What Are Encumbrances on a Queensland Property Title?
When you order a title search in Queensland, one of the most important sections to review is the encumbrances listed on the title. An encumbrance is any registered interest, claim, or restriction that affects the property — and understanding them is essential before you commit to a purchase, refinance, or development.
Unlike easements or covenants (which are specific types of encumbrances), this guide covers the full spectrum of encumbrances you might encounter on a Queensland certificate of title, including mortgages, statutory charges, writs, and priority notices.
Why Encumbrances Matter to Property Buyers
Encumbrances directly affect what you can do with a property and, in some cases, whether the seller can even transfer clear title to you. A property might look perfect on inspection, but the title could reveal:
- Outstanding mortgages that must be discharged before settlement
- Statutory charges from unpaid rates, taxes, or body corporate levies
- Writs or court orders that freeze dealings on the title
- Priority notices flagging a pending transaction by another party
- Profit à prendre rights allowing someone to extract resources from the land
Failing to identify encumbrances before settlement can lead to costly legal disputes, delayed transactions, or inheriting debts tied to the land itself.
Types of Encumbrances on Queensland Titles
1. Mortgages
The most common encumbrance. A mortgage registered on the title gives the lender (mortgagee) a security interest in the property. When a property is sold, the existing mortgage must be discharged — meaning the seller pays out the loan and the lender releases their claim on the title.
Your title search will show the mortgage dealing number, the lender's name, and the date of registration. If you're buying, your conveyancer will ensure the seller's mortgage is discharged at or before settlement.
2. Statutory Charges
Government bodies can register charges against a property for unpaid debts. Common examples include:
- Unpaid council rates — local councils can register a charge for overdue rates
- Land tax arrears — the Office of State Revenue can register charges for unpaid land tax
- Body corporate levy arrears — for strata properties, unpaid levies can become a registered charge
- Environmental remediation orders — contaminated land may carry charges for cleanup costs
Statutory charges take priority over most other interests and can survive a change of ownership in certain circumstances. This makes them particularly important to identify during due diligence.
3. Writs and Court Orders
A writ registered on a property title is a court order that can prevent the owner from dealing with the property. Writs are typically registered in debt recovery proceedings or family law disputes. If you see a writ on a title, do not proceed without legal advice — it signals active litigation involving the property owner.
4. Priority Notices
Introduced under the Land Title Act 1994, a priority notice is a temporary registration that protects a party's interest in an upcoming transaction. It lasts for 60 days (with possible extensions) and effectively warns anyone searching the title that a dealing is in progress.
If you're considering an offer on a property that has a priority notice registered, it may indicate the seller is already committed to another buyer or transaction.
5. Profit à Prendre
Less common but still relevant, a profit à prendre grants someone the right to take something from the land — timber, minerals, crops, or other natural resources. These are more frequently seen on rural and semi-rural Queensland properties. They can significantly affect the value and utility of the land.
6. Leases
Registered leases appear as encumbrances on the title. If you're buying an investment property, existing leases are important — they bind the new owner. For commercial properties especially, long-term leases can be both an asset (guaranteed income) and a limitation (you can't vacant-possess the property).
7. Resumption or Acquisition Notices
State or local government can compulsorily acquire land for public purposes (roads, infrastructure, parks). A resumption notice on the title indicates the government has flagged the property for potential acquisition. This is a serious red flag for buyers and should prompt immediate legal investigation.
How to Check for Encumbrances in Queensland
The only reliable way to identify all encumbrances on a Queensland property is to order a current title search. The title search document — formally called a Title Reference Search — lists every registered interest on the property, including:
- Current registered owner(s)
- Lot and plan description
- All registered encumbrances with dealing numbers
- Any caveats, mortgages, easements, and other interests
At TitleFinder, you can order a current title search for $74.50 AUD, delivered digitally. If the title reveals encumbrances you need to investigate further, you can also order copies of specific dealing instruments for $91.80 AUD each — these are the actual registered documents that detail the terms of each encumbrance.
Encumbrances vs Easements vs Covenants: What's the Difference?
People often confuse these terms. Here's the distinction:
- Encumbrance is the broadest term — it covers any registered interest or restriction on the title, including easements, covenants, mortgages, leases, and charges
- Easement is a specific type of encumbrance that grants someone the right to use part of your land (e.g., a drainage easement or access easement)
- Covenant is another specific type — a restriction on what you can or cannot do with the land (e.g., building height limits, approved materials)
So all easements and covenants are encumbrances, but not all encumbrances are easements or covenants.
What to Do When You Find Encumbrances on a Title
- Don't panic. Most properties have at least one encumbrance (usually a mortgage). The key is understanding which ones are routine and which are problematic.
- Order the dealing instruments. The title search tells you an encumbrance exists; the dealing instrument tells you the details. For example, a registered easement might be a simple council drainage pipe — or it could cut through your planned building footprint.
- Consult your conveyancer or solicitor. They can advise whether encumbrances will be cleared at settlement (like mortgages) or whether they'll bind you as the new owner.
- Factor encumbrances into your offer. Properties with significant encumbrances (statutory charges, resumption notices, restrictive covenants) may warrant a lower offer or additional contract conditions.
Common Encumbrance Scenarios in Queensland
Scenario 1: Buying a Unit with Body Corporate Charges
You find a statutory charge for unpaid body corporate levies. This means the current owner is behind on their levies. Your conveyancer should ensure all levies are paid before settlement, or negotiate an adjustment. If the charge isn't discharged, you could inherit the debt.
Scenario 2: Rural Property with a Profit à Prendre
A registered profit à prendre allows a third party to harvest timber from the property. Before purchasing, you need to understand the scope and duration of this right — it could significantly limit your use of the land.
Scenario 3: Development Site with a Priority Notice
You're interested in a development site, but the title shows a priority notice from another buyer. This suggests the seller may already be under contract. Your solicitor can advise on whether to wait for the notice to lapse or look elsewhere.
Order Your Title Search Today
Understanding encumbrances starts with a thorough title search. At TitleFinder, we provide fast, digital title searches for Queensland properties:
- Current Title Search: $74.50 — see all registered encumbrances
- Dealing Instrument: $91.80 — get the full details of any registered dealing
- Historical Title Search: $86.50 — trace encumbrances through previous ownership
- Survey Plan: $85.90 — check physical boundaries and easement locations
Whether you're a first home buyer, investor, or property professional, knowing what's on the title before you commit is the smartest move you can make.