Transcript THE CONVEYANCING PROCESS

ELECTRONIC CONVEYANCING WORKSHOPS
2009
Simon Libbis
Executive Director
Ann Kinnear
Operations Manager
NOT JUST A COMPUTER SYSTEM
A business model
•
Roles, relationships and responsibilities
A legal framework
•
Legislation, rules, compliance and discipline
A risk management regime
•
Allocation, mitigation, transfer and compensation
Supporting business practices
•
Verification, authorisation, certification and justification
A software system
•
Integrated, fully-featured, secure and reliable
Governance arrangements
•
Independent, inclusive, sustainable and competent
Industry, community and government confidence
© National Electronic Conveyancing Office
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THE CONVEYANCING PROCESS
Financing Disclosure
Contract
Searches
Document Document Document Document Financial
Lodgment Registration Publication
Preparation Signing Stamping Exchange Settlement
Electronic Conveyancing (NECS)
Electronic
Lodgment
Automatic Registration
& Publication
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NATIONAL BUSINESS MODEL
Subscriber
Financial Institutions
FSM
User
Client
Subscriber
NECS Browser Interface
Certifier
LSP Browser
Interfaces
LSP
LSP Web
Services
User
Client
Subscriber
Certifier
© National Electronic Conveyancing Office
NECS Web
Services
NECS Web
Services
Preparation
N
E
C
S
RBA
Settlement
RO1
LR1
RO2
LR2
etc
Lodgment
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DEVELOPING REQUIREMENTS
Client
Subscriber
N
E
C
S
Certifier
Client Identity
Verification
LR
Control of Right
to Deal
Client
Authorisation
Instrument
Certification
Settlement
Disbursements
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CLIENT IDENTITY VERIFICATION
Issue
•
A transacting party does not sign registry instruments directly
Importance
•
Title register integrity
•
Fraud prevention
•
Allocation of liability
Proposal
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A purpose-built CIV standard based on current banking industry practice under AML
legislation
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CLIENT AUTHORISATION
Issue
•
Subscriber must be authorised
Importance
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Provides confidence that participants have authority to act for clients
Proposal
•
A standard form Client Authorisation prescribed for all participants in NECS
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OPERATIONAL ROLES
Issue
•
User entitlement to carry out specific functions
Importance
•
Allocation of responsibility
•
Confidence of all users
Proposal
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Subscriber -legal entity, has business relationship with NECS
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Certifier - certifies Subscriber compliance with NECS requirements
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Either subscriber or certifier must be qualified
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INSTRUMENT CERTIFICATION
Issue
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The extent and nature of certifications
Importance
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Reliance on data by land registries
•
Confidence of participants and community
Proposal
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Five certifications in total
•
Two given when committing to Participation Rules - correctness of instrument
information, compliance with legal requirements
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Three given before signing instruments - Client Identity Verification done, Client
Authorisation obtained, Supporting Evidence OK
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DIGITAL SIGNATURES
Issue
•
A secure system for signing documents in an electronic environment
Importance
•
Certainty as to identity, security, authentication and non-repudiation in electronic
transactions
Proposal
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Use of Gatekeeper-accredited DSCs – government-regulated framework
•
Organisation DSCs with prescribed CIV checks on Child Certificate
© National Electronic Conveyancing Office
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MORTGAGE COUNTERPARTS
Issue
•
Mortgagor not represented
Importance
•
Accommodating current conveyancing practices
Proposal
•
Mortgagee signing for mortgagee only with the mortgagee certifying CIV on the
mortgagor and separate signing by mortgagor
•
Optional signing by both mortgagor and mortgagee
© National Electronic Conveyancing Office
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SETTLEMENT DISBURSEMENTS
Issue
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Electronic funds transfers from settlement go to the correct account
Importance
•
Risk of error in entering bank details
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Settlement still proceeds
Proposal components
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Optional use of Trust Accounts
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Optional pre-establishment of account details
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Co-signing by banks of their customer’s account details
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Mandatory dual entry of account details
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CONTROL OF THE RIGHT TO DEAL
Issue
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There will be no paper Certificate of Title in the electronic environment
Importance
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The paper CT currently plays a role in fraud prevention and protection of the register
Proposal
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Control of the right to deal determined from register and supported by identification
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LEGAL FRAMEWORK
Issue
•
Development of a single national legal framework
Importance
•
No net increase in risk
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Confidence that all significant risks are known, have been fairly allocated and will be effectively
managed
Proposal
•
Consistent Legislation in each jurisdiction
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Legislation enables Land Registry authorisation of Electronic Lodgment Networks (ELN)
satisfying minimum criteria
•
ELN operators provide Participation Rules & Service Charters
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Participation Rules define ELN obligations on Subscribers, Certifiers & LSPs
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Service Charters define ELN performance commitments to Subscribers, LSPs, LRs & ROs
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THE NEED FOR A NATIONAL ELECTRONIC
CONVEYANCING DATA STANDARD
What is the National Electronic Conveyancing Data Standard (NECDS)?
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A common format for transmission of data
Why is it important?
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All users can communicate with each other via web services without changes to their
own systems
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Provides faster, more convenient and more efficient system interactions
What will the NECDS help us achieve?
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A National system with a common language for the entire process
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Reduction in the amount of rework needed
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Straight through processing in the conveyancing industry
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THE DEVELOPMENT PROCESS
How
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National Office is working with LIXI to develop the NECDS
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NECDS Working Group – jurisdictions and industry
Completed so far
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NECDS Requirements Document – defines the process flow of messages needed for
transactions between NECS and LR and Subscribers and NECS
Current work
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Development of a single controlled NECS Vocabulary
Ultimate goal
•
Detailed XML Schema for each transaction or NECDS
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ELECTRONIC CONVEYANCING WORKSHOPS
2009
Simon Libbis
Executive Director
Ann Kinnear
Operations Manager