victoria verification of identity legislation pack · 2017-10-22 · victoria verification of...

VictoriaVerification of Identity

legislation packA compilation of rules, requirements and other

resources for paper and electronic conveyancing in Victoria.

ContentsClick on the links below to navigate through the documents.

VOI reasonable steps flowchart

VIC Registrars Requirements

VIC Participation Rules

LIV Verification of Identity (VOI) Checklist

Guide to VOI for paper transactions for conveyancers, lawyers and mortgagees

Guide to verification of identity for people not using a conveyancer or lawyer

LPLC Troubleshooting VOI

VOI FAQs

ARNECC Guidance notes

IDfy

Does the client have authority to instruct you?

For each conveyancing transaction you must take reasonable steps to verify that the client is a legal person and has the right to enter into the conveyancing transaction.

Does the client have capacity to give instructions?

Without capacity, a person is unable to enter into any contract, including a contract for the provision of legal services.

Have you taken reasonable steps to verify the

identity of the client?

You must take reasonable steps to verify client identity as per standards set out in the ARNECC Model Participation Rules.

Has your client declared the ID as true copies?

Get a client declaration confirming their identity.

Have you retained a copy of any documents which establish:

authority + identity?

Retain supporting documents as evidence.

Where you need to test capacity refer to guidelines issued by Law Society NSW.

The Verification of Identity Standard means the standard set out in Schedule 8 of the ARNECC

Participation Rules.

Conveyancing Rules for majority of states require a representative must take reasonable

steps to verify the identity of clients.

Are you conducting due diligence verifying your client?

Verification of identity legislation updates State Land Registry requirements across Australia are changing to ensure that lawyers and

conveyancers conduct due diligence to identify their clients. InfoTrack is leading the charge to help practitioners comply with regulations and be

confident they’re taking reasonable steps to verify

the identity of their clients.

Registrar’s requirements for

paper conveyancing transactions

Section 106A Transfer of Land Act 1958

Version 1 – Published 30 September 2015

Land Victoria

Department of Environment, Land, Water and Planning

570 Bourke Street

Melbourne VIC 3000

Phone: (03) 8636 2010

Fax: (03) 8636 2999

Web: www.delwp.vic.gov.au > Property and land titles > Surveying

© The State of Victoria Department of Environment, Land, Water and Planning 2015

This work is licensed under a Creative Commons Attribution 4.0 Australia licence. You are free to re-use the work under that licence, on the

condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian

Coat of Arms, the Victorian Government logo and the Department of Environment, Land, Water and Planning logo. To view a copy of this licence,

visit http://creativecommons.org/licenses/by/4.0/

Accessibility

If you would like to receive this publication in an alternative format, please telephone the DELWP Customer Service Centre on 136186, email

[email protected] or via the National Relay Service on 133 677 www.relayservice.com.au.

Disclaimer

This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any

kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may

arise from you relying on any information in this publication.

Registrar’s requirements for paper conveyancing transactions – Version 1 Page 1 of 26

Contents

Registrar’s Requirements 2

1. Preliminary 2

2. Definitions and Interpretation 2

2.1 Definitions 2

2.2 Interpretation 4

3. Verification of Identity and Authority 5

3.1 Verification of Identity 5

3.2 Authority 7

4. Supporting Evidence 8

5. Certifications 8

6. Electronic Instruments 8

7. Lodging Parties 9

8. Client Authorisations 9

9. Certifications under section 74(1A) 10

10. Paper quality and size 10

11. Applications to the Registrar to act 11

Schedule 1 – Verification of Identity 12

Schedule 2 – Identity Agent Certification 18

Schedule 3 – Insurance Rules 19

Schedule 4 – Certification Rules 21

Schedule 5 – Client Authorisation Form 22


Registrar’s Requirements

1. Preliminary

These Registrar’s Requirements constitute the Registrar of Titles’ requirements for paper

Conveyancing Transactions determined by the Registrar pursuant to section 106A of the Transfer of

Land Act 1958.

2. Definitions and Interpretation

2.1 Definitions

In these Registrar’s Requirements capitalised terms have the meanings set out below:

ADI or authorised deposit-taking institution has the meaning given to it in the Banking Act 1959 (Cth).

Approved Identity Verifier means a Person appointed by the Registrar to conduct verification of identity

and witness the execution of Instruments and other Documents.

Approved Insurer means an insurer approved by APRA to offer general insurance in Australia.

APRA means the Australian Prudential Regulation Authority.

Australian Credit Licence has the meaning given to it in the NCCP Act.

Australian Legal Practitioner has the meaning given to it in the Legal Profession Uniform Law (Victoria).

Business Day has the meaning given to it in the ECNL.

Caveat means an Instrument giving notice of a claim to an interest in land that may have the effect of an

injunction to stop the registration of an Instrument in the Register.

Certification Rules means the rules set out in Schedule 4 of these Registrar’s Requirements, as amended

from time to time.

Client means a Person who has or Persons who have appointed an Australian Legal Practitioner, a Law

Practice or a Licensed Conveyancer as their Representative.

Client Agent means a Person authorised to act as the Client’s agent but does not include a Person acting

solely as the Client’s Representative.

Client Authorisation has the meaning given to it in the TLA.

Client Authorisation Form means the form set out in Schedule 5 of these Registrar’s Requirements, as

amended from time to time.

Conveyancing Transaction has the meaning given to it in the ECNL.

Credit Representative has the meaning given to it in the NCCP Act.

Credit Service has the meaning given to it in the NCCP Act and extends to a service with respect to credit

secured or to be secured by real property whether or not it is regulated by that Act.


Document has the meaning given to it in the ECNL.

Duty Authority means the Commissioner of State Revenue of Victoria.

ECNL means the Electronic Conveyancing National Law (Victoria), as amended from time to time.

ELN or Electronic Lodgment Network has the meaning given to it in the ECNL.

Folio of the Register has the meaning given to it in the TLA.

Identifier Declaration means the declaration set out in Verification of Identity Standard paragraph 4.

Identity Agent means a Person who is an agent of a Subscriber, a mortgagee represented by a Subscriber,

or an Other Mortgagee, and who:

(a) a Subscriber or mortgagee reasonably believes is reputable, competent and insured in compliance

with Insurance Rule 2; and

(b) is authorised by a Subscriber or mortgagee to conduct verification of identity on behalf of the

Subscriber or mortgagee in accordance with the Verification of Identity Standard.

Identity Agent Certification means the certification set out in Schedule 2, as amended from time to time.

Identity Declarant means a Person providing an Identifier Declaration.

Identity Verifier means the Person conducting a verification of identity in accordance with the

Verification of Identity Standard.

Instrument has the meaning given to it in the TLA.

Insurance Rules means the rules set out in Schedule 3 of these Registrar’s Requirements, as amended

from time to time.

Law Practice has the meaning given to it in the Legal Profession Uniform Law (Victoria).

Licensed Conveyancer means a Person licensed or registered under the Conveyancers Act 2006.

Lodge has the meaning given to it in the ECNL.

Mortgage Broker means an individual who is:

(a) the holder of an Australian Credit Licence; or

(b) an employee or director of the holder of an Australian Credit Licence or of a related body

corporate of a holder of an Australian Credit Licence engaging in the Credit Service on behalf of

that licensee; or

(c) a Credit Representative of the holder of an Australian Credit Licence;

who provides a Credit Service which relates to credit secured or to be secured by real property owned or

to be owned by the person to whom the Credit Service is provided.

NCCP Act means the National Consumer Credit Protection Act 2009 (Cth).

National Credit Code has the meaning given to it in the NCCP Act.

Other Mortgagee means a mortgagee who is not a Subscriber and is not represented by a Subscriber.

Participation Agreement has the meaning given to it in the ECNL.


Party means each Person who is a party to an Instrument, but does not include a Representative or an

agent.

Person has the meaning given to it in the ECNL.

Person Being Identified means any of the Persons required to be identified under Registrar’s

Requirement 3.1.2 or 3.1.8.

Prescribed Requirement means any Published requirement of the Registrar.

Priority Notice has the meaning given to it in the TLA.

Publish means, for any information, to publish the information on the Registrar’s website.

Registrar has the meaning given to it in the TLA.

Registrar’s Requirements means these requirements made under section 106A of the TLA, as amended

from time to time.

Register has the meaning given to it in the TLA.

Registry Instrument means a paper Instrument.

Representative means an Australian Legal Practitioner, a Law Practice or a Licensed Conveyancer who acts

on behalf of a Client.

Signer means a Person authorised by a Subscriber to sign and, where it is required, certify Instruments

and other Documents on behalf of the Subscriber.

Subscriber means an ADI, an Australian Legal Practitioner, a Law Practice, a Licensed Conveyancer or a

Person who has entered into a Participation Agreement to use an ELN.

TLA means the Transfer of Land Act 1958, as amended from time to time.

Verification of Identity Standard means the standard set out in Schedule 1 of these Registrar’s

Requirements, as amended from time to time.

2.2 Interpretation

In these Registrar’s Requirements, unless a contrary intention is evident:

2.2.1 A reference to these Registrar’s Requirements is a reference to these Registrar’s Requirements

as amended, varied or substituted from time to time.

2.2.2 A reference to any legislation or to any provision of any legislation includes:

(a) all legislation, regulations, proclamations, ordinances, by-laws and instruments issued

under that legislation or provision; and

(b) any modification, consolidation, amendment, re-enactment or substitution of that

legislation or provision.

2.2.3 A word importing:

(a) the singular includes the plural; and

(b) the plural includes the singular; and

(c) a gender includes every other gender.

2.2.4 A reference to a party includes that party’s administrators, successors and permitted assigns.


2.2.5 If any act pursuant to these Registrar’s Requirements would otherwise be required to be done

on a day which is not a Business Day then that act may be done on the next Business Day, and

when an action is required by a party within a specified period of Business Days, the period will

be deemed to commence on the Business Day immediately following the day on which the

obligation is incurred.

2.2.6 Where a word or phrase is given a defined meaning, any other part of speech or grammatical

form in respect of that word or phrase has a corresponding meaning.

2.2.7 A reference to two or more Persons is a reference to those Persons jointly and severally.

2.2.8 A reference to a requirement or schedule is a reference to a requirement of, or a schedule to,

these Registrar’s Requirements.

2.2.9 A reference to a Registrar’s Requirement includes a reference to all of its sub-requirements.

2.2.10 Where general words are associated with specific words which define a class, the general words

are not limited by reference to that class.

2.2.11 The requirement headings are for convenience only and they do not form part of these

Registrar’s Requirements.

2.2.12 The word “or” is not exclusive.

3. Verification of Identity and Authority

106A(1) The Registrar may from time to time determine requirements for paper conveyancing

transactions, which may include the following—

(a) the verification of identity and authority including any of the following—

(i) the standards to which identity and authority are to be verified;

(ii) the classes of person in respect of whom identity and authority are to be verified;

(iii) the classes of document in relation to which verification of identity and authority

requirements apply;

(iv) the classes of person who can undertake verification of identity and authority;

(v) any supporting evidence and retention requirements

3.1 Verification of Identity

3.1.1 Registrar’s Requirements 3.1.2 to 3.1.7 take effect on 9 November 2015. Registrar’s

Requirements 3.1.8 and 3.1.9 take effect on 1 December 2015.

3.1.2 A Subscriber or an Other Mortgagee must take reasonable steps to verify the identity of:

(a) Clients: each Client or each of their Client Agents; and

(b) Mortgagors:

(i) for a mortgage or variation of mortgage, each mortgagor or each of their agents;

and

(ii) for a mortgage or variation of mortgage, each mortgagor or each of their agents,

where a Subscriber represents a mortgagee - however, the Subscriber need not

take reasonable steps to verify the identity of each mortgagor or their agent if the

Subscriber is reasonably satisfied that the mortgagee has taken reasonable steps to

verify the identity of each mortgagor or their agent; and


(iii) for a transfer of mortgage, where section 87B(2)(a) of the TLA is not relied on, each

mortgagor or each of their agents who signed the mortgage sought to be

transferred; and

(iv) for a transfer of mortgage, where a Subscriber represents the transferee

mortgagee and section 87B(2)(a) of the TLA is not relied on, each mortgagor or

each of their agents - however, the Subscriber need not take reasonable steps to

verify the identity of each mortgagor or their agent if the transferee mortgagee has

already taken reasonable steps to verify the identity of each mortgagor or their

agent; and

(c) Persons to whom certificates of title are provided:

(i) any Client or Client Agent, prior to a Subscriber giving a (duplicate/paper)

certificate of title to that Client or Client Agent; and

(ii) any existing mortgagor, former mortgagor or their agent, prior to a Subscriber or

an Other Mortgagee giving a (duplicate/paper) certificate of title to that existing

mortgagor, former mortgagor or their agent; and

(d) Signers: each of its Signers, prior to the initial allocation of their authority to act as a

Signer.

3.1.3 For the purposes of complying with Registrar’s Requirements 3.1.2, a Subscriber, or a

mortgagee represented by a Subscriber, or an Other Mortgagee, can either:

(a) apply the Verification of Identity Standard; or

(b) verify the identity of a Person in some other way that constitutes the taking of reasonable

steps.

3.1.4 A Subscriber, or a mortgagee represented by a Subscriber, or an Other Mortgagee must

undertake further steps to verify the identity of a Person Being Identified and/or any Identity

Declarant where:

(a) the Subscriber or mortgagee knows or ought reasonably to know that:

(i) any identity Document produced by the Person Being Identified and/or any Identity

Declarant is not genuine; or

(ii) any photograph on an identity Document produced by the Person Being Identified

and/or any Identity Declarant is not a reasonable likeness of the Person Being

Identified or the Identity Declarant; or

(iii) the Person Being Identified and/or any Identity Declarant does not appear to be

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

(b) it would otherwise be reasonable to do so.

3.1.5 A Subscriber need not re-verify the identity of the Person Being Identified if:

(a) the Subscriber complied with Registrar’s Requirements 3.1.2 within the previous 2 years;

and

(b) the Subscriber takes reasonable steps to ensure that it is dealing with the Person Being

Identified.

3.1.6 If the Verification of Identity Standard is used:

(a) a Subscriber, or a mortgagee represented by a Subscriber, or an Other Mortgagee, may

use an Identity Agent; and

(b) where an Identity Agent is used, the Subscriber or the mortgagee must direct the Identity

Agent to use the Verification of Identity Standard; and


(c) the Identity Verifier must be:

(i) the Subscriber and/or the Subscriber’s Identity Agent; or

(ii) where a Subscriber represents a mortgagee, that mortgagee and/or that

mortgagee’s Identity Agent; or

(iii) an Other Mortgagee and/or that mortgagee’s Identity Agent; and

(d) the Subscriber or the mortgagee must receive from any Identity Agent:

(i) copies of the Documents produced to verify the identity of the Person Being

Identified and/or any Identity Declarant signed, dated and endorsed as a true copy

of the original by the Identity Agent; and

(ii) an Identity Agent Certification.

3.1.7 Subject to Registrar’s Requirement 3.1.4, compliance with the Verification of Identity Standard

by:

(a) a Subscriber and/or its Identity Agent; or

(b) where a Subscriber represents a mortgagee, that mortgagee and/or that mortgagee’s

Identity Agent; or

(c) an Other Mortgagee and/or that mortgagee’s Identity Agent,

will be deemed to constitute taking reasonable steps for the purposes of Registrar’s

Requirements 3.1.2.

3.1.8 A Party who is required to sign an Instrument(s) and who does not have a Representative must:

(a) have their identity verified by an Approved Identity Verifier applying the Verification of

Identity Standard; and

(b) at the same time, have their signing of the Instrument(s) or other Document(s) witnessed

by the Approved Identity Verifier.

3.1.9 Registrar’s Requirement 3.1.8 does not apply where the Party is:

(a) a Subscriber; or

(b) a mortgagor and:

(i) the mortgagee is an ADI, or

(ii) the mortgagee is a Person who has entered into a Participation Agreement; or

(iii) the mortgagee has a Representative acting on behalf of the mortgagee.

3.2 Authority

3.2.1 This requirement takes effect on 9 November 2015.

3.2.2 For each Conveyancing Transaction a Representative must take reasonable steps to verify that

its Client is a legal Person and has the right to enter into the Conveyancing Transaction.

3.2.3 A mortgagee, or a Representative of a mortgagee, must, for each mortgage, variation of

mortgage or transfer of mortgage, take reasonable steps to verify that the mortgagor is a legal

Person and has the right to enter into the mortgage.


4. Supporting Evidence



(b) the retention of documents supporting or authenticating instruments generally, including

periods of retention

4.1 This requirement takes effect on 9 November 2015.

4.2 A Representative or, where there is no Representative, a Party must retain the evidence

supporting an Instrument or other Document for at least seven years from the date of

Lodgment of the Instrument or other Document that is registered or recorded including:

(a) any evidence required by the Duty Authority; and

(b) any Client Authorisation and any evidence supporting that Client Authorisation; and

(c) any evidence supporting a Party’s right to enter into the Conveyancing Transaction; and

(d) any evidence supporting verification of identity; and

(e) any other evidence demonstrating compliance with Prescribed Requirements.

5. Certifications



(c) setting out matters to be certified or relating to the certification of matters for the purposes of

conveyancing transactions, including any of the following—

(i) the form of certifications;

(ii) the classes of person who may certify those matters;

(iii) any supporting evidence and retention requirements

5.1 This requirement takes effect on 3 April 2017.

5.2 Only Subscribers can provide certifications.

5.3 A Subscriber must comply with the Certification Rules.

6. Electronic Instruments



(d) the classes of instrument that must be lodged using an ELN

6.1 This requirement takes effect on 1 August 2016.

6.2 Where the mortgagee is an ADI:


(a) a discharge of mortgage signed on or after 1 August 2016 must be Lodged using an ELN,

except where the discharge of mortgage is to be Lodged with any transfer of land or

mortgage for the same folio(s) of the Register; and

(b) a mortgage to which the National Credit Code applies signed on or after 1 August 2016

must be Lodged using an ELN, except where the mortgage is to be Lodged with any

discharge of mortgage or transfer of land for the same folio(s) of the Register.

6.3 Registrar’s Requirement 6.2 does not apply if an ELN is not available and has not been available

for one clear Business Day.

7. Lodging Parties



(e) the classes of person who must lodge specified classes of instrument

7.1 This requirement takes effect on 1 March 2016.

7.2 A discharging mortgagee or its Representative must Lodge a discharge of mortgage signed on or

after 1 March 2016, except where the discharge of mortgage is to be Lodged with any transfer

of land or mortgage for the same folio(s) of the Register.

8. Client Authorisations



(f) client authorisations, including any of the following—

(i) the form of a client authorisation;

(ii) the classes of instrument to which a client authorisation applies;

(iii) any supporting evidence and retention requirements


8.2 Where a Client is a Party to an Instrument or other Document, and is required to sign that

Instrument or other Document, the Client’s Representative must sign that Instrument or other

Document on behalf of the Client.

8.3 A Representative must:

(a) use the Client Authorisation Form for any Client Authorisation it enters into; and

(b) except for Caveats and Priority Notices, for which a Client Authorisation is optional, enter

into a Client Authorisation with its Client before the Representative signs any Instrument

or other Document; and

(c) comply with the Client Authorisation and act in accordance with its terms; and


(d) take reasonable steps to verify the authority of each Person entering into a Client

Authorisation on behalf of a Client to both bind the Client to the Client Authorisation and

to the Conveyancing Transaction(s) the subject of the Client Authorisation; and

(e) take reasonable steps to ensure that the Client Authorisation is signed by the

Representative’s Client or their Client Agent.

9. Certifications under section 74(1A)



(g) the classes of mortgagee able to certify the matters specified under section 74(1A)

74(1A) The Registrar may register a mortgage if the mortgagee has—

(a) signed the mortgage; and

(b) certified that—

(i) the mortgagee holds a mortgage granted by the mortgagor; and

(ii) the mortgage held by the mortgagee is in the same terms as the mortgage

lodged for registration.


9.2 The classes of mortgagee able to certify the matters specified under section 74(1A) of the TLA

are:

(a) a mortgagee who is an ADI; or

(b) a mortgagee who is a Person who has entered into a Participation Agreement to use an

ELN; or

(c) a mortgagee who has a Representative acting on behalf of the mortgagee.

9.3 Where a mortgagee satisfies Registrar’s Requirement 9.2, that mortgagee or, where the

mortgagee is represented, its Representative must:

(a) sign any mortgage in which the mortgagee is a Party; and

(b) ensure that the mortgagor grants a mortgage on the same terms as the mortgage signed

by, or on behalf of, the mortgagee; and

(c) ensure that it holds the mortgage granted by the mortgagor; and

(d) provide Certification 5 of the Certification Rules.

10. Paper quality and size


transactions

10.1 This requirement takes effect on the day these Registrar’s Requirements are published.

10.2 Any Instrument lodged with the Registrar must be:

(a) printed on;


(i) white;

(ii) A4 size paper;

(iii) with a minimum weight of 80 grams per square metre; and

(b) have clear margins of not less than 10 millimetres and not more than 15 millimetres on all

borders.

10.3 Printing must be:

(a) single-sided; and

(b) in black text; and

(c) have a font size equivalent to Arial 10 point or Times New Roman 12 point; and

(d) in portrait orientation; and

(e) have all pages numbered and total pages specified.

10.4 Handwriting must be:

(a) in block letters; and

(b) clear and legible; and

(c) in black ink or blue ink.

10.5 Signatures must be in black ink or blue ink.

10.6 Erasures, correction products, over-typing or over-printing must not be used on Instruments

11. Applications to the Registrar to act


transactions

11.1 This requirement takes effect on the day these Registrar’s Requirements are published.

11.2 If a Person requests the Registrar to do an act or perform a duty that Person must apply to the

Registrar.

11.3 If no form of application is prescribed by any regulations made under the TLA or any other

legislation, or is approved by the Registrar, the applicant must apply to the Registrar in writing:

(a) stating what the Registrar is requested to do and the relevant section of the TLA or any

other legislation; and

(b) describing the land by reference to a folio of the Register and, if only part of the land is

affected, define that part; and

(c) stating the name and address of the applicant; and

(d) setting out the registered number of any Instrument or plan affected by the application ;

and

(e) setting out any other particulars that are required by the relevant section of the TLA or

any other legislation; and

(f) signed by the applicant or the applicant’s Representative.


Schedule 1 – Verification of Identity

This definition replaces that in the following Verification of Identity Standard for the purposes of a paper

Conveyancing Transaction:

Person Being Identified means any of the Persons required to be identified under Registrar’s Requirement

3.1.2 or 3.1.8.


Verification of Identity Standard

1 Definitions

In this Verification of Identity Standard capitalised terms have the meanings set out below:

ADI or authorised deposit-taking institution has the meaning given to it in the Banking Act 1959

(Cth).

Adult has the meaning given to it in the ECNL.

Application Law has the meaning given to it in the ECNL.

Australian Legal Practitioner has the meaning given to it in the relevant legislation of the

Jurisdiction in which the land the subject of the Conveyancing Transaction is situated and in South

Australia is a legal practitioner for the purposes of the Legal Practitioners Act 1981 (SA).

Australian Passport means a passport issued by the Australian Commonwealth government.

Bank Manager means a Person appointed to be in charge of the head office or any branch

office of an ADI carrying on business in Australia under the Banking Act 1959 (Cth).

Category means the categories of identification Documents set out in the table in

Verification of Identity Standard paragraph 3, as amended from time to time.

Commonwealth has the meaning given to it in the ECNL.

Community Leader means, in relation to an Aboriginal or Torres Strait Islander community:

(a) a Person who is recognised by the members of the community to be a community elder;

or

(b) if there is an Aboriginal council that represents the community, an elected member of the

council; or

(c) a member, or a member of staff, of a Torres Strait Regional Authority established under

the Aboriginal and Torres Strait Islander Commission Act 2005 (Cth); or

(d) a member of the board, or a member of staff, of Indigenous Business Australia established

under the Aboriginal and Torres Strait Islander Commission Act 2005 (Cth); or

(e) a member of the board, or a member of staff, of an Indigenous Land Corporation

established under the Aboriginal and Torres Strait Islander Commission Act 2005 (Cth); or

(f) a member, or a member of staff, of an Aboriginal Land Council established under the

Aboriginal Land Rights (Northern Territory) Act 1976 (Cth).

Court Officer means a judge, master, magistrate, registrar, clerk or the chief executive officer of

any court in Australia.

Doctor means a Person who is registered under any Commonwealth, State or Territory law as a

practitioner in the medical profession.

ECNL means the Electronic Conveyancing National Law as adopted or implemented in a Jurisdiction

by the Application Law, as amended from time to time.

Identifier Declaration means the declaration set out in Verification of Identity Standard paragraph

4.


Identity Verifier means the Person conducting the verification of identity in accordance with this

Verification of Identity Standard.

Individual has the meaning given to it in the ECNL.


Land Council Officeholder means a chairperson or deputy chairperson of an Australian land

council or land and sea council established under any Commonwealth, State or Territory law.

Land Titles Legislation has the meaning given to it in the ECNL.

Licensed Conveyancer means a Person licensed or registered under the relevant legislation of the

Jurisdiction in which the land the subject of the Conveyancing Transaction is situated and in

Western Australia is a real estate settlement agent for the purposes of the Settlement Agents Act

1981 (WA).

Local Government Officeholder means a chief executive officer or deputy chief executive officer

of a local government organisation.

Nurse means a Person registered under any Commonwealth, State or Territory law as a

practitioner in the nursing and midwifery profession.


Person Being Identified means any of the Persons required to be identified under

Participation Rule 6.5.1.

Photo Card is a card issued by the Commonwealth or any State or Territory showing a photograph

of the holder and enabling the holder to evidence their age and/or their identity.

Police Officer means an officer of any Commonwealth, State or Territory police service.

Priority/Settlement Notice has the meaning given to it in the Land Titles Legislation of the

Jurisdiction in which the land the subject of the Conveyancing Transaction is situated.

Public Servant means an employee or officer of the Commonwealth, a State or a Territory.

Record has the meaning given to it in the ECNL.

Relative means a Person’s spouse or domestic partner or a child, grandchild, sibling, parent or

grandparent of the Person or of the Person’s spouse or domestic partner.

State means New South Wales, Queensland, South Australia, Tasmania, Victoria and Western

Australia.

Statutory Declaration has the meaning given to it in the ECNL.

Territory has the meaning given to it in the ECNL.

Verification of Identity Standard means this verification of identity standard, as amended from

time to time.

2 Face-to-face regime

2.1 The verification of identity must be conducted during a face-to-face in-person interview between

the Identity Verifier and the Person Being Identified.

2.2 Where Documents containing photographs are produced by the Person Being Identified, 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.

3 Categories of identification Documents and evidence retention

3.1 At the face-to-face in-person interview described in paragraph 2.1, the Identity Verifier must

ensure that the Person Being Identified produces original Documents in one of the Categories in

the following table, starting with Category 1.

3.2 The Identity Verifier must be reasonably satisfied that a prior Category cannot be met before

using a subsequent Category.


3.3 The Identity Verifier must:

(a) sight the originals of all Documents from Categories 1, 2, 3, 4, 5 or 6 produced by the

Person Being Identified; and

(b) retain copies of all Documents produced by the Person Being Identified and any Identity

Declarant.

3.4 The Documents produced must be current, except for an expired Australian Passport which has

not been cancelled and was current within the preceding 2 years.

Category Minimum Document Requirements

For Persons who are Australian citizens or residents:

1

Australian Passport or foreign passport

plus Australian drivers licence or Photo Card

plus change of name or marriage certificate if necessary

2

Australian Passport or foreign passport

plus full birth certificate or citizenship certificate or descent certificate

plus Medicare or Centrelink or Department of Veterans’ Affairs card


3

Australian drivers licence or Photo Card




4

(a) Australian Passport or foreign passport

plus another form of government issued photographic identity Document


(b) Australian Passport or foreign passport

plus full birth certificate

plus another form of government issued identity Document


5

(a) Identifier Declaration



plus change of name or marriage certificate if necessary.

(b) Identifier Declaration by a Person specified in Verification of Identity

Standard paragraph 4.4(e)



Note: Refer to Verification of Identity Standard paragraph 4.

For Persons who are not Australian citizens or residents:

6

(a) Foreign passport

plus another form of government issued photographic identity Document


(b) Foreign passport

plus full birth certificate

plus another form of government issued identity Document



4 The Identifier Declaration

4.1 Where the requirements of:

(a) Categories 1 to 4 cannot be met, Category 5(a) may be used; and

(b) Category 5(a) cannot be met, Category 5(b) may be used,

including the provision of an Identifier Declaration in accordance with this paragraph.

4.2 The Identity Verifier must ensure that both the Person Being Identified and the Identity Declarant

attend the same face-to-face in-person interview described in paragraph 2.1.

4.3 The Identity Verifier must verify the identity of the Identity Declarant in accordance with this

Verification of Identity Standard except that the Identity Verifier cannot utilise Category 5.

4.4 The Identity Verifier must undertake reasonable enquiries to satisfy themselves that the Identity

Declarant is:

(a) an Adult; and

(b) an Individual who has known the Person Being Identified for more than 12 months; and

(c) not a Relative of the Person Being Identified; and

(d) not a party to the Conveyancing Transaction(s) the Person Being Identified has or is entering

into; and

(e) where Category 5(b) is used, an Australian Legal Practitioner, a Bank Manager, Community

Leader, Court Officer, Doctor, Land Council Officeholder, Licensed Conveyancer, Local

Government Officeholder, Nurse, Public Servant or Police Officer.

4.5 The Identity Verifier must ensure that the Identity Declarant provides a Statutory Declaration

detailing the following:

(a) the Identity Declarant’s name and address; and

(b) the Identity Declarant’s occupation; and

(c) the Identity Declarant’s date of birth; and

(d) the nature of the Identity Declarant’s relationship with the Person Being Identified; and

(e) that the Identity Declarant is not a relative of the Person Being Identified; and

(f) that the Identity Declarant is not a party to the Conveyancing Transaction(s) the Person

Being Identified has or is entering into; and

(g) the length of time that the Identity Declarant has known the Person Being Identified; and

(h) that to the Identity Declarant’s knowledge, information and belief the Person Being

Identified is who they purport to be; and

(i) where Category 5(b) is used, that the Identity Declarant is an Australian Legal Practitioner, a

Bank Manager, Community Leader, Court Officer, Doctor, Land Council Officeholder,

Licensed Conveyancer, Local Government Officeholder, Nurse, Public Servant or Police

Officer.

