electronic conveyancing workshops 2009 simon libbis executive director ann kinnear operations...

ELECTRONIC CONVEYANCING WORKSHOPS

2009Simon LibbisExecutive Director

Ann KinnearOperations Manager

NOT JUST A COMPUTER SYSTEM

A business model• Roles, relationships and responsibilities

A legal framework

• Legislation, rules, compliance and discipline

A risk management regime

• Allocation, mitigation, transfer and compensation

Supporting business practices

• Verification, authorisation, certification and justification

A software system

• Integrated, fully-featured, secure and reliable

Governance arrangements

• Independent, inclusive, sustainable and competent

Industry, community and government confidence2

© National Electronic Conveyancing Office

THE CONVEYANCING PROCESS

Financing Disclosure Contract SearchesDocument

PreparationDocument

SigningDocument Stamping

Document Exchange

Financial Settlement

Lodgment Registration Publication

Electronic Conveyancing (NECS)

Electronic Lodgment

Automatic Registration & Publication

3

NECS

Client

LSP LR2

LR1

LodgmentPreparation

Subscriber

NECS Web Services

LSP Web Services

LSP BrowserInterfaces

NECS Browser Interface

Certifier

User

Certifier

User

NATIONAL BUSINESS MODEL

etc

4

NECS Web ServicesSubscriberClient

RO2

RO1

Financial Institutions

FSM RBA

Subscriber

Settlement

© National Electronic Conveyancing Office

DEVELOPING REQUIREMENTS

5

Client Subscriber Certifier

NECS

LR

Client Identity Verification

Client Authorisation

Instrument Certification

Settlement Disbursements

Control of Right to Deal

© National Electronic Conveyancing Office

CLIENT IDENTITY VERIFICATION

Issue

• A transacting party does not sign registry instruments directly

Importance

• Title register integrity

• Fraud prevention

• Allocation of liability

Proposal

• A purpose-built CIV standard based on current banking industry

practice under AML legislation

6© National Electronic Conveyancing Office

CLIENT AUTHORISATION

Issue

• Subscriber must be authorised

Importance

• Provides confidence that participants have authority to act for

clients

Proposal

• A standard form Client Authorisation prescribed for all

participants in NECS

7© National Electronic Conveyancing Office

OPERATIONAL ROLESIssue

• User entitlement to carry out specific functions

Importance

• Allocation of responsibility

• Confidence of all users

Proposal

• Subscriber -legal entity, has business relationship with NECS

• Certifier - certifies Subscriber compliance with NECS

requirements

• Either subscriber or certifier must be qualified 8© National Electronic Conveyancing Office

INSTRUMENT CERTIFICATION

Issue

• The extent and nature of certifications

Importance

• Reliance on data by land registries

• Confidence of participants and community

Proposal

• Five certifications in total

• Two given when committing to Participation Rules - correctness

of instrument information, compliance with legal requirements

• Three given before signing instruments - Client Identity

Verification done, Client Authorisation obtained, Supporting

Evidence OK9

© National Electronic Conveyancing Office

DIGITAL SIGNATURES

Issue

• A secure system for signing documents in an electronic

environment

Importance

• Certainty as to identity, security, authentication and non-

repudiation in electronic transactions

Proposal

• Use of Gatekeeper-accredited DSCs – government-regulated

framework

• Organisation DSCs with prescribed CIV checks on Child Certificate

10© National Electronic Conveyancing Office

MORTGAGE COUNTERPARTS

Issue

• Mortgagor not represented

Importance

• Accommodating current conveyancing practices

Proposal

• Mortgagee signing for mortgagee only with the mortgagee

certifying CIV on the mortgagor and separate signing by

mortgagor

• Optional signing by both mortgagor and mortgagee

11© National Electronic Conveyancing Office

SETTLEMENT DISBURSEMENTS

Issue

• Electronic funds transfers from settlement go to the correct

account

Importance

• Risk of error in entering bank details

• Settlement still proceeds

Proposal components

• Optional use of Trust Accounts

• Optional pre-establishment of account details

• Co-signing by banks of their customer’s account details

• Mandatory dual entry of account details12

© National Electronic Conveyancing Office

CONTROL OF THE RIGHT TO DEAL

Issue

• There will be no paper Certificate of Title in the electronic

environment

Importance

• The paper CT currently plays a role in fraud prevention and

protection of the register

Proposal

• Control of the right to deal determined from register and

supported by identification 13

© National Electronic Conveyancing Office

LEGAL FRAMEWORKIssue

• Development of a single national legal framework

Importance

• No net increase in risk

• Confidence that all significant risks are known, have been fairly allocated and

will be effectively managed

Proposal

• Consistent Legislation in each jurisdiction

• Legislation enables Land Registry authorisation of Electronic Lodgment

Networks (ELN) satisfying minimum criteria

• ELN operators provide Participation Rules & Service Charters

• Participation Rules define ELN obligations on Subscribers, Certifiers & LSPs

• Service Charters define ELN performance commitments to Subscribers, LSPs,

LRs & ROs 14© National Electronic Conveyancing Office

THE NEED FOR A NATIONAL ELECTRONIC CONVEYANCING DATA STANDARD

What is the National Electronic Conveyancing Data Standard (NECDS)?

• A common format for transmission of data

Why is it important?

• All users can communicate with each other via web services without

changes to their own systems

• Provides faster, more convenient and more efficient system

interactions

What will the NECDS help us achieve?

• A National system with a common language for the entire process

• Reduction in the amount of rework needed

• Straight through processing in the conveyancing industry15

© National Electronic Conveyancing Office

THE DEVELOPMENT PROCESS

How

• National Office is working with LIXI to develop the NECDS

• NECDS Working Group – jurisdictions and industry

Completed so far

• NECDS Requirements Document – defines the process flow of

messages needed for transactions between NECS and LR and

Subscribers and NECS

Current work

• Development of a single controlled NECS Vocabulary

Ultimate goal

• Detailed XML Schema for each transaction or NECDS 16© National Electronic Conveyancing Office

ELECTRONIC CONVEYANCING WORKSHOPS

2009Simon LibbisExecutive Director

Ann KinnearOperations Manager