the nex, newcastle - community.pexa.com.au · • law society of nsw ... • eg, folio 1/789012:...

The NEX, Newcastle13th March 2018

Chief Customer Officer, PEXA

Welcome

Lisa Dowie

3

9:05am PEXA Update 15 mins Sally Kite, PEXA

9:20amTimeline to 100% Digital & Model Participation Rules –

Subscribers’ Obligations40 mins

David McDowell, Office of the

Registrar General

9:50am Revenue NSW Update 20 mins Mark Smith, Revenue NSW

10:10am Council Enforcement Notices & Defects in Title 20 mins Paul Watkins, Stewart Title

10:30am Morning tea in exhibition area 40 mins

11:05am Keep Calm and Stop Cyber Attacks 30mins Ajay Unni, Stickman

11:35amCyber claims against lawyers and your new group cyber

risk policy15 mins Simone Herbert-Lowe, Lawcover

11:50am PEXA Product Roadmap - 2018 Initiatives 15 mins Simon Bray, PEXA

12:05pm

Panel Q&A Session

Christine Thompson, Greater bank | Daniel Lynch, First

State Conveyancing | Sally Kite, PEXA | David McDowell,

Office of the Registrar General | Mark Smith, Revenue

NSW

40mins Hosted by Lisa Dowie, PEXA

12:45pm Close - Exhibition Hall Opens

TODAYS AGENDA

NSW State Manager, PEXA Direct Program

PEXA Update

Sally Kite

5

Live in VIC, NSW, WA, QLD & SA

140+ financial institutions are engaged

5,660 practitioner firms are active Australia-wide

887,000+ transactions completed nationally

$105 billion+ worth of property value settled

PEXA Snapshot at March 2018

6

5,575 Practitioner Firms

activated


utilising

108,741PEXA Transfer

Transactions

Completed

PEXA’s Journey - 2017 to 2018

End of February 2017


activated


utilising

15,062PEXA Transfer

Transactions

Completed

End of February 2018

8

• Guideline review and orchestration of guidelines tool

• Default responsible subscriber rules

• Banks handling escalations directly

• Transfer Checklist

Practitioner and Bank Collaboration

9

PEXA Cyber Security, Business Continuity &

Disaster Recovery

10

PEXA Platform Cyber Security

BE SECURE BE VIGILANT BE RESILIENT

Prevent what we

can

Detect what can’t

be prevented

Predict what could

happen next

Respond rapidly &

effectively

Continuously

improve &

evolve

PEXA’S CYBER SECURITY GOALS

11

PEXA’s Cyber Security Control Framework

Preventative Controls Detective Controls Corrective Controls

First line of defence:

Controls protecting the PEXA Platform

Firewalls Vulnerability Scanning Patch & Vulnerability Management

Intrusion Prevention System (IPS) Intrusion Detection System (IDS) Server & Data Backups

Tiered System Architecture Audit Logging Security Incident Response

Server Hardening & Configuration System Monitoring & Alerting DDOS Protection

Administrative Access Controls Anti-Virus & Malware Protection Infrastructure Resiliency

Data Encryption

Second line of defence:

Management of Cyber Security in PEXA

Information Security Policy & Framework

Information Security Governance & Reporting

Information Security Personnel

Information Security Standards Information Security Risk Profile Security Incident Management

Change Management

Security Training & Awareness

Program

Third line of defence:

Assurance over PEXA’sCyber Security

Attack & Penetration TestingInternal Review of Controls &

Processes

Independent Audit of Security

Posture

12

PEXA Platform – Business Continuity & DR

What is in place to ensure the PEXA Platform is available?

‘Highly available’ infrastructure – all components running on 2 or more servers

• Regular backups of PEXA servers and encrypted PEXA Platform database

• Operation of the PEXA Platform in two data centres - Production & Disaster Recovery

• Migration of the PEXA Platform to Amazon Web Services (AWS) in mid-2017

13

• PEXA Direct Specialists/Virtual Specialists:

Sally Kite

NSW State Manager, PEXA Direct Program

0412 339 481

[email protected]

• Community

Sign up at community.pexa.com.au

• PEXA Support Centre

1300 084 515

Support available in your area

Office of the Registrar General - e-Conveyancing Legal Consultant

Timeline to 100% Digital Lodgement

Model Participation Rules

David McDowell

eConveyancing update

David McDowelleConveyancing Legal Consultant

March 2018

PEXA Industry Event March 2018

eConveyancing Reform

Government has been working closely with industry on the roll-out of eConveyancing in NSW

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• Law Society of NSW

• Australian Institute of Conveyancers (NSW)

• Australian Bankers Association

• Mortgage and Finance Association of Australia

• Customer Owner Banking Association

• Australian Finance Conference

• Property Exchange Australia Ltd

“…By July 2019, all standard property transactions in NSW will be

conducted electronically, and all Certificates of Title will be phased out in

favour of e-Titles.”