5 Body Corporate

The Identity Verifier must:

(a) confirm the existence and identity of the body corporate by conducting a search of the

Records of the Australian Securities and Investments Commission or other regulatory body

with whom the body corporate is required to be registered; and


(b) take reasonable steps to establish who is authorised to sign or witness the affixing of the seal

on behalf of the body corporate; and

(c) verify the identity of the Individual or Individuals signing or witnessing the affixing of the seal

on behalf of the body corporate in accordance with the Verification of Identity Standard.

[Note: body corporate includes an incorporated association.]

6 Individual as attorney


(a) confirm from the [registered] power of attorney the details of the attorney and the donor;

and

(b) take reasonable steps to establish that the Conveyancing Transaction(s) is authorised by the

power of attorney; and

(c) verify the identity of the attorney in accordance with the Verification of Identity Standard.

7 Body Corporate as attorney


(a) confirm from the [registered] power of attorney the details of the attorney and the

donor; and

(b) take reasonable steps to establish that the Conveyancing Transaction(s) is authorised by the

power of attorney; and

(c) comply with Verification of Identity Standard paragraph 5.


8 (Deleted)

9 (Deleted)

10 Further checks

The Identity Verifier must undertake further steps to verify the identity of the Person Being Identified

and/or the Identity Declarant where:

(a) the Identity Verifier knows or ought reasonably to know that:

(i) any identity Document produced by the Person Being Identified and/or the Identity

Declarant is not genuine; or

(ii) any photograph on an identity Document produced by the Person Being Identified

and/or the Identity Declarant is not a reasonable likeness of the Person Being

Identified or the Identity Declarant; or

(iii) the Person Being Identified and/or the Identity Declarant does not appear to be the

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



Schedule 2 – Identity Agent Certification

“I, [full name of the Identity Agent], of [address of the Identity Agent] being a [occupation of the

Identity Agent] and having been directed to use the Verification of Identity Standard by [Subscriber

name] hereby certify that:

(a) the identification relates to [full name of the Person Being Identified or the Identity

Declarant]; and

(b) the identification was carried out on [date]; and

(c) the original current identification Documents as listed below were produced to me and

copies of these Documents signed, dated and endorsed by me as true copies are

attached to this certificate; and

(d) the verification of identity was conducted in accordance with the Verification of Identity

Standard[; and

(e) I witnessed [full name of the Person Being Identified] execute the completed Client

Authorisation or grant the mortgage].*”

…………………………….. ………………………………………

Date: Signature of Identity Agent

List of identification Documents produced (see (c) above):

Description of identity Documents produced and endorsed Page number in set of copies

e.g. Australian Passport 1

*Delete where Identity Agent not requested to witness or is not legally entitled to witness the document.


Schedule 3 – Insurance Rules

1 [not used]

2 Identity Agent insurance

2.1 Each Identity Agent must maintain professional indemnity insurance:

(a) with an Approved Insurer; and

(b) for an insured amount of at least $1.5 million per claim (including legal Costs); and

(c) having an excess per claim of no greater than $20,000; and

(d) having an annual aggregate amount of not less than $20,000,000; and

(e) which includes coverage for verification of identity for the purposes of these Registrar’s

Requirements; and

(f) the terms of which do not limit compliance with Insurance Rules 2.1(a) to (e).

2.2 Each Identity Agent must maintain fidelity insurance:





(e) which provides coverage for third party claims arising from dishonest and fraudulent

acts; and

(f) which includes coverage for verification of identity for the purposes of these Registrar’s

Requirements; and

(g) the terms of which do not limit compliance with Insurance Rules 2.2(a) to (f).

2.3 If an Identity Agent does not comply with Insurance Rules 2.1 and 2.2, the Identity Agent must

maintain professional indemnity insurance:






acts; and

(f) which includes coverage for verification of identity for the purposes of these Registrar’s

Requirements; and



2.4 An Identity Agent may maintain fidelity insurance held through a mutual fund by paying a levy

or contribution rather than an annual insurance premium. The insurance must otherwise

comply with Insurance Rule 2.2.

3 Self-insuring Identity Agents

Despite Insurance Rule 2, the following Persons need not take out any insurance to become or remain

an Identity Agent:

(a) an ADI; or

(b) the Crown in right of the Commonwealth, a State or a Territory.

4 Deemed compliance with these Insurance Rules

4.1 The following are deemed to comply with Insurance Rules 2:

(a) an Australian Legal Practitioner or a Law Practice who holds or is covered by

professional indemnity insurance and either holds fidelity insurance or contributes to,

or on whose behalf a contribution is made to, a fidelity fund operated pursuant to

legislative requirements; and

(b) a Licensed Conveyancer who holds or is covered by professional indemnity insurance

and either holds fidelity insurance or contributes to, or on whose behalf a contribution

is made to, a fidelity fund operated pursuant to legislative requirements.

4.2 A Mortgage Broker, when acting as agent of a mortgagee for the purposes of verifying the

identity of a mortgagor, is deemed to comply with Insurance Rule 2 if:

(a) pursuant to legislative requirements, either it holds or is covered by:

(i) professional indemnity insurance and fidelity insurance, or

(ii) professional indemnity insurance which provides cover for third party claims

arising from dishonest and fraudulent acts, and

(b) that insurance covers the verification of identity.

5 Compliance

An Identity Agent must comply with any requirements set by its insurer.

6 Proof of insurance

An Identity Agent must provide evidence of insurance to the Registrar as required by the Registrar.


Schedule 4 – Certification Rules

The Subscriber must provide those of the following certifications that are required when signing

each Instrument or Document:

1 The Subscriber has taken reasonable steps to verify the identity of the [transferor/transferee/

mortgagee/ mortgagor/caveator/applicant].

2 The Subscriber holds a properly completed Client Authorisation for the Conveyancing

Transaction including this Registry Instrument or Document.

3 The Subscriber has retained the evidence supporting this Registry Instrument or Document.

4 The Subscriber has taken reasonable steps to ensure that this Registry Instrument or Document

is correct and compliant with relevant legislation and any Prescribed Requirement.

5 The Subscriber, or the Subscriber is reasonably satisfied that the mortgagee it represents,:

(a) has taken reasonable steps to verify the identity of the mortgagor; and

(b) holds a mortgage granted by the mortgagor on the same terms as this Registry

Instrument.

6 The Subscriber has:

(a) retrieved; and

(b) either securely destroyed or made invalid

the (duplicate) certificate(s) of title for the folio(s) of the Register listed in this Registry

Instrument or Document.


Schedule 5 – Client Authorisation Form

These definitions replace those in the following Client Authorisation Form for the purposes of a paper

Conveyancing Transaction:

Insurance Rules means the rules set out in Schedule 3 of these Registrar’s Requirements, as amended

from time to time.

Registry Instrument means a paper Instrument.

Subscriber means an Australian Legal Practitioner, a Law Practice, or a Licensed Conveyancer who acts on

behalf of a Client.

CLIENT AUTHORISATION

When this form is signed, the Subscriber is authorised to act for the Client in a Conveyancing Transaction(s).

Privacy Collection Statement: The information in this form is collected under statutory authority and used for the purpose of

maintaining publicly searchable registers and indexes.

Subscriber Reference: __________________________

CLI

EN

T D

ET

AIL

S

CLIENT 1 CLIENT 2

NAME

ACN/ARBN

ADDRESS

TR

AN

SA

CT

ION

DE

TA

ILS

AUTHORITY TYPE � SPECIFIC AUTHORITY

(transaction details

below)

� STANDING AUTHORITY

ends on revocation or expiration

date:….……/…….…../………….

� BATCH AUTHORITY

(attach details)

CONVEYANCING TRANSACTION(S) 1 CONVEYANCING TRANSACTION(S) 2

PROPERTY

ADDRESS

LAND TITLE

REFERENCE(S)

(and/or property

description)

CONVEYANCING

TRANSACTION(S) � TRANSFER � MORTGAGE � CAVEAT � TRANSFER � MORTGAGE � CAVEAT

� PRIORITY/

SETTLEMENT

NOTICE

� DISCHARGE/

RELEASE OF

MORTGAGE

� WITHDRAW

CAVEAT

� PRIORITY/

SETTLEMENT

NOTICE

� DISCHARGE/

RELEASE OF

MORTGAGE

� WITHDRAW

CAVEAT

� OTHER � OTHER

ADDITIONAL

INSTRUCTIONS

CLI

EN

T A

UT

HO

RIS

AT

ION

AN

D S

IGN

ING

CLIENT 1 / CLIENT AGENT 1 CLIENT 2 / CLIENT AGENT 2

I CERTIFY that:

(a) I am the Client or Client Agent; and

(b) I have the legal authority to instruct the Subscriber in relation to the Conveyancing Transaction(s); and

(c) If I am acting as a Client Agent that I have no notice of the revocation of my authority to act on behalf of

the Client.


I AUTHORISE the Subscriber to act on my behalf, or where I am a Client Agent to act on behalf of the Client,

in accordance with the terms of this Client Authorisation and any Participation Rules and any Prescribed

Requirement to:

(a) sign Documents on my behalf as required for the Conveyancing Transaction(s); and

(b) submit or authorise submission of Documents for lodgment with the relevant Land Registry; and

(c) authorise any financial settlement involved in the Conveyancing Transaction(s); and

(d) do anything else necessary to complete the Conveyancing Transaction(s).

DATE / /

SIG

N H

ER

E

DATE / /

SIG

N H

ER

E

CLIENT /

CLIENT

AGENT

NAME:

CAPACITY:

CLIENT /

CLIENT AGENT

NAME:

CAPACITY:

SU

BS

CR

IBE

DE

DE

TA

ILS

AN

D S

IGN

ING

SUBSCRIBER AGENT (if applicable)

NAME

ACN/ARBN

ADDRESS

I/We CERTIFY that reasonable steps have been taken to ensure that this Client Authorisation was signed by

each of the Persons named above as Client or Client Agent.

SIGNATURE OF SUBSCRIBER OR AGENT IF APPLICABLE:

DATE / /

SIG

N H

ER

E

DATE / /

SIG

N H

ER

E

SIGNATORY

NAME:

SIGNATORY

NAME:

CAPACITY: CAPACITY:

Terms of this Client Authorisation

1. What is Authorised

The Client authorises the Subscriber to act on behalf of the Client in accordance with the terms of this

Client Authorisation and any Participation Rules and any Prescribed Requirement to:

(a) sign Documents on the Client’s behalf as required for the Conveyancing Transaction(s); and




The Client acknowledges that the Client is bound by any Documents required in connection with a

Conveyancing Transaction that the Subscriber signs on the Client’s behalf in accordance with this Client

Authorisation.


2. Mortgagees

Where:

(a) the Subscriber represents the Client in the Client’s capacity as mortgagee; and

(b) the Client represents to the Subscriber that the Client has taken reasonable steps to verify the

identity of the mortgagor

the Client indemnifies the Subscriber for any loss resulting from the Client’s failure to take reasonable steps

to verify the identity of the mortgagor.

3. Revocation

This Client Authorisation may be revoked by either the Client or the Subscriber giving notice in writing to

the other that they wish to end this Client Authorisation.

4. Privacy and Client Information

The Client acknowledges that information relating to the Client that is required to complete a Conveyancing

Transaction, including the Client’s Personal Information, may be collected by and disclosed to the Duty

Authority, the ELNO, the Land Registry, the Registrar and third parties (who may be located overseas)

involved in the completion of the Conveyancing Transaction or the processing of it, and consents to the

collection and disclosure of that information to any of those recipients, including to those who are

overseas. For further information about the collection and disclosure of your Personal Information, refer to

the relevant party’s privacy policy.

5. Applicable Law

This Client Authorisation is governed by the law in force in the Jurisdiction in which the Property is situated.

The Client and the Subscriber submit to the non-exclusive jurisdiction of the courts of that place.

6. Meaning of Words Used in this Client Authorisation

In this Client Authorisation, capitalised terms have the meaning set out below:

Agent means a Person authorised by a Subscriber to act as the Subscriber’s agent. For the avoidance of

doubt this can include an Identity Agent.

Australian Legal Practitioner has the meaning given to it in the relevant legislation of the Jurisdiction in

which the property is situated and in South Australia is a legal practitioner for the purposes of the Legal

Practitioners Act 1981 (SA).

Batch Authority means an authority for the Subscriber to act for the Client in a batch of Conveyancing

Transactions details of which are attached to this Client Authorisation.

Capacity means the role of the signatory (for example an attorney or a director of a company).

Caveat means a Document giving notice of a claim to an interest in land that may have the effect of an

injunction to stop the registration of a Registry Instrument in the Titles Register.

Client means the Person or Persons named in this Client Authorisation.

Client Agent means a Person authorised to act as the Client’s agent but does not include the Subscriber

acting solely as the Client’s Representative.


Discharge/Release of Mortgage means a Registry Instrument that discharges or releases a Mortgage.



Duty Authority means the State Revenue Office of the Jurisdiction in which the property is situated.

ECNL means the Electronic Conveyancing National Law as adopted or implemented in a Jurisdiction by the

application law, as amended from time to time.

ELNO means Electronic Lodgment Network Operator and has the meaning given to it in the ECNL.

Identity Agent means a Person who is an agent of either a Subscriber, or a mortgagee represented by a

Subscriber, and who:

(a) the Subscriber or mortgagee reasonably believes is reputable, competent and insured in compliance

with Insurance Rule 2; and

(b) is authorised by the Subscriber or mortgagee to conduct verification of identity on behalf of the

Subscriber or mortgagee in accordance with the Verification of Identity Standard.

Insurance Rules has the meaning given to it in the Participation Rules.

Jurisdiction means an Australian State or Territory.

Land Registry means the agency of a State or Territory responsible for maintaining the Jurisdiction’s Titles

Register.

Land Title Reference means the relevant Land Registry’s unique identifier(s) for the property.

Licensed Conveyancer means a Person licensed or registered under the relevant legislation of the

Jurisdiction in which the property is situated and in Western Australia is a real estate settlement agent for

the purposes of the Settlement Agents Act 1981 (WA).

Mortgage means a Registry Instrument by which a Person charges an estate or interest in land as security.

Participation Rules, as amended from time to time, has the meaning given to it in the ECNL.


Personal Information has the meaning given to it in the Privacy Act 1988 (Cth).

Prescribed Requirement means any Published requirement of the Registrar that Subscribers are required

to comply with.

Priority/Settlement Notice means a notice (other than a Caveat) which prevents (subject to specified

exceptions) registration or recording in the Titles Register of a Registry Instrument or other Document

affecting land or an interest in land until the notice lapses or is withdrawn, removed or cancelled.


Registrar has the meaning given to it in the ECNL.

Registry Instrument has the meaning given to it in the ECNL.

Representative means a Subscriber who acts on behalf of a Client.

Specific Authority means an authority for the Subscriber to act for the Client in completing the

Conveyancing Transactions described in this Client Authorisation.

Standing Authority means an authority for the Subscriber to act for the Client for a period of time set out in

this Client Authorisation.

Subscriber is the Person named in this Client Authorisation and has the meaning given to it in the ECNL or

for a paper Conveyancing Transaction is an Australian Legal Practitioner or a Licensed Conveyancer.


Titles Register has the meaning given to it in the ECNL.

Transfer includes the preparation of all documents required to effect a purchase or sale of land or any

other transfer of land, and the liaison with, where relevant, any mortgagee or proposed mortgagee.

Withdrawal of Caveat means a Document which removes a Caveat

www.delwp.vic.gov.au

Electronic Conveyancing National Law (Victoria)

Participation Rules

Determined by the Registrar of Titles

Version 3

Published: 30 September 2015

Take effect: 9 November 2015

Victorian Participation Rules – Version 3 – September 2015 Page 2 of 50

CONTENTS

1 PRELIMINARY .................................................................................................................. 4

2 DEFINITIONS AND INTERPRETATION ............................................................................ 4

2.1 Definitions ............................................................................................................................ 4

2.2 Interpretation ...................................................................................................................... 11

3 COMPLIANCE WITH PARTICIPATION RULES .............................................................. 12

4 ELIGIBILITY CRITERIA ................................................................................................... 13

4.1 ABN .................................................................................................................................... 13

4.2 Status ................................................................................................................................. 13

4.3 Character ........................................................................................................................... 13

4.4 Insurance ........................................................................................................................... 14

5 THE ROLE OF SUBSCRIBERS ...................................................................................... 14

5.1 Subscriber’s roles .............................................................................................................. 14

5.2 Subscriber as principal ...................................................................................................... 14

5.3 Subscriber who acts as Representative ............................................................................ 15

5.4 Responsible Subscribers ................................................................................................... 15

5.5 Subscriber as trustee and partnerships ............................................................................. 15

6 GENERAL OBLIGATIONS .............................................................................................. 15

6.1 Ensure User compliance .................................................................................................... 15

6.2 Keep Subscriber System Details complete and up-to-date ............................................... 16

6.3 Client Authorisation ............................................................................................................ 16

6.4 Right to Deal ...................................................................................................................... 16

6.5 Verification of identity ......................................................................................................... 16

6.6 Supporting evidence .......................................................................................................... 18

6.7 Compliance with laws and Participation Rules .................................................................. 19

6.8 Compliance with directions ................................................................................................ 19

6.9 Assistance .......................................................................................................................... 19

6.10 Protection of information .................................................................................................... 19

6.11 Information ......................................................................................................................... 19

6.12 No assignment ................................................................................................................... 19

6.13 Mortgages .......................................................................................................................... 20

6.14 Signing of Client Authorisations ......................................................................................... 20

7 OBLIGATIONS REGARDING SYSTEM SECURITY AND INTEGRITY ........................... 20

7.1 Protection measures .......................................................................................................... 20

7.2 Users .................................................................................................................................. 21

7.3 User access ....................................................................................................................... 21

7.4 Signers ............................................................................................................................... 21

7.5 Digital Certificates .............................................................................................................. 22

7.6 (Deleted) ............................................................................................................................ 22


7.7 Notification of Jeopardised Conveyancing Transactions ................................................... 22

7.8 Revoking authority ............................................................................................................. 23

7.9 Compromised Security Items ............................................................................................. 23

7.10 Certifications ...................................................................................................................... 24

8 AMENDMENT OF PARTICIPATION RULES ................................................................... 24

9 RESTRICTION, SUSPENSION AND TERMINATION ..................................................... 24

9.1 Comply with directions relating to restriction of access or use .......................................... 24

9.2 Suspension at direction of Registrar .................................................................................. 24

9.3 Termination at direction of Registrar .................................................................................. 24

9.4 Rights and obligations on suspension, termination or resignation .................................... 24

9.5 Further steps by Subscriber ............................................................................................... 25

10 COMPLIANCE ................................................................................................................. 25

11 PROHIBITIONS ............................................................................................................... 25

12 ADDITIONAL PARTICIPATION RULES .......................................................................... 26

SCHEDULE 1 – ADDITIONAL PARTICIPATION RULES .............................................................. 27

SCHEDULE 2 – AMENDMENT TO PARTICIPATION RULES PROCEDURE ............................... 28

SCHEDULE 3 – CERTIFICATION RULES .................................................................................... 29

SCHEDULE 4 – CLIENT AUTHORISATION FORM ...................................................................... 30

SCHEDULE 5 – COMPLIANCE EXAMINATION PROCEDURE .................................................... 35

SCHEDULE 6 – INSURANCE RULES .......................................................................................... 37

SCHEDULE 7 – SUSPENSION EVENTS, TERMINATION EVENTS AND SUSPENSION AND

TERMINATION PROCEDURE ........................................................................... 40

SCHEDULE 8 – VERIFICATION OF IDENTITY STANDARD ........................................................ 43

SCHEDULE 9 – IDENTITY AGENT CERTIFICATION .................................................................. 50


PARTICIPATION RULES

1 PRELIMINARY

These Participation Rules constitute the Participation Rules determined by the Registrar

pursuant to section 23 of the ECNL.

2 DEFINITIONS AND INTERPRETATION

2.1 Definitions

2.1.1 A term used in these Participation Rules and also in the ECNL has the same meaning in

these Participation Rules as it has in that legislation (unless the term is defined in these

Participation Rules).

2.1.2 In these Participation Rules capitalised terms have the meanings set out below:

ABN means an Australian Business Number and has the meaning given to it in the A New

Tax System (Australian Business Number) Act 1999 (Cth).

Access Credentials means a User identification and password, and any other details,

required for a Person to access the ELN.

Additional Participation Rules means the additional Participation Rules specific to the

Registrar’s Jurisdiction, if any, set out in Schedule 1, as amended from time to time.

ADI or authorised deposit-taking institution has the meaning given to it in the Banking

Act 1959 (Cth).

Amendment to Participation Rules Procedure means the procedure set out in Schedule

2, as amended from time to time.


Approved Insurer means an insurer approved by APRA to offer general insurance in

Australia.

APRA means the Australian Prudential Regulation Authority.

Australian Credit Licence has the meaning given to it in the NCCP Act.


Jurisdiction in which the land the subject of the Conveyancing Transaction is situated and

in South Australia is a legal practitioner for the purposes of the Legal Practitioners Act

1981 (SA).

Business Day has the meaning given to it in the ECNL.


Caveat means a Document under the Land Titles Legislation giving notice of a claim to an

interest in land that may have the effect of an injunction to stop the registration of a

Registry Instrument in the Titles Register.

Certification Authority means a Gatekeeper Accredited Service Provider that issues

Digital Certificates that have been Digitally Signed using the Certification Authority’s

Private Key and provides certificate verification and revocation services for the Digital

Certificates it issues.

Certification Rules means the rules set out in Schedule 3, as amended from time to time.

Client means a Person who has or Persons who have appointed a Subscriber as their

Representative pursuant to a Client Authorisation and caveators and applicants in a

Priority/Settlement Notice who have appointed a Subscriber as their Representative but

have not provided a Client Authorisation.

Client Agent means a Person authorised to act as the Client’s agent but does not include

the Subscriber acting solely as the Client’s Representative.

Client Authorisation has the meaning given to it in the ECNL.

Client Authorisation Form means the form set out in Schedule 4, as amended from time

to time.


Compliance Examination has the meaning given to it in the ECNL.

Compliance Examination Procedure means the obligations and procedures set out in

Schedule 5, as amended from time to time.

Compromised means lost or stolen, or reproduced, modified, disclosed or used without

proper authority.

Contact Details means a Subscriber’s:

(a) physical address, registered office or principal place of business (as applicable); and

(b) postal address, phone number(s), fax number and email address, as recorded by

the ELNO.


Corporations Act means the Corporations Act 2001 (Cth).

Costs include costs, charges and expenses, including those incurred in connection with

advisers.

Credit Representative has the meaning given to it in the NCCP Act.


Credit Service has the meaning given to it in the NCCP Act and extends to a service with

respect to credit secured or to be secured by real property whether or not it is regulated by

that Act.

Crown means the government, a Minister of the Crown, a statutory corporation

representing the Crown or another entity representing the Crown.

Digital Certificate means an electronic certificate Digitally Signed by the Certification

Authority which:

(a) identifies either a Key Holder and/or the business entity that he/she represents; or a

device or application owned, operated or controlled by the business entity; and

(b) binds the Key Holder to a Key Pair by specifying the Public Key of that Key Pair; and

(c) contains the specification of the fields to be included in a Digital Certificate and the

contents of each.

Digitally Sign has the meaning given to it in the ECNL.

Digital Signature has the meaning given to it in the ECNL.


Duty means, for an electronic Registry Instrument, any taxes, levies, imposts, charges

and duties in connection with the electronic Registry Instrument payable to the Duty

Authority.

Duty Authority means the State Revenue Office of the Jurisdiction in which the land the

subject of the Conveyancing Transaction is situated.

ECNL means the Electronic Conveyancing National Law as adopted or implemented in a

Jurisdiction by the Application Law, as amended from time to time.

ELN has the meaning given to it in the ECNL.

ELN Administrator means the Person appointed by the ELNO from time to time to

perform administrative functions within the ELN.

ELNO has the meaning given to it in the ECNL.

Electronic Workspace means a shared electronic workspace generated by the ELN.

Gatekeeper means the Commonwealth government strategy to develop PKI to facilitate

government online service delivery and e-procurement.

Gatekeeper Accredited Service Provider means a service provider accredited by the

Gatekeeper Competent Authority.

Gatekeeper Competent Authority means the entity which approves an application for

Gatekeeper accreditation. The Gatekeeper Competent Authority for PKI is the Australian


Government Chief Information Officer, Australian Government Information Management

Office, Department of Finance and Deregulation.

Identifier Declaration means the declaration set out in Verification of Identity Standard

paragraph 4.

Identity Agent means a Person who is an agent of either a Subscriber, or a mortgagee

represented by a Subscriber, and who:

(a) the Subscriber or mortgagee reasonably believes is reputable, competent and

insured in compliance with Insurance Rule 2; and

(b) is authorised by the Subscriber or mortgagee to conduct verification of identity on

behalf of the Subscriber or mortgagee in accordance with the Verification of Identity

Standard.

Identity Agent Certification means the certification set out in Schedule 9, as amended

from time to time.


Identity Verifier means the Person conducting a verification of identity in accordance

with the Verification of Identity Standard.


Information Fees means fees for data provided by the Land Registry through the ELN.

Insolvency Event means, in relation to a Person, any of the following events:

(a) the Person is, or states that they are, unable to pay all the Person’s debts, as and

when they become due and payable; or

(b) the entrance into an arrangement, composition or compromise with, or assignment

for the benefit of, all or any class of the Person’s creditors or members or a

moratorium involving any of them; or

(c) the appointment of a receiver, receiver and manager, controller, administrator,

provisional liquidator or liquidator or the taking of any action to make such an

appointment; or

(d) an order is made for the winding up or dissolution of the Person or a resolution is

passed or any steps are taken to pass a resolution for its winding up or dissolution;

or

(e) something having a substantially similar effect to (a) to (d) happens in connection

with the Person under the law of any Jurisdiction.

Insurance Rules means the rules set out in Schedule 6, as amended from time to time.


Jeopardised means put at risk the integrity of the Titles Register by fraud or other means.

Jurisdiction has the meaning given to it in the ECNL.

Key means a string of characters used with a cryptographic algorithm to encrypt and

decrypt.

Key Holder means an Individual who holds and uses Keys and Digital Certificates on

behalf of a Subscriber, or in his/her own right in the case of a Key Holder who is also a

Subscriber.

Key Pair means a pair of asymmetric cryptographic Keys (one decrypting messages

which have been encrypted using the other) consisting of a Private Key and a Public Key.

Land Registry means the agency of a State or Territory responsible for maintaining the

Jurisdiction’s Titles Register.

Land Registry Fees means Information Fees and Lodgment Fees.


Law Practice has the meaning given to it in the relevant legislation of the Jurisdiction in

which the land the subject of the Conveyancing Transaction is situated.

Licensed Conveyancer means a Person licensed or registered under the relevant

legislation of the Jurisdiction in which the land the subject of the Conveyancing

Transaction is situated and in Western Australia is a real estate settlement agent for the

purposes of the Settlement Agents Act 1981 (WA).

Lodge has the meaning given to it in the ECNL.

Lodgment Case means a Registry Instrument or other electronic Document or related

Registry Instruments or other electronic Documents which are or will be presented for

Lodgment at the same time, together with the relevant Lodgment Instructions.

Lodgment Fees means fees due to a Land Registry for Registry Instruments or other

electronic Documents Lodged with the Land Registry by the ELNO on behalf of the

Participating Subscribers.

Lodgment Instructions means a statement in electronic form which sets out the

information required by the Registrar to accept an electronic Registry Instrument or other

electronic Document for Lodgment.

Mortgage Broker means an individual who is:

(a) the holder of an Australian Credit Licence; or


(b) an employee or director of the holder of an Australian Credit Licence or of a related

body corporate of a holder of an Australian Credit Licence engaging in the Credit

Service on behalf of that licensee; or

(c) a Credit Representative of the holder of an Australian Credit Licence;

who provides a Credit Service which relates to credit secured or to be secured by real

property owned or to be owned by the person to whom the Credit Service is provided.

NCCP Act means the National Consumer Credit Protection Act 2009 (Cth).

Outstanding Conveyancing Transaction means a Conveyancing Transaction for which

an Electronic Workspace has been created in the ELN but the Lodgment Case for which

has not been Lodged.

Participating Subscriber means, for a Conveyancing Transaction, each Subscriber who

is involved in the Conveyancing Transaction either directly because it is a Party or

indirectly because it is a Representative of a Party.

Participation Rules , as amended from time to time, has the meaning given to it in the

ECNL.

Party means each Person who is a party to an electronic Registry Instrument in the

Electronic Workspace for the Conveyancing Transaction, but does not include a

Representative.





PKI or Public Key Infrastructure means Gatekeeper compliant technology, policies and

procedures based on public key cryptography used to create, validate, manage, store,

distribute and revoke Digital Certificates.

Prescribed Requirement means any Published requirement of the Registrar that

Subscribers are required to comply with.

Priority/Settlement Notice has the meaning given to it in the Land Titles Legislation of

the Jurisdiction in which the land the subject of the Conveyancing Transaction is situated.

Privacy Laws means all legislation, principles and industry codes relating to the

collection, use, disclosure, storage or granting of access rights to Personal Information,

including the Privacy Act 1988 (Cth) and any State or Territory privacy legislation.

Private Key means the Key in an asymmetric Key Pair that must be kept secret to ensure

confidentiality, integrity, authenticity and non-repudiation.


Public Servant means an employee or officer of the Commonwealth, a State or a

Territory.

Public Key means the Key in an asymmetric Key Pair which may be made public.




Registration Authority means a Gatekeeper Accredited Service Provider that:

(a) is responsible for the registration of applicants for Digital Certificates by checking

evidence of identity Documentation submitted by the applicant;

(b) is responsible for the provision of a completed and authorised application form

including copies of the submitted evidence of identity Documents to the relevant

Certification Authority; and

(c) may be responsible for the secure distribution of signed Digital Certificates to

Subscribers.

