imposed under the Crown Land Management Act are recorded automatically (s 13K(2A)).
• Native Title Act 1993 (Cth): Section 12C permits recording of approved determinations of native title; s 42(1)(a1) preserves omitted easements that may include native title rights.
• Bankruptcy Act 1966 (Cth): Transmission on bankruptcy is effected under s 90; disclaimers of leases are dealt with under s 91.
• Civil Procedure Act 2005: Writs for levy of property are recorded under s 105; sales under writ are protected by ss 105A–105D.
• Interpretation Act 1987: Definitions and construction rules apply (note to s 3(1)).

The Act prevails over inconsistent general law where it expressly so provides (s 3(1)(d)), but common-law concepts of fraud, notice, and equity are preserved where not displaced (ss 42–43, 43A).

The most significant recent amendments have been driven by digitisation, efficiency, and risk management.

• The Real Property Amendment (Certificates of Title) Act 2021 repealed the requirement to issue or produce certificates of title. From the cessation day declared under Sch 3 cl 31, the Register itself is the sole source of title. This eliminates lost-certificate delays and reduces fraud risk.
• The Land and Property Information NSW (Authorised Transaction) Act 2016 privatised certain titling and registry functions while retaining the Registrar-General’s statutory powers. It inserted ss 3B–3D (fees, payment, and approved ways of giving notice) and amended ss 4, 4A, 11, 12D, and 12E to reflect the new operational structure. The Torrens Assurance Fund remains a public fund (s 134).
• The Real Property Amendment (Land Transactions) Act 2009 introduced the notice under s 39(1B) and the certification regime now in the conveyancing rules. It also strengthened identity verification (s 56C).
• The Real Property and Conveyancing Legislation Amendment Act 2009 inserted ss 129A and 129B, capping compensation for mortgage fraud and limiting interest and costs components. It also clarified that the Assurance Fund does not cover personal injury (s 129(5)).
• The Conveyancing Amendment (Law of Support) Act 2006 and later amendments integrated positive covenants for support of land burdened by an easement (s 47(5B)–(5C)).

These changes reflect a policy shift from paper-based, certificate-driven title to a fully electronic, register-centric system that places greater emphasis on pre-lodgment verification and post-registration risk allocation.

The Torrens system has generated a rich body of case law, much of it concerning the limits of indefeasibility.

• Fraud: Bahr v Nicolay (No 2) (1988) 164 CLR 604 and Vassos v State Bank of South Australia (1993) 2 VR 316 confirm that “fraud” in s 42 means actual dishonesty, not constructive notice. However, a volunteer who takes with notice of an unregistered equitable interest may be bound (King v Smail [1958] VR 273).
• In personam exceptions: Bahr and Macquarie Bank Ltd v Sixty-Fourth Throne Pty Ltd [1998] 3 VR 133 establish that a registered proprietor may be subject to a constructive trust arising from his or her own unconscionable conduct, notwithstanding indefeasibility.
• Omitted easements: Cowell v Rosehill Racecourse Co Ltd (1937) 56 CLR 605 and later cases on s 42(1)(a1) illustrate the difficulty of proving an easement “subsisting immediately before” the land was brought under the Act.
• Compensation limits: Real Property and Conveyancing Legislation Amendment Act 2009 introduced ss 129A and 129B in response to large mortgage-fraud claims. Their constitutional validity and interaction with federal bankruptcy law remain live issues.
• Native title: Western Australia v Ward (2002) 213 CLR 1 and the recording provisions in s 12C have required the Registrar-General to develop protocols for dealing with native title determinations that affect Torrens titles.
• Electronic conveyancing: Challenges to the validity of digitally signed documents and the scope of client authorisations under s 107 have been rare but are expected to increase as PEXA and other ELNOs mature.

Controversies have also arisen over the Registrar-General’s power to correct the Register (s 12) and the breadth of the Assurance Fund exclusions (s 129(2)). The 2016 privatisation of LPI functions raised questions about the continued independence of the Registrar-General; the Land and Property Information NSW (Authorised Transaction) Act 2016 preserved statutory powers but created a dual public–private operational model that continues to be scrutinised.

Most practitioners are aware of the core indefeasibility rule, but several subtleties catch even experienced lawyers.

