UPDATE ON THE NATIONAL ELECTRONIC CONVEYANCING SYSTEM Simon Libbis Executive Director

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 FinancingDisclosureContractSearches Document Preparation Document Signing Document Stamping Document Exchange Financial Settlement LodgmentRegistrationPublication Electronic Conveyancing (NECS) Electronic Lodgment Automatic Registration & Publication 3

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 confidence 4 © National Electronic Conveyancing Office

NECSNECS Client LSP LR 2 LR 1 Lodgment Preparation Subscriber NECS Web Services LSP Web Services LSP Browser Interfaces NECS Browser Interface Certifier User Certifier User NATIONAL BUSINESS MODEL etc 5 NECS Web Services Subscriber Client RO 2 RO 1 Financial Institutions FSMRBA 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 TeamState Project Teams © National Electronic Conveyancing Office 7

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 Rules 12 © 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 N E C S Authorised ELN Provider NECS Service Charter Certifier NECS Participation Rules Subscriber NECS 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 Common Law contract Client Authorisation Agency Agreement for Subscriber to represent Client in using NECS required by Participation Rules. © National Electronic Conveyancing Office

CURRENT CONSULTANCIES LEGAL 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 processing 16 © National Electronic Conveyancing Office

THANK YOU For more information on this presentation or any aspect of National Electronic Conveyancing, please contact Simon Libbis Executive Director National Electronic Conveyancing Office Tel: Web: