Authority Update - SA LTO Transition Period & Compliance Program

The amendments to the Real Property Regulations 2009 to extend the transition period for Mortgages and Discharge of Mortgages until 31 December 2017 have now been gazetted and are available at www.legislation.sa.gov.au

Please see Notice to Lodging Parties #198 for further information as to what will be accepted for registration during the transition period.

Compliance Program Update
The Compliance Program was introduced into South Australia in September 2016 to monitor the obligations and practices that support the certifications made by Industry Representatives are being met.

During the period 1 January 2017 to 31 March 2017, the LTO Compliance Team examined a total of 81 dealings from 27 different Industry Representatives. Of these 81 dealings, 82% resulted in a successful outcome, with 18% resulting in an unsatisfactory result.

The Compliance Program has highlighted that the most common errors relate to:

  • Verification of Authority (61.9%)
    • Unable to produce any form of evidence outside of Government Searches
    • Provide insufficient forms of evidence
    • Unable to produce any form of evidence
  • Client Authorisation (23.8%)
    • Minor omissions such as not clearly specifying and completing the transaction details panel and type of transaction
    • Incorrectly inserting the name of natural persons where the Transferor/Transferee is a company. (In such instances, the legal entity must be named as the client
    • Discrepancy between the Representative Name/ACN on the Client Authorisation and the representative firm making the Certifications on the corresponding dealing.
  • Verification of Identity (14.3%)
    • Unable to produce any form of evidence
    • Provide insufficient form of evidence

For more information on this program you can visit www.sa.gov.au/landservices or contact the Compliance Team at LTOCompliance@sa.gov.au

Read more of South Australia's 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.