Amending a Bare Trust where title particulars are incorrect
We regularly get requests from clients to amend a bare trust deed because they entered the wrong property details on our order form (i.e. 12 Smith Street was really 12 Smith Lane) or that the property details have changed since they executed the Security Deed (i.e. Proposed Lot 12 at 553 Princes Highway Rockdale became 15/553 Princes Highway Rockdale upon registration).
We are asked for the price of “correcting” the error.
First, clearly if it was our error the cost is free. If it is the client’s error then we need to look at the following.
First, who is asking for the change? If it is a bank then you need to determine exactly what the bank want. We have two options.
The first option is to simply re-print the Security Deed with the correct details. You can ONLY choose this option where you have entered the wrong details on the previous Security Deed. It is not an option where title particulars have changed since executing the deed.
So, if you have given us 12 Smith Street when it should have been 12 Smith Lane then you can simply re-print the deed. It means you disregard the previous deed and execute this one. There is no cost for this. But you need to ensure that the bank will accept that.
In all other cases we need to prepare a deed of amendment of the original Security Deed. This is a separate deed that provides that the original deed was incorrect and we are correcting it. You will then have two separate deeds that evidence the arrangements. You will need to keep both copies. The cost for this deed (where it is client error) is $198 if the bare trust deed is a CST deed or $297 where it was prepared by another provider.
Please also note that where title particulars have changed between exchange and settlement then you can only have the deed of amendment prepared. A re-print with the correct details is not possible due to the fact that you executed the deed before those particulars were known.