NATIONAL ELECTRONIC CONVEYANCING

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.

Presented by Simon Libbis, Executive Director of the National Office

WHAT DO WE MEAN?

• Electronic business environment for conveyancing

• One central system accessible by all States and Territories

• One interface for all users (banks, mortgage processors, legal practitioners & conveyancers)

• Transparent application of each State and Territory’s registration and duty rules

ELECTRONIC WHAT?• Instruments - dealings on line

• Digital signatures on instruments

• Settlement of financial obligations by funds transfer - no more bank cheques or going to settlements!

• Electronic lodgment of instruments with Land Registries - no more deliveries by hand!

• On line notification of registration by Land Registries

• No more paper for 70% of transactions!

WHY ARE WE DOING IT?• Consumer and practitioner convenience

• User efficiency and consumer benefits

• Straight-through processing from dealing preparation to registration

• Single interface for national businesses

• Common functionality for users in all jurisdictions

• Easier cross-border transactions

• Transparent application of jurisdiction rule differences

HOW DID WE GET HERE?• Extensive consultation and system development in Victoria with

pilot operation next year

• Model design and public consultation in NSW

• Industry consultation in SA

• Readiness initiatives in all jurisdictions

• Lessons from Canada & New Zealand

• Industry preference for a national approach

THE ROADMAP

• National Business Model (NBM)- business roles, relationships and rules

• National Governance Arrangements (NGA)- management and consultation arrangements

• National Implementation Strategy (NIS)- implementation strategy and responsibilities

All three documents are available at www.necs.gov.au

NATIONAL BUSINESS MODEL

• Clients - owners, buyers, sellers, lenders, etc

• Subscribers - legal practitioners, conveyancers, banks, etc

• Users - legal clerks, bank officers, etc

• Licensed Service Providers (LSP) - brokers, law agents, settlement agents

• NATIONAL ELECTRONIC CONVEYANCING SYSTEM (NECS)

• Land Registries (LR) – lodgment and registration

• Revenue Offices (RO) – transfer and mortgage duty compliance

• Financial Institutions

• Financial Settlement Manager (FSM) – financial settlement

• Reserve Bank of Australia (RBA)

NECS

Settlement

Financial Institutions

FSM RBA

EnabledSubscriber

Preparation

Subscriber

LSP BrowserInterfaces

NECS Browser Interface

Client

EnabledSubscriber

NECS Web Services

NECS Web Services

LSP Web Services

User

User

User

User

Client

LSP

Compliance & Lodgment

RO2

RO1

LR2

LR1

NATIONAL BUSINESS MODEL RELATIONSHIPS

NECS (National Electronic Conveyancing System)

• centrally-managed online computer facility with browser and web services access

• registration, administration and authentication of Users and Subscribers

• common workspace for all parties to prepare electronic instruments and provide financial settlement instructions

• electronic financial settlement engine

• business rules for each Land Registry’s instrument registration requirements

• business rules for each Revenue Office’s tax and duty compliance procedures

• collection of fees, duties and taxes on behalf of itself, Land Registries and Revenue Offices

NATIONAL GOVERNANCE ARRANGEMENTS• National Steering Committee

- government, industry and profession members

• National Office- support for Steering Committee and Consultation Forums

• National Consultation Forums- user identification, accreditation and training- system access and usage- lodgement process and security- settlement process and payments

• State Project Teams- jurisdiction readiness and local communications

NATIONAL STEERING COMMITTEE

• Eight State and Territory land administrations

• Two State Revenue Offices

• Two banks

• Two law societies

• One conveyancer

• One information broker

• Independent chair

STATE PROJECT TEAMS NATIONAL CONSULTATION FORUMS

NATIONAL STEERING COMMITTEE

Independent Chair

NSW Rep

VIC Rep

QLD Rep

SA Rep

WA Rep

TAS Rep

Broker/Law

Agent Rep

ACTRep

NT Rep

LCAReps

(2)

ABA Reps

(2)

NATIONAL OFFICEFunded by States Staffed by seconded stakeholders and contractors

Directed by National Steering Committee Informed by State Project Teams & National Consultation Forums

User ID Accreditation

& Training

System Access &

Usage

Lodgement Process & Security

Settlement Process & Payments

NSW VIC QLD SA WA TAS ACT NT

NATIONAL PRINCIPLES AGREEMENT

AICRep

SRO Reps

(2)

GOVERNANCE RELATIONSHIPS

NATIONAL IMPLEMENTATION STRATEGY

• Stage 1: Setting–Up Establishing national governance, confirming NBM,

developing funding model and detailed implementation planning

• Stage 2: Building the NECSSpecifying, provisioning, testing & commissioning the NECS

• Stage 3: Readying Jurisdictions Legislative, policy and practice changes in each jurisdiction

• Stage 4: Converting Users Education, training and supporting users in each jurisdiction

IMPLEMENTATION STRATEGY

Setting-Up-governance-model confirmation-commercial viability-detailed planning

Building the NECS - specifying- provisioning- testing- commissioning

Readying Jurisdictions- legislation, policy, system and practice changes

Engaging & Converting Users- communication, education, training and support

12 Mths 24 Mths 36 Mths 48 Mths

NEXT 12 MONTHS• Task 1: Development governance arrangements

• Task 2: Confirmation of NBM

• Task 3: Thorough risk assessment

• Task 4: Independent regulatory review

• Task 5: Operational governance arrangements

• Task 6: Preliminary evaluation of Victorian system

• Task 7: Funding model

• Task 8: Detailed implementation planning

THANK YOUFor more information on this presentation or any aspect of National Electronic Conveyancing, please contact Simon Libbis, Executive Director, NECS National Office at:

Phone: (03)8626 4545Email: simon.libbis@necs.gov.auWeb: http://www.necs.gov.au

© NECS Steering Committee Inc. 2005