54. The analysis of the claims for compensation in both New South Wales and Victoria indicates that most claims are based on clerical errors in the Land Titles Office. There are very few claims for incorrect registration of interests in land through legal defects in documents. Considerable efforts are made by the Registrar General and Registrar respectively to check for legal defects in the documents which are submitted for registration. The Registrar in Victoria has assured the Victorian Commission that the level of checking of documents has little, if anything, to do with the fear of claims for compensation. It is based, instead, on the need to maintain the integrity of the Register Book and to avoid giving legal effect to defective documents for the benefit of the public. Even so, the level of resources consumed in that process is a source of concern. A study in 1985 drew attention to the problem and suggested the gradual implementation of a risk management policy to reduce the cost of checking documents. It might be more efficient to divert resources away from the checking of documents to preventing claims that are showing actual difficulty for the registration system.

55. On the other hand, it could be argued that the absence of claims is largely due to the stringent checking procedures and administrative requirements of the Land Titles Offices. Even on this view, when one takes into account the large profit made by each Land Titles Office in contrast to the amounts of compensation claimed, there is still a strong case for an assessment to be undertaken of Land Titles Office procedures.

Proposal
The Registrar and Registrar General should engage an independent expert to undertake a cost-benefit analysis of the present checking procedures in each Land Titles Office with a view to establishing optimum levels for checking activities.