• Short-term leases: A lease not exceeding three years where the tenant is in possession binds a purchaser even though unregistered (s 42(1)(d)). The “three years” includes any option to renew that would take the total term beyond three years (Leitz v Picken [2011] NSWSC 1266).
• Omitted easements and profits à prendre: An easement created before land was brought under the Act but omitted from the folio remains enforceable (s 42(1)(a1)). Proving the easement “subsisted immediately before” the folio was created can be factually onerous.
• Mortgagee identity verification: Failure to comply with s 56C can expose the mortgagee to personal liability and may lead to cancellation of the mortgage recording (s 56C(6)). The section applies to transferees of mortgages as well.
• Caveats lodged without reasonable cause: Section 74P imposes liability for damages if a caveat is lodged or maintained unreasonably. Courts have awarded substantial sums where the caveator had no honest belief in the claimed interest (Beca Developments Pty Ltd v Idameneo (No 123) Pty Ltd (2004) 61 NSWLR 1).
• Priority notices and electronic lodgment: A priority notice protects only the dealing or dealings identified in it. If the subsequent dealing differs materially, the notice may not protect it (s 74W(3)).
• Crown land folios: When “The State of New South Wales” is recorded as proprietor, the estate is fee simple (s 13J), but the land remains subject to any reservations or conditions noted under s 13G. Practitioners sometimes overlook that revocation of a reservation does not cancel the folio (s 13I).
• Qualified and limited folios: A qualified folio remains subject to subsisting interests (s 28P(1)(d)). A purchaser cannot assume indefeasibility until the caution is cancelled (ss 28M–28MB).
• Assurance Fund exclusions: The list in s 129(2) is long. Mortgage fraud, omitted easements, and errors in measurement are common traps. The 2009 caps on mortgage-fraud compensation (ss 129A–129B) have significantly reduced payouts.

The single biggest “gotcha” remains the interaction between electronic conveyancing rules and the statutory requirement that a dealing be in registrable form (s 36(6)). A client authorisation that does not comply with the conveyancing rules can render the entire transaction vulnerable to challenge.

Compliance begins with culture, not checklists.

1. Title due diligence: Always obtain a current folio search and, for qualified or limited folios, a full historical search. Check for caveats, priority notices, writs, and unregistered instruments that may bind under s 42.
2. Identity verification: Comply with the know-your-client and verification-of-identity standards in the conveyancing rules (s 12E(1)(a)). Retain evidence for seven years (s 56C(3)).
3. Client authorisations: Use the exact form prescribed by the conveyancing rules. Ensure the authorisation expressly covers the dealing to be signed and that the signatory has actual authority.
4. Execution and witnessing: Follow the rules for paper and electronic execution. Where a client authorisation is used, the authorised associate’s signature satisfies the statutory execution requirements (s 107(4)).
5. Lodgment: Ensure the dealing is in registrable form (s 36(6)) before lodgment. Use an ELN where mandatory under the conveyancing rules. Pay all applicable fees and levies at the time of lodgment.
6. Caveats and priority notices: Lodge only where there is a genuine interest and a real risk of inconsistent dealing. Withdraw promptly once the interest is protected or satisfied. Record the withdrawal on the folio if required.
7. Mortgagees: Before registering a mortgage, verify identity under s 56C. On sale after default, comply strictly with the notice requirements of s 57 and the contractual terms of the mortgage.
8. Crown land and native title: When dealing with land that may be Crown land, obtain the necessary ministerial or Water Administration Ministerial Corporation consents. For native title, ensure any determination is recorded under s 12C before assuming the Register is exhaustive.
9. Record keeping: Retain all supporting documents for the periods required by the conveyancing rules and any professional indemnity policy. In the event of a claim on the Assurance Fund, full cooperation is mandatory (s 131(6)–(8)).
10. Dispute resolution: Where a boundary is in doubt, consider an application under Part 14A before litigation. Where fraud or error is suspected, notify the Registrar-General immediately and consider a caveat to preserve the status quo.

A practical compliance manual should be maintained by every firm, updated whenever the conveyancing rules or lodgment rules change, and audited annually. The cost of non-compliance—rejection, delay, personal liability under s 74P, or loss of recourse to the Assurance Fund—far exceeds the cost of getting it right the first time.