1
play

1 CONVEYANCING TRANSFORMED | END TO END E-CONVEYANCING HAS ARRIVED - PowerPoint PPT Presentation

Jan 29, 2024 •231 likes •742 views

1 CONVEYANCING TRANSFORMED | END TO END E-CONVEYANCING HAS ARRIVED Conveyancing Transformed NSW Regional Roadshow David McDowell Legal Officer eConveyancing, LPI Conveyancing Transformed- NSW Regional Roadshow Priority Notices 3 Priority

  1. 1 CONVEYANCING TRANSFORMED | END TO END E-CONVEYANCING HAS ARRIVED

  2. Conveyancing Transformed NSW Regional Roadshow David McDowell Legal Officer eConveyancing, LPI

  3. Conveyancing Transformed- NSW Regional Roadshow Priority Notices 3

  4. Priority Notices • Notification of intended registration of specified dealing(s) with land • Temporarily prevents registration of other dealings (exceptions apply) • Gives priority to the registration of specified (unlodged) dealing(s) • Automatically removed when ceases to have effect or expired

  5. Legislation • The Real Property Amendment (Electronic Conveyancing) Act 2015 introduced Part 7B Real Property Act 1900 • Conveyancing Rules (Version 2, issued 28 October 2016) – Rule 8.1- electronic lodgment only • Available since 28 November 2016

  6. Why lodge a Priority Notice? • Effective risk mitigation tool for practitioners – Black v Garnock [2007] HCA 31) • Big head start in the “ race to the Register ” • Protection in gaps between – exchange and settlement – settlement and lodgment (paper) • Automatically removed when ceases to have effect or expired • Settlements where no CT

  7. Priority Notices- the future without CTs • New South Wales is moving to phase out paper certificates of title, and a number of other states have already done so. • A Priority Notice will be very useful for parties in the new world without paper certificates of title. After lodging a Priority Notice an incoming party has the assurance required to settle, knowing that that their dealings are protected by the Priority Notice. • In the current paper world parties get this assurance from taking custody of the certificate of title at settlement.

  8. Priority Notices • Priority Notice will operate for a specified period – 60 days (with ability to extend once only for 30 days) – during this period will prevent registration (but not lodgment) of most other dealing(s) • Recorded on the Register

  9. Folio of the register FIRST SCHEDULE -------------- JOHN CITIZEN (T AY1234566 ) SECOND SCHEDULE (2 NOTIFICATIONS) --------------- 1 RESERVATIONS AND CONDITIONS IN THE CROWN GRANT(S) M 2 AY 1234567 MORTGAGE TO ABC BANKING CORPORATION NOTATIONS ---------------- PRIORITY NOTICES: AZ1234567 EXPIRES 28/1/2017 DISCHARGE OF MORTGAGE AY1234567 TRANSFER TO JANE MARY SMITH UNREGISTERED DEALINGS: NIL

  10. Priority Notices • Expect majority to relate to settlement transactions - transfers and mortgages 3 New Forms PEXA fee LPI fee Priority Notice $8.80 $33.80 Withdrawal of Priority Notice $8.80 $14.00 Extension of Priority Notice $4.40 $14.00 All fees are inclusive of GST

  11. Priority Notices • A Caveat noted on the Register will not prevent recording of a Priority Notice. • A Priority Notice noted on the Register will not prevent recording of a Caveat. • A Priority Notice will prevent the recording of a Writ. • A Priority Notice does not require a CoRD Holder Consent or the Certificate of Title. • Details in the Priority Notice cannot be altered. If the information relating to a transaction needs to be changed then the Priority Notice must be withdrawn and a new Priority Notice lodged.

  12. Priority Notices • Priority Notice can be lodged over part of a land title for: – one or more lots in an Auto -Consul – a lot in an unregistered plan – premises (for a lease)

  13. Extension and Withdrawal of Priority Notices • The Subscriber who lodged the Priority Notice may lodge an Extension or Withdrawal of Priority Notice. • One only Extension for an additional 30 days giving a total of 90 days from the date of its lodgement. • The Priority Notice must be current at the time of lodgment of Extension or Withdrawal. • An Extension or Withdrawal must be over all titles listed in the Priority Notice.