Registry Information means the data supplied in a Registry Information Supply.

Registry Information Supply means a service to supply data from the Titles Register or

Land Registry.



Responsible Subscriber means a Subscriber that, following Lodgment, is liable for

Lodgment Fees incurred and is responsible for the resolution of requisitions issued by the

Registrar for a Lodgment Case.

Security Item means User Access Credentials, passphrases, Private Keys, Digital

Certificates, Electronic Workspace identifiers and other items as specified from time to

time.

Signer means a User authorised by the Subscriber to Digitally Sign and, where it is

required, certify Registry Instruments and other electronic Documents on behalf of the

Subscriber.

State means New South Wales, Queensland, South Australia, Tasmania, Victoria and

Western Australia.

Subscriber has the meaning given to it in the ECNL.

Subscriber Administrator means a User authorised by the Subscriber to make the

changes permitted under Participation Rule 7.3.3 on behalf of the Subscriber.


Suspension Event means any ground pursuant to which a Subscriber may be suspended

as set out in Schedule 7, as amended from time to time.

Suspension and Termination Procedure means the procedure set out in Schedule 7, as


System Details means, for a Subscriber, its System Name, Contact Details and any other

information relating to the Subscriber held in the ELN.

System Name means, for a Subscriber, the name selected by the Subscriber to identify it

in the ELN, for example, its name or its registered business name.

Termination Event means any ground pursuant to which a Subscriber may be terminated

as set out in Schedule 7, as amended from time to time.


Title Activity Check means, for a Conveyancing Transaction, the notification of any

change to the information in the Titles Register relating to the land the subject of the

Conveyancing Transaction.


Unrelated Third Party means, for a Subscriber, a Person who is not a principal, an

officer, director, employee, agent or contractor of the Subscriber.

User means an Individual authorised by a Subscriber to access and use the ELN on

behalf of the Subscriber.

Verification of Identity Standard means the standard set out in Schedule 8, as amended

from time to time.

2.2 Interpretation

In these Participation Rules, unless a contrary intention is evident:

2.2.1 A reference to these Participation Rules is a reference to these Participation Rules as

amended, varied or substituted from time to time.

2.2.2 A reference to any legislation or to any provision of any legislation includes:

(a) all legislation, regulations, proclamations, ordinances, by-laws and instruments

issued under that legislation or provision; and

(b) any modification, consolidation, amendment, re-enactment or substitution of that

legislation or provision.

2.2.3 A word importing:

(a) the singular includes the plural; and


(b) the plural includes the singular; and

(c) a gender includes every other gender.

2.2.4 A reference to a party includes that party’s administrators, successors and permitted

assigns.

2.2.5 If any act pursuant to these Participation Rules would otherwise be required to be done on

a day which is not a Business Day then that act may be done on the next Business Day,

and when an action is required by a party within a specified period of Business Days, the

period will be deemed to commence on the Business Day immediately following the day

on which the obligation is incurred.

2.2.6 Where a word or phrase is given a defined meaning, any other part of speech or

grammatical form in respect of that word or phrase has a corresponding meaning.

2.2.7 A reference to two or more Persons is a reference to those Persons jointly and severally.

2.2.8 A reference to a rule or schedule is a reference to a rule of, or a schedule to, these


2.2.9 A reference to a Participation Rule includes a reference to all of its sub-rules.

2.2.10 Where general words are associated with specific words which define a class, the general

words are not limited by reference to that class.

2.2.11 The rule headings are for convenience only and they do not form part of these


2.2.12 The word “or” is not exclusive.

3 COMPLIANCE WITH PARTICIPATION RULES

The Subscriber must:

(a) be able to comply with these Participation Rules at the time of applying to be a

Subscriber; and

(b) comply with these Participation Rules whilst being a Subscriber; and

(c) continue to comply with Participation Rules 6.1.2, 6.6, 6.7 (where compliance with

the Participation Rules is limited to this sub-rule), 6.9, 6.10, 6.11, 6.13.1(b), 7.7, 9.4,

9.5, 10 and 11 after ceasing to be a Subscriber,

unless the Registrar, in his or her absolute discretion, waives compliance by the

Subscriber with any Participation Rule in accordance with section 27 of the ECNL.


4 ELIGIBILITY CRITERIA

4.1 ABN

The Subscriber must have an ABN.

4.2 Status

4.2.1 The Subscriber must be a Person or a partnership.

4.2.2 If the Subscriber is a body corporate, the Subscriber must:

(a) be a corporation under the Corporations Act or under any other legislation; and

(b) ensure that the constituting Documents of the Subscriber empower the Subscriber to

assume the obligations set out in these Participation Rules and to do all things that it

can reasonably contemplate will be required by these Participation Rules.

4.3 Character

4.3.1 The Subscriber must be of good character and reputation and, without limitation, must:

(a) ensure that the Subscriber is not and has not been subject to any of the matters

listed in (b)(i) to (v) below; and

(b) take reasonable steps to ensure that the Subscriber’s principals, directors, partners,

officers and Subscriber Administrators are not and have not been subject to any of

the matters listed in (i) to (v) below:

(i) an Insolvency Event within the last 5 years; or

(ii) a conviction for fraud or an indictable offence or any offence for dishonesty

against any law in connection with business, professional or commercial

activities; or

(iii) disqualification from managing a body corporate under the Corporations Act;

or

(iv) any disciplinary action of any government or governmental authority or

agency, or any regulatory authority of a financial market or a profession,

which may impact on that Person’s conduct of a Conveyancing Transaction;

or

(v) any refusal of an application to subscribe to an electronic Lodgment service.

4.3.2 Where the Subscriber is:

(a) an ADI; or

(b) an Australian Legal Practitioner or a Law Practice; or


(c) a Licensed Conveyancer; or

(d) the Crown in right of the Commonwealth, a State or a Territory; or

(e) a Public Servant acting on behalf of the Crown in right of the Commonwealth, a

State or a Territory; or

(f) a holder of an Australian Credit Licence,

the Subscriber is deemed to comply with Participation Rule 4.3.1(a).

4.3.3 Where the Subscriber’s principal, director, partner, officer or Subscriber Administrator is:

(a) an officer or employee of an ADI; or

(b) an Australian Legal Practitioner; or

(c) a Licensed Conveyancer; or

(d) a Public Servant acting on behalf of the Crown in right of the Commonwealth, a

State or a Territory; or

(e) a fit and proper Person for the purpose of performing duties in relation to the credit

activities authorised by an Australian Credit Licence,

the Subscriber is deemed to comply with Participation Rule 4.3.1(b) for that principal,

director, partner, officer or Subscriber Administrator.

Note: For a body corporate registered under the Corporations Act, ‘officer’ has the meaning given to it in the Corporations Act.

4.4 Insurance

The Subscriber must comply with the Insurance Rules.

5 THE ROLE OF SUBSCRIBERS

5.1 Subscriber’s roles

5.1.1 The Subscriber may act on its own behalf or, subject to Participation Rule 5.3, on behalf

of Clients when accessing and using the ELN.

5.1.2 To the extent that the Subscriber Digitally Signs electronic Documents on behalf of a

Client, the Subscriber does so as agent for the Client.

5.2 Subscriber as principal

Subject to Participation Rule 5.1.2, the Subscriber incurs rights and obligations under

these Participation Rules as principal despite any Client Authorisation or other agency

relationship entered into by the Subscriber.


5.3 Subscriber who acts as Representative

A Representative must:

(a) comply with the laws of the Jurisdiction in which the land the subject of the

Conveyancing Transaction is situated regarding who can conduct a Conveyancing

Transaction; and

(b) take reasonable steps to ensure that a Signer complies with the laws of the

Jurisdiction in which the land the subject of the Conveyancing Transaction is

situated regarding who can conduct a Conveyancing Transaction and Digitally Sign

Registry Instruments.

5.4 Responsible Subscribers

5.4.1 The Participating Subscribers must agree on the selection of a Responsible

Subscriber for every Lodgment Case.

5.4.2 A Responsible Subscriber must take reasonable steps to ensure that it does not pass on

information to the Registrar obtained from another Participating Subscriber that it knows

or suspects is incorrect, incomplete, false or misleading.

5.5 Subscriber as trustee and partnerships

5.5.1 If the Subscriber acts at any time in the capacity of a trustee, these Participation Rules

bind the Subscriber in its personal capacity and in its capacity as trustee.

5.5.2 If the Subscriber is a partnership:

(a) these Participation Rules bind the partnership; and

(b) these Participation Rules bind the Subscriber and each Person who is a partner of

the partnership at any time despite any changes to the partners and any

reconstitution of the partnership (whether by the death, incapacity or retirement of

any partner or the admission of any new partner or otherwise); and

(c) the Subscriber must do anything the ELNO or Registrar requires (such as obtaining

consents, signing and producing Documents and getting Documents completed and

signed) to give full effect to this Participation Rule.

6 GENERAL OBLIGATIONS

6.1 Ensure User compliance

6.1.1 The Subscriber must ensure that each of its Users is aware of the terms of these

Participation Rules as appropriate to their use of the ELN.


6.1.2 The Subscriber is responsible for all use of the ELN by any of its Users.

6.2 Keep Subscriber System Details complete and up- to-date

If any of the information which forms part of a Subscriber’s System Details changes, the

Subscriber must:

(a) promptly update its System Details accordingly; or

(b) if the Subscriber does not have the level of access to the ELN required to make the

necessary updates to the System Details, promptly notify the ELN Administrator of

the changes required.

6.3 Client Authorisation

If the Subscriber is a Representative, the Subscriber must:

(a) use the Client Authorisation Form for any Client Authorisation it enters into; and

(b) except for Caveats and Priority/Settlement Notices, for which a Client Authorisation

is optional, enter into a Client Authorisation with its Client before the Subscriber

Digitally Signs any Document in the ELN; and

(c) comply with the Client Authorisation and act in accordance with its terms; and

(d) take reasonable steps to verify the authority of each Person entering into a Client

Authorisation on behalf of a Client to both bind the Client to the Client Authorisation

and to the Conveyancing Transaction(s) the subject of the Client Authorisation.

6.4 Right to Deal

(a) Where the Subscriber is a Representative, for each Conveyancing Transaction the

Subscriber must take reasonable steps to verify that its Client is a legal Person and

has the right to enter into the Conveyancing Transaction.

(b) Where the Subscriber is a mortgagee, or the Subscriber represents a mortgagee, for

each mortgage the Subscriber must take reasonable steps to verify that the

mortgagor is a legal Person and has the right to enter into the mortgage.

6.5 Verification of identity

6.5.1 The Subscriber must take reasonable steps to verify the identity of:

(a) Clients: each Client or each of their Client Agents; and

(b) Mortgagors:


(i) each mortgagor or each of their agents, where the Subscriber is a mortgagee,

and the mortgagor (in its capacity as mortgagor) does not have a

Representative; and

(ii) each mortgagor or each of their agents, where the Subscriber represents a

mortgagee, and the mortgagor (in its capacity as mortgagor) does not have a

Representative - however, the Subscriber need not take reasonable steps to

verify the identity of each mortgagor or their agent if the Subscriber is

reasonably satisfied that the mortgagee has taken reasonable steps to verify

the identity of each mortgagor or their agent; and

(c) Persons to whom certificates of title are provided:

(i) any Client or Client Agent, prior to the Subscriber giving a (duplicate/paper)

certificate of title to that Client or Client Agent; and

(ii) any existing mortgagor, former mortgagor or their agent, prior to the

Subscriber giving a (duplicate/paper) certificate of title to that existing

mortgagor, former mortgagor or their agent; and

(d) Signers: each of its Signers, prior to the initial allocation of a Digital Certificate to

the Signer; and

(e) Subscriber Administrators: each of its Subscriber Administrators, prior to their

appointment as a Subscriber Administrator.

6.5.2 For the purposes of complying with Participation Rule 6.5.1, the Subscriber, or a

mortgagee represented by the Subscriber, can either:

(a) apply the Verification of Identity Standard; or

(b) verify the identity of a Person in some other way that constitutes the taking of

reasonable steps.

6.5.3 The Subscriber, or a mortgagee represented by the Subscriber, must undertake further

steps to verify the identity of a Person Being Identified and/or any Identity Declarant

where:

(a) the Subscriber or mortgagee knows or ought reasonably to know that:

(i) any identity Document produced by the Person Being Identified and/or any

Identity Declarant is not genuine; or

(ii) any photograph on an identity Document produced by the Person Being

Identified and/or any Identity Declarant is not a reasonable likeness of the

Person Being Identified or the Identity Declarant; or


(iii) the Person Being Identified and/or any Identity Declarant does not appear to

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


6.5.4 The Subscriber need not re-verify the identity of the Person Being Identified if:

(a) the Subscriber complied with Participation Rule 6.5.1 within the previous 2 years;

and

(b) the Subscriber takes reasonable steps to ensure that it is dealing with the Person

Being Identified.

6.5.5 If the Verification of Identity Standard is used:

(a) the Subscriber, or a mortgagee represented by the Subscriber, may use an Identity

Agent; and

(b) where an Identity Agent is used, the Subscriber or the mortgagee must direct the

Identity Agent to use the Verification of Identity Standard; and

(c) the Identity Verifier must be:

(i) the Subscriber and/or the Subscriber’s Identity Agent; or

(ii) where a Subscriber represents a mortgagee, that mortgagee and/or that

mortgagee’s Identity Agent; and

(d) the Subscriber or the mortgagee must receive from any Identity Agent:

(i) copies of the Documents produced to verify the identity of the Person Being

Identified and/or any Identity Declarant signed, dated and endorsed as a true

copy of the original by the Identity Agent; and

(ii) an Identity Agent Certification.

6.5.6 Subject to Rule 6.5.3, compliance with the Verification of Identity Standard by:

(a) the Subscriber and/or its Identity Agent; or

(b) where the Subscriber represents a mortgagee, that mortgagee and/or that

mortgagee’s Identity Agent,

will be deemed to constitute taking reasonable steps for the purposes of Participation

Rule 6.5.1.

6.6 Supporting evidence

The Subscriber must retain the evidence supporting an electronic Registry Instrument or

other electronic Document for at least seven years from the date of Lodgment of the

Registry Instrument or other electronic Document that is registered or recorded including:


(a) any evidence required by the Duty Authority; and

(b) any Client Authorisation and any evidence supporting that Client Authorisation; and

(c) any evidence supporting a Party’s right to enter into the Conveyancing Transaction;

and

(d) any evidence supporting verification of identity; and

(e) any other evidence demonstrating compliance with Prescribed Requirements.

6.7 Compliance with laws and Participation Rules

The Subscriber must comply with any applicable laws (including any applicable Privacy

Laws) for the Jurisdiction in which the land the subject of the Conveyancing Transaction is

situated and these Participation Rules.

6.8 Compliance with directions

6.8.1 The Subscriber must comply with any reasonable direction of the Registrar.

6.8.2 The Subscriber must comply with any direction of the Registrar, or of the ELNO at the

Registrar’s direction, given in response to an emergency situation as referred to in the

ECNL, in the manner and timing set out in the direction.

6.9 Assistance

The Subscriber must provide reasonable assistance to the Registrar, the ELNO and each

other Subscriber to enable those parties to comply with the ECNL and the Land Titles

Legislation in relation to a particular Conveyancing Transaction.

6.10 Protection of information

The Subscriber must take reasonable steps to ensure that information provided to the

Subscriber by any other Subscriber, the Registrar or by the ELNO is protected from

unauthorised use, reproduction or disclosure.

6.11 Information

The Subscriber must take reasonable steps to ensure that all the information it supplies in

relation to a Conveyancing Transaction is to the Subscriber’s knowledge, information and

belief correct, complete and not false or misleading.

6.12 No assignment

The Subscriber must not assign, novate, transfer or otherwise deal with its subscription to

the ELN.


6.13 Mortgages

6.13.1 Where a mortgagor (in its capacity as mortgagor) is not a Subscriber or represented by a

Subscriber, the mortgagee, or the mortgagee’s Representative, must:

(a) ensure that the mortgagor grants a mortgage on the same terms as the mortgage

signed by, or on behalf of, the mortgagee; and

(b) ensure that it holds the mortgage granted by the mortgagor; and

(c) provide Certification 5 of the Certification Rules.

6.13.2 Where the mortgagee or its Representative signs the mortgage, the mortgagee signs only

on its own behalf and not on behalf of the mortgagor.

6.14 Signing of Client Authorisations

Where the Subscriber is a Representative, the Subscriber must take reasonable steps to

ensure that any Client Authorisation is signed by the Subscriber’s Client or their Client

Agent.

7 OBLIGATIONS REGARDING SYSTEM SECURITY AND INTEGRI TY

7.1 Protection measures

The Subscriber must take reasonable steps to:

(a) comply with an ELNO’s security policy, including without any limitation, in relation to:

(i) the technology required to enable the Subscriber to access the ELN; and

(ii) the specification of virus protection software required to be installed on the

Subscriber’s computers; and

(iii) protection of Security Items; and

(iv) training and monitoring of its Users in relation to the Subscriber’s security

obligations; and

(b) not do anything that it knows or ought reasonably to know is likely to have an

adverse effect on the operation, security, integrity, stability or the overall efficiency of

the ELN; and

(c) not fail to do anything within its reasonable control, the omission of which, it knows

or ought reasonably to know is likely to have an adverse effect on the operation,

security, integrity, stability or the overall efficiency of the ELN.


7.2 Users


(a) take reasonable steps to ensure that only Users access the ELN; and

(b) ensure that each of its Users has received training appropriate to their use of the

ELN.

7.3 User access

7.3.1 The Subscriber must keep up to date within the ELN:

(a) its Users’ Access Credentials; and

(b) signing rights linked to those Access Credentials; and

(c) administrative rights linked to those Access Credentials.

7.3.2 The Subscriber must ensure that, at all times, it has at least one Subscriber

Administrator.

7.3.3 The Subscriber:

(a) is taken to have made any change to the items described in Participation Rule 7.3.1

made by any Person (other than an Unrelated Third Party of the Subscriber) using

Access Credentials that, at the time the change is requested, have linked to them

the necessary signing rights and administrative rights to make the change; and

(b) irrevocably and unconditionally waives any right it might otherwise have to claim that

the Person does not have authority to make the change (other than any claim the

Subscriber has against the Person).

7.4 Signers

7.4.1 The Subscriber must:

(a) comply with Participation Rule 6.5.1(a); and

(b) take reasonable steps to ensure that the Signer is not or has not been subject to:

(i) an Insolvency Event within the last 5 years; or

(ii) a conviction of fraud or an indictable offence or any offence for dishonesty

against any law in connection with business, professional or commercial

activities; or

(iii) disqualification from managing a body corporate under the Corporations Act;

or


(iv) any disciplinary action of any government or governmental authority or

agency, or any regulatory authority of a financial market or a profession, which

may impact on a Signer’s conduct of a Conveyancing Transaction.

7.4.2 Where a Signer is:

(a) an Australian Legal Practitioner; or

(b) a Licensed Conveyancer; or

(c) a Public Servant acting on behalf of the Crown in right of the Commonwealth, a

State or a Territory,

the Subscriber is deemed to comply with Participation Rule 7.4.1(b).

7.5 Digital Certificates

7.5.1 Electronic Documents to be Lodged through the ELN must be Digitally Signed, where the

electronic Document requires a Digital Signature, using a Private Key to create the

Subscriber’s Digital Signature.

7.5.2 The Subscriber must obtain and maintain valid at least one Digital Certificate.

7.5.3 The Subscriber must take reasonable steps to ensure that only Signers Digitally Sign

electronic Registry Instruments or other electronic Documents.

7.5.4 The Subscriber must ensure that all information provided to any Certification Authority, or

to any Registration Authority, or to the ELNO for the purpose of obtaining a Digital

Certificate, is correct, complete and not false or misleading.

7.6 (Deleted)

7.7 Notification of Jeopardised Conveyancing Transa ctions

7.7.1 Where to the Subscriber’s knowledge, information or belief a Conveyancing

Transaction has been Jeopardised:

(a) where it is possible to do so, the Subscriber must unsign any electronic Documents

relating to the Conveyancing Transaction immediately; or

(b) where it is not possible to unsign any electronic Document, the Subscriber must

immediately notify the ELNO of the situation.


7.7.2 The Subscriber must bring to the attention of the other Participating Subscribers any

information about the Conveyancing Transaction that it believes to be incorrect,

incomplete, false or misleading or that the Conveyancing Transaction has been

Jeopardised.

7.8 Revoking authority

7.8.1 If a Subscriber no longer intends:

(a) a Person to be a User, the Subscriber must promptly revoke the User’s access to

and use of the ELN; or

(b) a Person to be a Signer, the Subscriber must promptly revoke the User’s signing

rights within the ELN and, where appropriate, request the Certification Authority to

revoke the Signer’s Digital Certificate; or

(c) a Person to be a Subscriber Administrator, the Subscriber must promptly revoke the

User’s administrative rights within the ELN.

7.8.2 The Subscriber must immediately withdraw its authorisation to Digitally Sign electronic

Documents from any Person who ceases to be the employee, agent or contractor of the

Subscriber.

7.8.3 If a Subscriber is restricted in its use of the ELN by the Registrar or the ELNO, the

Subscriber must promptly prevent any of its Users from accessing and using the ELN

other than in accordance with the restriction.

7.9 Compromised Security Items

7.9.1 If a Subscriber becomes aware that any of the Security Items of any of its Users has been

or is likely to be Compromised, the Subscriber must:

(a) immediately revoke the User’s authority to access and use the ELN and prevent the

User from accessing and using the ELN; and

(b) for a Digital Certificate:

(i) immediately check all Electronic Workspaces in which the Private Key has

been used to Digitally Sign any electronic Documents and unsign any

electronic Documents in accordance with Participation Rule 7.9.2; and

(ii) promptly notify the Certification Authority and revoke or cancel the Digital

Certificate (including doing everything reasonably necessary to cause the

Certification Authority to revoke or cancel it); and

(iii) promptly notify the ELNO.


7.9.2 If a Subscriber becomes aware or suspects that any of its Private Keys have been

used to Digitally Sign any electronic Documents without its authorisation or the

authorisation of any Client on whose behalf the electronic Documents are purported to be

Digitally Signed:

(a) where it is possible to do so, the Subscriber must unsign the electronic Documents

immediately; or

(b) where it is not possible to unsign the electronic Documents, the Subscriber must

immediately notify the ELNO of the situation.

7.10 Certifications

The Subscriber must comply with the Certification Rules.

8 AMENDMENT OF PARTICIPATION RULES

The Subscriber must comply with any amendment made to these Participation Rules by

the Registrar pursuant to the Amendment to Participation Rules Procedure.

9 RESTRICTION, SUSPENSION AND TERMINATION

9.1 Comply with directions relating to restriction of access or use

The Subscriber must comply with any direction of the Registrar, or of the ELNO at the

Registrar’s direction, restricting access and use of the ELN.

9.2 Suspension at direction of Registrar

The Subscriber may be suspended by the Registrar, or by the ELNO at the direction of the

Registrar, at any time if a Suspension Event occurs.

9.3 Termination at direction of Registrar

The Subscriber may be terminated by the Registrar, or by the ELNO at the direction of the

Registrar, at any time if a Termination Event occurs.

9.4 Rights and obligations on suspension, terminati on or resignation

Suspension or termination of a Subscriber, or its resignation as a Subscriber, does not

affect any right or liability of any party which:

(a) has accrued at the time the suspension, termination or resignation takes effect; or

(b) may arise, accrue or crystallise after that time out of, or by reason of, any facts or

circumstances occurring or in existence at or before the time the suspension,

termination or resignation takes effect.


9.5 Further steps by Subscriber

If the Subscriber is restricted, suspended or terminated or the Subscriber resigns, the

Subscriber must, at its own expense:

(a) take reasonable steps to ensure that any Outstanding Conveyancing Transaction for

which the Subscriber is a Participating Subscriber is completed (such as facilitating

another Subscriber taking over the Subscriber’s role in the Outstanding

Conveyancing Transaction) and do anything else in connection with the ELN which it

could reasonably be expected to do in order to minimise inconvenience to any other

Person; and

(b) do anything the ELNO or Registrar considers reasonable to achieve the outcomes

described in paragraph (a), such as entering into arrangements, obtaining consents,

submitting electronic Documents, Digitally Signing electronic Documents where

required, and producing Documents; and

(c) notify its Client (if any), and each other Participating Subscriber, in each Outstanding

Conveyancing Transaction for which the Subscriber is a Participating Subscriber, of

the restriction, suspension, termination or resignation.

10 COMPLIANCE


(a) comply with Section 34 of the ECNL and the Compliance Examination Procedure;

and

(b) give written notice to the ELNO, as soon as practicable, if it becomes aware that it

has breached or may in the future be no longer able to comply with these

Participation Rules; and

(c) remedy any non-compliance with these Participation Rules within 10 Business Days

(or such longer time determined by the Registrar in his or her absolute discretion

having regard to the nature of the breach) from when it becomes aware that it has

breached these Participation Rules; and

(d) take such action as is necessary in order to avoid a breach in circumstances where

the Subscriber becomes aware that it may in the future be no longer able to comply

with these Participation Rules.

11 PROHIBITIONS

The Subscriber must not:


(a) modify or alter any Registry Information or Title Activity Check data for a

Conveyancing Transaction or do anything that allows or causes another Person to

do any of these things; or

(b) use, reproduce or disclose, or allow another Person to use, reproduce or disclose,

Registry Information or Title Activity Check data for a Conveyancing Transaction,

except for the purpose of the Conveyancing Transaction or where required by law to

do so; or

(c) use or participate in the ELN other than in accordance with these Participation

Rules; or

(d) other than information which the Subscriber enters into the ELN, use, reproduce or

disclose any information passing into or out of the ELN in connection with a

Conveyancing Transaction except for the purpose of the Conveyancing Transaction

or where required by law to do so.

12 ADDITIONAL PARTICIPATION RULES

The Subscriber must comply with the Additional Participation Rules, if any.


SCHEDULE 1 – ADDITIONAL PARTICIPATION RULES

None.


SCHEDULE 2 – AMENDMENT TO PARTICIPATION RULES PROCE DURE

1 Amendments with prior consultation

1.1 Any amendment to these Participation Rules must be the subject of good faith

consultation by the Registrar with a representative group of Subscribers and, where

relevant, Subscribers’ local and national professional associations, regulators and insurers

(as reasonably determined by the Registrar) before the amendment comes into effect.

1.2 Each amendment must be notified to all Subscribers at least 20 Business Days before

the amendment comes into effect. The notification must contain the date the

amendment comes into effect.

2 Amendments without prior consultation

2.1 The Registrar may determine that an amendment to these Participation Rules need not be

the subject of prior consultation or notification in accordance with paragraph 1 before the

amendment comes into effect, if the Registrar determines in good faith that:

(a) such a course is required by law; or

(b) an emergency situation, as referred to in the ECNL, exists.

2.2 Notwithstanding paragraph 2.1, each amendment must be notified to all Subscribers as

soon as reasonably practicable before the amendment comes into effect. The

notification must contain the date the amendment comes into effect.


SCHEDULE 3 – CERTIFICATION RULES

The Subscriber must provide those of the following certifications that are required when

Digitally Signing each electronic Registry Instrument or electronic Document:

1 The Subscriber has taken reasonable steps to verify the identity of the

[transferor/transferee/ mortgagee/ mortgagor/caveator/applicant].

2 The Subscriber holds a properly completed Client Authorisation for the Conveyancing

Transaction including this Registry Instrument or Document.

3 The Subscriber has retained the evidence supporting this Registry Instrument or

Document.

4 The Subscriber has taken reasonable steps to ensure that this Registry Instrument or

Document is correct and compliant with relevant legislation and any Prescribed

Requirement.

5 The Subscriber, or the Subscriber is reasonably satisfied that the mortgagee it

represents,:


(b) holds a mortgage granted by the mortgagor on the same terms as this Registry

Instrument.

6 The Subscriber has:

(a) retrieved; and


the (duplicate) certificate(s) of title for the folio(s) of the Register listed in this Registry

Instrument or Document.


SCHEDULE 4 - CLIENT AUTHORISATION FORM

CLIENT AUTHORISATION When this form is signed, the Subscriber is authorised to act for the Client in a Conveyancing Transaction(s).

Privacy Collection Statement: The information in this form is collected under statutory authority and used for the purpose of maintaining publicly searchable registers and indexes.

Subscriber Reference:__________________________

CLI

EN

T D

ET

AIL

S CLIENT 1 CLIENT 2

NAME

ACN/ARBN

ADDRESS

TR

AN

SA

CT

ION

DE

TA

ILS

AUTHORITY TYPE � SPECIFIC AUTHORITY

(transaction details below)

� STANDING AUTHORITY

ends on revocation or expiration date:___/____/___

� BATCH AUTHORITY

(attach details)


PROPERTY ADDRESS

LAND TITLE REFERENCE(S)

(and/or property description)

CONVEYANCING

TRANSACTION(S) � TRANSFER � MORTGAGE � CAVEAT � TRANSFER � MORTGAGE � CAVEAT

� PRIORITY/ SETTLEMENT NOTICE

� DISCHARGE/ RELEASE OF MORTGAGE

� WITHDRAW CAVEAT

� PRIORITY/ SETTLEMENT NOTICE

� DISCHARGE/ RELEASE OF MORTGAGE

� WITHDRAW CAVEAT

� OTHER � OTHER

ADDITIONAL INSTRUCTIONS

CLI

EN

T A

UT

HO

RIS

AT

ION

AN

D S

IGN

ING


I CERTIFY that:



(c) If I am acting as a Client Agent that I have no notice of the revocation of my authority to act on behalf of the Client.

I AUTHORISE the Subscriber to act on my behalf, or where I am a Client Agent to act on behalf of the Client, in accordance with the terms of this Client Authorisation and any Participation Rules and any Prescribed Requirement to:





DATE / /

SIG

N H

ER

E

DATE / /

SIG

N H

ER

E

CLIENT/CLIENT AGENT NAME:



CAPACITY:

CAPACITY:

SU

BS

CR

IBE

R D

ET

AIL

S A

ND

SIG

NIN

G


NAME

ACN/ARBN

ADDRESS

I/We CERTIFY that reasonable steps have been taken to ensure that this Client Authorisation was signed by each of the Persons named above as Client or Client Agent.