Victor DominelloMinister for Finance, Services

and Property 28 February 2017

Conveyancing reform committee

The ABA, NSW Law Society and NSW Institute of Conveyancing support the reform

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“The ABA welcomes the NSW Government’s release of a

timetable to transition to a paperless electronic based

conveyancing system”.

“We support a nationally consistent eConveyancing system to

deliver efficiencies and better outcomes for consumers, and

encourage other jurisdictions to adopt similar approaches to

ensure a seamless transition”.

“Licensed conveyancers in NSW are embracing the change

to electronic environment and the benefits it provides.

Conveyancers are actively engaged in training and planning

the integration of their work practices to develop their

electronic capabilities”.

“The NSW Government announcement of its timetable to

eConveyancing provides the required endpoint to which they

can build their capability. Electronic conveyancing and its

benefits has been discussed for many years and to finally

see its delivery is an exciting phase for the conveyancing

profession”.

“The Law Society supports the transition to

electronic conveyancing announced by the

Government.

The timetable allows practitioners who have yet

to adopt electronic conveyancing time to

prepare their practices”

Steve MunchenbergChief Executive, Australian Bankers

Association

Ms Pauline WrightPresident, Law Society

of NSW

Mrs Cheryl AltPresident, Australian Institute of

Conveyancers NSW Division

What happened in 2017

19

1 August 2017

ADIs (mandatory)

• All refinancing transactions

• All standalone mortgages

eCT program (ADIs)

ADIs receive an eCT on

registration of a paper

transaction (where they

remain first mortgagee)

1 March 2017

Authorised Deposit-

taking Institutions

(ADIs)- (mandatory)

• Standalone discharges

• Standalone National

Credit Code mortgages

eCT program (ADIs)

• ADIs receive an eCT

on registration of an

electronic mortgage

NOW2017

What’s coming in 2018

20

October 2018

eCT program (ADIs)

All paper CTs held by ADIs will

have been cancelled (ADIs will

be issued with eCTs)

1 July 2018

Solicitors &

conveyancers

(mandatory)

• Standalone Caveats

• Standalone Transfers

• All mortgages, refinance

and discharges (including

non-ADIs)

What’s coming in 2019

21

1 July 2019

Everyone (mandatory)

All mainstream property

transactions to be lodged

electronically –

combinations of Discharge,

Transfer and Mortgage cases

eCT Program

Paper CTs to be removed

completely

95% Paperless

lodgment

Since the NSW timeframes were announced there has been a shift upwards in the proportion of eDealings

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Digitising other related documents will make the system more efficient and more accurate

23

Document 2016 2017 2018 2018

Oct Dec May Nov May Nov

National priority

notice

National mortgage

form

Change of name

with mortgage

Transmission

Notice of death

Change of name

Transfer by

mortgagee

Transfer of interest

Lease

• Eg, Folio 1/789012:

– 'X As Regards The Part Formerly Comprised In 6/712345 And Y

As Regards The Part Formerly Comprised In 5/765432‘

• Previously out of scope

• Major impact on developments

• Now able to be transacted electronically (from 5

February 2018)

Multi-entitlement titles

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Lodgment of Discharges of Mortgage, Mortgages and Refinances

Where the relevant instrument is signed on or after 1

August 2017,

(a) a discharge of mortgage to an ADI,

(b) a mortgage to an ADI, or

(c) any combination of mortgage and discharge of

mortgage where each of the mortgagees in a refinance

transaction are ADIs,

must be lodged using an ELN, except where the

mortgage(s) and/or discharge(s) of mortgage is to be

lodged with any other dealing affecting the same folio(s)

of the Register. (Conveyancing Rule 8.4.2)

Requirements

26

Requirements

Where the relevant instrument is signed on or after 1 July

2018,

(a) a discharge of mortgage,

(b) a mortgage, or

(c) any combination of mortgage and discharge of

mortgage,

must be lodged using an ELN, except where the

mortgage(s) and/or discharge(s) of mortgage is to be

lodged with any other dealing affecting the same folio(s)

of the Register. (New Conveyancing Rule)

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Exceptions and Waivers

• Exceptions

– Folio not electronically tradeable

– ELN not available

– Mortgage has annexed terms & conditions >4,000 characters not

included in a memorandum (exception to be removed for mortgages

dated after commencement of next version of the Conveyancing

Rules)

• Waivers

– Transactions involving land securities in Non-ELN enabled

jurisdictions

– Transactions involving non-land securities (eg, WALs)

• Above scenarios- need Conveyancing Rules Exceptions form

• See Circular 2017/12

• Dealings requiring caveator’s consent or other documentation

can be lodged without the form

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http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0005/217976/Conveyancing_Rules_Exceptions.pdf

http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0005/217967/2017-12_-_Conveyancing_Rule_8.4_Electronic_Lodgment_of_Discharges_of_Mortgages_And_Mortgages.pdf

Discharge of Mortgage with eCT

• Requirement

– Where there is an eCT issued for a Folio of the Register, any

standalone discharge of mortgage (by a first mortgagee) must

be lodged using an ELN (regardless of date of Discharge of

Mortgage). (CR 8.3.2)

• Exception

– The Registrar General may, at the Registrar General’s

discretion, accept and register a discharge of mortgage signed

prior to the issue of the eCT if it is accompanied by the paper CT

that was current prior to the issue of the eCT. (CR 8.3.3)

– Won’t apply until bulk conversion of paper CTs

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National Mortgage Form

• NMF introduced in paper on 27 May 2017

• Existing paper form 05M can be used until 2 March 2018

• Mortgages signed on or after 3 March 2018 must be

completed using the NMF

• Representatives (solicitors and licensed conveyancers) can

sign the NMF in paper from 22 July 2017 provided they give

certain certifications (eg, Client Authorisation (CR 11))

• NMF can be signed by the mortgagee or their representative

only

• See CR 10 and Circular 2017/04

• In PEXA, only NMF from 3 March 2018

30

http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0003/216984/2017-04_National_Mortgage_Form_Updates_to_Processes.pdf

Subscriber compliance


31

Subscriber Compliance

• Subscriber Compliance Program is to assist Subscribers in meeting

their obligations and responsibilities under the Participation Rules and

to build trust and confidence in the electronic lodgement network.

• Post-registration check

• Legal framework:

– Part 3 Division 5 Electronic Conveyancing National Law (NSW)

– Schedule 5 Participation Rules - compliance examination procedure

• Conducted by NSW Land Registry Services (formerly LPI) on behalf

of the Registrar General

• Failure to comply with a compliance request can result in suspension

or termination of a subscriber.

• ARNECC MPR Guidance Note 6

32

https://www.arnecc.gov.au/__data/assets/pdf_file/0012/698961/MPR-Guidance-Note6-Compliance-Examinations.pdf


Verification of Identity

– Evidence that the VOI Standard in Sch 8 of the

Participation Rules was carried out or evidence of

reasonable steps

– AML/CTF schema is not the VOI standard (may be

reasonable steps)

– ARNECC MPR Guidance Note 2

33

https://www.arnecc.gov.au/__data/assets/pdf_file/0011/698798/MPR-Guidance-Note2-Verification-of-Identity-Updated.pdf


Right to deal

– Entitlement of a person to be a party to a conveyancing

transaction

– Possession of CT, rates notice, contract

– Ensure client is a legal person (not, for example, a

superannuation fund)


Client Authorisations

– Ensure all fields are completed

– Attach terms and conditions


34

https://www.arnecc.gov.au/__data/assets/pdf_file/0004/698791/MPR-Guidance-Note4-Right-to-Deal.pdf

https://www.arnecc.gov.au/__data/assets/pdf_file/0012/698718/MPR-Guidance-Note-1-Client-Authorisation.pdf

Verification of Identity (VOI) Rules

37

• Due diligence requirement to know your client

• Formal VOI requirements currently apply for:

• mortgagees to identify the mortgagor – s 56C Real Property Act

• attesting witnesses – Rule 6.1 NSW Conveyancing Rules

• electronic transactions – Rule 6.5 NSW Participation Rules

• All conveyancing professionals – Rule 4.1 NSW Conveyancing

Rules (effective from 26 November 2016)

• Significant fraud mitigation and consumer protection measure

• Consistent national requirements

VOI - What is required?

38

You must take reasonable steps to verify the identity of your client

[CR 4.1.2]:

either by:

• applying the VOI Standard (deemed to be reasonable steps)

• or in some other way that constitutes reasonable steps [CR 4.1.4]

and ensure the client is a legal person and has the right to enter into the

transaction [CR4.3.2]

VOI - Conveyancing Rules

39

CR 4.1.5 - When are further checks required?

Where you know or ought reasonably to know that:

• any identity Document produced by the Person Being Identified is not

genuine; or

• any photograph on an identity Document is not a reasonable likeness of

the Person Being Identified

• the Person Being Identified and/or the Identity Declarant does not appear

to be the Person to which the identity Document(s) relate;

• it would otherwise be reasonable to do so.


40

The VOI Standard – SCHEDULE 8 – NSW Participation Rules

• Requires face-to-face - in-person interview

• Hierarchy of ID documents, highest possible category must be used

• Documents must be current (except Passport expired < 2 years)

• Where Documents contain photographs the Identity Verifier must be satisfied

that the Person Being Identified is a reasonable likeness (for example the

shape of his or her mouth, nose, eyes and the position of his or her cheek

bones) to the Person depicted in those photographs


41

What if you can’t meet the VOI Standard?

Take Reasonable steps

• You have to judge what is reasonable in the particular circumstances

• If your client doesn’t have full documents consider Category 5 an Identifier declaration -

essentially a referee

• Do what you are able to do – if you have done all you can and you are satisfied, in the

circumstances, you are likely to be acting reasonably.

