Transcript What is Electronic Conveyancing?

Land Services Group
National Electronic Conveyancing
Industry Information Session
March & April 2013
WE WOULD LIKE TO ACKNOWLEDGE THIS LAND THAT WE MEET ON TODAY IS THE TRADITIONAL LANDS FOR THE KAURNA PEOPLE AND THAT WE
RESPECT THEIR SPIRITUAL RELATIONSHIP WITH THEIR COUNTRY. WE ALSO ACKNOWLEDGE THE KAURNA PEOPLE AS THE CUSTODIANS OF THE
ADELAIDE REGION AND THAT THEIR CULTURAL AND HERITAGE BELIEFS ARE STILL AS IMPORTANT TO THE LIVING KAURNA PEOPLE TODAY.
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Agenda
• Welcome – Brenton Pike
• National Overview – Steve Wilden
– Questions
• South Australian Implementation – Brenton Pike
– Questions
• Verification of Identity Policy – Cristina Florea
– Questions
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National Overview
Steve Wilden, Director Business Operations
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What is Electronic Conveyancing?
• Legal Framework
• Business Practices
• Business Model
• Software System
It is much more than a Software System
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Legal Framework
COAG National Partnership Agreement to Deliver a Seamless
National Economy
Intergovernmental Agreement for a National Electronic
Conveyancing Law
Electronic Conveyancing
National Law
Australian Registrars’
Operating Requirements
Operating Agreement
Australian Registrars’ National
Electronic Conveyancing Council
(ARNECC)
Australian Registrars’
Participation Rules
Participation
Agreement
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Intergovernmental Agreement (IGA)
• Provides governance for development, implementation
and management of the regulatory framework for National
E-Conveyancing
• Establishes the Australian Registrars’ National Electronic
Conveyancing Council (ARNECC) (www.arnecc.gov.au)
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Electronic Conveyancing National Law (ECNL)
• Application law system that facilitates the implementation and
operation of a national system of electronic conveyancing and
provides for:
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Electronic Lodgement Network Operator (ELNO)
Model Operating Requirements
Model Participation Rules
Use and Effect of Client Authorisation
Use and Reliance on Digital Signatures
Compliance Examination
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Electronic Conveyancing National Law (ECNL)
• Passed in the NSW Parliament (as the host jurisdiction for the
Law) in November 2012
• Other jurisdictions are in the process of enacting application or
corresponding legislation
• South Australia finalising ECNL Bill for Cabinet approval and
introduction into Parliament
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Model Operating Requirements (MOR)
• Set of common operating requirements determined by the Registrars
that an ELNO must comply with and includes:
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Eligibility Criteria
General Business Obligations
System Functionality
Information Security Management
Risk Assessment and Management
Business Continuity and Disaster Recovery
Change Management
Business and Services Disengagement
• Compliance demonstrated through Self Certifications, evidence and
Independent Certifications
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Model Participation Rules (MPR)
• A set of rules determined by the Registrars that a Subscriber
must comply with and includes:
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Eligibility Criteria
Compliance with Jurisdiction Laws
Client Authorisation
Verification of Identity
Instrument Certifications
Confidentiality
Security and Integrity
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Business Model
• National Electronic Conveyancing Development Ltd (NECDL)
established to develop and operate the electronic conveyancing
system (www.necd.com.au)
• Corporation limited by shares funded by government and industry
• Implementing the electronic conveyancing system to be known as
Property Exchange Australia (PEXA)
• PEXA will provide for:
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Preparation and lodgement of land title dealings
Electronic settlement of financial transactions
Disbursement of payments
Notification of settlement and lodgement
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Australian
E-Conveyancing
Model
Subscriber
FSM
User
Browser Interface
Client
Subscriber
Certifier
SP Browser
Interfaces
Service
Providers
User
Client
Financial Institutions
Web Services
SP Web
Services
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RBA
Settlement
RO1
LR1
RO2
LR2
Web Services
Subscriber
Certifier
Preparation
Compliance & Lodgment
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PEXA Implementation
Release 1 - mid 2013
• Functional Scope
– Standalone Discharge of Mortgage
– Standalone Mortgage
– Refinance
• Target Participants
– Victoria, New South Wales, Queensland and Western Australia
– Major Financial Institutions (NAB, CBA, ANZ, WBC)
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PEXA Implementation
Release 2 - mid 2014
• Functional Scope
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Transfer
Electronic Settlement
Caveats and Withdrawal of Caveats
Priority and Settlement Notices
• Target Participants
– All Land Registries
– Other Financial Institutions
– Legal Practitioners and Conveyancers
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South Australian Implementation
• Funding approved in the 2012-13 State Budget for $4.7 million
over 3 years:
– Prepare LSG and industry for implementation
– Implementation aligned with replacement of legacy land
administration systems through the South Australian Integrated
Land Information System (SAILIS)
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South Australian Implementation
Brenton Pike, Registrar-General
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Policy Directions and Reform
Alignment of the paper and electronic environments:
• One set of policies and requirements
• Provide a smooth transition and efficiencies between the two
lodgement mediums
• Avoid complexity of dealing with two separate systems and
requirements
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Legislative Amendments and Reform
• Electronic conveyancing will be the driver for significant
legislative reform
• Early adoption of policies and changes that can be introduced in
the current environment
• Other policies and changes will require amendments to the Real
Property Act 1886
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Consultation Plan
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Industry Representative Group