DATE / /

SIG

N H

ER

E

DATE / /

SIG

N H

ER

E

SIGNATORY NAME:

SIGNATORY NAME:

CAPACITY: CAPACITY:


1 What is Authorised

The Client authorises the Subscriber to act on behalf of the Client in accordance with the

terms of this Client Authorisation and any Participation Rules and any Prescribed

Requirement to:

(a) sign Documents on the Client’s behalf as required for the Conveyancing

Transaction(s); and

(b) submit or authorise submission of Documents for lodgment with the relevant Land

Registry; and



The Client acknowledges that the Client is bound by any Documents required in

connection with a Conveyancing Transaction that the Subscriber signs on the Client’s

behalf in accordance with this Client Authorisation.

2 Mortgagees

Where:


(b) the Client represents to the Subscriber that the Client has taken reasonable steps to

verify the identity of the mortgagor


the Client indemnifies the Subscriber for any loss resulting from the Client’s failure to take

reasonable steps to verify the identity of the mortgagor.

3 Revocation

This Client Authorisation may be revoked by either the Client or the Subscriber giving

notice in writing to the other that they wish to end this Client Authorisation.

4 Privacy and Client Information

The Client acknowledges that information relating to the Client that is required to complete

a Conveyancing Transaction, including the Client’s Personal Information, may be collected

by and disclosed to the Duty Authority, the ELNO, the Land Registry, the Registrar and

third parties (who may be located overseas) involved in the completion of the

Conveyancing Transaction or the processing of it, and consents to the collection and

disclosure of that information to any of those recipients, including to those who are

overseas. For further information about the collection and disclosure of your Personal

Information, refer to the relevant party’s privacy policy.

5 Applicable Law

This Client Authorisation is governed by the law in force in the Jurisdiction in which the

Property is situated. The Client and the Subscriber submit to the non-exclusive

jurisdiction of the courts of that place.

6 Meaning of Words Used in this Client Authorisatio n


Agent means a Person authorised by a Subscriber to act as the Subscriber’s agent. For

the avoidance of doubt this can include an Identity Agent.


Jurisdiction in which the property is situated and in South Australia is a legal practitioner

for the purposes of the Legal Practitioners Act 1981 (SA).

Batch Authority means an authority for the Subscriber to act for the Client in a batch of

Conveyancing Transactions details of which are attached to this Client Authorisation.

Capacity means the role of the signatory (for example an attorney or a director of a

company).

Caveat means a Document giving notice of a claim to an interest in land that may have

the effect of an injunction to stop the registration of a Registry Instrument in the Titles

Register.



Client Agent means a Person authorised to act as the Client’s agent but does not include

the Subscriber acting solely as the Client’s Representative.


Discharge/Release of Mortgage means a Registry Instrument that discharges or

releases a Mortgage.


Duty Authority means the State Revenue Office of the Jurisdiction in which the property

is situated.


Jurisdiction by the application law, as amended from time to time.

ELNO means Electronic Lodgment Network Operator and has the meaning given to it in

the ECNL.

Identity Agent means a Person who is an agent of either a Subscriber, or a mortgagee

represented by a Subscriber, and who:

(a) the Subscriber or mortgagee reasonably believes is reputable, competent and

insured in compliance with Insurance Rule 2; and

(b) is authorised by the Subscriber or mortgagee to conduct verification of identity on

behalf of the Subscriber or mortgagee in accordance with the Verification of Identity

Standard.



Land Registry means the agency of a State or Territory responsible for maintaining the

Jurisdiction’s Titles Register.

Land Title Reference means the relevant Land Registry’s unique identifier(s) for the

property.


legislation of the Jurisdiction in which the property is situated and in Western Australia is a

real estate settlement agent for the purposes of the Settlement Agents Act 1981 (WA).

Mortgage means a Registry Instrument by which a Person charges an estate or interest

in land as security.

Participation Rules , as amended from time to time, has the meaning given to it in the

ECNL.




Prescribed Requirement means any Published requirement of the Registrar that

Subscribers are required to comply with.

Priority/Settlement Notice means a notice (other than a Caveat) which prevents (subject

to specified exceptions) registration or recording in the Titles Register of a Registry

Instrument or other Document affecting land or an interest in land until the notice lapses or

is withdrawn, removed or cancelled.





Specific Authority means an authority for the Subscriber to act for the Client in

completing the Conveyancing Transactions described in this Client Authorisation.

Standing Authority means an authority for the Subscriber to act for the Client for a period

of time set out in this Client Authorisation.

Subscriber is the Person named in this Client Authorisation and has the meaning given to

it in the ECNL or for a paper Conveyancing Transaction is an Australian Legal Practitioner

or a Licensed Conveyancer.


Transfer includes the preparation of all documents required to effect a purchase or sale of

land or any other transfer of land, and the liaison with, where relevant, any mortgagee or

proposed mortgagee.

Withdrawal of Caveat means a Document which removes a Caveat.


SCHEDULE 5 – COMPLIANCE EXAMINATION PROCEDURE

1 Power to request information and Documents

1.1 For the purposes of Section 34(2) of the ECNL, the Registrar or the Registrar’s delegate

must provide notice to the Subscriber.

1.2 The notice must state:

(a) the time within which the information must be furnished and/or the Document must

be produced (which must be not less than 10 Business Days after the giving of the

notice); and

(b) how information is to be furnished and/or the Document is to be produced.

1.3 A notice under paragraph 1.2 may be given in writing or by any electronic means that the

Registrar or the Registrar’s delegate considers appropriate.

1.4 The Subscriber to whom a notice is given under paragraph 1.2 must comply with the

requirements set out in the notice within the period specified in the notice.

1.5 If the Subscriber fails, without reasonable excuse, to comply with a notice given under

paragraph 1.2, the Registrar may do one or more of the following as the Registrar

considers appropriate:

(a) restrict the Subscriber’s use of the ELN; or

(b) suspend the Subscriber; or

(c) terminate the Subscriber.

2 Inspection and retention of Documents

2.1 If a Document is produced in accordance with a notice given under paragraph 1.2, the

Registrar or the Registrar’s delegate may do one or more of the following:

(a) inspect the Document; or

(b) make a copy of, or take an extract from, the Document; or

(c) retain the Document for as long as is reasonably necessary for the purposes of the

Compliance Examination to which the Document is relevant.

2.2 As soon as practicable after the Registrar or the Registrar’s delegate retains a Document

under paragraph 2.1, the Registrar or the Registrar’s delegate must give a receipt for it to

the Person who produced it. The receipt must identify in general terms the Document

retained.


3 Return of retained Documents

3.1 The Registrar or the Registrar’s delegate must as soon as reasonably practicable return

the Document to the Subscriber, if the Registrar or the Registrar’s delegate is satisfied

that its continued retention is no longer necessary.

3.2 The Registrar or the Registrar’s delegate is not bound to return a Document where the

Document has been provided to any police authority or anyone else entitled to the

Document pursuant to any law or court order.

4 Access to retained Documents

4.1 Until a Document retained under paragraph 2.1 is returned to its owner, the Registrar or

the Registrar’s delegate must allow a Person otherwise entitled to possession of the

Document to inspect, make a copy of, or take an extract from, the Document at a

reasonable time and place decided by the Registrar or the Registrar’s delegate.

4.2 Paragraph 4.1 does not apply if it is impracticable or it would be reasonable not to allow

the Document to be inspected or copied or an extract from the Document to be taken.

5 Costs

5.1 If the Subscriber is found to be in material breach of the Participation Rules, the

Subscriber must, if required by the Registrar, pay all reasonable fees and Costs incurred

as a direct result of the Registrar or the Registrar’s delegate carrying out the Compliance

Examination. If the Subscriber is not found to be in material breach, such fees and Costs

will not be recoverable from the Subscriber.

5.2 The Cost of all actions required to be taken by the Subscriber to remedy any breach of

these Participation Rules identified by the Registrar or the Registrar’s delegate is to be

paid by the Subscriber.


SCHEDULE 6 – INSURANCE RULES

1 Subscriber insurance

1.1 Each Subscriber must maintain professional indemnity insurance:





(e) which includes coverage for Conveyancing Transactions; and


1.2 Each Subscriber must maintain fidelity insurance:






acts; and

(f) which includes coverage for Conveyancing Transactions; and


1.3 If a Subscriber does not comply with Insurance Rules 1.1 and 1.2, the Subscriber must

maintain professional indemnity insurance:






acts; and

(f) which includes coverage for Conveyancing Transactions; and



1.4 A Subscriber may maintain fidelity insurance held through a mutual fund by paying a levy

or contribution rather than an annual insurance premium. The insurance must otherwise

comply with Insurance Rule 1.2.

2 Identity Agent insurance

2.1 Each Identity Agent must maintain professional indemnity insurance:





(e) which includes coverage for verification of identity for the purposes of these



2.2 Each Identity Agent must maintain fidelity insurance:






acts; and

(f) which includes coverage for verification of identity for the purposes of these



2.3 If an Identity Agent does not comply with Insurance Rules 2.1 and 2.2, the Identity Agent

must maintain professional indemnity insurance:






acts; and


(f) which includes coverage for verification of identity for the purposes of these



2.4 An Identity Agent may maintain fidelity insurance held through a mutual fund by paying a

levy or contribution rather than an annual insurance premium. The insurance must

otherwise comply with Insurance Rule 2.2.

3 Self-insuring Subscribers and Identity Agents

Despite Insurance Rules 1 and 2, the following Persons need not take out any insurance

to become or remain a Subscriber or an Identity Agent:

(a) an ADI; or

(b) the Crown in right of the Commonwealth, a State or a Territory.

4 Deemed compliance with these Insurance Rules

4.1 The following are deemed to comply with Insurance Rules 1 and 2:

(a) an Australian Legal Practitioner or a Law Practice who holds or is covered by

professional indemnity insurance and either holds fidelity insurance or contributes to,

or on whose behalf a contribution is made to, a fidelity fund operated pursuant to

legislative requirements; and

(b) a Licensed Conveyancer who holds or is covered by professional indemnity

insurance and either holds fidelity insurance or contributes to, or on whose behalf a

contribution is made to, a fidelity fund operated pursuant to legislative requirements.

4.2 A Mortgage Broker, when acting as agent of a mortgagee for the purposes of verifying the

identity of a mortgagor, is deemed to comply with Insurance Rule 2 if:

(a) pursuant to legislative requirements, either it holds or is covered by:

(i) professional indemnity insurance and fidelity insurance, or

(ii) professional indemnity insurance which provides cover for third party claims

arising from dishonest and fraudulent acts, and

(b) that insurance covers the verification of identity.

5 Compliance

The Subscriber or an Identity Agent must comply with any requirements set by its insurer.

6 Proof of insurance

The Subscriber must provide evidence of insurance to the ELNO as required by the

ELNO.


SCHEDULE 7 – SUSPENSION EVENTS, TERMINATION EVENTS AND SUSPENSION AND TERMINATION PROCEDURE

1 Suspension Events

The following are Suspension Events:

(a) the Registrar knows or has reasonable grounds to suspect that the Subscriber:

(i) is in material breach of any of the Subscriber’s obligations under the

Participation Rules; or

(ii) has or may have acted fraudulently in a way which may impact on a

Conveyancing Transaction; or

(iii) has or may have acted negligently in a way which may impact on a


(iv) poses a threat to the operation, security, integrity or stability of the ELN; or

(v) has otherwise engaged in conduct contrary to the interests of other

Subscribers or the Registrar, which may impact on a Conveyancing

Transaction; or

(b) the Subscriber’s purported payment of any Land Registry Fees is unpaid or

dishonoured and the Subscriber fails to remedy the non-payment promptly; or

(c) the Subscriber fails, without reasonable excuse, to comply with a notice served

under the Compliance Examination Procedure.

2 Termination Events

The following are Termination Events:

(a) the Registrar knows or has reasonable grounds to believe that the Subscriber:

(i) is in material breach of any of the Subscriber’s obligations under the


(ii) has or may have acted fraudulently in a way which may impact on a


(iii) has or may have acted negligently in a way which may impact on a


(iv) poses a threat to the operation, security, integrity or stability of the ELN; or

(v) has otherwise engaged in conduct contrary to the interests of other

Subscribers or the Registrar, which may impact on a Conveyancing

Transaction; or


(b) the Subscriber fails, without reasonable excuse, to produce Documents within a time

specified in a written request from the Registrar; or

(c) the Subscriber fails, without reasonable excuse, to comply with a written direction of

the Registrar given to the Subscriber or to a class of Subscribers to which the

Subscriber belongs including but not limited to a notice served under the

Compliance Examination Procedure; or

(d) the Subscriber’s purported payment of any Land Registry Fees is unpaid or

dishonoured and the Subscriber fails to remedy the non-payment within a

reasonable period of time; or

(e) the Subscriber is subject to an order or directions of a court, tribunal, professional

regulator or disciplinary body, which may impact on a Conveyancing Transaction.

3 Suspension and Termination Procedure

3.1 Show Cause Notice procedure

(a) Subject to paragraph 3.2, the Registrar may suspend or terminate, or direct an

ELNO to suspend or terminate, the Subscriber only if the Registrar first gives the

Subscriber a “Show Cause Notice”. A “Show Cause Notice” must:

(i) be in writing; and

(ii) request the Subscriber to show cause, within 15 Business Days of the date of

the Show Cause Notice, why the Subscriber should not be suspended or

terminated, as the case may be; and

(iii) set out in detail the Registrar’s reasons for issuing the request.

(b) After the expiry of the 15 Business Days from the date of the Show Cause Notice,

the Registrar, after considering any further information or steps taken by the

Subscriber, must, within a reasonable time, determine whether to suspend or

terminate, or direct an ELNO to suspend or terminate, the Subscriber.

3.2 Urgent decisions to suspend or terminate

(a) If the Registrar becomes aware that a Suspension Event or Termination Event has

or may have occurred in respect of the Subscriber and believes that it is necessary

to take urgent action to protect the operation, security, integrity or stability of the

ELN, the Registrar may immediately suspend or terminate, or direct an ELNO to

immediately suspend or terminate, the Subscriber without first providing a Show

Cause Notice under paragraph 3.1.

(b) However, the Registrar must then issue to the Subscriber a “Show Cause Notice”

within 15 Business Days. A “Show Cause Notice” must:


(i) be in writing; and

(ii) request the Subscriber to show cause, within 15 Business Days of the date of

the Show Cause Notice, why the Subscriber should be reinstated; and

(iii) specify the reasons for the suspension or termination.

(c) If the Registrar does not issue a Show Cause Notice in accordance with this

paragraph 3.2 within 15 Business Days of a suspension or termination taking effect

following a determination by the Registrar to suspend or terminate the Subscriber

under this paragraph 3.2, the Registrar must reinstate, or direct the ELNO to

reinstate, the Subscriber.

(d) After the expiry of the 15 Business Days following the date of the Show Cause

Notice under this paragraph 3.2, the Registrar, after considering any further

information or steps taken by the Subscriber must, within a reasonable time,

determine whether to reinstate the Subscriber or direct the ELNO to reinstate the

Subscriber.

3.3 Notice of suspension and termination decisions

After making a final determination under paragraph 3.1 or paragraph 3.2, the Registrar

must notify the Subscriber promptly of the determination. If the determination:

(a) is made under paragraph 3.1, the notice must specify the reasons for the

determination and the time and date the suspension or termination is to take effect;

or

(b) is made under paragraph 3.2, the notice must specify the reasons for the

determination and the time and date the suspension or termination took effect.

3.4 Suspension or termination - reinstatement

If the Registrar suspends or terminates the Subscriber, or directs an ELNO to suspend or

terminate the Subscriber, the Registrar may reinstate, or direct an ELNO to reinstate, the

Subscriber at any time if the Registrar determines that the Subscriber’s access to the ELN

does not pose a threat to the operation, security, integrity or stability of the ELN.

3.5 Registrar’s determinations

A determination by the Registrar to suspend or terminate a Subscriber, or to direct an

ELNO to suspend or terminate a Subscriber, does not affect any other determination the

Registrar has made previously or may make subsequently.


SCHEDULE 8 – VERIFICATION OF IDENTITY STANDARD

1 Definitions

In this Verification of Identity Standard capitalised terms have the meanings set out below:

ADI or authorised deposit-taking institution has the meaning given to it in the Banking

Act 1959 (Cth).

Adult has the meaning given to it in the ECNL.


Australian Legal Practitioner has the meaning given to it in the relevant legislation of

the Jurisdiction in which the land the subject of the Conveyancing Transaction is situated

and in South Australia is a legal practitioner for the purposes of the Legal Practitioners Act

1981 (SA).

Australian Passport means a passport issued by the Australian Commonwealth

government.

Bank Manager means a Person appointed to be in charge of the head office or any

branch office of an ADI carrying on business in Australia under the Banking Act 1959

(Cth).

Category means the categories of identification Documents set out in the table in

Verification of Identity Standard paragraph 3, as amended from time to time.


Community Leader means, in relation to an Aboriginal or Torres Strait Islander

community:

(a) a Person who is recognised by the members of the community to be a community

elder; or

(b) if there is an Aboriginal council that represents the community, an elected member

of the council; or

(c) a member, or a member of staff, of a Torres Strait Regional Authority established

under the Aboriginal and Torres Strait Islander Commission Act 2005 (Cth); or

(d) a member of the board, or a member of staff, of Indigenous Business Australia

established under the Aboriginal and Torres Strait Islander Commission Act 2005

(Cth); or

(e) a member of the board, or a member of staff, of an Indigenous Land Corporation

established under the Aboriginal and Torres Strait Islander Commission Act 2005

(Cth); or


(f) a member, or a member of staff, of an Aboriginal Land Council established

under the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth).

Court Officer means a judge, master, magistrate, registrar, clerk or the chief executive

officer of any court in Australia.

Doctor means a Person who is registered under any Commonwealth, State or Territory

law as a practitioner in the medical profession.


Jurisdiction by the Application Law, as amended from time to time.

Identifier Declaration means the declaration set out in Verification of Identity Standard

paragraph 4.Identity Declarant means a Person providing an Identifier Declaration.

Identity Verifier means the Person conducting the verification of identity in accordance

with this Verification of Identity Standard.


Land Council Officeholder means a chairperson or deputy chairperson of an Australian

land council or land and sea council established under any Commonwealth, State or

Territory law.



legislation of the Jurisdiction in which the land the subject of the Conveyancing

Transaction is situated and in Western Australia is a real estate settlement agent for the

purposes of the Settlement Agents Act 1981 (WA).

Local Government Officeholder means a chief executive officer or deputy chief

executive officer of a local government organisation.

Nurse means a Person registered under any Commonwealth, State or Territory law as a

practitioner in the nursing and midwifery profession.




Photo Card is a card issued by the Commonwealth or any State or Territory showing a

photograph of the holder and enabling the holder to evidence their age and/or their identity.

Police Officer means an officer of any Commonwealth, State or Territory police service.

Priority/Settlement Notice has the meaning given to it in the Land Titles Legislation of the

Jurisdiction in which the land the subject of the Conveyancing Transaction is situated.


Public Servant means an employee or officer of the Commonwealth, a State or a

Territory.


Relative means a Person’s spouse or domestic partner or a child, grandchild, sibling,

parent or grandparent of the Person or of the Person’s spouse or domestic partner.

State means New South Wales, Queensland, South Australia, Tasmania, Victoria and

Western Australia.

Statutory Declaration has the meaning given to it in the ECNL.


Verification of Identity Standard means this verification of identity standard, as


2 Face-to-face regime

2.1 The verification of identity must be conducted during a face-to-face in-person interview

between the Identity Verifier and the Person Being Identified.

2.2 Where Documents containing photographs are produced by the Person Being Identified,

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.

3 Categories of identification Documents and eviden ce retention

3.1 At the face-to-face in-person interview described in paragraph 2.1, the Identity Verifier

must ensure that the Person Being Identified produces original Documents in one of the

Categories in the following table, starting with Category 1.

3.2 The Identity Verifier must be reasonably satisfied that a prior Category cannot be met

before using a subsequent Category.

3.3 The Identity Verifier must:

(a) sight the originals of all Documents from Categories 1, 2, 3, 4, 5 or 6 produced by

the Person Being Identified; and

(b) retain copies of all Documents produced by the Person Being Identified and any

Identity Declarant.

3.4 The Documents produced must be current, except for an expired Australian Passport

which has not been cancelled and was current within the preceding 2 years.


Category Minimum Document Requirements For Persons who are Australian citizens or resident s:

1 Australian Passport or foreign passport plus Australian drivers licence or Photo Card plus change of name or marriage certificate if necessary

2

Australian Passport or foreign passport plus full birth certificate or citizenship certificate or descent certificate plus Medicare or Centrelink or Department of Veterans’ Affairs card plus change of name or marriage certificate if necessary

3

Australian drivers licence or Photo Card plus full birth certificate or citizenship certificate or descent certificate plus Medicare or Centrelink or Department of Veterans’ Affairs card plus change of name or marriage certificate if necessary

4

(a) Australian Passport or foreign passport plus another form of government issued photographic identity Document plus change of name or marriage certificate if necessary

(b) Australian Passport or foreign passport

plus full birth certificate plus another form of government issued identity Document plus change of name or marriage certificate if necessary

5

(a) Identifier Declaration plus full birth certificate or citizenship certificate or descent certificate plus Medicare or Centrelink or Department of Veterans’ Affairs card plus change of name or marriage certificate if necessary.

(b) Identifier Declaration by a Person specified in Verification of Identity

Standard paragraph 4.4(e) plus Medicare or Centrelink or Department of Veterans’ Affairs card plus change of name or marriage certificate if necessary.

Note: Refer to Verification of Identity Standard paragraph 4.

For Persons who are not Australian citizens or resi dents:

6

(a) Foreign passport plus another form of government issued photographic identity Document plus change of name or marriage certificate if necessary

(b) Foreign passport

plus full birth certificate plus another form of government issued identity Document plus change of name or marriage certificate if necessary.


4 The Identifier Declaration

4.1 Where the requirements of:

(a) Categories 1 to 4 cannot be met, Category 5(a) may be used; and

(b) Category 5(a) cannot be met, Category 5(b) may be used,

including the provision of an Identifier Declaration in accordance with this paragraph.

4.2 The Identity Verifier must ensure that both the Person Being Identified and the Identity

Declarant attend the same face-to-face in-person interview described in paragraph 2.1.

4.3 The Identity Verifier must verify the identity of the Identity Declarant in accordance with

this Verification of Identity Standard except that the Identity Verifier cannot utilise Category

5.

4.4 The Identity Verifier must undertake reasonable enquiries to satisfy themselves that the

Identity Declarant is:

(a) an Adult; and

(b) an Individual who has known the Person Being Identified for more than 12 months;

and

(c) not a Relative of the Person Being Identified; and

(d) not a party to the Conveyancing Transaction(s) the Person Being Identified has or is

entering into; and

(e) where Category 5(b) is used, an Australian Legal Practitioner, a Bank Manager,

Community Leader, Court Officer, Doctor, Land Council Officeholder, Licensed

Conveyancer, Local Government Officeholder, Nurse, Public Servant or Police

Officer.

4.5 The Identity Verifier must ensure that the Identity Declarant provides a Statutory

Declaration detailing the following:

(a) the Identity Declarant’s name and address; and

(b) the Identity Declarant’s occupation; and

(c) the Identity Declarant’s date of birth; and

(d) the nature of the Identity Declarant’s relationship with the Person Being Identified;

and

(e) that the Identity Declarant is not a relative of the Person Being Identified; and


(f) that the Identity Declarant is not a party to the Conveyancing Transaction(s) the

Person Being Identified has or is entering into; and

(g) the length of time that the Identity Declarant has known the Person Being Identified;

and

(h) that to the Identity Declarant’s knowledge, information and belief the Person Being

Identified is who they purport to be; and

(i) where Category 5(b) is used, that the Identity Declarant is an Australian Legal

Practitioner, a Bank Manager, Community Leader, Court Officer, Doctor, Land

Council Officeholder, Licensed Conveyancer, Local Government Officeholder,

Nurse, Public Servant or Police Officer.

5 Body Corporate


(a) confirm the existence and identity of the body corporate by conducting a search of

the Records of the Australian Securities and Investments Commission or other

regulatory body with whom the body corporate is required to be registered; and

(b) take reasonable steps to establish who is authorised to sign or witness the affixing

of the seal on behalf of the body corporate; and

(c) verify the identity of the Individual or Individuals signing or witnessing the affixing

o f the seal on behalf of the body corporate in accordance with the Verification of

Identity Standard.


6 Individual as attorney



donor; and

(b) take reasonable steps to establish that the Conveyancing Transaction(s) is

authorised by the power of attorney; and

(c) verify the identity of the attorney in accordance with the Verification of Identity

Standard.


7 Body Corporate as attorney



donor; and

(b) take reasonable steps to establish that the Conveyancing Transaction(s) is

authorised by the power of attorney; and

(c) comply with Verification of Identity Standard paragraph 5.


8 (Deleted)

9 (Deleted)

10 Further checks

The Identity Verifier must undertake further steps to verify the identity of the Person Being

Identified and/or the Identity Declarant where:

(a) the Identity Verifier knows or ought reasonably to know that:

(i) any identity Document produced by the Person Being Identified and/or the

Identity Declarant is not genuine; or

(ii) any photograph on an identity Document produced by the Person Being

Identified and/or the Identity Declarant is not a reasonable likeness of the

Person Being Identified or the Identity Declarant; or

(iii) the Person Being Identified and/or the Identity Declarant does not appear to

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

(e) it would otherwise be reasonable to do so.


SCHEDULE 9 – IDENTITY AGENT CERTIFICATION

“I, [full name of the Identity Agent], of [address of the Identity Agent] being a [occupation of the

Identity Agent] and having been directed to use the Verification of Identity Standard by [Subscriber

name] hereby certify that:

(a) the identification relates to [full name of the Person Being Identified or the Identity

Declarant]; and

(b) the identification was carried out on [date]; and

(c) the original current identification Documents as listed below were produced to me

and copies of these Documents signed, dated and endorsed by me as true copies

are attached to this certificate; and

(d) the verification of identity was conducted in accordance with the Verification of

Identity Standard[; and

(e) I witnessed [full name of the Person Being Identified] execute the completed Client

Authorisation or grant the mortgage].*”

…………………………….. ..……….………………………

Date: Signature of Identity Agent List of identification Documents produced (see (c) above):

Description of identity Documents produced and

endorsed

Page number in set of copies

E.g. Australian Passport 1

*Delete where Identity Agent not requested to witness or is not legally entitled to witness the

document.

MORE DETAILS OVER …

VERIFICATION OF IDENTITY (VOI) CHECKLIST

OTHER DETAILS OF FILE TO WHICH VOI RELATES

Name:

Description:

Verification of Identity Standard (see below) Previous verification within 2 years (go to page 2)

Other reasonable steps (go to page 2) Mortgagee etc verifying mortgagor (go to page 2)

A — INDIVIDUAL

Face to face interview

Sighted the originals of the documents listed below (VOI Documents)

Copied the VOI Documents and certified the copies as true copies of the originals

Retained copies of the VOI Documents (electronically or in safe custody – not solely in the client’s file) Note any that are not copied or retained (retain copies for 7 years)

Compared photo ID with facial features of the person being identified (noting shape of mouth, nose, eyes, position of cheek bones etc.)

B — CORPORATIONS & INCORPORATED ASSOCIATIONS

Existence & identity confirmed by: current ASIC search other (specify)

Established who is authorised to sign by: s129(2) Corporations Act other (specify)

Verified the identity of each individual signing or affixing the seal (complete extra checklists as required)

C — ATTORNEYS

Details as shown in the Power of Attorney (Power):

* of donor/principal

* of the Attorney

* date of Power

Confirmed that this transaction is authorised by the Power (Note: enduring powers must be for financial matters)

Copied the Power and certified the copy as a true copy of the original

Verified the identity of each Attorney (complete extra checklists as required)

D — DOCUMENTS USED TO IDENTIFY ACCORDING TO THE VOI STANDARD

• The documents you need to use to identify the individual under each category are marked in grey.

• Start with category 1. If the Individual cannot meet category 1, move to category 2, and so on.

• Documents must be current (or for Australian passport expired w/in 2 yrs) Aust

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Category 3

Category 4: Option (a)

Category 4: Option (b)

Category 5(a): non Australian citizens

Category 5(b): non Australian citizens

E — ARE FURTHER STEPS REQUIRED TO VERIFY?

If there are non-genuine identity documents, lack of reasonable likeness with photo ID, discrepancies between documents and person or between signatures etc. insert or annex details and describe the extra steps taken.

Print Full Name of Identity Verifier

Signature of Identity Verifier

FULL NAME OF THE PERSON BEING IDENTIFIED:

DATE THE IDENTIFICATION WAS PERFORMED:

FILE NO:

MEANS OF IDENTIFICATION (tick at least one)

IF VERIFICATION OF IDENTITY STANDARD USED (tick each completed item)

NOVEMBER 2015

VOI CHECKLIST (CONTINUED)

IF VERIFICATION BY OTHER REASONABLE STEPS I.E. NOT THE VOI STANDARD

©LAW INSTITUTE OF VICTORIA NOVEMBER 2015

Checklist of factors to be considered

Complete one form for each person. Circle or highlight relevant items. ('Positive' factors may indicate that a lesser degree of VOI is required.)

Factor Positive Negative Insert any relevant detail

Acquiring estate or interest

Disposing of an interest Caution

Disposing apparently at full value

Disposing not at full value – arm’s length Warning

– related party Caution

Client is (also) mortgaging to a bank etc.

Client is a mortgagor from a private lender Caution

Client is a mortgagee

Client has/will produce paper Title

Person’s identity verified (within last 2 years)

Person – is your relative

– is personal friend

– is existing client (2+ years)

– is overseas/interstate/remote

– is aged/infirm/immobile

Have you met face to face (if so, when)

List of VOI Documents sighted

If documents have been produced to you which are not sufficient to satisfy the VOI Standard, they may still be relevant to prove that reasonable steps were taken. List below any VOI

Documents sighted, noting if they were originals, copies or certified copies and whether or not the person identified had similar facial features to the person in any photograph, whether

you compared signatures etc. If possible copy all documents, and certify each copy as a true copy of the original.