Options for conducting VOI:

• Do it yourself

• Use an Identity Agent

• ZipID

• IDSecure

• Australia Post

VOI - Useful Links

42

a Identity Agents and identity software

• Australia Post

http://auspost.com.au/travel-id/buying-or-selling-property.html

• IDSecure Pty Ltd

http://www.idsecure.com.au/

• ZipID Pty Ltd

https://zipid.com.au/

a Identity Software provider

• Infotrack

https://www.infotrack.com.au/products/disruptive-technology/idfy-voi/

http://auspost.com.au/travel-id/buying-or-selling-property.html

http://www.idsecure.com.au/

https://zipid.com.au/

https://www.infotrack.com.au/products/disruptive-technology/idfy-voi/

eCTs


43

eCT and paper settlements

• If eCT – discharging mortgagee lodges a CoRD Holder

Consent prior to settlement

• The consent type is Transacting Party Consent

• Consent must specify details of the incoming transaction

44


• Complete Request for Consent eForm with transaction

details

• Submit request form to initiate lodgment of a CoRD

Holder Consent

• See Requesting consent when there is an eCT

• Circular 2017/07

45

http://rgdirections.lpi.nsw.gov.au/e-dealings/cord_holder_consent_requirements/requesting_consent_when_eCT

http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0019/217216/2017-07_Electronic_Certificate_of_Title_Information.pdf


46

• CoRD Holder Consent for paper settlement - if details are

incorrect:

• If dealings have not been lodged, new Consent can be

lodged by CoRD Holder

• If dealings have been lodged- if the CT Status is “In Use”

–contact LRS to have Consent removed (CT Status

should have been changed when requisitioned)

• CoRD Holder Consent for paper settlement, but transaction

is proceeding in PEXA – no longer have to contact LRS to

have Consent removed

CTs in PEXA


47

Non-CAC CTs in PEXA

• Paper CTs issued before 1 January 2004

• Encumbered non-CAC CTs can be used for electronic

transactions because they are considered a low security

risk

• As the mortgage must have been registered prior to 1

January 2004 any fraud against the land should have

been discovered

48

Unencumbered Non-CAC CTs in PEXA

• Unencumbered CTs issued prior to 1 January 2004 need

to be produced to LRS for verification

• Complete an E-Transaction Production Receipt

• No fee payable

• If you’ve done Registry Information Supply in PEXA,

must do information re-supply before creating CoRD

Holder Consent

49

http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0004/215581/E-Transaction_Production_Receipt.pdf

CAC CTs in PEXA

• CAC should not be provided to other parties unless

required by requisition on title

• One case where a bank has lodged a mortgage when

the CAC CT was with the conveyancer –how did this

happen?!?

• Retain all CTs for 7 years post registration of

eTransactions

– (ignore Certification 6 in Sch3 MPRs)

50

Conveyancing Rules

51

• Current Conveyancing Rules v3 set to be updated sometime in April

2018.

• Publicly available for 20 business days before new Rules commence.

• Changes will include the upcoming mandates for 2018 and eCT

program for the cancellation of paper certificate of titles held by ADI

banks.

• Clarifying instances where VOI is not required to be carried out by a

lawyer (handing over files when a client changes lawyers)

Model Participation Rules/Model Operating Requirements

52

• Changes to the VOI Standard to include Immigration Cards

• Proposed new Subscriber Attorney category

• Changes to the client authorisation form

• Awaiting ARNECC to release consultation drafts for comment – expected

to be sometime in March 2018

Real Property Act 1900

53

• ORG discussion paper “Removing barriers to electronic land contracts”

released in December 2017

• Possible legislative amendments arising from the proposals in the paper

• Looking at removing witnessing from mortgages and leases to allow for

digital signatures

• Need to be approved by the Minister and Cabinet

• Spring session 2018

The benefits for solicitors and conveyancers are substantial54

Independent analysis by KPMG on benefits for

lawyers & conveyancers

• Up to 75 per cent time savings per transaction

• Eliminates almost all risks associated with human error

• No longer need to attend settlement

• Don’t have to spend time on hold when contacting other parties

• Interests are registered instantaneously on settlement in most

cases

• Settlement day is more certain

• Funds from the proceeds of a sale are available much sooner.

• KPMG Report available on the ORG website.

http://www.registrargeneral.nsw.gov.au/__data/assets/pdf_file/0003/331095/eConveyancing-Final-Report.pdf

55

More information and support

➢ ORG website: www.registrargeneral.nsw.gov.au

➢ ARNECC Model Participation Rules Guidance Notes:

1. Client Authorisations

2. Verification of Identity

3. Certifications

4. Right to Deal

5. Retention of Evidence

6. Compliance Examinations

https://www.arnecc.gov.au/publications/mpr_guidance_notes

ORG eConveyancing workshops

56

During the half day workshop, delegates will be

guided through the eLodgment workspace to

complete:

• A caveat

• A two party transfer

• A linked settlement transaction

A session on compliance covering the

requirements under the Model Participation

Rules and the Conveyancing Rules will be

included. A light lunch and refreshments will

also be provided.

Register for the workshop

http://www.registrargeneral.nsw.gov.au/events/e

conveyancing-workshop

Cost: $95 (incl. GST) for Sydney workshops &

$145.00 (incl. GST) for Regionals.

Time: 11am to 4:30pm

Dates: Various

Locations: Sydney, Gosford, Tamworth and

other regional centres.

http://www.registrargeneral.nsw.gov.au/events/econveyancing-workshop

Revenue NSW - Client Engagement & Stakeholder Management

Revenue NSW Update

Mark Smith

28th February 2018

Mark Smith

NSW Duties Update 2018

▪ Department of Finance, Services and Innovation (DFSI)

▪ Revenue NSW and Office of the Registrar General (ORG) are part of the DFSI cluster

▪ Duties - Mission Statement:

“Creating products and services to transform Property Revenue from manual and paper based processes to fully digital for our customers and agents (red tape reduction)”

Duties Digital Transformation

▪ 3,500 registered firms

▪ 97% of all transactions processed through EDR

▪ 12% of property transactions being lodged through PEXA

Current Landscape

e-Duties

▪ Online EDR application

▪ Online change of details – EDR

▪ Online cancellation of assessment – EDR

▪ e-Learning programs using webinars

What have we done?

e-Duties initiatives implemented

▪ EDR online training modules

▪ All refunds are issued electronically

What have we done?

e-Duties initiatives implemented

All paper/manual processes are being reviewed in collaboration with the NSW Law Society, Australian Institute of Conveyancers and LPI

▪ e-Forms

▪ e-Objections

▪ e-Private Rulings

▪ Standard Notice of Assessment

▪ Removal of hand stamps

What are we doing?

▪ Reviewing EDR data standards

▪ Reviewing Revenue NSW/PEXA verification service

▪ Ensuring all mandated transactions can be lodged through PEXA

e-Lodgement

Registrar General e-Lodgement Timeline

▪ EDR Agent

▪ Solicitor/Conveyancer not registered on EDR

▪ Settlement Agent

e-Documents

How do I assess an e-document?

Any Questions?

▪ E-ConveyancingPhone: 1300 208 528Email: [email protected]

WEB address: http://www.osr.nsw.gov.au/info/e-conveyance

▪ Electronic Duties ReturnsPhone: 1300 308 863 or 1800 086 642Email: [email protected]

WEB address: http://www.osr.nsw.gov.au/info/edr

Further Information

http://www.osr.nsw.gov.au/info/e-conveyance

mailto:[email protected]


General Counsel, Stewart Title

Paul Watkins

Presented by Paul Watkins

General Counsel, Australia

Stewart Title Limited

“Your Network.Your Future”

NSW

Risk Management for Conveyancing:

Council Enforcement Powers &

Defects in Title

Council Enforcement Powers: Risk Framework

▪ Clients purchasing property with improvements (house, garage, carport,

shed, swimming pool, granny flats etc)

▪ Generally, improvements form part of the title

▪ Generally, improvements form part of the subject matter of the sale

▪ Improvements subject to Building & Planning Laws

▪ Improvements subject to Council Compliance & Enforcement

Council Enforcement Powers: Unapproved &

Non-Compliant Building Works

What is unapproved/illegal building work?:

▪ Building work which has been carried out without obtaining a building

permit

▪ Building work which has been carried out contrary to approved plans

or contrary to conditions of any building permit

Archicentre 2011 Illegal Building Works Statistics

▪ NSW 29%

▪ VIC 33%

▪ QLD 22%

▪ WA 21%

▪ SA 32%

▪ TAS 34%

Common Types of Unapproved Building Work

▪ Removal of load bearing walls

▪ Addition of rooms in roof space

▪ Addition of balconies, decks, pergolas

▪ Conversion of structures into habitable rooms

▪ Non-compliance with permits – unapproved alterations to

approved structures

Council Enforcement Powers in NSW

▪ Table - S 121B of the Environmental Planning & Assessment Act 1979 (NSW)

▪ Cease using premises (Order 1)

▪ Demolition or remove a building (Order 2)

▪ Repair or make structural alterations to a building (Order 4)

▪ Do such things as necessary to bring into compliance with relevant development standards

any building (Order 13)

▪ Comply with a development consent (Order 15)

Unapproved Building Work: Defect in Title?

▪ Fletcher v Manton [1940] HCA 32

▪ Maxwell v Pinheiro (1980) 46 LGRA 310

▪ Borthwick v Walsh (1980) 41 LGRA 144

▪ McInnis v Edwards (1986) VR 16 161

▪ Carpenter v McGrath (1996) 40 NSLR 39

McInnes v Edwards per Justice Kaye

“the material time for the purpose of conveyance for determination whether

a defect in title exists is at the time when the parties entered into their

contractual relationship. The existence then of an order made or direction

given in the exercise of a statutory power imposing a burden or charge

on land or the improvements thereon constitutes a latent defect in

title. However, the mere existence of circumstances which create the

possibility or probability or risk that the property will at a future date

be subject to a statutory charge or burden does not constitute a

latent defect in title.”

