1. 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

2. 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

3. 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!

4. 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

5. 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

6. 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

7. 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)

8. NECSNECS Settlement Financial Institutions FSM RBA Enabled Subscriber Preparation Subscriber LSP Browser Interfaces NECS Browser Interface Clien t Enabled Subscriber NECS Web Services LSP Web Services User Clien t LSP Compliance & Lodgment RO 2 RO 1 LR 2 LR 1 NATIONAL BUSINESS MODEL RELATIONSHIPS

9. 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

10. 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

11. 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

12. 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 ACT Rep NT Rep LCA Reps (2) ABA Reps (2) NATIONAL OFFICE Funded 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 NSWVIC QLDSAWATASACTNT NATIONAL PRINCIPLES AGREEMENT AIC Rep SRO Reps (2) GOVERNANCE RELATIONSHIPS

13. NATIONAL IMPLEMENTATION STRATEGY Stage 1: Setting–Up Establishing national governance, confirming NBM, developing funding model and detailed implementation planning Stage 2: Building the NECS Specifying, 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

14. 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 Mths36 Mths48 Mths

15. 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

16. THANK YOU For 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 4545 Email: simon.libbis@necs.gov.au Web: http://www.necs.gov.au © NECS Steering Committee Inc. 2005