Documents sighted Original Certified Copy Compared signature

Comment

Australian passport – current/if expired, when?

Foreign passport

Driver’s licence – current/if expired, when?

Change of name certificate

Marriage certificate

Full birth certificate

Extract of birth

Other government photo ID document

Other government non photo ID document

Identity Agent Certification in approved form

Other

Verification of Authority/Right to Deal

If a Corporation, Association or Attorney, the existence, identity and authority of the persons authorised to affix the seal/the Attorney must also be verified (see sections B & C on page 1)

If previous verification within 2 years:

Date/year of previous verification:

If not verified by you, by whom?

If a mortgage transaction and you rely on a mortgagee or identity agent to identify mortgagor (Tick one)

Received and checked Identity Agent Certification in approved form

Received written confirmation from mortgagee that it has applied the VOI Standard

Satisfied myself that the mortgagee had taken reasonable steps by (insert details)

This guide explains the Registrar’s verification of identity requirements for paper conveyancing transactions.

Who does this guide apply to? This guide applies to conveyancers, lawyers and mortgagees, who are required to take reasonable steps to verify the identity of their client, mortgagor, person to whom a Certificate of Title is provided and any person authorised to sign documents on their behalf.

What are the verification of identity requirements? The verification of identity requirements for paper conveyancing transactions are set out in the Registrar’s Requirements for paper conveyancing (Registrar’s Requirements). The requirements are essentially the same as those for electronic conveyancing transactions. The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) has published Model Participation Rules Guidance Note #2 - Verification of Identity, which includes:

What is verification of identity?

Why is verification of identity required?

When is verification of identity required?

How verification of identity is to be carried out, including how verifications can be conducted overseas

Frequently asked questions

The ARNECC guidance note is at www.arnecc.gov.au>Publications>MPR Guidance Notes.

Non-represented party must have their identity verified If any party to a paper conveyancing transaction is a non-represented party, they must have their identity verified by Australia Post. Australia Post will also witness the non-represented party signing any conveyancing documents. For additional information, refer to Guide to verification of identity for people not using a conveyancer or lawyer available at www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees>Verification of identity.

Frequently asked questions The following questions and answers are provided in addition to those in the ARNECC guidance note.

Q1 Where can I get a copy of the Registrar’s Requirements?

A1 The Registrar’s Requirements are available at www.delwp.vic.gov.au>Property and land titles>Property information>Publications

Guide to verification of identity for paper conveyancing transactions for conveyancers, lawyers and mortgagees

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

http://www.arnecc.gov.au/

http://www.delwp.vic.gov.au/property-and-land-titles/forms,-guides-and-fees

http://www.delwp.vic.gov.au/

http://www.dtpli.vic.gov.au/property-and-land-titles/publications



Guide to verification of identity for paper conveyancing transactions for conveyancers, lawyers and mortgagees Page | 2

Q2 Are there any guides available on verification of identity?

A2 ARNECC has published the following five guidance notes:

Guidance Note #1 – Client Authorisation

Guidance Note #2 – Verification of Identity

Guidance Note #3 – Certifications

Guidance Note #4 – Right to Deal

Guidance Note #5 – Retention of Evidence

The ARNECC guidance notes are an excellent resource, available at www.arnecc.gov.au>Publications>MPR Guidance Notes.

The ARNECC guidance note on verification of identity should be read in conjunction with these frequently asked questions.

The Registrar of Titles (the Registrar) has also published three guides on verification of identity:

Guide to verification of identity for paper conveyancing transactions for conveyancers, lawyers and mortgagees (this guide)


Guide to conveyancers and lawyers when dealing with people who are not represented

These guides are available at www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees>Verification of identity.

Q3 When does the requirement to verify a client’s identity take effect in Victoria?

A3 The Registrar has issued the Registrar’s Requirements (see Q1), which among other things, formalises verification of identity requirements. However, verification of identity is not new. Prudent practice already required conveyancers and lawyers to take reasonable steps to verify their client’s identity. The Registrar’s Requirements apply to any instrument signed on or after 9 November 2015 and require a conveyancer or lawyer to take reasonable steps to verify the identity of their client in a conveyancing transaction.

Q4 Does the requirement to verify the identity of clients apply to paper instruments lodged or signed on or after 9 November 2015?

A4 For parties represented by a conveyancer or lawyer, the requirement to take reasonable steps to verify identity applies to instruments signed on or after 9 November 2015. The requirement for non-represented parties applies to instruments signed on or after 1 December 2015.

Q5 Will a conveyancer or lawyer have to verify the identity of clients who have already signed paper instruments that may not be settled or lodged until after 9 November 2015?

A5 It is already prudent practice for a lawyer or conveyancer to identify their clients. The Registrar has merely formalised this practice. The formalised requirement applies to all paper instruments signed on or after 9 November 2015. If the party is not represented, the requirement applies to instruments signed on or after 1 December 2015.

Q6 When did the requirement for mortgagees to identify their mortgagor come into effect in Victoria?

A6 The legislative requirement came into effect in September 2014.







Q7 What steps do a conveyancer or lawyer need to take to verify the identity of their client (or a mortgagee to identify a mortgagor)?

A7 The conveyancer, lawyer or mortgagee is required to take reasonable steps to verify the identity of their client and/or a mortgagor, in both an electronic and a paper conveyancing transaction. How this is done is up to the conveyancer, lawyer or mortgagee, as long as the steps taken are reasonable in the circumstances. The conveyancer, lawyer or mortgagee may undertake the verification of identity or it can be done by an agent (including an Identity Agent).

Q8 In what circumstances will conveyancers, lawyers and mortgagees be required to undertake verification of identity?

A8 These are set out in Requirement 3.1.2 of the Registrar’s Requirements and include taking reasonable steps to identify clients, mortgagors, people authorised to sign and certify instruments and people to whom Certificates of Title are provided.

Q9 Must the Verification of Identity Standard in Schedule 1 of the Registrar’s Requirements be used to verify the identity of clients and mortgagors?

A9 It is not a requirement to use the Verification of Identity Standard to verify the identity of clients and mortgagors. The requirement is for the conveyancer, lawyer or mortgagee to take reasonable steps to verify their client’s or mortgagor’s identity. What those steps are in each particular circumstance is for a conveyancer, lawyer or mortgagee to decide. They can take their own reasonable steps or they can use the Verification of Identity Standard.

Q10 Can an employee of the conveyancer, lawyer or mortgagee conduct verification of identity?

A10 This is a business decision for the conveyancer, lawyer or mortgagee to make. The obligation is on a conveyancer, lawyer or mortgagee to take reasonable steps to verify the identity of their client or mortgagor. How this is done is up to the conveyancer, lawyer or mortgagee, as long as the steps taken are reasonable in the circumstances.

Q11 Is a conveyancer or lawyer required to use an Identity Agent to have their client’s identity verified (or does a mortgagee need to use an Identity Agent to identify a mortgagor)?

A11 The requirement is for a conveyancer, lawyer or mortgagee to take reasonable steps to verify the identity of their client or mortgagor. How this is done is up to the conveyancer, lawyer or mortgagee, as long as the steps taken are reasonable in the circumstances. The conveyancer, lawyer or mortgagee may undertake the verification of identity or it can be done by an agent (including an Identity Agent).

Q12 What is an Identity Agent?

A12 An Identity Agent is an agent of the conveyancer, lawyer or mortgagee, who is reputable, competent and maintains the level of insurance set out in Schedule 3 of the Registrar’s Requirements, and is authorised by the conveyancer, lawyer or mortgagee to conduct verification of identity.

Q13 What is an Approved Identity Verifier?

A13 An Approved Identity Verifier is an organisation approved by the Registrar for the purpose of verifying the identity of non-represented parties. Australia Post is undertaking this role for the Registrar.

Q14 To what paper instruments does verification of identity apply? Is it only transfers, mortgages and caveats, as it is in PEXA?

A14 The requirement relates to all types of paper instruments that can be lodged with the Registrar under the Transfer of Land Act 1958, Subdivision Act 1988 or any other legislation.



Q15 Does verification of identity apply to both the transferor and the transferee?

A15 Yes. The requirement is for the conveyancer or lawyer to take reasonable steps to verify the identity of their client. This will apply to both the transferor and transferee – whichever party is their client.

Q16 If a conveyancer or lawyer signs a caveat on behalf of a caveator, is it the person who signs the caveat or the caveator that must have their identity verified?

A16 It is the caveator who must have their identity verified. The requirement is for a conveyancer or lawyer to take reasonable steps to verify the identity of a client, regardless of whether the caveat is signed by the client or by the conveyancer or lawyer on behalf of the client.

Q17 Do the verification of identity requirements extend to agreements under the Water Act 1989, for example community agreements and rights of access agreements? These agreements are signed by all landowners but the application forms to lodge the agreements are usually signed by the conveyancer or lawyer? Does verification of identity need to be undertaken for each landowner?

A17 The requirement is for a conveyancer or lawyer to take reasonable steps to verify the identity of a client. The conveyancer or lawyer must verify the identity of the person or people they represent. In relation to the types of agreement discussed, it is a matter for the conveyancer or lawyer to determine who is the client. Once this question is answered, the scope of the requirement should be clear.

Q18 Do the verification of identity requirements extend to section 173 agreements under the Planning and Environment Act 1987? These agreements are entered into between the council, the landowner and in some cases third parties; but, the application forms to lodge the agreements are usually only signed by the council, by the CEO or a delegate. Does verification of identity need to be undertaken for everyone that signs the agreements? Or only on the councillors, CEO or council delegate signing the application form?

A18 The requirement is for a conveyancer or lawyer to take reasonable steps to verify the identity of a client. The conveyancer or lawyer must verify the identity of the person or people they represent. In relation to the type of agreement discussed, it is a matter for the conveyancer or lawyer to determine who is the client. Once this question is answered, the scope of the requirement should be clear.

Q19 Are there exemptions to the verification of identity requirements in the case of entities, such as statutory authorities or local government bodies?

A19 There are no exemptions to the verification of identity requirements. The requirement is that a conveyancer, lawyer or mortgagee take reasonable steps to verify the identity of their client or mortgagor. That requirement applies to all clients or mortgagors, whether they are individuals or bodies corporate.



Q20 What steps does a conveyancer, lawyer or mortgagee have to take to verify the identity of a corporate client?

A20 The requirement is that a conveyancer, lawyer or mortgagee take reasonable steps to verify the identity of their client or mortgagor. If a client or mortgagor is a body corporate or an incorporated association, these steps could include all of the following:

confirming the existence of the body corporate

taking reasonable steps to establish the person who is authorised to sign on behalf of the body corporate or witness the affixing of any seal

verifying the identity of the individual(s) who are authorised to sign or affix the seal on behalf of the body corporate.

Q21 Requirement 3.1.2(c) of the Registrar’s Requirements relates to verifying the identity of people to whom Certificates of Title are provided. How does this apply to settlements?

A21 Registrar's Requirement 3.1.2(c), which mirrors Participation Rule 6.5.1(c), was designed to only apply when a Certificate of Title is being given to a client or a mortgagor. It does not apply to parties participating in a settlement, including when a settlement agent is acting for a party in order to collect the Certificate of Title and transfer documentation.

Q22 If a Power of Attorney is used, is it only the attorney that needs to have their identity verified? Or does the principal also have to have their identity verified?

A22 If a Power of Attorney is used, the conveyancer, lawyer or mortgagee must take reasonable steps to verify the attorney’s identity and authority.

If the attorney is an individual, the steps could include all of the following:

confirming the details of the person appointing the attorney and the attorney from the power of attorney

taking reasonable steps to establish that the conveyancing transaction is authorised by that power of attorney

verifying the identity of the attorney.

If the attorney is a body corporate, the steps could include all of the following:

confirming the details of the person appointing the attorney and the attorney from the power of attorney

taking reasonable steps to establish that the conveyancing transaction is authorised by that power of attorney

confirming the existence of the body corporate

taking reasonable steps to establish the person who is authorised to sign on behalf of the body corporate or witness the affixing of any seal

verifying the identity of the individuals who are authorised to sign or affix the seal on behalf of the body corporate.

It would be up to the conveyancer, lawyer or mortgagee to decide whether or not to verify the identity of the person giving the power.



Q23 Is the person who verifies the client’s or mortgagor’s identity also required to witness the instrument signed by the client or mortgagor?

A23 Except for non-represented parties, the person conducting the verification of identity is not required to witness the execution of the instrument. However, it might be considered prudent practice to undertake the two actions at the same time, whenever possible. It is expected that the conveyancer, lawyer or mortgagee ensures the document is actually signed by their client or mortgagor, whose identity has been verified.

Q24 Will a conveyancer, lawyer or mortgagee have to re-verify the identity of their client or mortgagor for whom they have acted in a previous transaction?

A24 The client or mortgagor need not be re-verified if the conveyancer, lawyer or mortgagee has taken reasonable steps to do both of the following:

verify the identity of their client or mortgagor within the previous two years

ensure that the client or mortgagor they are dealing with is one and the same as the client or mortgagor whose identity was already verified by them.

After two years, it is up to the conveyancer or lawyer to assess what is reasonable in the circumstances.

Q25 Can a conveyancer, lawyer or mortgagee rely on a verification of identity of their client or mortgagor conducted by (or on behalf of) another conveyancer, lawyer or mortgagee?

A25 The requirement is for the conveyancer, lawyer or mortgagee to take reasonable steps to verify their client’s or mortgagor’s identity. What those steps are in each particular circumstance is for a conveyancer, lawyer or mortgagee to decide.

Q26 Will the identity of a long-standing client or mortgagor need to be verified?

A26 The requirement is for the conveyancer or lawyer or mortgagee to take reasonable steps to verify their client’s or mortgagor’s identity. What those steps are in each particular circumstance is for the conveyancer, lawyer or mortgagee to decide.

Q27 What happens if a client or mortgagor requires urgent assistance and there is no time to verify their client’s or mortgagor’s identity?

A27 The requirement is for the conveyancer, lawyer or mortgagee to take reasonable steps to verify their client’s or mortgagor’s identity. What those steps are in each particular circumstance is up to the conveyancer, lawyer or mortgagee to decide.

Q28 What should a conveyancer, lawyer or mortgagee do if they suspect the identity documents provided are not genuine or do not represent a reasonable likeness to the person being identified?

A28 The requirement is for the conveyancer, lawyer or mortgagee to take reasonable steps to verify the identity of their client or mortgagor. When doubt arises, or should reasonably have arisen in relation to a transaction and/or a client’s or mortgagor’s identity, the conveyancer, lawyer or mortgagee should seek further evidence or make further enquiries. If after having done so the conveyancer, lawyer or mortgagee is not satisfied, then the conveyancer, lawyer or mortgagee should decline to act further in the transaction.



Q29 What steps do a conveyancer, lawyer or mortgagee need to take to verify the identity of their client or mortgagee who is overseas?

A29 The conveyancer, lawyer or mortgagee needs to decide what steps to take to verify the identity of their client or mortgagor, having regard to the available services and options under the circumstances.

One option may be to use the services of an Australian Embassy, High Commission or Consulate – for more information see the ARNECC MPR Guidance Note #2, coupled with additional steps in order for the conveyancer, lawyer or mortgagee to be reasonably confident in their client’s identity.

Another option would be for an international financial institution or law practice to use their overseas personnel to conduct verification of identity.

Q30 Will the Registrar require proof that the identification has occurred and, if so, what paperwork is needed for this?

A30 The Registrar does not require evidence of verification of identity at lodgement; however, the Registrar may, when examining a dealing, call for production of the evidence.

Q31 What are the requirements for retention of evidence supporting verification of identity?

A31 Evidence must be retained by the conveyancer, lawyer or mortgagee for seven years from the date of lodgement of the instrument.

If a non-represented party is a party to a conveyancing transaction, that party will also be required to retain supporting evidence for seven years from the date of lodgement of the instrument they signed.

If the Verification of Identity Standard was used, this evidence must demonstrate that the procedure for the standard was followed. If alternative reasonable steps were used to verify identity the evidence must show what these steps were.

Q32 How can the verification of identity evidence be stored?

A32 The evidence can be retained in a range of ways. It could be stored electronically and/or by an agent on behalf of a conveyancer, lawyer or mortgagee. However, the medium and means in which documents supporting the conveyancing transaction are to be retained is to be determined by a conveyancer, lawyer or mortgagee in light of the possible need to produce those documents as evidence to a court. Regardless of the way in which it is stored, evidence should be accessible, legible and secure.

Further information is contained in the ARNECC MPR Guidance Note #5 - Retention of Evidence.

Q 33 If the Registrar calls for production of supporting evidence of verification of identity, and it is found that a party has not had their identity verified, does this invalidate the instrument?

A33 If the Registrar, when examining a lodged but unregistered dealing, calls for production of evidence of verification of identity and the evidence could not be produced, then the Registrar will most likely refuse to continue processing the dealing unless or until he can be satisfied that it is one made by the party named – see section 27AB of the Transfer of Land Act 1958.

The Registrar has no intention to routinely call for production of evidence of verification of identity. It would only occur if some other element of the dealing concerned the Registrar.

Q34 What are the certification requirements and when do they come into effect?

A34 The certification requirements are set out in Schedule 4 of the Registrar’s Requirements and essentially relate to verification of identity, client authorisation, retention of evidence and correctness. Certifications are scheduled to come into effect in May 2017.



Q35 Is there any transition period for verification of identity?

A35 There is no transition period. Prudent practice already required conveyancers, lawyers and mortgagees to take reasonable steps to verify their client’s and/or a mortgagor’s identity and authority.

Q36 What does the reference to a client’s or mortgagor’s ‘authority’ mean? Is this verifying that the person signing the instrument is authorised to do so? Or, is this a reference to a requirement to use the Client Authorisation Form?

Q36 Authority relates to a client’s or mortgagor’s right to enter into a conveyancing transaction. This is commonly referred to as the client’s or mortgagor’s 'right to deal'. Verification of the right to deal is closely linked to verification of identity. This is dealt with in requirement 3.2 of the Registrar's Requirements and further information is contained in the ARNECC Guidance Note #4 - Right to Deal.

Q37 What happens if a party is not represented by a conveyancer or lawyer?

A37 On or after 1 December 2015, a party to a conveyancing transaction who is not represented by a conveyancer or lawyer must have their identity verified by Australia Post (see Guide to verification of identity for people not using a conveyancer or lawyer available at www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees>Verification of identity) who, at the same time, will witness that party’s signing of the conveyancing document.

A38 What happens if the conveyancer, lawyer or mortgagee incorrectly identifies their client or mortgagor?

A38 It depends on the outcome of the conveyancing transaction to which their client or mortgagor was a party. If questions are raised about the validity of the instrument signed by that client or mortgagor, in most cases it will be for a court to decide.

A39 What are the risks of verification of identity?

A39 Any risk relates more to the absence or lack of due diligence when conducting verification of identity. For example, further enquiries should be made when doubt arises, or should reasonably have arisen in relation to a transaction and a person’s identity.

The Registrar’s Requirements require further steps to be taken when:

an identity document does not appear to be genuine

a photograph on an identity document is not a reasonable likeness

the person being identified does not appear to be the person to which the identity documents relate

it is otherwise reasonable to take further steps.

Some circumstances when it may also be reasonable to take further steps could include:

If the client or mortgagor has very limited identity documents without explanation

when the conveyancer, lawyer or mortgagee becomes aware the identity documents have been cancelled

if the identity documents and the instrument appear inconsistent, such as differing signatures

when an agent is used and there appears to be inconsistencies in the supporting documentation they provide in relation to verification of identity.

Examples of further steps that could be taken include (but are not limited to) obtaining more identity documents, making enquiries with the client, mortgagor or third parties, and using electronic verification services.






Some circumstances may not be directly linked to verification of identity but may raise awareness that extra care should be taken in relation to a particular transaction and the person being identified. For example, the transaction is urgent; the conveyancer, lawyer or mortgagee doubts the veracity of the instructions; the transaction involves a non-standard mortgage of an unencumbered title; or, the client has limited English. While such transactions may be legitimate, it may be necessary to verify the circumstances surrounding the transaction. For example, checking the reason for urgency or engaging an independent interpreter.

Q40 Are there any privacy concerns and how can these be mitigated?

A40 As with other aspects of a conveyancing transaction, retention of personal information gives rise to privacy obligations. Storage of a client’s or mortgagor’s personal information is not a new obligation. Conveyancers, lawyers and mortgagees are already required to retain their client’s or mortgagor’s records and files for seven years.

Further information Registrar’s Requirements for paper conveyancing transactions under Section 106A of the Transfer of Land Act 1958 at www.delwp.vic.gov.au>Property and land titles>Property information>Publications

Guide to verification of identity for people not using a conveyancer or lawyer at www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees>Verification of identity

Guide to conveyancers and lawyers when dealing with people who are not represented at www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees>Verification of identity

Australian Registrars’ National Electronic Conveyancing Council’s Model Participation Rules Guidance Note 2 – Verification of Identity available at www.arnecc.gov.au >Publications>MPR Guidance Notes

Contact us For location and contact details, refer to www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees>Contact Land Victoria.


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This guide explains the Registrar’s verification of identity requirements for people not using a conveyancer or lawyer (non-represented parties).

Who is a non-represented party? A non-represented party is a person who is required to sign a conveyancing document and is not using (represented by) a conveyancer or lawyer. A party may be an individual, a company, an owners corporation, an incorporated association, a council, a government body or statutory agency.

These requirements do not apply to you if you are a mortgagor and the lender (mortgagee) is one of the following:

an Approved Deposit-taking Institution (ADI), which includes most banks and other large mortgage lenders

a PEXA subscriber

represented by a conveyancer or lawyer.

In this situation, the mortgagee or their representative or agent will be responsible for verifying your identity.

Note: these requirements do not apply if a company, council, government body or statutory agency has appointed its in-house Australian Legal Practitioner or Licensed Conveyancer as its Representative. In this case, the Registrar’s requirements for paper conveyancing transactions 3.1.2(a) applies. For details of the Registrar’s requirements for paper conveyancing transactions see ‘Further information’ at the end of this guide.

What are the verification of identity requirements? An individual

If an individual is not using a conveyancer or lawyer, and is a party to a conveyancing document, they must:

have their identity verified by Australia Post

at the same time have Australia Post witness their signing of any conveyancing document (e.g. transfer of land, mortgage of land, survivorship application etc.) and where there is provision for a witness signature on the conveyancing document, Australia Post will also sign that document as a witness.

A company

If a company is not using a conveyancer or lawyer and it is a party to a conveyancing document, it must:

have the identity of each signatory verified by Australia Post

at the same time have Australia Post witness the signing of any conveyancing document (e.g. transfer of land, application to register plan, etc.)

Guide to verification of identity for people

not using a conveyancer or lawyer


Guide to verification of identity for people not using a conveyancer or lawyer Page | 2

ensure the form of execution by the company is only one of the following involving the company’s appointed officers:

– execution using a common seal – form signed by two directors, or a director and a secretary, or a sole director and secretary, or a sole director

– execution without using a common seal – form signed by two directors, or a director and a secretary, or a sole director and secretary, or a sole director.

If the form of execution is not as above, the company will need to seek the assistance of a conveyancer or lawyer to complete the conveyancing transaction and conduct verification of the company’s signatories’ identities.

A current company search of a non-represented company must be provided with the conveyancing documents when lodged at Land Victoria.

A council, government body or statutory agency

If a council, government body or statutory agency is not using a conveyancer or lawyer and is a party to a conveyancing document, it must:

have the identity of each signatory verified by Australia Post; and

at the same time have Australia Post witness the signing of any conveyancing document and, where there is provision for a witness on the conveyancing document, sign the conveyancing document as a witness.

Signatories completing a council’s, government body’s or statutory agency’s execution may include a person who is required to sign a conveyancing document as an officer or delegate of the transacting party; or, a person who witnesses the affixing of a council’s or other body’s common seal in the usual manner.

A signatory who has had their identity verified by Australia Post (as above) within the previous two years need not be re-verified provided that on any subsequent conveyancing document signed by that signatory the following is provided below the execution – ‘My identity has been verified by Australia Post on <date> - RECEIPT No. <Unique Seq. No>’.

An owners corporation

If an owners corporation is not using a conveyancer or lawyer and is a party to a conveyancing document, it must:



Signatories completing an owners corporation execution may include individual and corporate members of the owners corporation who are required to witness the affixing of the common seal; or, other individuals or corporations to whom the owners corporation has delegated any signing power or function, e.g. committee members, an owners corporation manager, a lot owner or office holder of the owners corporation.

Any corporate signatory must follow the above requirements for companies.

An incorporated association

If an incorporated association is not using a conveyancer or lawyer and is a party to a conveyancing document, it must:





Signatories completing an incorporated association’s execution may include office holders, public officers, or committee members executing with a common seal or without a common seal in accordance with the Associations Incorporation Reform Act 2012 and the rules of the incorporated association. Customer Information Bulletin Edition 141 June 2013 (available at www.delwp.vic.gov.au/property>Land titles>Customer information bulletins) contains information on acceptable forms of execution for incorporated associations).

What you are required to do to have your identity verified by Australia Post For any conveyancing document that is signed by you on or after 1 December 2015, you must do all of the following.

Download and complete the Non-represented party (Victoria only) Land title identity verification form (EIS outlets only) available at www.delwp.vic.gov.au/property>Forms, guides and fees>Verification of identity. Do not sign the form. Do not use any other identity verification form for use by a person represented by a conveyancer or lawyer, or for any mortgagee’s purposes.

Choose an Australia Post EIS outlet that provides a verification of identity service. You can find your nearest Australia Post Express Identity Service (EIS) outlet at www.auspost.com.au>Locations & Hours. Enter your postcode and select ‘search’. No appointment is necessary.

Attend a face-to-face interview at your chosen Australia Post outlet, where you will need to have the following with you:

– your conveyancing documents – not signed by you

– the completed Non-represented party (Victoria only) Land title identity verification form (EIS outlets only) – not signed

– your original identity documents – photocopies of identity documents will not be accepted for identification purposes.

You must produce the minimum identity documents in one of the categories of identification documents as set out in the Non-represented party (Victoria only) Land title identity verification form (EIS outlets only).

If you are an Australian citizen or resident, category 1 should be used first, then 2, then 3, then 4. The highest category available must be used. A lower level category can only be used if you do not possess the documents required for the higher category, the documents have expired or the document is an Australian passport that has been expired for a period of more than two years.

If you are not an Australian citizen or resident then category 6 must be used.

Sign the Non-represented party (Victoria only) Land title identity verification form (EIS outlets only) and your conveyancing document in front of an Australia Post officer.

What Australia Post will do Australia Post will:

verify your identity and take copies of the identity documents you produce

witness you signing any conveyancing documents

http://www.dtpli.vic.gov.au/property-and-land-titles/land-titles/customer-information-bulletins

http://www.dtpli.vic.gov.au/property-and-land-titles/land-titles/customer-information-bulletins

http://www.delwp.vic.gov.au/property



http://www.delwp.vic.gov.au/property

http://auspost.com.au/pol/app/locate/post-office/land-title-id-check-express-service

https://auspost.com.au/



sign the conveyancing document as witness, if there is provision for a witness on the conveyancing document(s)

take a photograph of you

return the completed conveyancing document(s) to you

return the Non-represented party (Victoria only) Land title identity verification form (EIS outlets only) to you

give you a Land Title ID Check receipt for the payment of fees

provide Land Victoria with copies of the identity documentation and a copy of the signed conveyancing document(s), together with your photograph

charge you a fee for completing the verification of identity and witnessing you signing any conveyancing documents.

Please note: Australia Post and Land Victoria comply with all privacy laws relating to your personal information.

What next? You need to attach the Land Title ID Check receipt, or a copy of a receipt, to your conveyancing document(s). You should lodge your conveyancing document(s), with the original or copy receipt attached, at Land Victoria.

If the transaction involves another party, it may be their role to lodge the documents. In any case, the document(s) lodged with Land Victoria must have attached to them the Land Title ID Check receipt or a copy of a receipt.

For further information on a particular conveyancing document, please refer to the relevant Land Victoria guide available at www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees.

Exceptions Australia Post will not verify your identity if you:

cannot meet categories 1, 2, 3, 4 or 6 of the identification documents

are outside Australia

are an attorney under a power of attorney

In these cases, you will need to seek the assistance of a conveyancer or lawyer to complete your conveyancing transaction and conduct your verification of identity.

Supporting evidence to be retained You must retain any evidence supporting a conveyancing document for at least seven years from the date the documents are lodged at Land Victoria. This may include:

the original identity documents provided to Australia Post

the original Land Title ID Check receipt, or a copy of a receipt

any evidence required by the State Revenue Office

any evidence supporting your or any other party’s right to enter into the conveyancing transaction.





Frequently asked questions The following questions and answers are provided for your information.

Q1 Why do I have to have my identity verified?

A1 Verification of identity is important to ensure that the correct person is dealing with land. The Registrar of

Titles (the Registrar) has issued Version 1 of the Registrar’s requirements for paper conveyancing transactions, which, among other things, formalises verification of identity requirements. Requirement 3.1.8 requires a non-represented party to have their identity verified by Australia Post. The Registrar’s requirements for paper conveyancing transactions are available at www.delwp.vic.gov.au/publications.

Q2 When did the requirement to have my identity verified take effect in Victoria?

A2 The requirement took effect on 1 December 2015.

Q3 Does the requirement to have my identity verified apply to paper conveyancing documents lodged or signed on or after 1 December 2015?

A3 The requirement applies to paper conveyancing documents signed on or after 1 December 2015.

Q4 To what paper conveyancing documents does verification of identity apply?

A4 The requirement relates to all types of paper instruments that can be lodged with the Registrar under the Transfer of Land Act 1958, Subdivision Act 1988 or any other legislation.

Q5 What do I need to do if I have signed a conveyancing document prior to 1 December 2015 but the transaction will not be settled or lodged until after 1 December 2015? Will I need to have my identity verified by Australia Post and the conveyancing document re-signed?

A5 The requirement applies to conveyancing documents signed on or after 1 December 2015. For conveyancing documents signed prior to this date there is no requirement to have your identity verified by Australia Post. There is also no requirement for you to have your conveyancing document re-signed.

