What Happens If a Title Search Reveals an Issue?

What Happens If a Title Search Reveals an Issue?

You’ve found the property, the price feels right, and you’re ready to move forward. Then your conveyancing solicitor calls with news: the title search has flagged something.

It’s a situation that catches plenty of buyers off guard. The good news? A title issue doesn’t automatically mean the deal is dead. In most cases, it simply means you need to understand what’s been found and what your options are.

A Quick Summary

• A title search checks the official record of a property’s ownership, registered interests and encumbrances through Titles Queensland
• Common issues include easements, caveats, unregistered interests and outstanding mortgages
• Under Queensland’s Property Law Act 2023, sellers must now disclose title information before you sign the contract
• Your conveyancing solicitor can advise you on whether to negotiate, request the issue be resolved, or walk away

What is a Title Search and Why Does it Matter?

A title search is a check of the official records held by Titles Queensland. It confirms who legally owns the property and lists any registered interests, restrictions or encumbrances that may affect it.

When a conveyancer in Cairns conducts a title search, they’re pulling up the property’s legal snapshot: current ownership, mortgages, easements, caveats, and anything else registered against the land under the Land Title Act 1994.

Your conveyancer will typically run this search twice. The first is done early, after contracts are exchanged, to confirm that the contract details are accurate. The second is done on the morning of settlement to make sure nothing new has been registered in the meantime.

What Issues Can a Title Search Uncover?

It’s worth noting that not every issue is cause for alarm. Some are completely standard, while others need more careful attention. Here are a few you might expect:

Easements

An easement gives someone other than the property owner the right to use part of the land for a specific purpose, like drainage, sewerage, or access to neighbouring properties. Most Queensland properties carry a standard Crown easement reserving the government’s rights to underground resources, which is usually nothing to worry about for residential buyers.

The ones to watch are service easements that physically restrict what you can do. An easement running through your backyard might prevent you from building a pool or extending the house.

Caveats

A caveat is a formal notice lodged against a property’s title, essentially a legal warning that someone else claims an interest in the land. Under the Land Title Act 1994, a caveat prevents certain dealings with the property until it’s resolved.

If your title search reveals a caveat, your solicitor in Cairns can help determine who lodged it, why, and what needs to happen for it to be removed before settlement.

Registered Mortgages

It’s normal for a title search to show a registered mortgage. The mortgage typically gets discharged at settlement when the bank receives its payout. It becomes a problem if the seller’s debt exceeds the sale price, meaning they may not be able to provide a clear title.

Ownership Discrepancies

Occasionally, the names on the title don’t match the contract. This can happen after a name change, a misspelling during lodgement, or a deceased estate where the title hasn’t been updated. These discrepancies need to be corrected through Titles Queensland before settlement can proceed.

What Should You Do if an Issue Comes Up?

Finding a title issue doesn’t mean the purchase falls apart. An experienced buyer’s conveyancer will explain what’s been found and whether it’s routine or something that could affect you long term. Depending on the issue, you may be able to:

• Negotiate a lower price to account for the restriction
• Request that the seller resolve the issue before settlement
• Include special conditions in the contract
• In some cases, terminate the contract altogether

If the issue is complex, involving boundary disputes, competing ownership claims, or statutory encumbrances, a buyer’s solicitor with property law experience can provide specific guidance on where you stand legally.

If you’re buying property in Cairns and want to make sure title issues are identified and handled early, our experienced conveyancing team can help. Get in touch for an obligation-free contract review and find out exactly where you stand before you commit.

How Queensland’s Seller Disclosure Regime Affects Title Searches

Queensland’s property laws changed significantly on 1 August 2025 when the Property Law Act 2023 took effect, replacing the Property Law Act 1974.

Under the new mandatory seller disclosure regime, sellers must provide buyers with a completed Form 2 Seller Disclosure Statement and prescribed certificates, including a current title search, before the buyer signs the contract. This was a major departure from Queensland’s long-standing “buyer beware” approach.

The consequences for sellers who fail to comply are serious. If the disclosure statement is incomplete, inaccurate or not provided, the buyer may have the right to terminate the contract at any time before settlement. If you’re selling, working with an experienced seller’s conveyancer is essential for getting this right.

Title Search Frequently Asked Questions

How much does a title search cost in Queensland? 

A standard title search through Titles Queensland typically costs around $35. Your conveyancer will usually order this as part of their standard search package.

Can I do a title search myself? 

You can order one through the Titles Queensland online platform (OTIS). Interpreting the results correctly, though, is where professional experience matters.

Can a title issue stop a settlement? 

Yes. If a caveat hasn’t been removed, a mortgage hasn’t been discharged, or ownership details don’t match the contract, settlement can be delayed or prevented until the issue is resolved.

Does the seller have to fix title issues before selling? 

Under the Property Law Act 2023, sellers must disclose known title issues in the Form 2 Seller Disclosure Statement. Whether they’re required to fix them depends on the specific issue and what the contract says.

Disclaimer: This blog is intended for informational purposes only and does not constitute legal advice. For guidance tailored to your specific circumstances, please consult a qualified legal representative.