Authority Update - NSW - Version 3 of the LPI Conveyancing Rules

Version 3 Conveyancing Rules have been published. 

What are the Key Dates?

22 July 2017
Australian legal practitioners, law practices and licensed conveyancers will be permitted to sign the National Mortgage Form, provided they give certain certifications.

Amended conveyancing Rules (Rule 10) set out who can sign, and in each case, which of the certifications are required.

The certifications in Schedule 3 to the Participation Rules cover:

  • client Authorisations between the mortgagee and the mortgagee's Representative - certification 2
  • retention of evidence - certification 3;
  • the taking of reasonable steps to ensure the mortgage is correct and compliant with relevant legislation and
  • any prescribed requirements - certification 4
  • verification of the mortgagor's identity - certifications 1 and 5(a); an
  • a mortgagee obtaining a mortgage granted by the mortgagor on the same terms as the registry instrument or document lodged with the Land Registry - certification 5(b).

As provided under new Rule 10, the persons that can sign the NMF and provide certifications are:

  • a mortgagee only, if they provide certifications 3, 4 and 5
  • a mortgagee's Representative only, if they provide certifications 1, 2, 3, 4, and 5
  • a mortgagor and a mortgagee, if the mortgagee provides certifications 3, 4, and 5(a); and
  • a mortgagor and a mortgagee's Representative, if the mortgagee's Representative provides certifications 1, 2, 3, 4 and 5(a).

Client Authorisations
For a Representative to sign the NMF on behalf of a mortgagee, the Representative must first enter into a Client Authorisation with the mortgagee. 
The current Client Authorization form set out in Schedule 4 of the Model Participation Rules is sufficient for this 

1 August 2017
Standalone mortgages involving Authorised Deposit-Taking Institutions (ADIs) must be lodged electronically.

Refinance transactions involving ADIs must be lodged electronically.

  • This includes mortgages whether or not the NCC applies to the mortgage, if signed on or after 1 August 2017; and
  • Refinances, namely, any combination of discharge of mortgage and mortgage where both mortgagees involved in the transaction are ADIs, signed on or after 1 August 2017

Paper certificates of title will no longer be issued to ADIs upon lodgment of paper documents. Instead, the ADI will be recorded on the relevant folio of the Register, as having control of the right to deal for that title.

1 January 2018
All mortgages will be required to be lodged using the National Mortgage Form whether lodged in paper or electronically.

For more information CIB 2017/05

Read more of New South Wales Authority Updates

Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.