Conveyancing Transformed NSW Regional Roadshow April/May 2017 Office of the Registrar General
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 2
Conveyancing Transformed - NSW Regional Roadshow Restructure and Concession of LPI 3
Update - LPI structural changes 4
Update - LPI structural changes • 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 5
Conveyancing Transformed - NSW Regional Roadshow Electronic Conveyancing Implementation in NSW 6
Electronic Conveyancing Implementation in NSW Release 1 – 8 October 2013 - Mortgages and Release 2 – 14 November 2014 Discharges - Transfers, Caveats and - Big 4 banks + others Withdrawals of Caveat - Representative Subscribers - Electronic settlement Over 125,000 dealings lodged electronically Over 1,800 Subscribers signed up Nov 2016 – Priority Notices 7
Electronic Conveyancing Implementation in NSW e Dealing Lodgment Statistics to 24 March 2017 Total Release 1 Lodgments (Discharges & 2923 Mortgages) Release 2 Dealing Type Totals: 65,996 Discharge of Mortgage: 2,980 Transfer: 52,792 Mortgage: 579 Withdrawal of Caveat: 2,437 Caveat: 124,784 Total Release 2: 495 Priority Notice: Total e Lodgments 125,279 8
Electronic Conveyancing Implementation in NSW Total Solicitors (NSW) 1,178 Total Conveyancers (NSW) 387 133 Total Solicitors (VIC) 3 Total Conveyancers (VIC) 60 Total Solicitors (QLD) 5 Total Solicitors (ACT) 11 Total Solicitors (WA) 1 Total Conveyancers (SA) 8 Total Solicitors (SA) 86 Total Financial Institutions Total Subscribers in NSW 1,872 9
Conveyancing Transformed - NSW Regional Roadshow The Future of Conveyancing 10
The future of Conveyancing 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 11
Conveyancing Rules 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)] 12
A paperless conveyancing future in NSW 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. ” 13
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 .” 14
NSW - Transition to e-Conveyancing 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] 15
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] 16
NSW to Transition to e-Conveyancing by 2018 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 17
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 18
NSW - Transition to e-Conveyancing 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 19
NSW - Transition to e-Conveyancing 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 20
What to expect in the future • Uniform National Mortgage Form • Standard Mortgage Discharge Authority (PEXA based) • Electronic contracts and Electronic Vendor Disclosure • Introduce Client Authorisations for paper 21
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 22
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 23
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