Following are requirements and dates on which the next phase of the Registrar’s requirements for paper conveyancing transactions take effect. The next version of the Registrar’s requirements is due to be published in March. The timeline below also includes the implementation date for the National Mortgage Form.
The Registrar is also consulting stakeholders about transitioning to 100% digital lodgement, including proposed dates for electronic lodgement of caveats, standalone transfers, survivorship applications, transmission applications, a combination of these transactions and all remaining transactions. Further details will be published in later Customer Information Bulletins.
Land Use Victoria (LUV) customers are advised that the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) has published an updated version of the National Mortgage Form Specification (December 2016).
The specification of the National Mortgage Form is to enable financial institutions and other mortgagees to prepare their systems and procedures for 26 May 2017, when new requirements come into place to prepare and lodge real property mortgages in all Australian states and territories.
As previously advised, the National Mortgage Form is a significant national initiative. It standardises the content and presentation of mortgages lodged for registration through all lodgement channels with land registries in all Australian states and territories. The specification sets out the National Mortgage Form’s acceptance and lodgement scenarios in each jurisdiction, and the execution details for the mortgagor and mortgagee for each jurisdiction.
Implementation of the National Mortgage Form in all jurisdictions is scheduled for 26 May 2017, to coincide with PEXA Release 6.0.
Customers will be able to lodge the National Mortgage Form electronically or on paper from this date. During the transition period – 26 May 2017 to 31 December 2017 – customers will be able to lodge on paper both the National Mortgage Form and their existing approved forms. From 1 January 2018 only the National Mortgage Form will be accepted for lodgement. No other types of mortgage forms will be accepted for lodgement.
The Registrar will approve and publish the form for use in Victoria.
The Registrar’s requirement for client authorisations for paper conveyancing transactions will come into effect on 26 May 2017. The client authorisation will authorise a conveyancer or lawyer to act as their client’s agent and sign paper conveyancing transactions on their behalf.
At the same time, the Registrar is proposing to introduce certifications for paper conveyancing transactions. This will require a conveyancer, lawyer, an ADI and Electronic Lodgment Network (ELN) subscriber to provide certifications for each paper conveyancing transaction they sign.
As with the National Mortgage Form there will be a transition period from 26 May 2017 to 31 December 2017. During the transition period customers will be able to lodge new forms containing certifications (having completed a client authorisation) or their existing approved forms. From 1 January 2018 only forms containing certifications will be accepted for lodgement. See the article on ‘Forms’ in this bulletin for further information.
The Registrar recommends that conveyancers and lawyers complete a client authorisation from 26 May 2017 for all transactions because this will support electronic conveyancing and the new paper forms containing certifications.
Client authorisation and certification requirements are already in place for electronic conveyancing transactions. The certifications and signing selections will be included in new versions of forms to be approved and published by the Registrar. Details of the new forms will be advised in the next bulletin.
ARNECC has produced:
The Registrar is proposing to expand requirements for ADIs to require all refinance transaction instruments –discharges of mortgage and mortgages – signed on or after 1 August 2017 when both parties in the transaction are ADIs, to be lodged using an ELN.
For all mortgagees that are ADIs the following conditions will apply, in addition to the requirements for a discharge of mortgage and mortgage signed on or after 1 August 2016:
All customers should note that 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.
The Registrar is making changes to form approvals.
There are three categories of approved forms.
The existing forms will be replaced with new forms containing the certifications referred to earlier in this bulletin. The number of forms available will also be expanded to include all forms required for lodgement. The new forms will be approved and available on DELWP’s website from May 2017. Conveyancers and lawyers will need to have completed a client authorisation prior to using the new forms. The Registrar recommends this be done from May because it supports both the new paper forms and electronic conveyancing.
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. Individual approved forms cannot be amended by adding certifications and seeking a new approval. Also, certifications cannot be provided on an annexure sheet.
Form Providers will need to amend their forms by adding certifications and seeking the Registrar’s approval. Existing forms can continue to be lodged until 31 December 2017. From 1 January 2018 only forms containing certifications will be accepted for lodgement. The Registrar has developed a specification to assist Form Providers make the change.
More detail on the new forms will be in the next Customer Information Bulletin.