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Transcript of 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