Land Services Group

Industry Stakeholder Group Meeting4 June 2014

Priority Notices

Land Services Group

Introduction

• Today it is intended to:• Highlight key themes in relation to legislative amendments• Review Priority Notice functionality • Discuss issues raised in relation to Priority Notices as part of

the consultation on the alignment paper• Consider this in terms of broader consultation with industry

stakeholders

Land Services Group

Legislative Reforms

• Drafting Instructions have been sent to Parliamentary Counsel• Introduction of Priority Notice legislative provisions are targeted for

the end of 2014• This will enable functionality to be available on the first day of

SAILIS• Early introduction of Priority Notices will allow for market maturity

and provide the necessary confidence for the removal of duplicate certificates of title on day one of electronic conveyancing

Land Services Group

Lodgement of Priority Notices

•Can be lodged by a person who enters into a contract for the purchase of land, or for any other dealing with land, with the registered proprietor or another person entitled to deal with the land

•When lodged over part of a certificate of title the portion must be accurately defined with reference to an approved plan

•Ability to enter a customer reference number has been included. This number will be visible on the account holder’s work flow searches and on the notice itself

Land Services Group

Period of Validity

• Valid for 60 days • Ability to extend for 30 days • A subsequent Priority Notice can be lodged but it only takes

effect from lodgement and therefore is subject to any other Priority Notice or other instrument lodged in the interim

• Can be withdrawn by lodging party

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Cancellation

• Registrar-General will have discretionary power to cancel the Priority Notice on application by a person with an interest in the land if satisfied that the Priority Notice does not protect a valid interest in land, and after giving notice and opportunity to respond

• The Court can on application by a person with an interest in the land make an order to cancel the notice

• Civil liability provisions where a person who suffers loss due to wrongful lodgement can claim damages are included in the proposed legislative amendments

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Treatment of Subsequent Instruments

• An instrument lodged while a Priority Notice is in force may not be registered or recorded while the Priority Notice is in force

• Once a Priority Notice ceases to have effect subsequent instruments will be registered in same manner and priority as if the Priority Notice had not been lodged

Land Services Group

Instruments that can still be registered

Priority Notices will not prevent the registration of:•Instruments lodged prior to the Priority Notice•Instruments that are consented to by the lodging party of the Priority Notice•Caveats •Worker’s liens•Warrants of sale •Court orders •Statutory charges, statutory orders or statutory authorisations•A transfer consequential on a statutory charge, order or authorisation, a warrant of sale or the exercise of a statutory body or officer

Land Services Group

Instruments that can still be registered

• A heritage agreement under the Native Vegetation Act 1991 or the Heritage Places Act 1993

• A land management agreement under the Development Act 1993• An entry in the State Heritage register under the Heritage Places Act 1993• A notice of intention to acquire land under the Land Acquisition Act 1969• The registration or recording of an instrument lodged by the Crown.• Another interest that if registered will not affect the interest the subject of

the Priority Notice

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Priority Notice Title Selection Screen

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Lodge Priority Notice

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Priority Notice Product

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Priority Notice Information

• All current Priority Notices will be displayed on the Register Search and on a Check Search

• Expired, Completed, Cancelled or Withdrawn Priority Notices will be displayed on the Register Search and on a Check Search for 90 days

• Priority Notices will not be displayed on a Historical Search but can be searched as a separate product

• Priority Notices (active and historical) will be able to be purchased as a product

Land Services Group

Priority Notices- Feedback from Alignment Paper

• General support for:• Introduction of Priority Notices• Optional application• Application to all instruments• Validity period of 60 days• List of exceptions were generally supported with some

additional exceptions recommended

Land Services Group

Priority Notices- Feedback from Alignment Paper

• Submissions also proposed that:• Extensions should be allowed• There should be facility to update, amend or correct• There should be the ability to warn priority notice• Priority Notices should be included in the historical search

Land Services Group

Next steps

• Broader consultation with stakeholders on detailed policy• Seeking views in relation to the timing of this consultation given

that it is targeted to introduce Priority Notices in the 2014/15 financial year

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Questions

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Consultation on alignment of paper and electronic requirements

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Feedback

• Received 6 submission predominantly from industry representative bodies

• Table of feedback has been published on our website under National Electronic Conveyancing

Note: Priority Notice matters were addressed in previous presentation

Land Services Group

Client Authorisations

• General support for the introductions of Client Authorisations in paper

• Generally supported the application of this reform to all instruments with a few exceptions such as caveats and other priority type instruments

• It was submitted that further codification of reasonable steps and entitlement to enter into transaction is required

Land Services Group

Removal of Duplicate Certificates of Title

• General Support for removal of duplicate titles• Mixed responses received regarding whether duplicate titles should

be declared void from a particular date or whether there should be production and/or destruction obligations

• It was submitted that consideration should be given to capturing date of birth

• Submissions highlighted the need for a publicity campaign prior to implementing this reform due to titles being held for security or discharges that have been returned to customers but not yet lodged

Land Services Group

Consents by Mortgagees

• Generally supportive that no additional consent in absence of removal of duplicate certificates of title is required

• Submissions differed in relation to the obligation to provide notification

• Submissions differed in relation to the inclusion of legislative amendments required to protect the first interest

Land Services Group

Mortgagee Provisions

• Generally supportive of the mortgagee being required to take reasonable steps to verify the identity of the mortgagor

• Submissions highlighted if a mortgage is cancelled there is a need for the failure to take reasonable steps to verify identity to have contributed to the fraud

• Submissions differed on opinions of the role of the Court versus the role of the Registrar-General when making a determination regarding cancelling a mortgage

Land Services Group

Common Mortgage Form

• Finance organisations generally supported the Common Mortgage Form

• Other stakeholders submitted further details are required• Concerns were raised regarding the length of time the mortgage

counterpart should be held for • Concerns were raised regarding establishing that the terms and

conditions of registered mortgage are the same as the signed counterpart

Land Services Group

Certifications

• General support for aligning certifications in paper to those required for electronic conveyancing

• It was submitted that the certification to obtain originals or copies of all supporting evidence is too broad

• Clarification points were raised in relation to the applicability of certifications in different circumstances

Land Services Group

Self-represented parties

• Queries where raised in relation to how the Lands Titles Office will determine legal authority to enter into transaction

• Queries were raised in relation to the benefit of certifications given from a self-represented party

• It was submitted that a practitioner will be forced to assume greater responsibility when dealing with a self-represented party

• It was submitted that the Registrar-General should provide advisory officers who are available to the self-represented person to verify documents prior to settlement

Land Services Group

Execution clauses

• There was general support for the removal of execution clauses as a consequence of introducing Client Authorisations

• Submissions highlighted the consequential loss of the ability to compare signatures unless the Client Authorisations are lodged with the Lands Titles Office

Land Services Group

Next Steps

• Further consultation on detailed aspects of individual reforms• Timing of consultation• Format- information sessions held by Land Services Group

similar to those held for Verification of Identity

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Questions