The privatisation of the registry could make title insurance a necessity for home buyers which would add to the cost of buying a home.

Under Australia's Torrens title system land title fraud is rare because titles are guaranteed by the government and a Certificate of Title is an official land-ownership record.

Local real estate agent Casey Grob said any increases in charges to home buyers would affect the sales market regardless of the size of the town.

“This move by the state government may a have a negative impact on the local market,” she said.

“It is the uncertainty of costs that may unsettle buyers, and that would be the same whether it was Glen Innes, Armidale or a big city.”

“Any extra dollars that a buyer has to spend to buy a property is certainly something that they would take into account when they purchase.”

President of the Institution of Surveyors NSW Michael Green said the introduction of title insurance could quietly undermine and eventually replace the government guarantee.

“This move could see struggling homeowners in Glen Innes and first time buyers pay an extra $900 to move home, buy land or change titles through increased fees from new private operators or, like the United States, because they have to buy Land Title Insurance to cover themselves against Title Fraud,” he said.

“Not only would a homeowner in Glen Innes have to pay for extra insurance to compensate for the loss of confidence in the government’s guarantee, but surveyors, lawyers and other associated professionals would be forced to pass on additional fees as their costs shoot up as a result of private management.

“Currently, the laws are bulwarks of confidence, and the Torrens principle is airtight. But by passing the control of such a sensitive legal area over to a private operator or superfund, could we say that the same level of confidence could be held in their guarantees?”

Mr Green said the Government proposal to sell such a sensitive infrastructure to pay for a stadium in Sydney was a poorly conceived idea that was disrespectful to the importance of the Registry.  

“Putting a fundamental institution up for sale to simply develop a sporting venue demonstrates how little respect the Government has for the rule of law,” he said.

“Chasing a short-term gain at the cost of long stable revenue seems synonymous with this government.”