Authority Update VIC: Bulk Conversion and Update 100% Digital Timeline

Bulk conversion of paper Certificates of Title to electronic Certificates of Title

On 23 February 2018, Land Use Victoria will facilitate a bulk conversion of paper Certificates of Title (pCTs) to electronic Certificates of Titles (eCTs) when any of the following banks are recorded as the first mortgagee:

  • Gateway Credit Union Ltd
  • Community CPS Australia Ltd 
  • Credit Union Australia Ltd
  • Bank of Queensland
  • Macquarie Bank Ltd
  • Suncorp-Metway Ltd.

From then on, the Certificates of Title held by these banks will be eCTs and the relevant bank will be recorded as the eCT Control - the party entitled to control the eCT.

Transactions lodged on or after 24 February 2018, where these banks are first mortgagee, will be supported by an eCT. Only an eCT will issue after a transaction is registered if one of these banks is the incoming first mortgagee.

New forms must be used when signed on or after 1 January 2018

The transition period for accepting forms not containing certifications ended on 31 December 2017.
  
All forms in paper signed on or after 1 January 2018 lodged for registration must use the new form.  
If a conveyancer or lawyer represents a party in the transaction, the form must:

  • be signed on behalf of the party by the conveyancer or lawyer
  • contain the certifications required by the Registrar's requirements for paper conveyancing transactions.

When a PEXA Subscriber is signing the form, it must contain the relevant certifications.
Non-compliant forms will not be accepted. 
For more information on this see Customer Information Bulletin 163

Registrar's requirements for paper conveyancing transactions and dates for transition to 100% digital

February 2018
Transmission application functionality will be available in PEXA.

1 March 2018
Transfers of land and survivorship applications, except when lodged with any other instrument for the same folio, must be lodged electronically. This requirement applies to conveyancers and lawyers acting for a party or themselves, and PEXA subscribers.

Note: The requirement does not include transfer types that as at 1 March 2018 are not available in PEXA, such as transfers: 

  • by mortgagees
  • by a minor
  • creating an easement
  • of an interest, e.g. a lease or mortgage
  • of part of land in a folio of the Register 
  • of a tenant in common's share
  • that cannot be assessed in Duties Online (www.sro.vic.gov.au/dutiesonline)

1 July 2018
New requirements for creating restrictive covenants in transfers and restrictions in plans.

  • Transfers - the details of any restrictive covenants to be created must be contained in a Memorandum of Common Provisions (MCP) and referred to in the transfer by the MCP number.
  • Plans - there will be three options. The restriction can be one of the following:
    o in one or more MCP (recorded under the Transfer of Land Act 1958) 
    o be a short-form restriction
    o contain a reference to a planning permit. 

1 October 2018
All instruments or a combination of instruments available in PEXA are to be lodged electronically when signed on or after 1 October 2018. This requirement applies to conveyancers and lawyers acting for a party or themselves, and PEXA subscribers.

That means if any instrument in a case is signed prior to the requirement date, then the requirement to lodge electronically will not apply. 

1 August 2019
All instruments to be lodged electronically.  This requirement applies to conveyancers and lawyers acting for a party or themselves, and PEXA subscribers.

The exception will be when there is an existing paper instrument signed prior to the date when electronic lodgment of that instrument or transaction is required.

SPEAR Electronic Lodgment Network
The SPEAR Electronic Lodgment Network (ELN) enables electronic lodgement of applications. Solicitors and conveyancers are encouraged to register to become SPEAR ELN Subscribers, in line with Land Use Victoria's 100% digital lodgment strategy.

There are many benefits to lodging parties using the SPEAR ELN. LUV will enhance SPEAR further in 2018 to allow surveyors to provide plans and survey information for the remaining plan-based transactions under the Transfer of Land Act 1958 and Local Government Act 1989. Functionality for lodging parties to support the electronic lodgment of these applications will follow in 2019.

LUV does not charge lodging parties to join or use SPEAR; however, lodging parties will need to purchase at least one digital certificate from Symantec to be able to digitally sign documents in SPEAR. User training and support is provided free-of-charge by the SPEAR Service Desk.

Information about how to register to become a SPEAR ELN Subscriber, obtain a digital certificate or contact the SPEAR Service Desk is available on the SPEAR website www.spear.land.vic.gov.au

Minor registered proprietors 
LUV has specific requirements for transacting land when a minor (an individual under 18 years old) is the registered proprietor. 

When there is a minor registered proprietor, the land can be dealt with by:

  • the trustees of the settlement, in accordance with section 26 of the Ac
  • the tenant for life (which includes a minor registered proprietor due to the operation of section 26), with consent from the trustees, in accordance with section 38 of the Act. 

Section 30 defines who are trustees of a settlement. There must be a minimum of two trustees, or a trustee company. When there are no trustees, the Supreme Court and the County Court have the power to appoint trustees under section 36 of the Act. 

LUV requires instruments to be signed by the trustee(s) under section 26. There are requirements for electronic and paper conveyancing transactions.

For more details see the CIB 174 link below 

Caveats requiring an attached plan
From 1 December 2017, when a caveator is a PEXA subscriber or is represented by lawyer or conveyancer, any caveat not lodged with any other instrument must be lodged using an electronic lodgment network. If a caveat affects part of the land in a folio and it is necessary to attach a plan or diagram to define the part of land affected, the caveat can continue to be lodged as a paper instrument.

For more detailed information please review CIB 174 here.

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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.