Timing is everything!

▪ At time of exchange – existence of unapproved building work means potential

future order = is a defect in quality and therefore need not be disclosed at

common law

▪ Vendor makes prescribed warranty – obtain building certificate to test warranty

▪ After settlement – unapproved building work which subsequently attracts a

building order will constitute a defect in title as a statutory charge on the land

Recent Examples from around Australia

Unapproved additions

▪ Insured purchased a house in 2014. House approximately 40 years old

▪ A number of “additions” had made over the years, including a spa room addition

▪ A few years after settlement, insured decided to rent the property. Engaged a

property agent who advised spa required a safety barrier

▪ Insured disputed this and approached Council. Council identified spa room

unapproved. Also confirmed that spa required a safety barrier!

Claim Resolution

▪ Stewart Title engaged planning and building consultants to provide

advice and options

▪ Spa room non-compliant and not structurally sound.

▪ Spa room required demolition

▪ Insured covered for demolition and “make good” costs and loss in

market value

▪ Claim cost over $50,000

▪ Premium Paid $363.00 – No Excess

Non-Compliance with Development Consent

▪ Insured purchased a house for $1,650,000.

▪ House situated on waterfront.

▪ Following settlement, substantial storms affected locality resulting in

water penetration to windows/sliding doors

▪ Investigations revealed all windows/sliding doors installed not the

correct specification for locality

▪ Council required all windows/sliding doors to be replaced to bring

dwelling into compliance with development consent

Claim Resolution

▪ Stewart Title arranged for removal and replacement of approx 12 sliding

doors and windows

▪ Total cost of window replacement $96,524.25

▪ Ensured no further breach and no further action from Council

▪ Premium Paid $1058.75

▪ No Excess

Non-Compliance with Building Permit

▪ Insured purchased a newly constructed property for over $1 million

▪ After settlement, Council issued Notice as the house did not comply with

the approval.

▪ Approval required privacy screening to be installed to various large

windows in the house.

▪ Insured was required to comply with the Notice and bring the house into

compliance with the approval.

Resolution

▪ Stewart Title covered the costs of installing the privacy louvres as noted

on the approved plans

▪ Total Cost: $44,000

▪ Premium Paid: $756.25

▪ No Excess

Boundary Defects

Encroaching Structure onto Council Land

▪ Insured purchased their property in January 2015. Following settlement a

complaint was made in relation to their “water feature”

▪ Survey of the property revealed water feature was built on Council land by

4.4 meters

▪ Water feature had to be demolished and reinstated within the insured’s

property

▪ Total cost of the claim close to $200,000.00

Encroachment on Public Road

▪ Insured purchased a rural property in 2014

▪ Following settlement, the insured approached Council for approval to

build an extension

▪ Council required site plan & survey

▪ Survey disclosed significant siting issues relating to the improvements

– house, garage, sheds, driveway, water tanks & retaining walls

Claim Resolution

▪ Stewart Title engaged an accredited specialist in property law to provide

advice and options

▪ Negotiated acquisition of that part of the Council land (including unmade

road) upon which the improvements have been built.

▪ Liaised with Council throughout process of discontinuing use of land as

‘public road’

▪ Stewart Title paid costs of land acquisition, legal costs, boundary realignment

(transfer of land).

Conclusion

▪ Council Enforcement Notices (statutory charge) and Boundary Defects are defects in title which fall outside of the safety of the Torrens System

▪ Risk management involves implementing controls to reduce or eliminate risk.

▪ Innovation – new ways to offer value to clients, adapt to changing market, competitive edge

▪ Nothing replaces the exercise of due care and skill

▪ Title Insurance adds an additional layer of protection

QUESTIONS?

45 minutes - Exhibition area

Morning Tea

CEO, Stickman

Keep Calm and Stop Cyber Attacks

Ajay Unni

By Ajay Unni,

CEO, Stickman

© 2018 Stickman Consulting Pty Ltd 94

• Ajay Unni• Founder and CEO of Stickman

• 28 years in the IT Industry started at the age of 16 as a

software developer

• Stickman Consulting• turns 11 years in Feb 2018

• are driving the industry to Cyber Security by Design

• Running close to 150+ cyber security consulting projects

and programs each year across SME and Large Enterprises

• 50+ staff across Asia Pacific - head office in Sydney


60% of Medium sized businesses that had a major security breach went out of business within 6 months.

U.S. National Cyber Security Alliance.

“Cyber criminals find SMBs easier targets because their

defenses are often not as advanced as those of larger

businesses.”

Gary S. Miliefsky, Founder of SnoopWall Inc.