Industry Information Sessions
Video recordings of sessions for remote customers
Publication of NEC updates and policy papers on LSG web
page (www.sa.gov.au/landservices)
• Social media updates
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Policy Initiatives
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Verification of Identity
Client Authorisation
Priority Notices
Removal of duplicate Certificates of Title
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Verification of Identity
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First policy reform building block
Codification of need to verify client
Foundation for introduction of Client Authorisation
Provides consumer confidence to cater for the removal of
duplicate Certificates of Title
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Client Authorisation
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Closely linked to Verification of Identity policy
Removal of signatures
Removal of witnessing requirements
Client will sign a Client Authorisation form
Legal practitioner or Conveyancer certifies documents
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Priority Notices
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Notification to anyone searching Title of forthcoming dealing(s)
Gives confidence for transactions
Closely tied to the removal of duplicate Certificates of Title
Added measure to act as a barrier to multiple settlements
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Removal Duplicate Certificate of Title
• Duplicate Certificates of Title are not compatible with the move
towards a more electronic system
• Removal of this requirement will reduce costs and overheads for
Industry and Lands Titles Office
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Policy and Reform Building Blocks
Land Title Reform
Priority Notices
Removal of Duplicate Titles
Verification of Identity
Client Authorisation
Legal Framework
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Timeframes for Reform
3rd Qtr
2013
4th Qtr
2014
VOI
Legislative
Amendments
4th Qtr
2014
1st Qtr
2015
Client
SAILIS
Authorisation
1st Qtr
2015
2nd Qtr
2015
2nd Qtr
2015
Priority
Notices
Removal of
Duplicates
Go live
NEC
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Verification of Identity Policy
Cristina Florea, Business Specialist
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Reasons for Introduction
• Necessary for the introduction of electronic conveyancing
(condition in MPR)
• Aligning the paper and electronic environments
• Provide foundation for introduction of other policy initiatives
• Strengthen the integrity of the land administration system
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Key Provisions of VOI Policy
• Persons to be identified
• Reasonable Steps
• Process
• Identification document categories
• Specific requirements
• Use of agent
• Self-represented parties
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Persons to be Identified
• A representative needs to identify any of their clients or any
attorney/individual acting on behalf of that client
• An Authorised Deposit-Taking Institute (ADI), (or their
representative if they have one), must identify the Mortgagor if
the Mortgagor does not have a representative
• Any other person being given a duplicate Certificate of Title
which is not a representative or ADI
• Any person providing an Identifier Declaration
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Reasonable Steps
• A representative or ADI is required to use reasonable steps to
identify the person to be identified
• If the representative or ADI follows the steps outlined in the
policy this would be considered reasonable steps
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Process Outlined in Policy
• Face-to-face
• Use of identification document categories
• Supporting documentation
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Category
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Minimum Document Requirements
For persons who are Australian citizens or residents:
A passport issued by the Australian Government or foreign passport including an Australian
resident visa label plus Australian Driver’s Licence or Proof of Age Card plus Change of Name or
Marriage Certificate if necessary
A passport issued by the Australian Government or foreign passport including an Australian
resident visa label plus full Birth Certificate, Citizenship Certificate or Descent Certificate plus
Medicare, Centrelink or Department of Veterans’ Affairs card plus Change of Name or Marriage
Certificate if necessary
Australian Driver’s Licence or Proof of Age Card plus full Birth Certificate, Citizenship Certificate or
Descent Certificate plus Medicare, Centrelink or Department of Veterans’ Affairs card plus Change
of Name or Marriage Certificate if necessary
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Identifier declaration plus full Birth Certificate, Citizenship Certificate, Descent Certificate plus
Medicare, Centrelink or Department of Veterans’ Affairs card plus Change of Name or Marriage
Certificate if necessary.
b)
Identifier declaration by a person specified in Verification of Identity Policy plus Medicare,
Centrelink or Department of Veterans’ Affairs card plus Change of Name or Marriage
Certificate if necessary.
For persons who are not Australian citizens or residents:
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a) Foreign passport plus another form of government issued photographic identity document plus
Change of Name or Marriage Certificate if necessary
b) Foreign passport plus full Birth Certificate plus another form of government issued identity
document plus Change of Name or Marriage Certificate if necessary
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Specific Requirements
The following provisions have specific requirements under the
process outlined in the policy:
• Body corporate
• Attorney
• Foreign country
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Use of Agent
• An agent may be appointed to undertake VOI
• There are specific requirements an agent must meet
• Evidence is to be received from agent
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Self-Represented Parties
• Identity to be verified by an authorised person
• Authorised person’s certification form to be lodged
• Copies of identification documentation to be lodged
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Next Steps
• Introduction in 3rd quarter 2013
• Policy paper has been published on our web page
• Welcome feedback and comments
• Feedback and comments requested by end of May
• Comments to be provided to: [email protected]
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