Q6 Is Australia Post required to witness my signing of the conveyancing document?

A6 Yes, Australia Post is required to witness you signing the conveyancing document. Australia Post will watch you signing any conveyancing documents and where there is provision for a witness on the conveyancing document(s), sign the conveyancing document as witness.

Q7 What if the conveyancing document has to be updated and re-signed after 1 December 2015?

A7 You should contact Australia Post and arrange for them to verify your identity and witness you signing the updated conveyancing document.

Q8 What do I do if Australia Post can’t verify my identity?

A8 If Australia Post can’t verify your identity you will need to seek the assistance of a conveyancer or lawyer to complete your conveyancing transaction and conduct verification of your identity.

Q9 Can I have my identity verified by Australia Post if I have to sign a conveyancing document as an attorney under a Power of Attorney and I am not using a conveyancer or lawyer?

A9 No. Australia Post will not verify your identity if you are signing a conveyancing document as an attorney under a Power of Attorney. You will need to seek the assistance of a conveyancer or lawyer to complete your conveyancing transaction and conduct the verification of your identity



http://www.delwp.vic.gov.au/publications



Q10 Will the Registrar require proof that the identification has occurred and, if so, what paperwork is needed for this?

A10 Australia Post will provide you with a Land Title ID Check receipt. You must attach the original or a copy of a receipt to the conveyancing document(s) to be lodged with Land Victoria. Australia Post will provide the Registrar with evidence that the identification has occurred.

Q11 Do I need to keep any evidence?

A11 You are required to retain supporting evidence for seven years from the date of lodgement of the conveyancing document you signed at Land Victoria.

This evidence could include any contract signed by you, a copy of the conveyancing document signed by you, any evidence required by the State Revenue Office, the original identification documents that you produced to Australia Post and the original or a copy of the Land Title ID Check receipt given to you by Australia Post.

Q12 How can this evidence be stored?

A12 The evidence can be retained in a range of ways. However, the medium and means in which documents supporting the conveyancing transaction are to be retained is to be determined in light of the possible need to produce those documents as evidence to a court. Regardless of the way in which it is stored, evidence should be accessible, legible and secure.

The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) has produced a useful guidance note on retention of evidence. The link to this document is provided in the ‘Further information’ section below.

Q13 Is there any transition period for verification of identity?

A13 There is no transition period. This requirement relates to any conveyancing document signed by a non-represented party on or after 1 December 2015.

Q14 What are the requirements if there is more than one non-represented party in a transaction?

A14 Each non-represented party must separately have their identity verified and their signing of a conveyancing document witnessed by Australia Post. The original or a copy of each Land Title ID Check receipt must be attached to the document(s) lodged at Land Victoria.

Further information Registrar’s requirements for paper conveyancing transactions under Section 106A of the Transfer of Land Act 1958 at www.delwp.vic.gov.au/publications

Land Victoria’s Guide to verification of identity for paper conveyancing transactions for conveyancers, lawyers and mortgagees available from www.delwp.vic.gov.au/property-forms

Australian Registrars’ National Electronic Conveyancing Council’s Model Participation Rules MPR Guidance Note 5 – Retention of Evidence available at www.arnecc.gov.au>Publications>MPR Guidance Notes


http://www.delwp.vic.gov.au/publications



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Contact us For location and contact details, refer to www.delwp.vic.gov.au>Property and land titles>Forms, guides and fees>Contact Land Victoria.


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Troubleshooting VOI

VOI – why, when, how | RACV Club | 2 March 2016 Page 1 of 8

Client unable to attend office to be identified

Consider registering to use Australia Post, ZipID, IDSecure and/or IDfy * InfoTrack.

Remember to check the documents received from an identification agent to ensure they

are legible and do not contain errors. For example, the documents are not complete

because a photo of the client was not provided by the identification agent.

Where any errors are discovered seek an explanation from the identification agent. In

some circumstances it may be necessary for the client to be identified for a second time.

Identity documents match up but the client has an alias. For

example, their name is Thomas but they are known to your office

as Tom.

Prepare a statutory declaration to be signed by the client stating their current correct

name and also listing the other name(s) they are known as. Keep this declaration on your

file.

See attached sample.

Discrepancies in client’s name as disclosed in the identity

documents

Ask the client for:

• an explanation as the reason may be cultural or they may have changed their name

by marriage

• documents to back up their explanation such as a marriage and/or change of name

certificate.

Where they cannot satisfactorily explain the difference you may need to request that they

apply to have the identity document(s) re*issued with the name difference corrected.

For example, their passport refers to John Smith and their drivers licence John B. Smith.

John should be told to obtain a new drivers licence which is consistent with the name on

their passport. Only once the amended document has been provided are you able to

verify their identity.

Requested by a lender / mortgagee to verify identity a

mortgagor pursuant to section 87A of the Transfer of Land Act

1958 (Vic) when providing a solicitor’s certificate

S.87A(1) relevantly provides that:

At the time of execution of a mortgage or a variation of mortgage, a mortgagee

must take reasonable steps to verify the authority and identity of a mortgagor …

Where the practitioner for the mortgagor undertakes an authority and identity check at

the request of a mortgagee it is arguable that they are acting as an agent for the

mortgagee. This would give rise to a conflict.

LPLC recommends that a practitioner who is asked to verify authority and identity of the

mortgagor notifies the mortgagee in writing that they are unable to so as this would mean


they are acting as agent for the mortgagee which gives rise to a conflict. The mortgagee

should be told to undertake its own verification.

Identity documents in another language

The documents will need to be translated. LPLC recommends using a translator

accredited by National Accreditation Authority for Translators and Interpreters Ltd (NAATI).

Unable to verify identity of client

This may occur for any number of reasons including:

• the client looks different to their photo

• the documents do not appear genuine

• the client has no identification documents

• the client is pretending to be someone else

According to the recent publication by Marsh Fraud and Scams – How to Protect Your

Business awareness of the threat of frauds and scams is the key to minimising risk.

Marsh also refers to criminals engaging in “social engineering’ or more commonly known

as “confidence tricks” to overcome risk controls. One example given is where a criminal

calls a law firm with some kind of urgent problem and requires immediate network access.

These criminals may appeal to vanity, authority and greed but more commonly simply rely

on people’s natural helpfulness.

How much should I charge to VOI a client?

Charge a fee which reflects the risk as well as covers the necessary steps and precautions.

For example, the process to identify a long standing client would probably be cheaper

comparted to a client who walks in off the street.


Example of fraud involving a practitioner

You have been acting for a foreign investor selling real estate in Melbourne. Settlement is

due 30 June, one of your busiest times in the office. On 29 June you are contacted by

someone claiming to be from the firm’s bank. This person tells you the client’s funds are at

risk of being stolen and that you should immediately call a number which they provide to

you and to follow the directions of the person you contact. You are told by this person

someone will contact you tomorrow about transferring the funds to a safe account.

Compare this scenario to a recent case in the UK (search BBC/ Legal career ‘hit by vishing

scam’) where criminals posed as bank staff and told a lawyer funds in her firm’s bank

account were at risk. The practitioner transferred the funds into a new account which

were quickly transferred by the fraudsters to other accounts and withdrawn.

If you are contacted by someone claiming to be from your bank and have caller ID keep

a written record of the number of the caller.

Ask the caller to give you their contact details.

Before doing as directed by the caller contact the branch of your bank where your

account was established and ask them whether they can verify the directions you have

been given.

If you receive an email which contains directions for transferring funds, even where the

email is from the client, always telephone the client to verify the information. For more

information see the LPLC blog Identify your client and ensure they are instructing you.

Where you are unable to verify the identity of a client the client may be attempting to

commit a fraud. You need to be strategic and careful when dealing with a client whose

identity is in doubt. Having a written office policy is one way of ensuring the situation is

handled properly.

Consider the following scenarios and our comments which may help you to develop an

office policy to deal with this situation.

First scenario

You have received via post original and/or copy identity documents from a client that you

doubt are genuine.

Check any Australian*issued identifying credentials such as birth certificates, driver

licences and passports using the Commonwealth Government’s Document Verification

Service (DVS). The DVS will verify whether the number of the identity document is valid or

invalid.

If the number of the identity document is invalid:

• you are not obliged to notify the client of your suspicions but may wish to notify the

client that you are unable to act for them

• consider the need to contact your local police station to inform them that you are in

possession of identity documents which you suspect may be false.

To assist you to in making a decision about whether to contact the police refer to the

attached four rulings issued by the Law Institute Ethics committee. In summary the LIV

Ethics committee view seems to be that a practitioner is not breaching the conduct

rules by notifying the police of their suspicions.


Where you decide to contact the police ask the police what they would like you to

do. They may require that you complete a fraud report form. This form and more

information can be found on Victoria Police’s Crime Prevention and Community

Safety>Fraud>Reporting fraud page.

• retain a copy of the documents. Where the client requires you to return any

documents you may do so unless told otherwise by the police.

Second scenario

• A new client attends your office and instructs you to act for them in the sale of a piece

of real estate. The client gives you the certificate of title and a discharge of mortgage.

• You send the client to an identity agent to verify their identity but the agent informs you

they were unable to as the client does not look like the person in the photo identity

documents.

• Shortly after receiving this call the client shows up at your office demanding you give

them back the certificate of title.

Don’t panic but be aware that a client may be upset. It may be that you have caught

them out and they are in a panic. Always be alert to the possibility that the client may

become violent. They may also demand that you give back any documents they have

given you.

Before confronting the client inform someone else in the office what has occurred

preferably a principal and/or office manager, and have someone accompany you when

you see the client.

Ask the client to provide you with their identity documents and explain that you need to

verify their identity to enable you to continue to act.

Where the client’s identity remains in doubt you are not obliged to return the title(s) to the

client.

If the client refuses to co*operate and/or demands the return of the title(s) ask the client to

leave your premises. If they refuse to go tell them they are trespassing and should leave

immediately or you will have no alternative than to contact the police.

See our comments above about contacting the police. You should also notify the Land

Registry.


Sample name declaration

Statutory declaration

Re: Verification of identity

I,

of

1. My name as shown on my ……………………….…[insert identity document, eg.

passport / birth certificate]

is ……………………………

2. I am also commonly known as ……………………………….……………………………….

4. My true and correct name is ……………………………….……………………………….

I acknowledge that this declaration is true and correct and I make it in the belief that a

person making a false declaration is liable to the penalties of perjury.

Declared at

on the ……………….day of ………………20…..

)

)

)………………………………………

)

Before me: ……………………………….……………………………….…………………………….

Witness to print full name, address and qualification:

……………………………….……………………………….…………………………….

……………………………….……………………………….…………………………….

……………………………….……………………………….…………………………….


Ethics rulings

Ruling Number: R4676

Category: Checking Identity * Release of documents

Area of Law: Legal practice management

Ruling Date: 18 Nov 2010

Publication Date: 4 May 2011

Background

A law firm is entitled to request any type of identification it wishes (within reason) to ensure

that the client authority to release documents is genuine. However, it is not necessary to

view 100 points of identification where the request comes from another legal practitioner.

Firm X sent to Firm Y an authority from its client to hand over documents belonging to her

and her late husband. Firm Y declined to hand over those documents until Firm X provided

100 points of identification for the client.

Firm X requested guidance from the Ethics Committee in relation to the identification

requirements required by Firm Y before releasing deeds from its strongroom. In addition,

Firm X asked whether it was necessary to provide 100 points of identification where the

requesting entity was a law practice holding professional indemnity insurance.

Firm Y advised that it had formulated a policy within the firm for dealing with requests for

deeds from its strongroom. Firm Y advised that simply relying on a law firm's letterhead was

no longer enough, given the increase in identity fraud. It had therefore researched

identification procedures used by other entities, such as banks, and adopted a similar 100

points of identity requirements.

Firm Y also sought guidance from the Ethics Committee, particularly in relation to the types

of identification requirements it should request when the following three scenarios arise:

• where the former client requests documents/deeds (and there is no lawyer involved);

• where the former client's request comes to the firm via the client's lawyer;

• where an agent of the former client (who is not legally represented) requests the

documents (for instance, on the death of the former client).

Ruling

In the opinion of the Ethics Committee and on the information presented the practitioner

should comply with the original written authority of the former client unless the practitioner

has reasonable grounds to doubt the authenticity of that authority.


Category: Privilege/confidentiality * Crime/fraud

Area of Law: Criminal

Ruling Date: 1 Mar 1996

Publication Date: 1 Oct 2004

Background

A legal firm requested the Ethics Committee to determine whether the Firm was required

to disclose the identity of their client to the Police. The Police suspected the client of

committing a criminal offence.


Ruling

In the opinion of the Ethics Committee and on the information provided:

1. That while the identity of the client is confidential, if ordered by a Court to disclose

the identity of the client, the Firm would be required to disclose the same.


Category: Privilege/confidentiality * Crime/fraud


Ruling Date: 1 Feb 2004

Publication Date: 1 Jun 2004

Background

A solicitor considered he might have information about a possible murder of a woman by

her husband several years ago. He sought a ruling on whether he could tell the police of

his suspicions. The solicitor had never acted for either the husband or wife although he

employed the wife at one time and acted as mediator in a commercial dispute involving

the husband.

Ruling

In the opinion of the Ethics Committee and on the information presented:

1. If any information was not obtained in the course of a retainer, the solicitor was not

governed by fiduciary duties of confidentiality or by r3 of the Professional Conduct and

Practice Rules 2003. The practitioner must make a decision based on the same ethical

principles governing all members of society, keeping in mind his additional obligation

not to bring the profession into disrepute.

2. In all the disclosed circumstances, the Ethics Committee recommends that the

practitioner should disclose any relevant information to the police.


Category: Trust account * Crime/fraud * Solicitor as witness


Ruling Date: 1 Mar 2004

Publication Date: 1 Jul 2004

Background

A practitioner may not be prevented from representing a client in one matter despite

being a potential witness in a separate matter. A firm received trust funds from an

incarcerated client whom they represented in his personal injury matter. The money came

from another prisoner who owed funds to the client. This appeared to be confirmed by

letters signed by the second inmate. The second inmate subsequently advised the firm by

telephone that the client had obtained the funds from him by deception. The second

inmate had expected the firm to provide the funds to his mother overseas. Funds

remained in the trust account pending separate criminal and professional standards

investigations. A warrant over the file was exercised and the firm was asked to provide a

statement to police.

The firm asked the Ethics Committee to advise:


1. whether it could continue to act in the personal injury matter and, if so,

2. whether that position changed if criminal charges were laid and the firm was

called to give evidence against their client.

Ruling

In the opinion of the Ethics Committee and on the information presented:

1. The Ethics Committee did not consider there was a conflict of interest in these

circumstances and accordingly has no issue with the firm continuing to act for the

client in his personal injury matter.

2. The Ethics Committee did not anticipate that this position would necessarily change in

the event of criminal charges being laid against the client and the firm’s being

required to give evidence, but the issue should be revisited in the light of the

circumstances at such time.

Contact details

Law Institute of Victoria |Ethics Committee of Law Institute of Victoria Ltd

Legal Ethics Manager | Phone: 03 9607 9336 |Email: [email protected]

Verification of Identity FAQs

What is a Subscriber?

A legal entity registered to use an ELNO to complete conveyancing transactions electronically, as or on behalf of, a Transacting Party.

Do I have to use an Identity Agent to have my client’s identity verified?

No, the requirement is to take reasonable steps to verify the identity of your client or mortgagor. How this is done is up to you, as long as the steps taken are reasonable in the circumstances. You can undertake the verification of identity yourself or it can be done by an agent (including an Identity Agent).

Who can undertake a VOI?

Anyone can use the Verification of Identity Standard. This is a business decision for you to make as it is your obligation to take reasonable steps to verify identity. How you undertake VOI is up to you, however for it to be deemed reasonable steps the VOI Standard must be properly carried out by one of the following categories of people: Subscriber; Mortgagee; or Identity Agent.

Must the Verification of Identity Standard be used to verify the identity of clients and mortgagors?

It is not a requirement to use the Verification of Identity Standard to verify the identity of clients and mortgagors. The requirement is for you to take reasonable steps to verify their client’s or mortgagor’s identity. What those steps are in each particular circumstance is for a you to decide, you can take your own reasonable steps or use the Verification of Identity Standard.

Do you need to get the VOI for both vendors and purchasers?

Yes, the requirement is for the you to take reasonable steps to verify the identity of your client and this applies to both vendor(s) and purchaser(s) – whichever party is your client.

What happens in the event of the contract being signed at the Real estate agent office and the contract is then returned to our office?You are still required to verify the identity of the signer.

Do VOI requirements apply to existing clients?

Yes. You need not re-verify your client if you have taken reasonable steps to verify their identity within the previous two years and ensured that you are dealing with the same person whose identity you have already verified. After two years, it is up to you to assess what is reasonable in the circumstances.

What should I do if I suspect the identity documents provided are not genuine or do not represent a reasonable likeness to the person being identified?

When doubt arises, or should reasonably have arisen in relation to a transaction and/or a client’s or mortgagor’s identity, you should seek further evidence or make further enquiries. If after having done so you are still not satisfied, then you should decline to act further in the transaction.

What are the requirements for retention of evidence supporting verification of identity?

Evidence must be retained by the conveyancer, lawyer or mortgagee for seven years from the date of lodgement. If a non-represented party is a party to a conveyancing transaction, that party will also be required to retain supporting evidence for seven years from the date of lodgement of the instrument they signed. If the Verification of Identity Standard was used, this evidence must demonstrate that the procedure for the standard was followed. If alternative reasonable steps were used to verify identity the evidence must show what these steps were.

What do I do for clients overseas?

Where a client is overseas, you need to decide what steps to take to verify the person’s identity having regard to the available services and options under the circumstances. One available option is to utilise the services of an Australian Embassy, High Commission or Consulate coupled with any necessary further steps in order for the Subscriber or mortgagee to be reasonably confident in the person’s identity. If your client has an Apple device registered with the Australian App Store you have the option to use IDfy for remote verification.

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1 ARNECC MPR Version 3 Guidance Note #1: Client Authorisation – Published September 2015

MODEL PARTICIPATION RULES GUIDANCE NOTE

CLIENT AUTHORISATION

1 INTRODUCTION

This guidance note aligns with Version 3 of the Model Participation Rules and explains:

what a Client Authorisation is;

why a Client Authorisation is required;

when a Client Authorisation is required; and

how a Client Authorisation is completed.

This guide does not constitute legal advice nor does it replace prudent

conveyancing practice. Nothing written in this guide overrides the Electronic

Conveyancing National Law, Participation Rules, any other relevant legislation or

Registrar’s Prescribed Requirements.

2 WHAT IS A CLIENT AUTHORISATION?

A Client Authorisation is a document that enables a party to a transaction (the client) to

authorise a conveyancer or lawyer to act on their behalf in that transaction. While the

Client Authorisation empowers a Subscriber to act for a client in a similar way to a power

of attorney, legislation specifically states that the Client Authorisation is NOT a power of

attorney. Accordingly a Client Authorisation does not need to comply with any legislative

requirements relating to powers of attorney or to be registered in those jurisdictions where

registration of powers of attorney is required.

While acting on behalf of the client under a Client Authorisation, the conveyancer or

lawyer can:

sign registry instruments or other documents;

present registry instruments or other documents for lodgment with the Land

Registry; and

authorise or complete any associated financial aspects of the transaction.

1


The Client Authorisation clearly sets out the details of the authorisation and the completed

form must be retained as supporting evidence of authority for the transaction.

3 WHY IS A CLIENT AUTHORISATION REQUIRED?

In electronic conveyancing a client will not be able to access the electronic lodgment

network to sign a registry instrument or document.

A Client Authorisation is required to give the client’s conveyancer or lawyer authority to

sign the registry instrument or document on the client’s behalf.

4 WHEN IS A CLIENT AUTHORISATION REQUIRED?

A Client Authorisation is required whenever a conveyancer or lawyer represents a client in

a transaction in an electronic lodgment network, except where the conveyancer or lawyer

is preparing and lodging a caveat or, in those jurisdictions that have them, a priority notice

or settlement notice.

For a caveat and a priority notice or settlement notice a Client Authorisation is optional as

the purpose of these documents is to provide notification of an interest. Whether a Client

Authorisation will be obtained or not is dependent on the circumstances of the individual

transaction.

For example, it may not be possible to obtain a Client Authorisation prior to processing a

Caveat. However, if it is a purchaser’s caveat it may be dealt with as part of the

transaction that is covered in a Client Authorisation.

5 HOW IS A CLIENT AUTHORISATION COMPLETED?

A Client Authorisation is completed by the client and the conveyancer or lawyer. Once

complete, it is signed by the client or their attorney or agent as a granting of that

authorisation.

The conveyancer or lawyer (or their agent) also needs to sign the form in order to certify

that reasonable steps were taken to ensure the form was signed by the client or by the

client’s attorney or agent. If the Client Authorisation is signed by the conveyancer or

lawyer’s agent, the conveyancer or lawyer does not also need to sign the Client

Authorisation.

Ideally, the verification of identity of the client would be completed at the time the client

signs the Client Authorisation. Refer to MPR Guidance Note #2: Verification of Identity.

However, there may be instances where these processes are not able to occur

simultaneously and in these instances the conveyancer or lawyer needs to take


reasonable steps to ensure that the Client Authorisation is being signed by their client or

by the client’s attorney or agent. This may be done by referencing the verification of

identity supporting documentation and ensuring it is the same person signing.

Authorisation can be given:

for a specific transaction or transactions, in which case the transactions should be

listed on the Client Authorisation form; or

as a standing authority, either until a specified date or until it is revoked; or

for a batch of transactions, in which case, the individual transactions in the batch

should be listed in an attached schedule.

A Client Authorisation smart form is available on the ARNECC website at

http://www.arnecc.gov.au/. This smart form has been created for ease of use and has the

same content as the Client Authorisation form in the Participation Rules.

A printable version of the form is also available and can be completed manually. For

readability the Client Authorisation form should be completed in Arial font with a minimum

font size of 10 point. If the form is completed manually blue or black ink should be used.

An example of a completed Client Authorisation is shown overleaf.

6 FREQUENTLY ASKED QUESTIONS

Q1: Can I design my own version of the Client Authorisation?

A1: No. The Client Authorisation must be in the form required by the Participation

Rules. This is to ensure that everyone is participating in a conveyancing transaction

on the same terms.

Q2: Where can I get a Client Authorisation form?

A2: A Client Authorisation form is available on the ARNECC website at

http://www.arnecc.gov.au/.

Q3: If I am a conveyancer or lawyer and I use an agent to verify the identity of my

client, do I need to sign the Client Authorisation as well as my agent?

A3: No. The form is signed either by the conveyancer or lawyer or their agent in order to

certify that reasonable steps were taken to ensure the form was signed by the client

or by the client’s attorney or agent.

When a conveyancer or lawyer uses an agent to verify the identity of their client and

the Client Authorisation is signed by the client at the same time only the agent needs

to sign the Client Authorisation form.




Q4: Do I need to complete a Client Authorisation if I am a sole trader conveyancer

or lawyer and I am representing myself?

A4: No. If you are a sole trader conveyancer or lawyer, you are allowed to represent

yourself in an electronic lodgment network without signing a Client Authorisation.

Q5: If I am a financial institution acting on my own behalf, do I need a Client

Authorisation to lodge a mortgage or discharge a mortgage over my

customer’s property?

A5: No. When lodging a mortgage or discharge of mortgage you are not representing

your customer.

Q6: Does the Client Authorisation take the place of the usual retainer agreement or

authority to act entered into between my client and me?

A6: No. The Client Authorisation is required in addition to the usual retainer agreement

or authority to act. The usual retainer agreement or authority to act cannot be

inconsistent with the Client Authorisation.

Q7: Can I incorporate the Client Authorisation in my usual retainer agreement or

authority to act?

A7: No. As the Client Authorisation is a prescribed form and may be required for

evidence it must be a separate document.

Q8: Can a Client Authorisation be signed overseas?

A8: Yes. An overseas client is to be treated the same as a client in Australia and

therefore a Client Authorisation form can be signed overseas.

__________

CLIENT AUTHORISATION When this form is signed, the Subscriber is authorised to act for the Client in a Conveyancing Transaction(s).

Privacy Collection Statement: The information in this form is collected under statutory authority and used for the purpose of maintaining publicly searchable registers and indexes.

Subscriber Reference: BLOGGS-16-4-15

CL

IEN

T D

ET

AIL

S

CLIENT 1 CLIENT 2

NAME FREDERICK BLOGGS FREDA BLOGGS

ACN/ARBN

ADDRESS 11/53 ALBERT ST, BRISBANE 11/53 ALBERT ST, BRISBANE

TR

AN

SA

CT

ION

DE

TA

ILS

AUTHORITY TYPE SPECIFIC AUTHORITY

(transaction details below) STANDING AUTHORITY

ends on revocation or expiration date:___/____/___ BATCH AUTHORITY

(attach details)


PROPERTY ADDRESS

11/53 ALBERT ST, BRISBANE 10/100 QUEEN ST, BRISBANE

LAND TITLE REFERENCE(S) (and/or property description)

71011681

LOT 1 ON RP 1569

CONVEYANCING

TRANSACTION(S)

TRANSFER MORTGAGE CAVEAT TRANSFER MORTGAGE CAVEAT

PRIORITY/ SETTLEMENT NOTICE

DISCHARGE/ RELEASE OF MORTGAGE

WITHDRAW CAVEAT

PRIORITY/ SETTLEMENT NOTICE

DISCHARGE/ RELEASE OF MORTGAGE

WITHDRAW CAVEAT

OTHER OTHER

ADDITIONAL INSTRUCTIONS

SALE OF THIS PROPERTY PURCHASE OF THIS PROPERTY

CL

IEN

T A

UT

HO

RIS

AT

ION

AN

D S

IGN

ING


I CERTIFY that:



(c) If I am acting as a Client Agent that I have no notice of the revocation of my authority to act on behalf of the Client.

I AUTHORISE the Subscriber to act on my behalf, or where I am a Client Agent to act on behalf of the Client, in accordance with the terms of this Client Authorisation and any Participation Rules and any Prescribed Requirement to:





Frederick Bloggs DATE 16 / 4 /15

SIG

N H

ER

E

Freda Bloggs DATE 16 / 4 /15

SIG

N H

ER

E


CAPACITY:

FREDERICK BLOGGS CLIENT/CLIENT AGENT NAME:

CAPACITY:

FREDA BLOGGS

SU

BS

CR

IBE

R D

ET

AIL

S A

ND

SIG

NIN

G


NAME Lamb Lawyers

ACN/ARBN 101 469 147

ADDRESS 1/100 QUEEN STREEN, BRISBANE

I/We CERTIFY that reasonable steps have been taken to ensure that this Client Authorisation was signed by each of the Persons named above as Client or Client Agent.


Lawrence

Lawyer DATE 16 / 4 /15

SIG

N H

ER

E

DATE / /

SIG

N H

ER

E

SIGNATORY NAME:

LAWRENCE LAWYER SIGNATORY NAME:

CAPACITY: CAPACITY:



1. What is Authorised

The Client authorises the Subscriber to act on behalf of the Client in accordance with the terms of

this Client Authorisation and any Participation Rules and any Prescribed Requirement to:

(a) sign Documents on the Client’s behalf as required for the Conveyancing Transaction(s); and




The Client acknowledges that the Client is bound by any Documents required in connection with a

Conveyancing Transaction that the Subscriber signs on the Client’s behalf in accordance with this

Client Authorisation.

2. Mortgagees

Where:


(b) the Client represents to the Subscriber that the Client has taken reasonable steps to verify the identity of the mortgagor

the Client indemnifies the Subscriber for any loss resulting from the Client’s failure to take

reasonable steps to verify the identity of the mortgagor.

3. Revocation

This Client Authorisation may be revoked by either the Client or the Subscriber giving notice in

writing to the other that they wish to end this Client Authorisation.

4. Privacy and Client Information

The Client acknowledges that information relating to the Client that is required to complete a

Conveyancing Transaction, including the Client’s Personal Information, may be collected by and

disclosed to the Duty Authority, the ELNO, the Land Registry, the Registrar and third parties (who

may be located overseas) involved in the completion of the Conveyancing Transaction or the

processing of it, and consents to the collection and disclosure of that information to any of those

recipients, including to those who are overseas. For further information about the collection and

disclosure of your Personal Information, refer to the relevant party’s privacy policy.

5. Applicable Law

This Client Authorisation is governed by the law in force in the Jurisdiction in which the Property is

situated. The Client and the Subscriber submit to the non-exclusive jurisdiction of the courts of that

place.

6. Meaning of Words Used in this Client Authorisation


Agent means a Person authorised by a Subscriber to act as the Subscriber’s agent. For the avoidance of doubt this can include an Identity Agent.

Australian Legal Practitioner has the meaning given to it in the relevant legislation of the Jurisdiction in which the property is situated and in South Australia is a legal practitioner for the purposes of the Legal Practitioners Act 1981 (SA).

Batch Authority means an authority for the Subscriber to act for the Client in a batch of Conveyancing Transactions details of which are attached to this Client Authorisation.

Capacity means the role of the signatory (for example an attorney or a director of a company).

Caveat means a Document giving notice of a claim to an interest in land that may have the effect of an injunction to stop the registration of a Registry Instrument in the Titles Register.


Client Agent means a Person authorised to act as the Client’s agent but does not include the Subscriber acting solely as the Client’s Representative.



Discharge/Release of Mortgage means a Registry Instrument that discharges or releases a Mortgage.


Duty Authority means the State Revenue Office of the Jurisdiction in which the property is situated.

ECNL means the Electronic Conveyancing National Law as adopted or implemented in a Jurisdiction by the application law, as amended from time to time.

ELNO means Electronic Lodgment Network Operator and has the meaning given to it in the ECNL.

Identity Agent means a Person who is an agent of either a Subscriber, or a mortgagee represented by a Subscriber, and who: (a) the Subscriber or mortgagee reasonably believes is reputable, competent and insured in

compliance with Insurance Rules 2; and

(b) is authorised by the Subscriber or mortgagee to conduct verification of identity on behalf of the Subscriber or mortgagee in accordance with the Verification of Identity Standard.



Land Registry means the agency of a State or Territory responsible for maintaining the Jurisdiction’s Titles Register.