43% of cyber security attacks specifically target small

businesses.

Small Business Trends.


1 • Lack of time to focus on security

2• Budget

3• Lack of internal security policies and procedures

4• Not having an IT security specialist

5• Not having a security program


% of IT spend dedicated to Security

2017 7-9 %

2015 6-8%

2014 5%

SME’s (20-199 people) in Australia:

50,000

IT spend variable: $100K - $500K

Sophistication level of Cyber Security within SME business is low because of

lack of programs, procedures and technology.

The % IT spend dedicated to Security in Medium Sized businesses is

growing approximately 15% Year on Year


“There are only two types of companies: Those that have been hacked and those that will be

hacked.”


1 • Developing Comprehensive IT Security Policies

2• Creating Mobile Usage Policies

3• Performing Routine Data Backups

4• Providing Employee Education/Training

5• Monitoring User Activity

P: 1800 785 626

E: [email protected]

www.stickman.com.au

Level 11, Suite 2,

210 George Street,

Sydney NSW 2000

Come visit us at the exhibition stall to learn more and book a consultation with an expert

[email protected]

Senior Claims Solicitor, Lawcover

Cyber claims against lawyers and your new group cyber risk policy

Simone Herbert-Lowe

Cyber claims against lawyers and

your new group cyber risk policy

107

Simone Herbert-Lowe, Senior Claims Solicitor, Lawcover

Why is cyber risk so important for lawyers and

conveyancers?

Practising law has gone from this:

To this…

It is estimated that cyber crime is costing Australian

businesses $1 billion per year

Why is cyber protection so important?

• Data “world’s most valuable resource”

• Accessible through hacking & accidental disclosure

• Email facilitates impersonation fraud

• Internet banking & real time transfers limit ability to stop

payments

• Increasing privacy obligations

Amount of data held and risk of privacy breaches

has dramatically increased

*Source: The Guardian

*

Paradise Papers: Appleby’s response*

We wish to reiterate that our firm was not the subject of a leak but of a serious criminal act. This was an illegal computer hack. Our systems were accessed by an intruder …. This was not the work of anybody who works at Appleby.”

* Excerpt of media statement on website 5/11/2017

…But what does “cyber” actually mean?

For most people:

• A broad range of activities:

• Anything to do with “cyberspace”

• Emails, the internet, computers

Under cyber insurance policies:

• A narrower definition

• Interference with insured’s own computer network

(more about this later)

Key risks for solicitors in general practice

Impersonation fraud

• “Social engineering”

• Manipulates victim into ignoring usual security processes

• Human risk

• Too trusting, failure to use due care & skill

• Insufficient verification processes

Recent cases involving Australian lawyers

Impersonation fraud

• Fake emails that appear to be from a client giving

instructions to transfer funds into fraudster’s bank

account

• Fake emails from a lawyer to the client (or lawyer to

lawyer) varying trust account details or payment

instructions

…Examples

Fraud, forgery and dishonesty are not new

crimes!

Impersonation fraud was around long before the internet!

But… Risks are now amplified by technology:

• Emails

• Programs trawl internet looking for vulnerabilities or impending funds transfers

• More targeted fraud (e.g. hacking of specific computer network)

Easy steps you can take to prevent

impersonation fraud

✓ Educate your clients

✓ Educate your staff

✓ Review your processes – consider:

✓ Stating in your retainer that you will never change

your trust account details by email

✓ Change requests verified by phone

✓ Ask clients to notify suspicious emails

✓ Ensure co-approval for funds transfers

Other types of cyber claims against solicitors

Technology risks

• Malicious software (malware) such as viruses or

phishing

• Ransomware that threatens to either:

• Lock solicitor out of computer network

• Disclose confidential information

Other types of claims against solicitors

Breach of privacy or confidentiality

• Accidental disclosure of confidential information (e.g. lost

computers or storage devices)

• Mandatory reporting of notifiable data breaches, where:

• Turnover > $3m or

• Health records

• Tax file numbers (TFNs)

Summary

Cyber crime can lead to claims in different ways,

including:

• Negligence claims

• Impersonation fraud

• Disclosure of confidential/sensitive information

• Lock out of systems that sabotage transactions

• Breach of fiduciary duty

• Trust account breaches

• Breach of privacy and confidentiality

…these are likely covered under your Lawcover PII policy

Act quickly and notify a cyber incident early

• Due to the risk of:

• Similar or repeated incidents

• Risks to law practices’ ability to function

• Urgent crisis assistance can avert/minimise claims

Lawcover’s group cyber risk policy launch

• Group policy purchased from Barbican Insurance

• Available to all Lawcover insured law practices

• Relationship between Barbican and the law practice if a

cyber crisis occurs

Lawcover is the purchaser, not the insurer

Policy basics

• The excess will always be less than or equal to the excess under your Lawcover policy

• The full policy can be viewed at http://lawcover.com.au/cyberriskinsurance/

INSURED All Lawcover insured law practices

(Nearly 6500)

POLICY PERIOD 1/1/18 to 30/6/19

LIMIT OF INDEMNITY $50,000

EXCESS $1000 - $25,000 based on last

complete year fee income

http://lawcover.com.au/cyberriskinsurance/

What is a “cyber event” under the Barbican policy?

