Authority Updates - Next phase of registrar requirements for paper transactions

The next phase of requirements imposed by the Victorian Registrar for paper transactions, will come into effect in May 2017.

On the 22 March 2017 we held a webinar outlining the key changes being made by the Victorian Registrar.

 



26 May 2017

  • Implement National Mortgage Form.
  • Client authorisation required for paper conveyancing.
  • Certifications required for paper conveyancing including those for mortgages under section 74(1A) of the Transfer of Land Act 1958.

1 August 2017

  • Refinance transactions, where the transacting parties to discharges of mortgage and mortgages are authorised deposit-taking institutions (ADIs) under the Banking Act 1959 (Cth), to be lodged electronically (PEXA), this includes both retail and commercial mortgages

Proposed dates for mandatory electronic lodgement of caveats, standalone transfers, survivorship applications, transmission applications, a combination of these transactions and all remaining transactions, are currently under consultation and further details will be published in due course.

  • National Mortgage Form
    Australian Registrars' National Electronic Conveyancing Council (ARNECC) has published an updated version of the National Mortgage Form Specification, which can be found here with information sheets for signing and witnessing in each jurisdiction

    The specification of the National Mortgage Form is to enable financial institutions and other mortgagees to prepare their systems and processes for 26 May 2017, to prepare and lodge real property mortgages Nationally. It also sets out the basis of the types of executions that will be accepted and lodged in each jurisdiction, including the execution details for the mortgagor and mortgagee for each jurisdiction. 

    Customers will be able to lodge the National Mortgage Form electronically or on paper.

    26 May 2017 to 31 December 2017 (Transition period)  - for paper customers will be able to lodge both the National Mortgage Form and their existing approved forms. 

    From 1 January 2018 only the National Mortgage Form will be accepted for lodgement. 
    NB:No other types of mortgage forms will be accepted for lodgement after 1 January 2018

  • National Registry form portal 
    ARNECC has created a national registry form portal where National forms can be completed online and printed (or downloaded as a completed form). The webforms cannot be downloaded for local use, cannot be stored for re-use later, and cannot be partially completed and stored for later use.  

  • Client authorisations and Certifications
    Client authorisations for paper conveyancing transactions will come into effect on 26 May 2017. The client authorisation authorises a conveyancer or lawyer to act on behalf of a buyer or seller or third party and sign paper conveyancing transactions on their behalf.
    Certifications for paper conveyancing transactions will likely come into effect from 26 May 2017. This will require a conveyancer, lawyer, an ADI and PEXA subscriber to provide certifications for each paper conveyancing transaction they sign. 

    26 May 2017 to 31 December 2017 (Transition period) - customers will be able to lodge new forms containing certifications or their existing approved forms. 
    From 1 January 2018 forms containing certifications will be only be accepted for lodgement. 
    Certifications and signing selections will be included in new versions of forms yet to be published.
    Conveyancers and lawyers already transacting in PEXA should be aware client authorisation and certification requirements are already in place. 

  • Refinance transactions to be lodged electronically
    There is a proposal by the Registrar to expand requirements for ADIs to require all refinance instruments (discharges of mortgage and mortgages) signed on or after 1 August 2017, when both parties in the transaction are ADIs, to be lodged electronically.

    NB:The above requirement for mortgages signed on or after 1 August 2017 will include any mortgage (retail and commercial), not just those to which the National Credit Code applies.

  • Forms
    The Registrar is making changes to form approvals. 
    There will be three categories of approved forms

    • Registrar's approved forms - these forms are on the DELWP website for use by customers.

      Existing forms will be replaced to allow for new sections within the new forms for mandatory certifications. These new forms will be approved and available on DELWP's website from May 201

    • Individual approved forms - these are forms approved by the Registrar for use by individual conveyancers, lawyers, mortgagees or their organisation.

      The Registrar has ceased approving individual forms. Previously approved forms can continue to be lodged until 31 December 2017. From 1 January 2018 only forms containing certifications will be accepted for lodgement. Old forms cannot be amended to include certifications

    • Form Providers approved forms - these are forms approved by the Registrar for Form Providers to give to their customers.

      Form Providers such as SAI will amend their existing forms by adding certifications and seeking the Registrar's approval. Existing forms can continue to be lodged until 31 December 2017

  • New lodgement option at Plan Acceptance - plan lodgement drop off
    A drop-off area is now located at the counter on Level 23 at 570 Bourke Street to allow lodging parties and/or agents to drop off all required documents. Customers are required to clip together all necessary documents and payment instructions to avoid any unnecessary refusals. By providing an email address customers can be notified when their lodgement has been processed and is ready for collection. There are no additional fees for using the drop-off option for lodgement.

  • Update on bulk conversion of paper Certificates of Title to electronic Certificates of Title
    Conversion of pCTs with ANZ, CBA, NAB and Westpac and their brands as first mortgagee was completed in October 2016. LUV is now working with other ADIs to arrange conversion of their pCTs. Additional information on further bulk conversion initiatives will be provided.

  • Delay to change of practice for Not in Common Ownership (NICO) plans
    Until otherwise notified, when a NICO situation arises as a result of a plan of subdivision, the lodging party will be contacted by LUV staff to advise that upon registration a NICO folio(or folios) will be created. The plan will then be registered. 

    NB:  A plan affecting an existing NICO parent folio will not be registered until the NICO elements, including proprietorship and encumbrances, have first been resolved.

  • Confirming note on priority notices
    Once recorded, a priority notice will prevent the registration of any other dealing over the cited folio for a period of 60 calendar days. This restriction does not extend to instruments not currently requiring a supporting Certificate of Title, for example caveats, warrants and land tax charges.

    Priority notices are available for all instrument types. To have effect, the information in the priority notice must be accurate and complete. Amendments or corrections to lodged priority notices will not be permitted. All instruments cited in the priority notice must belong to the same transaction and be set out in the proposed order of lodgement.

    Priority notices must be lodged electronically, irrespective of whether the intended instrument or transaction will be lodged on paper or electronically.

    Read more of Victoria 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.