Australia’s joint government and industry

initiative to create an efficient and convenient

way of completing property transactions and

lodging land title dealings for registration

WHAT IS NECS?

2© 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

NOT JUST A COMPUTER SYSTEM• A business model

Roles, relationships and responsibilities

• A legal frameworkLegislation, rules, compliance and discipline

• A risk management regimeAllocation, mitigation, transfer and compensation

• Supporting business practicesVerification, authorisation, certification and justification

• A software systemIntegrated, fully-featured, secure and reliable

• Governance arrangementsIndependent, inclusive, sustainable and competent

• Industry, community and government confidence4

© National Electronic Conveyancing Office

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

5

NECS Web ServicesSubscriberClient

RO2

RO1

Financial Institutions

FSM RBA

Subscriber

Settlement

© National Electronic Conveyancing Office

THE CHALLENGE:

TO DEVELOP THE BUSINESS REQUIREMENTS OF INDUSTRY AND JURISDICTIONS

THE STRATEGY:

STATE PROJECT TEAM

NATIONAL PROJECT TEAM

NECS DATA STANDARDS DEVELOPMENT

6© National Electronic Conveyancing Office

GOVERNANCE

National Steering Committee

National Office

National Project Team

State Project Teams

© National Electronic Conveyancing Office7

STATE PROJECT TEAM

THE JURISDICTIONS MEET REGULARLY TO:

Develop their requirements of NECS

Develop consistent business practices

Share information on the NECS Readiness program

8© National Electronic Conveyancing Office

NATIONAL PROJECT TEAM

COMMENCED IN MAY 2008 Consist of representatives from banks, mortgage processors,

non-bank lenders, conveyancers, lawyers, insurers, information brokers, state revenue offices and land registries

Ensures that NECS is informed of all stakeholder issues

SPT can refer material for consideration to the NPT and vice versa

This process allows for detailed consideration of the issues and their impact on all stakeholders

9© National Electronic Conveyancing Office

BUSINESS PRACTICES

Client Identity Verification

Client Authorisation

Instrument Certification

Confirmation of Right to Deal (the CT issue)

Supporting Evidence Requirements

Fee Invoicing & Payment Collection

10© National Electronic Conveyancing Office

REQUIREMENTS DEFINITION

Defines the functions & features of NECS

Satisfies what stakeholders want from the system

Documented in business terms

Provides the basis for technical design, costing and

implementation planning

Necessary for system provisioning decision

Input to detailed systems specification

11© National Electronic Conveyancing Office

REQUIREMENTS

• National

– Access

– Regulation

– Operations

– Operations Support

– Maintenance Support

– Additional Services

• Jurisdiction

– Document Templates & Data Content

– Business Rules12

© National Electronic Conveyancing Office

LEGAL FRAMEWORK

• Consistent Legislation in each jurisdiction

• Legislation enables LR authorisation of ELNs 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

13© National Electronic Conveyancing Office

FRAMEWORK RELATIONSHIPS

14

NECS

Authorised ELN

ProviderNECS Service Charter NECS Service Charter

Certifier NECS Participation Rules

SubscriberNECS Participation

Rules

Condition of being an authorised ELN provider in the jurisdiction. Legislation uniform in all jurisdictions.

Condition of being registered to use the

NECS in any jurisdiction. Rules must be acceptable

to LR.

LR Legislated Jurisdiction Requirements of ELNs

CommonLaw contract

Client Client Authorisation

Agency Agreement for Subscriber to represent

Client in using NECS required by Participation

Rules.

© National Electronic Conveyancing Office

CURRENT CONSULTANCIESLEGAL FRAMEWORK: Clayton Utz

purpose of a single national framework and what it must achieve;

performance objectives

components necessary for it to achieve objectives

WEB SERVICES: Saratoga

Technical requirements for web services in NECS environment

Operational requirements that suit the NECS functionality

Commissioning requirements for web services implementation

NON-FUNCTIONAL REQUIREMENTS: Saratoga

Non-functional characteristics ,

their performance objectives

specific requirements with aim of

providing a secure, robust and reliable platform - convenient, efficient and

user-friendly 15© National Electronic Conveyancing Office

THE NEED FOR A NATIONAL DATA STANDARD Eight different jurisdictions need to talk to each other and

NECS

Jurisdictions do not need to change existing systems

NECS can handle individual jurisdiction change more easily

Industry stakeholders will be given seamless access to land

registries in all jurisdictions

Help to achieve straight through processing16

© National Electronic Conveyancing Office

THANK YOUFor more information on this presentation or any

aspect of National Electronic Conveyancing, please contact

Simon Libbis

Executive Director

National Electronic Conveyancing Office

Tel: 03 8626 4545 Email: simon.libbis@necs.gov.au Web: www.necs.gov.au