Conveyancing Transformed

NSW Regional Roadshow

Office of the Registrar General

April/May 2017

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Conveyancing Transformed - NSW

Regional Roadshow

Office of the Registrar General

1. Restructure and concession of LPI

2. Electronic conveyancing implementation

in NSW

3. The future of conveyancing

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Conveyancing Transformed - NSW

Regional Roadshow

Restructure and Concession of LPI

Update - LPI structural changes

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Update - LPI structural changes

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• Office of the Registrar General (ORG)

Will oversee the operations of LPI - Titling and

Registry Services – after concession

Focuses on legislative change and policy

administration relating to land registry functions

• LPI - Titling and Registry Services

Land Registry operations

Land and Property Information NSW (Authorised

Transaction) Act 2016 (NSW)

Private operator for 35 year Concession

Move to a private operator in the next few months

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Conveyancing Transformed - NSW

Regional Roadshow

Electronic Conveyancing Implementation in NSW

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Electronic Conveyancing

Implementation in NSW

Release 1 – 8 October 2013

- Mortgages and Discharges

- Big 4 banks + others

Release 2 – 14 November 2014

- Transfers, Caveats and Withdrawals of Caveat

- Representative Subscribers

- Electronic settlement

Nov 2016 – Priority Notices

Over 125,000 dealings lodged electronically

Over 1,800 Subscribers signed up

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Electronic Conveyancing Implementation

in NSW

e Dealing Lodgment Statistics to 24 March 2017 Total Release 1 Lodgments (Discharges &

Mortgages)2923

Release 2 Dealing Type Totals:

Discharge of Mortgage: 65,996

Transfer: 2,980

Mortgage: 52,792

Withdrawal of Caveat: 579

Caveat: 2,437

Total Release 2: 124,784

Priority Notice: 495

Total e Lodgments 125,279

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Electronic Conveyancing Implementation

in NSW

Total Solicitors (NSW) 1,178

Total Conveyancers (NSW) 387

Total Solicitors (VIC) 133

Total Conveyancers (VIC) 3

Total Solicitors (QLD) 60

Total Solicitors (ACT) 5

Total Solicitors (WA) 11

Total Conveyancers (SA) 1

Total Solicitors (SA) 8

Total Financial Institutions 86

Total Subscribers in NSW 1,872

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Conveyancing Transformed - NSW

Regional Roadshow

The Future of Conveyancing

The future of Conveyancing

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Conveyancing is undergoing “Digital Disruption”

“Digital disruption refers to changes enabled by digital technologies that occur at a pace and magnitude that disrupt established ways of value creation, social interactions, doing business and more generally our thinking.”

As a result Conveyancing is changing rapidly

Some Drivers for change:

• Electronic Conveyancing - PEXA

• National Consistency - ARNECC

• Changes out side “Conveyancing” – Digital Government; online property marketing; increased accessibility of information

Conveyancing Rules

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Real Property Act 1900 (NSW)

• Section 12E - The Registrar General may make Conveyancing rules covering, for example:

verification of identity and authority

client authorisations

the retention of documents and evidence

classes of documents that must be lodged electronically

alternative arrangements for execution and attestation

• The Registrar-General may refuse to accept or register, or may reject, a conveyancing transaction that does not comply with the requirements of the conveyancing rules [section 12E (9)]

A paperless conveyancing future in NSW

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What’s Next? 4 July 2016 - Dominic Perrottet, (former) Minister for Finance, Services and Property said:

“Across Australia, the future of conveyancing is digital. The benefits are clear, the technology is here, and this is our plan for NSW to lead the way. We are committed to working with all stakeholders to make sure they have the technical capacity, training and resources they need to adapt as conveyancing goes digital.”

A paperless conveyancing future in NSW

28 February 2017 - Victor Dominello, Minister for Finance,

Services and Property said:

“…the Government has committed to a detailed

timetable for the introduction of paperless

conveyancing. By July 2019, all standard

property transactions in NSW will be conducted

electronically, and all Certificates of Title will be

phased out in favour of e-Titles.”

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NSW - Transition to e-Conveyancing

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Stage 1

• 2016:

Priority Notices – introduced as electronic only: [R 8.1]

• 2017: Affects financial institutions (ADIs) in 2017 and parallels measures in Vic and WA

From 1 March 2017 - Mortgagees (or their representative) –standalone Discharges: [R 7.2]

From 1 March 2017 - Standalone Discharges by Authorised Deposit Taking Institutions (ADIs): [R 8.2]

From 1 March 2017 - Standalone Mortgages by ADIs in respect of which the National Credit Code applies: [R 8.2]

NSW - Transition to e-Conveyancing

Stage 1 Continued

From 1 March 2017 - Extension of eCT issue - ADIs will receive

an eCT on registration of an electronic mortgage (where they are

first Mortgagee): [R 9.1]

From 1 August 2017 - ADIs will receive an eCT on registration of

a paper transaction (where they remain first Mortgagee)

From 1 August 2017 - Refinance transactions by ADIs: [R 8.4]

From 1 August 2017 - Standalone Mortgages by ADIs whether

under the National Credit Code or not: [R 8.4]

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NSW to Transition to e-Conveyancing by 2018

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Stage 2:

• 2018:

1 July 2018 - standalone Caveats

1 July 2018 - standalone Transfers

1 July 2018 - Mortgages and Discharges by non ADIs

1 July 2018 - start cancelling paper CTs and issuing eCT held by non-

ADIs

October 2018 - complete cancelling paper CTs and issuing eCTs held

by ADIs

NSW to Transition to e-Conveyancing by mid-

2019

Stage 2 Continued

• 2019:

Paper CTs to be removed completely

All mainstream conveyancing to be lodged electronically -

combinations of Discharge, Transfer and Mortgage cases

Exceptions to all of the above: eg lodged with other dealing

Conveyancing Reform Committee will continue to meet to

advise on implementation

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NSW - Transition to e-Conveyancing

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A paperless conveyancing future in NSW -

Current eConveyancing Scope

1. Priority Notice, Extension of Priority Notice and Withdrawal of

Priority Notice

2. CoRD Consent

3. Discharge of Mortgage

4. Mortgage

5. Transfer

6. Caveat and Withdrawal of Caveat

NSW - Transition to e-Conveyancing

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A paperless conveyancing future in NSW

Residual Document Strategy

• Plan to enable more documents to be lodged electronically

• By mid-2019 the following will be available:

Change of Name

Notice of Death

Transmission Application

Lease

Transfer by Mortgagee

Transfer of Lease/Mortgage

Charge

What to expect in the future

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• Uniform National Mortgage Form

• Standard Mortgage Discharge Authority (PEXA based)

• Electronic contracts and Electronic Vendor Disclosure

• Introduce Client Authorisations for paper

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More Information - ARNECC Guidance

Notes

ARNECC has so far published 6 Model Participation Rules

Guidance Notes:

1. Client Authorisations

2. Verification of Identity

3. Certifications

4. Right to Deal

5. Retention of Evidence

6. Compliance Examinations

https://www.arnecc.gov.au/publications/mpr_guidance_notes

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Digital Innovation

“Digital innovation is transforming the way people

do business in every city and every country around

the world. The reality is the collaborative economy

is here to stay.”

Victor Dominello MP

19 January 2016