The legal process of buying and selling property is known as conveyancing. Conveyancing transactions are now being completed digitally.
eConveyancing: what it means for you
From 1 July 2019, mainstream property dealings can no longer be lodged in paper in NSW. This includes transfers, mortgages, discharge of mortgages, caveats, withdrawal of caveats and transmission applications.
What are the benefits of eConveyancing?
There are significant benefits associated with eConveyancing, including getting your money faster (with funds paid into and cleared in your account instantly), no need for cheques or to pay cheque fees, less paperwork, increased security, instant lodgement of instruments and also reduction of errors and delays to settlement.
How am I protected?
Verification of Identity (VOI) is an identification process that supports the e-conveyancing compliance framework. VOI reduces the risk of identity fraud and registration of fraudulent land transactions.
Your solicitor or conveyancer will sign instruments or other documents on your behalf. Your solicitor or conveyancer needs to be sure that a person or entity is who they claim to be and that the person or entity has the authority to deal with the land before signing.
How will my identity be verified?
For the purposes of complying with the new conveyancing rules, your solicitor or conveyancer can either apply the Verification of Identity Standard or verify identity in some other way that constitutes the taking of reasonable steps.
The Verification of Identity Standard requires a face-to-face interview and production of at least two original identification documents (depending on the nature of those documents).
As stated in Clause 2 of the Australian Registrars National Electronic Conveyancing Council (ARNECC) Model Participation Rules Guidance Note (Number 2, Version 5), the Participation Rules for electronic conveyancing require your solicitor or conveyancer to take reasonable steps to verify the identity of:
- Clients;
- Mortgagors;
- Persons to whom certificates of title are provided;
- Signers; and
- Subscriber Administrators.
In accordance with Clause 4.1 of the said Guidance Note:
“Where the Client or Client Agent:
- is an Individual, the identity of that individual must be verified; or
- is a company, the existence of the company must be confirmed and the identity of the Person or Persons signing for the company or witnessing the company seal must be verified; or
- has appointed an Individual as an Attorney to sign for the Client, the identity of the Attorney must be verified; or
- has appointed a company as an Attorney to sign for the Client, the existence of the company must be confirmed and the identity of the Person or Persons signing for the company or witnessing the company seal must be verified.”
In some circumstances, further consideration is required of what steps need to be taken to establish a person’s right to deal. For example, where a transacting party is subject to a trust, the conveyancing transaction needs to be permitted by the trust and details of the current trustees will need to be provided.
The ARNECC Model Participation Rules (Version 5) can be viewed here.
The ARNECC Model Participation Rules Guidance Note (Number 2, Version 5) can be viewed here.
I need a professional: how do I get in touch?
Turner Freeman Lawyers are registered for eConveyancing and members of our property team are certified with PEXA (Property Exchange Australia). Please do not hesitate to contact our friendly property team if you have any queries regarding conveyancing or transacting electronically.
