Jonathan Smithers, chief executive of the Law Council of Australia, and Gary Ulman, president of the Law Society of NSW, are against the sale of the NSW land titles registry. Credit:Edwina Pickles "Since the data is still going to be owned by the government and price rises are capped, the private operator is going to run it more cheaply to make a profit, meaning consumers will end up paying more for a lesser service." The Baird government is collecting the first round of bids with hopes to grab as much as $2 billion so it can upgrade ANZ Stadium and rebuild Parramatta Stadium. It has no support from the property industry for the lease, with developers, real estate agents and property professionals, such as surveyors, expressing fears about higher costs and fraud risks. In July it split the original LPI into five units and axed 70 employees, sparking internal "chaos" that led to an error; more than 200 families unknowingly bought homes in the path of a future F6 freeway.

Staff at NSW's Land and Property Information protested against the government's privatisation plans in June. Credit:Public Service Association Gary Ulman, president of the Law Society of NSW, is demanding the government repeal the legislation allowing the lease of the land titles registry – an efficient, innovative and income-generating monopoly that keeps sensitive details of who owns what land. "The registry is a precious asset of the state and its real value lies in its sustained integrity and the role it has in supporting the property market and the wider economy," he said. Land and Property Information keeps the official record of land ownership in NSW. It issues the Certificate of Title. Credit:Land and Property Information NSW "The UK government saw the light. It realised there were IT risks, risk of fraud, risk of corruption, and it didn't make good economic sense to have a one-off cash grab."

Under a privatised system, titles would continue to be guaranteed by the government and any loss as a result of fraud or error could be compensated via the Torrens Assurance Fund (TAF) - funded by a $4 levy on every dealing. Treasurer Gladys Berejiklian with Premier Mike Baird. Credit:Louise Kennerley The guarantee is the hallmark of the Torrens title system and allows homeowners to have confidence in their land ownership, currently negating the need for title insurance, as commonly seen in the US. But Mr Ulman said the reassurance was of little comfort. "Anybody who loses a title has to make a claim on the TAF after having exhausted their legal rights, meaning they're going to have to first expend enormous amounts of money," he said.

"The TAF is a fund of last resort." The Law Society told Treasurer Gladys Berejiklian back in September the LPI "belongs wholly within government", warning the 35-year lease could lead to "a loss of public confidence in the land titling system ... the damage may be irreparable ... and the skills required to maintain and operate the system may have been lost". Mr Ulman was also dubious about the promise to limit price rises by the Consumer Price Index (CPI), embedded in legislation passed in September "at lightspeed". "In parallel with the legislation is the concession deed, which also governs the contractual arrangements between the government and whoever the operator is and that has no parliamentary oversight," he said. "So the government is capable of changing the terms under which the concession is operated if down the track an approach is made by the operator to increase fees."

Competition watchdog in talks Rod Sims, chairman of the Australian Competition and Consumer Commission, said it was in ongoing talks with NSW and South Australian governments about privatising their land registries. He has previously said he was losing faith in privatisation of monopoly infrastructure, with the governments' focus on maximising sale proceeds "severely damaging our economy" and "increasing prices". "It only works when either you privatise it into a competitive market or where you've got appropriate regulatory arrangements," Mr Sims told Fairfax Media. "We need it to be done properly so that the long-term interests of consumers are uppermost."

The government said there will be safeguards such as minimum service levels, penalties, and step-in and termination rights, to maintain the integrity of the system. "The NSW government takes consultation with stakeholders, including the Law Society of NSW, very seriously – we consulted widely before finalising the enabling legislation and continue to consult stakeholders," Ms Berejiklian said. "Our priorities during this process are maintaining the confidence of the NSW public in the titling system and promoting improvements, innovation, investment in technology and increased efficiency." Calls for transparency After two attempts in two years, the British government ditched its privatisation plans last month, saying its registry "should focus on becoming a more digital data-driven registration business, and to do this will remain in the public sector".

Unlike the Baird government, the Tories released the scoping study and held public consultations. It's understood the development hasn't stymied the Baird government's privatisation plans. Mr Smithers said the lease would undermine the government's other objectives of growing business and confidence in the economy. "This is a national infrastructure and affects everybody's ownership of land, so I think it would be helpful for the government to release the scoping study so that everybody understands," he said. "They did that in the UK so everybody could make their feelings known and the professions were able to explain the ramifications of what they're doing."