Quick Answer
A title search for a first home buyer in the ACT centres on confirming the details of the Crown lease and any restrictions on the land. Unlike freehold states, all ACT land is held under a leasehold system. A current title and state lease search through TitleFinder costs $74.50 AUD and reveals the lease term, permitted use, easements, and any restrictive covenants. First home buyer due diligence must include checking these property title documents in the Australian Capital Territory before committing to a purchase.
Understanding the ACT Crown Lease System
In the Australian Capital Territory, you do not buy freehold land; you buy a lease from the Crown, typically for 99 years or a perpetual term. This lease dictates exactly what you can do with the property. If the original lease permits only a single dwelling, you cannot legally build a granny flat or subdivide without applying for a lease variation. Always check the lease purpose clause. If it does not match your intended use, factor the cost and time of a variation into your purchase decision.
Crown rent is another consideration. Most residential leases carry a nominal annual rent (often $1), but older commercial or mixed-use leases may have higher amounts. You must confirm the rent amount and ensure the seller has paid all arrears before settlement.
Property Title Documents Australian Capital Territory
A standard title search brings up several document types. Knowing what each document tells you prevents settlement surprises.
- Crown Lease (State Lease): The primary document. It shows the lease commencement and expiry dates, the permitted purpose (for example, residential or dual occupancy), and any annual Crown rent.
- Unit Plans: If you are buying an apartment or townhouse, the title will reference a unit plan. This plan details your unit boundaries, common property, and unit entitlement. Unit entitlement determines your voting power and your share of strata levies.
- Restrictive Covenants: These are rules recorded on the title that limit what you can do. A covenant might restrict building height, dictate fence styles, or prevent certain businesses from operating. Even if the local planning rules allow an alteration, a restrictive covenant can legally block it.
- Easements and Encumbrances: Easements give others rights over part of your land, such as a right of way for a neighbour or access for utility providers. Encumbrances include registered mortgages that the seller must discharge before settlement.
- Dealings and Instruments: Any registered document affecting the land, such as a lease variation or a specific agreement, appears as a dealing. You may need to order the specific instrument number to read the full conditions of an easement or variation.
When to Order a Planning Certificate
The title tells you what is legally registered against the property right now, but it does not show future planning controls. A planning certificate reveals zoning, heritage overlays, and bushfire or flood risk areas. If you intend to renovate, extend, or build, order a planning certificate alongside your title search to confirm local planning rules will permit your project.
Document Comparison: What to Order
| Document | What It Answers | When to Order |
|---|---|---|
| Current Title / State Lease | Who owns it? What is the lease term and purpose? Are there easements or covenants? | Always (Order through TitleFinder for $74.50 AUD) |
| Unit Plan | What are the unit boundaries? What is common property? What are the strata obligations? | When buying an apartment or townhouse |
| Dealings / Instruments | What are the exact terms of a specific easement, covenant, or lease variation? | When the title shows a registered dealing number that affects your intended use |
| Planning Certificate | What is the zoning? Can I build? Are there development overlays? | When planning renovations, extensions, or a change of use |
First Home Buyer Due Diligence Checklist
Work through this checklist before you exchange contracts on an ACT property:
- Order the Current Title / State Lease: Confirm the owner matches the seller and check the lease term remaining.
- Check the Lease Purpose: Verify the permitted use aligns with how you want to live in or develop the property.
- Review Crown Rent: Confirm the rent amount and ensure there are no outstanding arrears.
- Identify Restrictive Covenants: Read the restrictions to ensure you can make your planned changes (e.g., adding a carport, keeping pets in a townhouse).
- Locate Easements: Identify where drainage, sewerage, or access easements fall on the block. You cannot build over an easement without consent.
- Inspect the Unit Plan: For apartments, check your unit entitlement and the condition of common property.
- Order Additional Dealings: If the title references a lease variation, order the instrument to read the updated terms.
- Get a Planning Certificate: Confirm zoning and development potential for future renovations.
Timing Your Searches
Order your title search as soon as you are seriously considering a property, ideally before making an offer or during the early stages of conveyancing. In the ACT, the standard residential contract includes a cooling-off period, but it is safer to know exactly what is on the title before signing. If you are buying at auction, you must complete all due diligence prior to the auction date, as there is no cooling-off period. Ordering through TitleFinder ensures you receive the official property records promptly, giving your conveyancer enough time to review lease terms, covenants, and unit plans.
Frequently Asked Questions
Why does my ACT title mention a 99-year lease?
All land in the ACT is leasehold. The government grants a 99-year or perpetual lease. When you buy a property, you take over the remaining years on that lease. A 99-year lease does not mean the government will take your land back at the end of the term; perpetual leases and 99-year terms are automatically treated as continuous, but it remains a leasehold interest rather than freehold.
What happens if there is a restrictive covenant on the property?
A restrictive covenant legally binds you to its conditions, even if local planning laws permit your intended action. If a covenant restricts the property to a single dwelling, you cannot build a second dwelling unless you apply to have the covenant varied or removed. This process takes time and is not guaranteed, so you must assess the risk before purchasing.
Do I need a separate unit plan search for an apartment?
Yes. The title search will tell you the unit plan number, but the unit plan document itself shows the physical layout of the lots and common property. You need to review the plan to understand exactly what you are buying, where your boundaries are, and what shared areas you are responsible for maintaining through your strata levies.
Order the right TitleFinder document
Use this guide as a reference, then order the actual record that answers your question:
- ACT Certificate of Title — $69.90
- ACT Deposited Plan — $85.90
- ACT Instrument — $91.80
If you are unsure, start with the current title search, then add the plan or instrument if the title points to one.
Need the title search? Use the TitleFinder product links above to order the current title, plan, instrument or state-specific property record you actually need.