Land Title Reference means the relevant Land Registry’s unique identifier(s) for the property.

Licensed Conveyancer means a Person licensed or registered under the relevant legislation of the Jurisdiction in which the property is situated and in Western Australia is a real estate settlement agent for the purposes of the Settlement Agents Act 1981 (WA).

Mortgage means a Registry Instrument by which a Person charges an estate or interest in land as security.

Participation Rules, as amended from time to time, has the meaning given to it in the ECNL.



Prescribed Requirement means any Published requirement of the Registrar that Subscribers are required to comply with.

Priority/Settlement Notice means a notice (other than a Caveat) which prevents (subject to specified exceptions) registration or recording in the Titles Register of a Registry Instrument or other Document affecting land or an interest in land until the notice lapses or is withdrawn, removed or cancelled.





Specific Authority means an authority for the Subscriber to act for the Client in completing the Conveyancing Transactions described in this Client Authorisation.

Standing Authority means an authority for the Subscriber to act for the Client for a period of time set out in this Client Authorisation.

Subscriber is the Person named in this Client Authorisation and has the meaning given to it in the ECNL or for a paper Conveyancing Transaction is an Australian Legal Practitioner or a Licensed Conveyancer.


Transfer includes the preparation of all documents required to effect a purchase or sale of land or any other transfer of land, and the liaison with, where relevant, any mortgagee or proposed mortgagee.

Withdrawal of Caveat means a Document which removes a Caveat.

1 ARNECC MPR Version 3 Guidance Note #2: Verification of Identity – Updated January 2016


VERIFICATION OF IDENTITY

1 INTRODUCTION


what verification of identity is;

why verification of identity is required;

when verification of identity is required; and

how verification of identity is to be carried out.





2 WHAT IS VERIFICATION OF IDENTITY?

Verification of identity is a process carried out to ensure that a person is who they claim to

be.

The Participation Rules for electronic conveyancing require a Subscriber to take

reasonable steps to verify the identity of:

Clients;

Mortgagors;

Persons to whom certificates of title are provided;

Signers; and

Subscriber Administrators.

3 WHY IS VERIFICATION OF IDENTITY REQUIRED?

The purpose of carrying out verification of identity is to reduce the risk of identity fraud and

the registration of fraudulent land transactions. Verification of identity of clients and

2


mortgagors is considered to be part of the due diligence required of conveyancing

professionals. With the introduction of electronic conveyancing, a Subscriber who is

representing a client will sign registry instruments or other electronic documents on the

client’s behalf. In a similar way, mortgagees can sign a mortgage certifying that they hold

a valid mortgage from the mortgagor.

In order for other participants in a conveyancing transaction to have confidence in the

registry instruments or documents, it is vital that the client’s or mortgagor’s identity is

verified.

4 WHEN IS VERIFICATION OF IDENTITY REQUIRED?

The various circumstances when verification of identity is required to be undertaken are

outlined below.

4.1 Clients

A Subscriber must identify each client for which it has authority to sign. Where the client:

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.

4.2 Mortgagor

If a Subscriber is an incoming mortgagee (for example, a financial institution acting for

itself), the Subscriber must verify the identity of the mortgagor or their agent.

If a Subscriber is representing an incoming mortgagee (for example a law firm on the

panel for a financial institution) it must verify the identity of the mortgagor or their agent,

unless it is reasonably satisfied that the mortgagee has taken reasonable steps to verify

the identity of the mortgagor or their agent.

4.3 Paper certificates of title

A Subscriber must verify the identity of any client or client agent before giving them a

duplicate or paper certificate of title.


A Subscriber must verify the identity of any mortgagor, former mortgagor or their agent

before giving them a duplicate or paper certificate of title.

4.4 Signers

A Subscriber must verify the identity of each person who is to digitally sign documents on

its behalf prior to a Digital Certificate being allocated to that person.

4.5 Subscriber Administrators

The Subscriber must verify the identity of each person whom it appoints as a Subscriber

Administrator, prior to their appointment as a Subscriber Administrator.

5 HOW IS VERIFICATION OF IDENTITY TO BE CARRIED OUT?

In all of the circumstances outlined above, a Subscriber is required to take reasonable

steps to verify the identity of the person.

Where a Subscriber is an organisation, any duly authorised person can undertake the

verification of identity.

A Subscriber must give a certification in the registry instrument for the conveyancing

transaction that reasonable steps have been taken to verify identity.

5.1 What are reasonable steps?

“Reasonable steps” is a commonly used legal concept. When applied to Subscribers and

mortgagees, it means the taking of such steps as an ordinarily prudent Subscriber or

mortgagee would have taken in the circumstances and in the ordinary course of his or her

business. Whether reasonable steps were taken will be a question of fact depending on

the circumstances of the individual case. Ultimately, this would be determined by a Court

on an objective basis.

The Subscriber decides what steps to take to verify the person’s identity. What

constitutes reasonable steps may be influenced by various factors that when taken into

account contribute to a Subscriber being able to reasonably have confidence in the

person’s identity. Examples of these factors might include the length of time a Subscriber

has known the person or whether they have represented the person on previous

occasions. Where a mortgagee represented by a Subscriber undertakes the verification

of identity and therefore determines what steps to take to verify the mortgagor’s identity,

the Subscriber must be reasonably satisfied that the mortgagee took reasonable steps.

A standard for undertaking verification of identity is set out in Schedule 8 of the

Participation Rules. This Verification of Identity Standard is not mandatory. However, if


this Verification of Identity Standard is properly carried out by one of the prescribed

categories of people the Subscriber will be deemed to have taken reasonable steps to

verify identity.

The Verification of Identity Standard is one set of reasonable steps but there are other

reasonable steps that can be taken to verify identity.

Subscribers are required to retain evidence supporting the verification of identity in order

to demonstrate that reasonable steps were taken.

5.2 How can verifications be conducted overseas?

Where a Subscriber’s client or a mortgagor is overseas, the Subscriber or mortgagee

(represented by a Subscriber) needs to decide what steps to take to verify the person’s

identity having regard to the available services and options under the circumstances.

One available option is to utilise the services of an Australian Embassy, High Commission

or Consulate coupled with any necessary further steps in order for the Subscriber or

mortgagee to be reasonably confident in the person’s identity. This process is detailed in

the Appendix to this Guidance Note.

An international financial institution or law practice would also be able to use overseas

personnel to conduct verification of identity.

5.3 When can an agent be used?

A Subscriber can use an agent to undertake verification of identity on its behalf.

A Subscriber that engages an agent to conduct a verification of identity must direct the

agent how to conduct the verification of identity. This could be by using the Verification of

Identity Standard or some other way that constitutes taking reasonable steps.

However, if the Verification of Identity Standard is used the requirements for an Identity

Agent must be met.

A Subscriber should obtain from their agent supporting documentation so the Subscriber

can make the required verification of identity certification. Refer to Participation Rules

Guidance Note #3: Certifications.

5.4 Signing of a Client Authorisation or Mortgage

Ideally, a Client Authorisation would be signed at the same time as the verification of

identity is undertaken in order to ensure it is signed by the client or client agent. However,

there may be instances where these processes are not able to occur simultaneously. In

these instances the Subscriber needs to take reasonable steps to ensure that the Client

Authorisation is being signed by their client or the client’s agent that was identified.


Similarly for the granting of a mortgage, the Subscriber must take reasonable steps to

ensure that it is the mortgagor that was identified that grants the mortgage.

This may be done by referencing the verification of identity supporting documentation and

ensuring it is the same person signing.

5.5 Further Steps

What constitutes reasonable steps is dependent on the circumstances of each individual

case. Further enquiries should be made where doubt arises, or should reasonably have

arisen, in relation to a transaction and a person’s identity.

The Participation Rules require further steps to be taken where:

an identity document does not appear to be genuine;

a photograph on an identity document is not a reasonable likeness;

the person being identified does not appear to be the person to which the identity

documents relate; or

it is otherwise reasonable to take further steps.

Some circumstances where it may otherwise be reasonable to take further steps could

include:

where the client has very limited identity documents and there is no explanation as

to why; or

where you become aware the identity documents have been cancelled; or

where there appears to be an inconsistency between the identity documents and the

Client Authorisation or mortgage, such as differing signatures; or

where an agent is used and there appears to be inconsistencies in the supporting

documentation they provided in relation to verification of identity.

Examples of further steps that could be taken include (but are not limited to):

obtaining more identity documents;

making enquiries with the client or third parties;

where the identity documents are Australian using electronic verification services;

where it is a foreign identity document checking the document looks the same as

those on the respective country’s government website;

where the identity document is in another language having the identity document

translated by an authorised translator;

where the verification is unable to be conducted face-to-face due to remoteness

conducting the verification by electronic means with further steps to satisfy yourself

of the person’s identity.


Some circumstances may not be directly linked to verification of identity but may raise

awareness that greater care should be taken in relation to a particular transaction and the

person being identified. For example, the transaction is urgent, you doubt the veracity of

the instructions, it involves a non-standard mortgage of an unencumbered title or the client

has limited English. Whilst such transactions may be legitimate, it may be necessary to

verify the circumstances surrounding the transaction. For example, checking the reason

for urgency or engaging an independent interpreter.

5.6 Previous verification of identity

Where a verification of identity has occurred within the previous 2 years (either by

applying the Verification of Identity Standard or some other way that constitutes

reasonable steps), the person’s identity does not need to be verified again, provided the

Subscriber takes reasonable steps to ensure they are dealing with the person who was

previously identified. It is expected the Subscriber would review the evidence for the

previous verification in order to be able to satisfy themselves that they are dealing with

one and the same person.

5.7 What is the Verification of Identity Standard?

The Verification of Identity Standard sets out procedures for how verification of identity

may be performed. If the Standard is properly carried out by one of the prescribed

categories of people then it will be deemed reasonable steps. Where there is a dispute

the Subscriber will be required to prove that the Verification of Identity Standard was

properly carried out for it to be deemed reasonable steps.

5.7.1 Who can use the Verification of Identity Standard?

Anyone can use the Verification of Identity Standard. However, for it to be deemed

reasonable steps the Standard must be properly carried out by one of the following

categories of people:

Subscriber

The Subscriber can apply the Verification of Identity Standard themselves.

Mortgagee (where the mortgagee is represented by a Subscriber)

Where a mortgagee is not a Subscriber themselves but is represented by a

Subscriber, the mortgagee can apply the Verification of Identity Standard to

undertake verification of the identity of the mortgagor.

Identity Agent


An Identity Agent is an agent of either the Subscriber or a mortgagee that is

represented by a Subscriber.

The Subscriber or the mortgagee must reasonably believe the Identity Agent is reputable,

competent and insured. An Identity Agent must maintain minimum levels of insurance.

The Verification of Identity Standard can be applied in whole or in part by any of the above

categories of people acting as the Identity Verifier in the Standard. For example, the

Subscriber may do some of the verification related to companies such as establishing who

is authorised to sign for the company but use an Identity Agent to do the face-to-face

verification of identity of the company’s officers. Alternatively, the Subscriber may engage

an Identity Agent and direct them to undertake the Verification of Identity Standard in its

entirety.

5.7.2 How is the Verification of Identity Standard used?

This section describes how the Verification of Identity Standard is used, and what is

required of those using it in various situations.

5.7.2.1 Face-to-face verification

To comply with the Verification of Identity Standard the person undertaking the verification

(Identity Verifier) must conduct a face-to-face in-person interview with the person to be

identified.

The Identity Verifier must carefully inspect the documents used to verify the identity and

ensure the documents are current (except for an expired Australian passport which may

have expired within the last two years) and original. Any photographs on the documents

must reasonably correspond with the appearance of the person to be identified.

5.7.2.2 Identification Document Categories

The Person Being Identified must supply original identification documents from the list of

documents in the categories in the Verification of Identity Standard. The first assessment

that needs to be made is whether or not the Person Being Identified is an Australian

citizen or resident. If they are, then Categories 1 to 5 must be used. If they are not,

Category 6 must be used. The highest category available must be used. A lower level

category can only be used if the person being identified does not possess the documents

required for the higher level, the documents have expired, or if the document is an

Australian passport that has been expired for a period of more than 2 years.

The document categories in the Verification of Identity Standard require that a change of

name or marriage certificate is to be provided if applicable. There may be instances

where identification documents issued by different government departments have been


registered in differing names but a change of name certificate is not appropriate, as that

individual has not changed and/or does not intend to officially change their name. In such

a situation an Identity Verifier must take reasonable steps to ensure the person being

identified is one and the same person as in the varying identification documents provided.

This may involve the Identity Verifier undertaking further checks to verify that person’s

identity.

Category 5 is for Australian residents who need to use an Identity Declarant. An Identifier

Declaration is a statutory declaration by a person who knows the person being identified.

The person making the statutory declaration is called the Identity Declarant. There are

specific prescribed requirements on who can be an Identity Declarant and what must be

included in the Identifier Declaration. The Identity Declarant must also have their identity

verified by the Identity Verifier using the Verification of Identity Standard. However, the

identity of the Identity Declarant cannot be verified by a further Identity Declarant.

5.7.2.3 Verification of Identity of Bodies Corporate

For a body corporate, an Identity Verifier must:

confirm the existence of the body corporate;

take reasonable steps to establish who is authorised to sign for the body corporate

or witness the affixing of any seal; and

verify the identity of the individuals signing or affixing the seal on behalf of the body

corporate.

5.7.2.4 Verification of Identity of Attorneys

For an attorney who is an individual, an Identity Verifier must:

confirm the details of the person appointing the attorney and the attorney from the

(registered) power of attorney;

take reasonable steps to establish that the conveyancing transaction is authorised

by that power of attorney; and

verify the identity of the attorney.

For an attorney who is a body corporate the Identity Verifier must:

confirm the details of the person appointing the attorney and the attorney from the

(registered) power of attorney;

take reasonable steps to establish that the conveyancing transaction is authorised

by that power of attorney;

confirm the existence of the body corporate;


take reasonable steps to establish who is authorised to sign for the body corporate

or witness the affixing of any seal; and

verify the identity of the individuals signing or affixing the seal on behalf of the body

corporate.

5.7.2.5 Evidence Required from an Identity Agent

Where the verification of identity is conducted by an Identity Agent, the Subscriber or

mortgagee (represented by a Subscriber) must receive from the Identity Agent an Identity

Agent Certification as set out in Schedule 9 of the Participation Rules.

The Identity Agent Certification details:

to whom the verification of identity relates;

when it was carried out and by whom;

what verification of identity documents were used; and

states that it was done in accordance with the Verification of Identity Standard as

directed by the Subscriber.

The Identity Agent must also provide copies of the identity documents relied on endorsed

as true copies.


Q1: How do I verify the identity of my client who is overseas?

A1: You need to decide what steps to take to verify the person’s identity having regard

to the available services and options under the circumstances.

One option may be to utilise the services of an Australian Embassy, High

Commission or Consulate (as set out in the Appendix), coupled with further steps in

order for the Subscriber or mortgagee (represented by a Subscriber) to be

reasonably confident in the person’s identity.

Further steps may include: making enquiries with the client or third parties, where

the identity documents are Australian using electronic verification services, where it

is a foreign identity document checking the document looks the same as on the

respective country’s government website, where the identity document is in another

language having the identity document translated by an authorised translator, or

where the verification is unable to be conducted face-to-face due to remoteness

conducting the verification by electronic means with further steps to satisfy yourself

of the person’s identity.


Q2: My client has one name on his/her passport and an anglicised or abbreviated

version of that name on his/her driver’s licence? What should I do?

A2: It is possible that documents issued by different government departments may have

differing versions of a name.

You must take reasonable steps to ensure the person required to be identified is

one and the same person referenced in the differing documents. Examples which

may be appropriate in some circumstances are:

sighting other types of documents or letters issued by an employer,

government agency or educational institution and showing the person’s name

and other details;

seeking confirmation from relevant organisations of the information given by

the person and whether they are aware that the person is also known by

another name; and

asking the person questions about the reasons for the differing names,

recording their answers and recording whether and on what basis you

considered those answers to be satisfactory.

Q3: Can I store supporting evidence of the verification of identity electronically?

A3: Yes. Verification of identity evidence can be stored electronically. However, the

medium and means in which documents supporting the verification of identity are to

be retained is to be determined by the Subscriber in light of the possible need to

produce those documents as evidence to a Court. Whichever medium is utilised the

evidence should be safely and securely stored. Evidence supporting the verification

of identity is required to be kept for 7 years from lodgment. Refer to Participation

Rules Guidance Note #5: Retention of Evidence.

Q4: Will verification of identity cause delays in the conveyancing process?

A4: Verification of identity should not cause delays in the conveyancing process as it is

considered part of existing prudent conveyancing practice. It is expected that some

form of verification of identity is already being undertaken in the paper conveyancing

process.

Q5: Can a mortgage broker act as an Identity Agent for a mortgagee?

A5: Yes. A mortgage broker can act as an Identity Agent for a mortgagee for the

purpose of verifying the identity of a mortgagor. The mortgage broker must be

providing credit services related to real property and be either a holder of an

Australian Credit Licence, a credit representative of a holder of an Australian Credit


Licence, or an employee or director of the holder of an Australian Credit Licence or

of a related body corporate of a holder of an Australian Credit Licence engaging in

the credit service on behalf of that licensee. The mortgage broker must hold or be

covered by insurance in accordance with legislative requirements and which

includes cover for verification of identity.

Q6: I have known some of my clients for over 30 years and have previously used

their legal names in legal documents. Why should I verify their identity just

because I have not seen them in the last two years?

A6: If the Verification of Identity Standard is not applied, the Subscriber must determine

what actions it considers would, in the circumstances, constitute the taking of

reasonable steps to verify the client’s identity. A situation where you have known

the client for over 30 years may be one where you decide that the requirement to

take reasonable steps to identify the client is satisfied by the years of interaction with

that client.

Q7: I am a Subscriber who is a financial institution. Can I use the AML/CTF Know

Your Customer schema to verify the identity of my mortgagor?

A7: A Subscriber must determine for itself what steps it considers constitutes the taking

of reasonable steps to verify the identity of a client, or, in this case, a mortgagor. It

may be reasonable, in the circumstances, to use the AML/CTF schema. The risk of

determining what is reasonable in the circumstances lies with the Subscriber.

Q8: A 92 year old in a nursing home needs to sell her home to pay an

accommodation bond. She has not seen her solicitor for at least 25 years.

She has never had a passport or driver’s licence. How should a Subscriber

determine what may constitute reasonable steps?

A8: In this situation some matters the Subscriber may consider in deciding what steps to

take to verify their client’s identity may include:

Will you take your own reasonable steps or seek to apply the Verification of

Identity Standard?

Can the verification of identity be conducted face-to-face? If yes, by whom? If

not, what other means can be used to verify the client’s identity?

What forms of identification are available? For instance what forms of

identification were used to obtain accommodation in the nursing home?

If you wish to apply the Verification of Identity Standard and the client has

limited identification documents, is there someone who could provide an


Identifier Declaration, such as a doctor, nurse, police officer, social worker or

minister of religion?

Whether ‘reasonable steps’ were taken will be a question of fact depending on the

circumstances of the individual case. Ultimately, this would be determined by a

Court on an objective basis.

Q9: An 18 year-old wishes to take a transfer of land he has just inherited. He has

no passport or driver’s licence. How should a Subscriber determine what may

constitute reasonable steps?




Identity Standard?


not, what other means can be used to verify the client’s identity?

What forms of identification are available?

As this is an 18 year old who would regularly be required to prove his age, is a

photo card available?

Is there enough other evidence to apply the Verification of Identity Standard?

Is there a birth certificate and Medicare card that can be used?

If there is not enough evidence available to apply the Verification of Identity

Standard, what other forms of identification are available?


limited identification documents is there someone who could provide an

Identifier Declaration, such as a teacher, lecturer, employer, doctor, nurse or

police officer?

Whether ‘reasonable steps’ were taken will be a question of fact depending on the



Q10: A person who lives in a remote aboriginal community is buying land. How

should a Subscriber determine what may constitute reasonable steps?



Is this an existing client?



Identity Standard?

Can the verification of identity be undertaken face-to-face? If yes, by whom?

If not, how can it be undertaken?


Is there enough other evidence to apply the Verification of Identity Standard?



Identifier Declaration, such as an employer, doctor, nurse, community leader,

police officer, bank manager, Centrelink officer or other government officer?

Whether reasonable steps were taken will be a question of fact depending on the



Q11: An elderly person discovers that his or her birth has never been registered

and does not have documentation regarding the birth. How should a

Subscriber determine what may constitute reasonable steps?

A11: In this situation one of the main considerations for the Subscriber is what

identification documentation is available given that there are limitations regarding

documentation that proves the client’s birth.

The Subscriber could consider if they are able to use Category 5(b) in the

Verification of Identity Standard, which was included for circumstances where limited

identity documentation exists. In doing so they would need to consider the

following:

Is this an existing client?


Identity Standard?


not, how can it be undertaken?


Does the client have a Medicare card?

What other documents are available to evidence the client’s current and

former living arrangements, ownership of assets and involvement in society

using the identity they claim?




Identifier Declaration, such as a doctor, nurse, police officer, bank manager,

social worker or minister of religion?

Whether reasonable steps were taken will be a question of fact depending on the



__________


Appendix

Australian Embassy/High Commission/Consulate Overseas Verification of Identity and Witnessing Process

1 A client or mortgagor located overseas contacts a Subscriber or mortgagee concerning a conveyancing transaction relating to Australian land.

2 The Subscriber or mortgagee takes initial instructions from the client or mortgagor and

conducts preliminary enquiries – full name and contact details for the client or mortgagor, land description, transaction details (sale, purchase, mortgage etc).

3 The Subscriber or mortgagee reviews with the client or mortgagor what identification

documents they have available to them and determines the highest document category in the Verification of Identity Standard they can satisfy.

4 The Subscriber or mortgagee advises the client or mortgagor that they will need to have

their identity verified and signature witnessed by an employee at an Australian Embassy, High Commission or Consulate (Australian Consular Office). The Subscriber or mortgagee advises the client or mortgagor to find out where the nearest Australian Consular Office is located, to make preliminary contact with the Australian Consular Office to make an appointment (where necessary) and to notify the Subscriber or mortgagee of the Australian Consular Office location.

5 The Subscriber or mortgagee takes reasonable steps to determine the client or

mortgagor’s right to deal as a particular party to the conveyancing transaction. 6 The Subscriber or mortgagee prepares a Client Authorisation or mortgage and the

approved Australian Embassy/High Commission/Consulate Identity/Witnessing Certification (Certification) and sends them to the client or mortgagor with written instructions advising of the process and what original and current identification documents are to be produced at the nominated Australian Consular Office (passport, driver’s license etc). The format of the Certification is at the end of this Appendix and the Certification Form is available from the ARNECC website.

7 The client or mortgagor attends the nominated Australian Consular Office with the

prepared Client Authorisation or mortgage and Certification, original identification documents and the Subscriber or mortgagee’s written instructions.

8 The Australian Consular Office satisfies itself that the photos on the identification

documents produced by the client or mortgagor are a reasonable likeness of the client or mortgagor. If this is not possible, the Australian Consular Office service is terminated.

9 When reasonable likeness is confirmed, the Australian Consular Office:

prepares endorsed copies of all original identification documents produced by the client or mortgagor;

asks the client or mortgagor to sign the Client Authorisation or mortgage and the Australian Consular Office witnesses the client or mortgagor’s signature on the Client Authorisation or mortgage; and

completes, signs, dates and endorses the Certification for the client or mortgagor. 10 The Australian Consular Office hands to the client or mortgagor the:

original identification documents;

signed Client Authorisation or mortgage,


signed, dated and endorsed copies of the original identification documents produced; and

signed, dated and endorsed Certification. 11 The client or mortgagor delivers the signed Client Authorisation or mortgage, endorsed

copies of the original identification documents produced and the Certification to the Subscriber or mortgagee. (The means of delivery are to be arranged between the client or mortgagor and the Subscriber or mortgagee.)

12 If the Subscriber or mortgagee has any reason to doubt the authenticity of any of the

documents received from the client or mortgagor, copies of the Australian Consular Office endorsements and Certification can be referred to the Department of Foreign Affairs and Trade (DFAT) by email for confirmation that the signatures and stamps appearing on the documents are that of a DFAT officer. For example, if the documents don’t bear a stamp of the Australian Consular Office, the name of the Australian Consular Office officer is not clear or there are other circumstances surrounding the transaction that cause doubt, such as signatures of clients not matching.

The following process applies for these referrals:

The Subscriber or mortgagee emails the Australian Consular Office officer who made the endorsements and certification using the standard email format <firstname>.<lastname>@dfat.gov.au (or in the same format with @austrade.gov.au for those consulates run by Austrade) supplying details of the service provided to the client or mortgagor and requesting confirmation that the Australian Consular Office provided the service. The request is to include copies of the endorsed document copies and the Certification supplied by the client or mortgagor. The reason for the referral is to be included in the request to allow DFAT to determine whether any aspect of the Australian Consular Office’s service gave rise to the referral.

The Australian Consular Office will, if work demands allow, reply to the request providing confirmation of the service provided. Alternatively, the Subscriber or mortgagee will receive an automatic read receipt email confirming that the Australian Consular Office officer exists as an employee of DFAT.

If the Subscriber or mortgagee receives no response or cannot for any reason determine the name of the Australian Consular Office officer who made the endorsements or certification (for example, when the Australian Consular Office stamp obscures part of the Australian Consular Office officer’s name), the Subscriber or mortgagee should email DFAT’s Consular Policy Unit at [email protected] requesting confirmation of the service provided by an Australian Consular Office and, when no response has been received from a request made directly to the Australian Consular Office, attaching a copy of that request.

In responding to confirmation requests DFAT is confirming that the Australian Consular Office officer’s signature and the Australian Consular Office stamp on a document are from an authorised officer.

13 The process for paper transactions is the same by substituting paper instrument for Client

Authorisation and by substituting Australian Legal Practitioner, Law Practice or Licensed Conveyancer for Subscriber.

mailto:%3cfirstname%3e.%3clastname%[email protected]

mailto:[email protected]


Australian Embassy/High Commission/Consulate Identity/Witnessing Certification

“I, ____________________________________________________[full name of authorised employee

/consular or diplomatic officer] of _______________________________________________________[Australian Embassy/High

Commission/Consulate]

being an authorised employee/consular or diplomatic officer within the meaning of the Section 3 of the Consular Fees Act 1955 hereby certify that:

(a) the identification/witnessing relates to

_______________________________________________________________________

[full name of the person being identified] (‘the person being identified’); and

(b) the verification of identity/witnessing was carried out on___________________[date]; and

(c) the original current identification documents as listed below were produced to me and copies of these documents signed, dated and endorsed by me as true copies were provided to the person being identified; and

(d) the verification of identity/witnessing was conducted in accordance with the Department of Foreign Affairs and Trade policy for verification of identity, witnessing signatures on documents and making of endorsed copies and in response to the written instructions provided by the person being identified’s Australian Legal Practitioner, Law Practice, Licensed Conveyancer or mortgagee; and

(e) the person being identified was physically present for the verification of identity and the witnessing of the document(s) listed at paragraph (g); and

(f) I am not a party to the transaction; and

(g) I witnessed the person being identified execute the following document(s)

_______________________________________________________________________ (eg, Client Authorisation, transfer of land, mortgage of land etc); and

(h) this signed, dated and endorsed certification; the signed, dated and endorsed copy identity documents (listed below); and the witnessed document(s) listed in paragraph (g); were returned to the person being identified.

………………………………………………………………………….

Signature of authorised employee/consular or diplomatic officer | Post Stamp

List of identification documents produced (see (c) above):

Description of identity documents produced and endorsed

1 ARNECC MPR Version 3 Guidance Note #3: Certifications – Published September 2015


CERTIFICATIONS

1 INTRODUCTION


what certifications are;

why certifications are required;

when certifications are required; and

how certifications are given.





2 WHAT ARE CERTIFICATIONS?

Certifications are statements made by a Subscriber that they have undertaken a specific

action. They are made by all Subscribers on registry instruments or other electronic

documents.

A Subscriber must give the certifications in their own right, regardless of whether they are

acting for themselves or a client. This includes situations where the Subscriber is a

conveyancer or lawyer who signs on behalf of a client.

Certifications for electronic transactions are set out in Schedule 3 of the Participation

Rules. The Certifications are:

# Subject Certification

1 Identity The Subscriber has taken reasonable steps to verify the identity of the [transferor/transferee/ mortgagee/ mortgagor/ caveator/ applicant].

2 Authority The Subscriber holds a properly completed Client Authorisation for the Conveyancing Transaction including this Registry Instrument or Document.

3


# Subject Certification

3 Evidence The Subscriber has retained the evidence supporting this Registry Instrument or Document.

4 Correctness The Subscriber has taken reasonable steps to ensure that this Registry Instrument or Document is correct and compliant with relevant legislation and any Prescribed Requirement.

5 Mortgagee The Subscriber, or the Subscriber is reasonably satisfied that the mortgagee it represents,:


(b) holds a mortgage granted by the mortgagor on the same terms as this Registry Instrument.

6 Certificate of Title

(used in Victoria and Western Australia only)

The Subscriber has:

(a) retrieved; and


the (duplicate) certificate(s) of title for the folio(s) of the Register listed in this Registry Instrument or Document.

3 WHY ARE CERTIFICATIONS REQUIRED?

Certifications on a registry instrument or document give other parties to a transaction

greater certainty that the rules defined in the Participation Rules have been complied with.

The certifications also provide representations by the Subscriber to the Registrar that the

instrument lodged complies with legislation, the Participation Rules and any Prescribed

Requirements.

4 WHEN ARE CERTIFICATIONS REQUIRED?

Certifications are required any time a registry instrument or document is digitally signed.

The certifications required to be provided will vary depending on the Subscriber role and

registry instrument or document type. Refer to table below detailing the application of the

certifications in the most common transactions.

For example:

A Subscriber acting on their own behalf, other than a mortgagee, will be required to

provide only the Evidence and Correctness certifications for registry instruments.

An incoming mortgagee representing itself will be required to provide the Evidence,

Correctness and Mortgagee certifications.

A Subscriber representing a transferor will be required to provide the Identity,

Authority, Evidence and Correctness certifications.