Policy overview – Multiple insuring clauses

• Electronic Business Interruption

• Cyber costs & expenses

• Loss of business income

• Cyber liability

• Third parties (if Lawcover policy does not apply)

• Privacy Regulation Defence and Penalties

• Defence costs, penalties & fines

• Crisis Management & Customer Notification expense

• Cyber Extortion

• Ransom monies (provided insurer consents in advance)

Making a notification

Third party claims or potential claims

Lawcover

02 9264 8855

Email: [email protected]

Other cyber events, including crisis response

CBP Lawyers

24/7 Hotline: 1800 BREACH (1800 273 224)

Email: [email protected]


Useful Resources

Lawcover

• Website

• Lawcovernotes

• New cyber-awareness quiz

The Law Society of NSW

• Website

• Monday Briefs

The Law Council of Australia

• Website

Office of the Australian Information Commissioner

• Website

Take our Cyber Assessment Quiz

lawcover.com.au

PEXA, Chief Product Officer

PEXA Product Roadmap - 2018 Initiatives

Simon Bray

Simon Bray – Chief Product Officer

Property Exchange Australia (PEXA)

PEXA Product Roadmap – 2018 Initiatives

133 © Property Exchange Australia Limited (PEXA) 2017.

100% digital

• Accelerate the availability of remaining instruments and remove transaction exclusions

Network resilience

• Build resilience to reduce exposure of networkmembers to Land Registry service disruptions

Improve member experience

• Improve the PEXA member experience to support self-sufficiency

2018 Priorities


Release 7.1 – delivered 5 February 2018

100% digital • New documents and extended scope in Victoria

Network resilience• Secondary Lodgement Verification in NSW and

Victoria allows settlement to proceed if the Land Registry is unavailable

Improve member experience• Adding information to invitations

• Automating the setting of the Responsible Subscriber

• Improving the financial settlement process


Release 7.1 Extension (R7.1.1) - Released last weekend

Improve member experience

Check status of loan documents via new checklist

IM can indicate when loan documents have been sent/received via the Workspace checklist – reducing conversations.

Obtain pre-populated Source Account Deposit Form on demand (members using PEXA’s Registered Source Account)

After adding a line item to the FSS, download a pre-populated Source Account Deposit Form at the click of a button.


2018

Improving Member Experience – 2018 Priorities

Increasing size of available settlement “slots”

Land Registry Errors and Warnings Extra info and guidance

ConversationsStructured conversations Conversation “volume” reduction initiatives

Settlement Window expansion5.30pm AEST/AEDT for re-bookingsAfter Hours SettlementsNew Payments Platform strategy

WorkflowHelping answer “What do I do next?”

Reduce roll-forward to from 1½ hours to ½ hour


2018

Roadmap to 100% Digital

Enable Mandates

Enable 100%

digital

Regulatory

Improve Member

experience

✓ Extend transfer scope (VIC) Extend transfer scope (VIC, NSW) Residual Docs infrastructure (NSW, VIC)

Foreign Residents Capital Gains Withholding GST Withholding

✓ Multi Ownership Titles (NSW)

✓ Transmission (VIC) Attaching files to a National Mortgage (QLD) Transmission (NSW, SA, QLD)

Survivorship (NSW, SA) Extend transfer scope Lease (NSW)

R 7.1

FEB

R 8.0

MAY

R 9.0

NOV

Land Title Reference validation using Lot on Plan (NSW, WA, QLD, SA)

Standalone Transfers (VIC)

Standalone Transfers (NSW)

Standalone Survivorship

(VIC)

All combinations of transfer

transactions in PEXA (VIC)

Mar Jul OctMay

Standalone Transfers (WA)

All combinations of transfer transactions

in PEXA (WA)

Standalone Caveats (WA)

Standalone Caveats (NSW)

Non-ADI Refinances

(NSW)

Change of Name with Justification (NSW, SA)

Mandates

Remove scope constraints NSW complex SRO Assessments


Come and say hello at our stand

• Talk to PEXA Product Managers

and PEXA Direct Specialists

• Discuss the roadmap

• Watch product demos

• Provide feedback

• Stamp your passport

• Pick up some free goodies

Panel Session Q&AChristine Thompson , Greater bank

Daniel Lynch, First State Conveyancing

Sally Kite, PEXA

David McDowell, Office of the Registrar General

Mark Smith, Revenue NSW

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the e-Conveyancing experts. With your PEXA Specialist,

you will complete the following modules:

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Transacting in PEXA

Advanced e-Conveyancing Visit

community.pexa.com.au/pexacertified

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