  14. Dealings not prevented (s74W(2) RPA) • a dealing in registrable form lodged before the Priority Notice • the dealing or dealings to which the Priority Notice relates • a caveat or the withdrawal or lapsing of a caveat • a vesting or dealing pursuant to an Order of Court or a provision of a law of NSW or the Commonwealth • a Transmission Application by Executors or Administrators • an Application under s12 Trustee Act 1925 • a Notice of Death

  15. Dealings not prevented (s74W(2) RPA) • a dealing by a mortgagee or chargee (including power of sale) where the mortgage or charge was registered or lodged in registrable form before lodgement of the Priority Notice e.g. Discharge of Mortgage, Transfer of Mortgage, Transfer under Power of Sale etc. • a dealing effected by the lessee pursuant to a right conferred by the lease or by or under law where the lease was recorded or lodged in registrable form before lodgement of the Priority Notice, e.g. sub-lease, Transfer of Lease, Mortgage of Lease etc.

  16. Priority Notices- Consent • The person who lodged the Priority Notice may consent to the registration of a dealing or plan which is prohibited by the Priority Notice. • The consent must be in writing, signed dated and addressed to Land Property Information, NSW. • The consent will be filmed with the affected dealing or plan.

  17. Priority Notices- scenarios • If there are more dealings in the lodgment case than in the Priority Notice – eg, documents listed in the Priority Notice are Discharge of Mortgage and Transfer – dealings lodged are Discharge of Mortgage, Transfer and Mortgage – then LPI will register all dealings and remove Priority Notice .

  18. Priority Notices- scenarios • If there are less dealings in the lodgment case than in the Priority Notice – dealings listed in the Priority Notice are Discharge of Mortgage, Transfer and Mortgage – dealings lodged are Discharge of Mortgage and Transfer – then LPI will send notice (and wait for lodgment of Mortgage, consent, withdrawal of Priority Notice, or expiry of Priority Notice).

  19. 19

  20. 20

  21. 21

  22. Priority Notices – Further Information • Registrar General Directions http://rgdirections.lpi.nsw.gov.au/e-dealings/priority_notice • Priority Notice Circular http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0016/215431/2016- 14_Introduction_of_priority_notices.pdf

  23. Conveyancing Transformed- NSW Regional Roadshow eCTs 23

  24. What is an eCT? • eCT is an electronic Certificate of Title • Paper CT is not printed and issued for the current edition of the folio • Electronic record on the Folio of the Register • The record indicates the party with control of the right to deal 24

  25. Current eCT Eligibility • Real Property Act amended late 2013 – Option to request eCT for restricted parties – s33AA and 33AB • Currently eCT is available: – to APRA regulated financial institutions, – who are subscribers to PEXA or represented by a subscriber to PEXA, and – who are the first registered mortgagee. 25

  26. eCTs • Currently eCT is only available following registration of new electronic mortgages (optional) • Over 30,000 eCTs issued • 1 March 2017- eCTs to issue to eligible mortgagees from all eMortgages • 1 August 2017- eCTs to issue to eligible mortgagees from paper lodgements • Major banks looking to bulk convert CTs 26

  27. Title Search – eCT (CoRD Record) 27

  28. Historical Search – eCT (CoRD Record) 28

  29. Impacts of eCT • Impacts everyone in the property industry – surveyors, solicitors, conveyancers, financial institutions, lodging parties, etc - not just PEXA users • Changes how mortgagees provide consent for all dealings and plans 29

  30. Impacts of eCT • CT not handed over at paper (or electronic) settlement • CT not produced to LPI for subsequent transactions • CoRD Holder Consent lodged through PEXA in lieu of CT 30

  31. CoRD Holder Consent • Alternative safeguards required to prevent fraud when a paper CT is not issued • For eDealings - Consent is with the dealings • For paper dealings - Consent is lodged separately (standalone) • Only require CoRD Holder Consent for dealings that would normally require the CT 31

  32. CoRD Holder Consent Different consent types depending on the transaction: 1. Transacting Party Consent – used for settlement transactions 2. Third Party Consent – used for subsequent dealings and plans (similar to production) 32

  33. Transacting Party Consent • CoRD holder is a party to the transaction • CoRD is passed over at settlement • Examples: – Discharging mortgagee for a DTM – Discharging mortgagee for a refinance 33

  34. Third Party Consent • Similar to the concept of production • CoRD holder is not a party to the transaction • Provided to enable registration of a subsequent transaction • CoRD holder retains CoRD after registration 34

  35. Conveyancing Transformed- NSW Regional Roadshow eCT and paper settlements 35

  36. eCT and paper settlements • A paper CT is not required for settlement purposes • If eCT – discharging mortgagee lodges a CoRD Holder Consent prior to settlement • The consent type is Transacting Party Consent • Consent must specify details of the incoming transaction 36

  37. eCT and paper settlements • Complete Request for Consent eForm with transaction details • Submit request form to initiate lodgment of a CoRD Holder Consent • Available on the Registrar General’s Directions with instructions 37

Recommend

More recommend