A Subscriber lodging a Priority Notice or Settlement Notice will be required to

provide the Evidence and Correctness certifications.

The Certificate of Title certification is only required for transactions involving land situated

in Victoria and Western Australia. In Victoria the Certificate of Title certification is required

for an administrative notice that converts a paper Certificate of Title to an electronic

Certificate of Title. In Western Australia the Certificate of Title certification is required

when a paper Certificate of Title exists, and is to be provided by the Subscriber who

controls or to whom control of that Certificate of Title is given.

Certifications are also required in some jurisdictions for documents, including Notices of

Sale, Notices of Acquisition, Consents and Lodgment Instructions.

The certifications required in the most common transactions are:

Document Type Party Giving Certifications Certifications Required

Discharge of Mortgage Mortgagee - self-represented 3 and 4 (and 6 for WA)

Subscriber representing mortgagee

1, 2, 3 and 4 (and 6 for WA)

Mortgage Mortgagee - self-represented 3, 4 and 5 (and 6 for WA)

Subscriber representing mortgagee

1, 2, 3, 4 and 5 (and 6 for WA)

Transfer Transferee – self-represented 3 and 4

Subscriber representing transferee

1, 2, 3 and 4

Transferor – self-represented 3 and 4 (and 6 for WA)

Subscriber representing transferor

1, 2, 3 and 4 (and 6 for WA)

Caveat Caveator – self-represented 3 and 4

Subscriber representing caveator 1, 3 and 4

Withdrawal of Caveat Caveator – self-represented 3 and 4

Subscriber representing caveator 1, 2, 3 and 4

Priority Notice/Settlement Notice and Extension of Priority Notice

Applicant – self-represented 3 and 4

Subscriber representing applicant 3 and 4

Withdrawal of Priority Notice


Subscriber representing applicant 3 and 4

Withdrawal of Settlement Notice


Subscriber representing applicant 1, 2, 3 and 4

Administrative Notice to convert and nominate a Certificate of Title

(Victoria Only)

Subscriber 6


5 HOW ARE CERTIFICATIONS GIVEN?

Certifications will be set out in the registry instrument or document when it is presented to

the Subscriber to be signed.

When giving a certification a Subscriber must ensure that it can demonstrate compliance

with the certification.

The compliance requirements for each certification are described below.

5.1 Identity

Compliance with the identity certification can be demonstrated by proving that reasonable

steps were taken to identify the person concerned.

If the Verification of Identity Standard was used, evidence demonstrating the application of

the Verification of Identity Standard is required, such as copies of the identification

documents provided by the Person Being Identified. Refer to Participation Rules

Guidance Note #2: Verification of Identity.

Where an alternative method of identification was taken by the Subscriber, evidence

which demonstrates the reasonable steps taken is required to be kept. For example, a

mortgagee Subscriber may decide that the transaction records it has for long-standing

customers who are well-known to it are sufficient to constitute taking reasonable steps.

5.2 Authority

Where the Authority certification is required, compliance can be proven by producing the

completed Client Authorisation. Refer to Participation Rules Guidance Note #1: Client

Authorisation.

5.3 Evidence

Where the Evidence certification is required, any evidence supporting the conveyancing

transaction must be retained for at least 7 years from the date of lodgment.

This includes Verification of Identity and Client Authorisation evidence as outlined in the

preceding paragraphs, as well as any other supporting evidence for the registry instrument

(for example any form required by the Duty Authority, statutory declarations, trust deeds,

agency arrangements, evidence of death etc.).

It should include any supporting material evidencing that the client or mortgagor has the

right to enter the conveyancing transaction specified in the Client Authorisation or

mortgage.

Evidence supporting the registry instrument is that which is required to satisfy the

Subscriber of the validity of the conveyancing transaction. This will be what is required for


a paper instrument, with the addition of the Client Authorisation and Verification of Identity

evidence (if not currently kept).

There may be cases where there is little supporting evidence, for example for a discharge

of mortgage lodged by the mortgagee. In this case there may only be the mortgagor’s

request for a discharge.

5.4 Correctness

No specific evidence is required to prove compliance with this certification. However, if it

becomes clear that prudent conveyancing practices to ensure correctness of the signed

registry instrument or document were not followed, it is likely that compliance with this

certification will not be demonstrated.

5.5 Mortgagee

Where the Mortgagee certification is required, compliance can be proven by producing a

valid mortgage granted by the mortgagor on the same terms as the mortgage lodged with

the Land Registry, together with evidence of verification of identity of the mortgagor.

5.6 Certificate of Title

No specific evidence is required to prove compliance with this certification. However,

where a certification was provided that a (duplicate) Certificate of Title was invalidated or

destroyed and a valid version of the (duplicate) Certificate of Title appears at a later date,

it will be assumed that this certification was incorrectly given.


Q1: What happens if I can’t give a particular certification?

A1: The certifications provide representations by the Subscriber to the Registrar that the

instrument lodged complies with legislation, the Participation Rules and any

Prescribed Requirements.

The certifications relate to requirements for that particular conveyancing transaction

to proceed. Where one or more certifications cannot be provided then the

transaction should not go ahead, unless and until the Subscriber is satisfied that

they can make the certifications in good faith.

Q2: The Evidence certification appears very broad. Do I need to seek out

supporting evidence that I have not requested as part of the conveyancing

transaction?


A2: No. The evidence required for the Evidence certification is evidence which should

be obtained as part of the process of undertaking the conveyancing transaction in

accordance with prudent practice. You are not required to seek additional

supporting evidence.

Evidence supporting the registry instrument is that which is required to satisfy the

Subscriber of the validity of the conveyancing transaction. This will be what is

required for a paper instrument, with the addition of the Client Authorisation and

Verification of Identity evidence (if not currently kept).

Q3: Does the Evidence certification include all correspondence, emails and

telephone attendance notes?

A3: Evidence should be kept which supports the requirements and the validity of the

conveyancing transaction.

For example, if the correspondence, emails or telephone notes support that

reasonable steps were taken to verify the identity of the transacting party, they

should be kept.

Q4: What would happen if I inadvertently gave a false certification?

A4: The Subscriber is responsible for ensuring all the things being certified are correct.

If the transaction is completed, the consequences of a certification having been

given incorrectly would depend on the outcome of the transaction for each party and

the application of legislation and other laws relevant to the circumstances.

Q5: When is the Certificate of Title certification required?

A5: The Certificate of Title certification is only required for transactions involving land

situated in Victoria and Western Australia. Therefore the certification is not

inconsistent with the prescribed requirements for Control of Right to Deal holders in

New South Wales.

In Victoria the Certificate of Title certification is required for an administrative notice

that converts a paper Certificate of Title to an electronic Certificate of Title. In

Western Australia the Certificate of Title certification is required when a paper

Certificate of Title exists, and is to be provided by the Subscriber who controls or to

whom control of that Certificate of Title is given.

__________

1 ARNECC MPR Version 3 Guidance Note #4: Right to Deal – Published December 2015


RIGHT TO DEAL

1 INTRODUCTION


what right to deal is;

why verification of right to deal is required;

when right to deal must be verified; and

how you verify right to deal.





2 WHAT IS RIGHT TO DEAL?

Right to deal is the entitlement of a person to be a particular party to a conveyancing

transaction.

The Participation Rules for electronic conveyancing require a Subscriber to take

reasonable steps to verify the right to deal of their client, and/or the mortgagor for a

mortgage.

3 WHY IS VERIFICATION OF RIGHT TO DEAL REQUIRED?

A Representative must verify the right to deal of their client. A mortgagee, or a

Representative of a mortgagee, must verify the right to deal of a mortgagor. Verifying right

to deal is considered to be part of the due diligence required of conveyancing

professionals. It is required to ensure that the person who is your client or the intended

mortgagor has the right to deal with the subject property.

4


Verifying right to deal mitigates the risk of a fraudulent transaction and gives the other

parties to an electronic transaction confidence they are transacting with the person who

has the right to transact.

4 WHEN MUST RIGHT TO DEAL BE VERIFIED?

Right to deal must be verified whenever you are representing a client in a conveyancing

transaction, or if you are a mortgagee taking a mortgage (or a Subscriber whose client is a

mortgagee).

Verification of right to deal is closely linked to verification of identity. Prudent

conveyancing practice would be to conduct these processes simultaneously. Refer to

MPR Guidance Note #2: Verification of Identity.

5 HOW DO YOU VERIFY RIGHT TO DEAL?

A Subscriber is required to take reasonable steps to verify the right to deal. Where a

Subscriber is an organisation, any person duly authorised by the Subscriber can

undertake the verification of right to deal.

5.1 What are reasonable steps?

“Reasonable steps” is a commonly used legal concept. When applied to Subscribers and

mortgagees, it means the taking of such steps as an ordinarily prudent Subscriber or

mortgagee would have taken in the circumstances and in the ordinary course of his or her

business. Whether ‘reasonable steps’ were taken will be a question of fact depending on

the circumstances of the individual case. Ultimately, this would be determined by a Court

on an objective basis.

Verifying right to deal will require you to sight supporting evidence that includes the name

of the person whose right to deal is being verified and the property or transaction details.

The supporting evidence should allow you to link the registered interest holder or

transacting party to the land.

More extensive checks and enquiries should be made where doubt arises, or should

reasonably have arisen, in relation to a transaction and a person’s right to deal.

The following examples may help establish right to deal for parties involved in common

transactions. This list is not exhaustive and what constitutes reasonable steps to

verify right to deal will depend on the circumstances.

Reliance on any one document is not conclusive evidence and how much evidence is

required is dependent on the circumstances. For example, reliance on a duplicate


certificate of title may only show that person has access to that title, not that they are the

person who has the right to deal with the land. Such evidence would need to be coupled

with verification of identity and sufficient supporting evidence to satisfy yourself of their

right to deal.

5.2 Outgoing Party and Mortgagor

For a party that is relinquishing their interest, such as a transferor, or a mortgagor

supporting documentation that may assist in establishing right to deal could include

originals, copies or records of the following:

a current local government rates notice

current utility bills for the property

a current land tax assessment notice for the property

loan documentation

the mortgage granted by the mortgagor (if one exists)

the certificate of title/duplicate certificate of title for the property (if one exists) and/or

a recently issued registration confirmation statement for the property.

A title search should be obtained to check who is named as a registered interest holder to

ensure the correct person’s right to deal is being verified.

5.3 Incoming Party

For a party that is coming onto title, such as a transferee or a mortgagee, supporting

documentation that may assist in establishing right to deal could include the following:

the contract of sale for the property

loan documentation

In Queensland to verify right to deal for a caveator you should take reasonable steps to

determine that your client is a person who meets the eligibility requirements for lodging a

caveat under the Land Title Act 1994.

In all other jurisdictions to verify right to deal for a caveator you should take reasonable

steps to determine that your client has a caveatable interest and that you believe the

claims made by the caveator are true in substance and in fact.


5.4 Caveator (withdrawal of caveat)

If you are the Subscriber that represented the caveator named in the caveat, you should

take reasonable steps to ensure that the caveator is the same person you initially

represented.

If you are a different Subscriber to the one that represented the caveator named in the

caveat, production by the caveator of supporting documentation for the caveat could

assist in establishing the caveator’s right to deal.

5.5 Supporting Evidence

You must retain supporting evidence that shows the steps you took to reasonably verify

your client’s or the mortgagor’s right to deal.

This may include copies dated and endorsed as true copies of the supporting

documentation used to verify right to deal and notes on the process undertaken including

any further steps taken.

There are no restrictions on the ways in which you can demonstrate that you took

reasonable steps.

5.6 Further considerations

There are many instances where further consideration is required of what steps need to

be taken to establish a person’s right to deal.

For example, consideration should be given to the following:

Does the transacting party’s name differ on the supporting documentation? If so,

have they changed their name and can they provide documentation to show this?

Is the transacting party subject to a trust? If yes, is the conveyancing transaction

permitted under the trust? Who are the current trustees?

Is there an insolvency event involving one of the transacting parties? If there is an

insolvency event, is the conveyancing transaction permitted under the relevant

legislation?

Is the transacting party a statutory person? What is the correct name of the

statutory person? Is the conveyancing transaction permitted under the relevant

legislation? Are delegations permitted under the relevant legislation? Are the

delegations relevant to the conveyancing transaction correct?

Is the transacting party a successor at law to the registered owner? On what basis

is it a successor at law - statutory vesting, transfer of business or another basis?


Is the transacting party an executor? Is the conveyancing transaction contemplated

by the will?

Is the transacting party a represented person eg under the jurisdiction’s

guardianship and administration legislation? Is the conveyancing transaction

permitted by the relevant orders and under the relevant legislation?

Is a person acting under a power of attorney? If there is a power of attorney, is the

conveyancing transaction permitted under the power? Is the power still current or

has it been revoked? Has the correct person been identified as attorney? Are the

attorneys required to act jointly or severally?

Is the transacting party an incorporated association? If the party is an incorporated

association, is the conveyancing transaction permitted under the relevant rules or

constitution and legislation? Does the conveyancing transaction purport to give

effect to a Court order? Is the conveyancing transaction contemplated by the order?

What constitutes reasonable steps is dependent on the circumstances of each individual

case. Further enquiries should be made where doubt arises, or should reasonably have

arisen, in relation to a transaction and a person’s right to deal. For example where you

know or ought to know:

that the documents being produced for verification of right to deal are not genuine;

or

that the age of the person whose right to deal is being verified does not align with

the likely age of the person who has the right to deal (for example the purported

transferor is too young to have purchased the property at the time it was purchased);

or

of any other circumstance that raises suspicion or should be investigated further.

Other circumstances could include where your client is more than one person and only

one person provides instructions. For example, where your client consists of a couple as

joint tenants. You must verify the right to deal of all of the persons constituting your client.

You should contact all persons comprising your client to confirm their instructions.

Similarly, where your client is an incorporated entity you should ensure you are dealing

with the representatives of the incorporated entity that are duly authorised to provide

instructions.

Some circumstances may not be directly linked to right to deal but may raise awareness

that greater care should be taken in relation to a particular transaction. For example the

transaction is urgent, you doubt the veracity of the instructions, it involves a non-standard

mortgage of an unencumbered title or your client has limited English. Whilst such


transactions may be legitimate, it may be necessary to verify the circumstances

surrounding the transaction, for example, by checking the reason for urgency or engaging

an independent interpreter.


Q1: How do I know that my client John Smith is the same John Smith that is the

proprietor on title who has the right to deal?

A1: What is reasonable depends on the circumstances. You need to take steps to

satisfy yourself which may include simultaneous verification of identity and

verification of right to deal by obtaining supporting evidence to link John Smith to the

property, such as one or more of the documents referred to under Relinquishing

Party above. You should also make further enquiries where doubt arises or should

arise in relation to the instructions and transaction. For example, the purported

transferor is too young to have purchased the property at the time it was purchased

and therefore suspicion should arise that they may be John Smith junior.

Q2: What should I do if I doubt my client has the mental capacity to enter into the

transaction?

A2: You should make further enquiries if you doubt that your client has the mental

capacity to enter into the transaction. Such enquiries could include obtaining a

medical certificate to verify that they have the mental capacity to enter into the

transaction.

Q3: I am a Subscriber representing an incoming mortgagee, what are my

obligations in relation to right to deal?

A3: You must verify the right to deal of your client, in this instance the mortgagee. This

could be done by obtaining loan documentation and any other supporting

documentation that shows they are the intended incoming mortgagee for that

property.

In addition to this you must take reasonable steps to verify that the mortgagor has

the right to enter into the mortgage. This could be done by obtaining the contract of

sale and other related documentation if they are the incoming proprietor. If they are

the current proprietor documentation tying that proprietor to the subject property is

required. For example a current local government rates notice, current utility bills for

the property, a current land tax assessment notice for the property, previous loan

documentation and/or a certificate of title or registration confirmation statement for

the property.

1 ARNECC MPR Version 3 Guidance Note #5: Retention of Evidence – Published December 2015


RETENTION OF EVIDENCE

1 INTRODUCTION


what evidence retention is;

why evidence is required to be retained;

when evidence must be retained; and

how evidence is to be retained.





2 WHAT IS EVIDENCE RETENTION?

Under the Participation Rules evidence supporting a conveyancing transaction must be

kept for at least 7 years from the date of lodgment. The evidence must be legible, stored

safely and securely, and accessible.

A Subscriber is required to retain evidence supporting:

Client Authorisation;

Verification of Identity;

Right to Deal;

Other Prescribed Requirements; and

to retain any evidence required by the Duty Authority.

5


3 WHY IS EVIDENCE REQUIRED TO BE RETAINED?

Evidence is required to be retained in order to demonstrate that the transaction was

completed in accordance with legislative and other requirements and the certifications

required were accurately made. Refer to MPR Guidance Note #3: Certifications.

Evidence may be required to be provided to the Registrar for the purpose of monitoring

compliance with legislative and other requirements. Under the Electronic Conveyancing

National Law, the Registrar may conduct a compliance examination either as a result of

receiving a request or complaint from any person or on the Registrar’s own initiative. The

Registrar may conduct a compliance examination for the purpose of ascertaining whether

or not the Participation Rules have been complied with or investigating any suspected or

alleged case of misconduct.

If there is a dispute that arises in relation to a conveyancing transaction a Subscriber may

need to demonstrate in Court proceedings that the transaction was completed in

accordance with legislative and other requirements. For example, evidence that

reasonable steps were undertaken to verify the identity of a client and their right to deal

may be required. Refer to MPR Guidance Note #2: Verification of Identity and MPR

Guidance Note #4: Right to Deal.

4 WHEN MUST EVIDENCE BE RETAINED?

Evidence must be retained whenever a conveyancing transaction is undertaken. It must

be retained for at least 7 years from the date of lodgment of the registry instrument or

document.

Evidence supporting the registry instrument is that which is required to demonstrate the

validity of the conveyancing transaction. This will be what is required for a paper

instrument, with the addition of the Client Authorisation and verification of identity

evidence (if not currently kept). The evidence required is evidence which should be

obtained as part of the process of undertaking the conveyancing transaction in

accordance with prudent practice. A Subscriber is not required to seek additional

supporting evidence.

There may be cases where there is little supporting evidence, for example for a discharge

of mortgage lodged by the mortgagee. In this case there may only be the mortgagor’s

request for a discharge.

The following evidence must be retained:


4.1 Client Authorisation

The Client Authorisation and any evidence supporting that Client Authorisation must be

retained. Refer to MPR Guidance Note #1: Client Authorisation.

Where there is a Client Authorisation and it is for a batch of conveyancing transactions the

Client Authorisation is required to be kept for at least 7 years from the last conveyancing

transaction lodged with the Land Registry. Similarly for a standing Client Authorisation it

will need to be kept for at least 7 years from the last conveyancing transaction lodged with

the Land Registry before the standing authority was revoked or expired.

4.2 Verification of Identity

Any evidence supporting that reasonable steps were taken to verify the identity of the

client, mortgagor, person to whom a certificate of title was provided, signer or Subscriber

administrator (as applicable) must be retained. If the Verification of Identity Standard was

used this evidence must demonstrate that the procedure for the Verification of Identity

Standard was followed. If alternative reasonable steps were used to verify identity the

evidence must show what these steps were. Refer to MPR Guidance Note #2:

Verification of Identity.

4.3 Right to Deal

Any evidence supporting a party’s right to enter into the conveyancing transaction must be

retained. Refer to MPR Guidance Note #4: Right to Deal.

Evidence supporting a party’s right to enter into a conveyancing transaction may include

but is not limited to originals, copies or records of: a current local government rates notice,

current utility bills for the property, a current land tax assessment notice for the property,

loan documentation, the mortgage granted by the mortgagor (if one exists), the contract

of sale for the property, the certificate of title/duplicate certificate of title for the property (if

one exists) and/or a recently issued registration confirmation statement for the property .

4.4 Other Prescribed Requirement

Any evidence that demonstrates compliance with relevant legislation and other prescribed

requirements must be retained. Prescribed requirements detail policies, procedures and

requirements of the Registrar in the respective jurisdiction. Examples of prescribed

requirements include but are not limited to notices to Land Registry customers, practice

manuals and practice directions. What type of evidence is required to be retained is

dependent on the type of transaction but may include statutory declarations, trust deeds,

agency agreements or evidence of death.


5 HOW IS EVIDENCE TO BE RETAINED?

Evidence could be electronic or paper evidence. It could be stored electronically and/or in

paper. It could be stored by the Subscriber and/or an agent on a Subscriber’s behalf.

However, the medium and means in which documents supporting the conveyancing

transaction are to be retained is to be determined by a Subscriber in light of the possible

need to produce the evidence to a Court and any privacy obligations they are required to

abide by. Evidence should be accessible, legible, and safely and securely stored

whichever medium is used.


Q1: Does the Evidence certification include all correspondence, emails and

telephone attendance notes?

A1: Evidence should be kept which is sufficient to support the requirements and the

validity of the conveyancing transaction.

For example, if the correspondence, emails or telephone notes support that

reasonable steps were taken to verify the right to deal of the transacting party, they

should be kept.

Q2: Can evidence be retained electronically?

A2: Yes. Evidence can be stored electronically. However, the medium and means in

which documents supporting the conveyancing transaction are to be retained is to

be determined by the Subscriber in light of the possible need to produce those

documents as evidence to a Court.

__________

1 ARNECC MPR Version 3 Guidance Note #6: Compliance Examinations – Published June 2016


COMPLIANCE EXAMINATIONS

1. INTRODUCTION


what a compliance examination is;

why compliance examination is necessary;

when a compliance examination will be conducted; and

how a compliance examination will be conducted.




Registrar’s prescribed requirements.

2. WHAT IS A COMPLIANCE EXAMINATION?

Section 33 of the Electronic Conveyancing National Law provides the Registrar in each

jurisdiction with the power to undertake a compliance examination for the purpose of

ascertaining whether or not the Participation Rules have been complied with; or

investigating any suspected or alleged case of misconduct by a Subscriber (including a

former Subscriber).

Under section 34 of the Electronic Conveyancing National Law a Subscriber is obliged to

cooperate fully in a compliance examination and comply with any reasonable requirement

by the person conducting the compliance examination.

Schedule 5 of the Participation Rules sets out a procedure for the conduct of a

compliance examination. The procedure is outlined further in Section 5 below.

6


3. WHY IS A COMPLIANCE EXAMINATION NECESSARY?

A key objective of the Subscriber Compliance Program is to ensure the program assists

Subscribers in meeting their obligations and responsibilities under the Participation Rules

and to build trust and confidence in the electronic lodgement network.

4. WHEN WILL A COMPLIANCE EXAMINATION BE CONDUCTED?

Subscribers will be generally selected at random for compliance examination.

Priority will be given to conducting compliance examination on Subscribers:

who are newly registered;

who have never been subject to a compliance examination;

whose last or previous compliance examination(s) demonstrated non-compliance

with the Participation Rules or misconduct with respect to the use of an electronic

lodgement network;

who have been the subject of a notification to the Registrar.

Targeted compliance examinations will also be conducted where the Registrar identifies

any potential threat to the operation, security or integrity of the electronic lodgement

network or the titles register. For example:

past instances of non-compliance with the Participation Rules; or

the Registrar identifying a problem with a registry instrument or conveyancing

transaction during the examination of a registry instrument.

Subscribers should expect a compliance examination at least once every 3 years.

5. HOW WILL A COMPLIANCE EXAMINATION BE CONDUCTED?

Schedule 5 of the Participation Rules outlines the procedure for the conduct of a

compliance examination (the compliance examination procedure). The compliance

examination procedure is reflected in the information below.

5.1 Notice

A Subscriber will receive a notice including a Subscriber checklist (see Appendix) from the

Registrar.

The notice will:

identify the registry instruments for which the compliance examination will be

conducted;


request that the Subscriber provide documents and/or information that demonstrate

the Subscriber’s compliance with the Participation Rules including, the following:

client authorisation (refer to Model Participation Rules Guidance Note # 1:

Client Authorisation);

verification of identity (refer to Model Participation Rules Guidance Note # 2:

Verification of Identity);

verification of the right to deal (refer to Model Participation Rules Guidance

Note # 4: Right to Deal);

supporting evidence (refer to Model Participation Rules Guidance Note # 5:

Retention of evidence);

digital signing.

state a time, no less than 10 business days after the giving of the notice, within

which the documents and/or information must be provided to the Registrar.

outline how the documents and/or information must be provided to the Registrar.

Subscribers should be aware that if they fail, without reasonable excuse, to comply with

the notice the Registrar may suspend the Subscriber.

5.2 Examination by the Registrar

The Registrar will initially conduct a desktop examination of the documents and/or

information provided by the Subscriber for the registry instruments identified to determine

whether the Subscriber has complied with the relevant Participation Rules. The desktop

examination will, as a minimum, include the following:

Client Authorisation form:

correct form and version used;

client details match the lodged registry instrument(s);

transaction details match the lodged registry instrument(s);

correctly signed by the client / client agent;

correctly signed by the Subscriber or its agent;

form completed including date;

form signed by the client/client agent at the time verification of identity is

conducted. If not:

- evidence of the steps taken to ensure form signed by the client/client agent provided;

- that evidence is satisfactory;

evidence of reasonable steps taken to verify the authority of each person

entering into a client authorisation on behalf of a client to both bind the client

to the client authorisation and to the conveyancing transaction(s) the subject

of the client authorisation;


form signed by the client/client agent before the Subscriber digitally signed the

registry instruments or other electronic documents.

Verification of identity:

verification of identity has been undertaken for all applicable persons outlined

in Participation Rule 6.5.1;

evidence of the steps taken to verify identity provided;

evidence matches the client details in the lodged registry instruments(s) and (if

applicable) the titles register;

reasonable steps appear to have been taken;

timing of verification of identity in relation to the signing of the registry

instrument(s) is satisfactory.

Verification of the right to deal:

evidence of the steps taken to verify right to deal provided;

evidence matches the client details in the lodged registry instruments(s) and (if

applicable) the titles register;

reasonable steps appear to have been taken;

timing of verification of right to deal in relation to the signing of any client

authorisation form is satisfactory;

timing of verification of right to deal in relation to the signing of the lodged

dealing(s) is satisfactory.

Supporting evidence (other than supporting evidence required above):

any evidence required by the duty authority provided and satisfactory;

any evidence required by statute or prescribed requirements provided and

satisfactory;

copy of any mortgage granted by mortgagor provided;

mortgage granted by mortgagor on same terms as that of the lodged registry

instrument;

mortgage granted by mortgagor correctly signed and executed.

Digital signing:

evidence of the steps taken to verify the identity of the signer provided;

evidence matches signer’s details for the digital signature;

evidence of reasonable steps taken to ensure signer satisfies Participation

Rule 7.4.1(b) provided;

timing of verification of identity and compliance with Participation Rule 7.4.1(b)

in relation to issuing of the digital signature is satisfactory;

evidence of the steps taken to ensure only signers digitally sign electronic

registry instruments or other electronic documents;

evidence that the Signer has complied with the applicable laws for the

jurisdiction in which the land the subject of the conveyancing transaction is


situated regarding who can conduct a conveyancing transaction and of steps

taken by the Subscriber to ensure signers comply with those applicable laws;

reasonable steps appear to have been taken.

Subscribers should refer to the relevant Model Participation Rules guidance

note for further guidance regarding compliance with the Participation Rules for

each of the above.

5.3 Outcome of Compliance Examination

The Subscriber will be notified of the outcome of the compliance examination in writing

within 10 business days of the completion of the compliance examination. The outcome

will be one of the following:

notification that the compliance examination revealed compliance with the

Participation Rules and accordingly no further action is required; or

notification that the compliance examination revealed non-compliance with the

Participation Rules and notification of the next steps, for example:

details of actions required to be taken to remedy the non-compliance with the


that a site visit is required and a proposed date and time, more than ten

business days after the date of the notification, for the site visit to occur.

If the compliance examination results in the Registrar knowing or having reasonable

grounds to suspect/believe that a Suspension Event or Termination Event has occurred,

the Suspension and Termination Procedure in Schedule 7 of the Participation Rules may

commence.

6. FREQUENTLY ASKED QUESTIONS

Q1: As a Subscriber who operates nationally, will each jurisdiction follow the

same approach in undertaking compliance examinations?

A1: The Australian Registrars’ National Electronic Conveyancing Council has developed

a Subscriber Compliance Program so that compliance examinations are co-

ordinated and conducted consistently across all operating jurisdictions in

accordance with this Guidance Note.

___________


Appendix

SUBSCRIBER COMPLIANCE EXAMINATION CHECKLIST

Instrument / Document:

Client Authorisation

☐ Copy of Client Authorisation provided

☐ Evidence provided of the steps taken to ensure form signed by the Client/Client Agent

☐ Evidence provided of steps taken to verify the authority of each Person entering into a Client Authorisation on behalf of a Client to both bind the Client to the Client Authorisation and to the Conveyancing Transaction(s) the subject of the Client Authorisation

Verification of Identity

☐ Evidence provided of the steps taken to verify identity of the Client(s) and/or the mortgagor(s)

Verification of Right to Deal

☐ Evidence provided of the steps taken to verify right to deal of the Client(s) and/or the mortgagor(s)

Supporting evidence

Copies of all supporting evidence provided including:

☐ Any evidence required by the Duty Authority

☐ If applicable, copy of any mortgage granted by mortgagor

☐ Any evidence required by Prescribed Requirements

Digital Signing

☐ Evidence provided of the steps taken to verify the identity of the Signer

☐ Evidence provided of steps taken to ensure a Signer's good character in accordance with Participation Rule 7.4.1(b)

☐ Evidence provided of the steps taken to ensure only Signers Digitally Sign electronic Registry Instruments or other electronic Documents

☐ Evidence provided that the Signer has complied with the applicable laws for the jurisdiction in which the land the subject of the Conveyancing Transaction is situated regarding who can conduct a Conveyancing Transaction

☐ Evidence provided of steps taken to ensure Signers comply with the applicable laws for the jurisdiction in which the land the subject of the Conveyancing Transaction is situated regarding who can conduct a Conveyancing Transaction

I certify that the documents and/or information provided in accordance with this checklist are to the Subscriber's knowledge, information and belief correct, complete and not false or misleading.

Name: Subscriber Name:

Signature: Date:

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