1. ELECTRONIC CONVEYANCING WORKSHOPS 2009 Simon Libbis Executive Director Ann Kinnear Operations Manager

2. 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 2 © National Electronic Conveyancing Office

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

4. 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 4 NECS Web Services Subscriber Client RO 2 RO 1 Financial Institutions FSMRBA Subscriber Settlement © National Electronic Conveyancing Office

5. DEVELOPING REQUIREMENTS 5 Client Subscriber Certifier NECSNECS LR Client Identity Verification Client Authorisation Instrument Certification Settlement Disbursements Control of Right to Deal © National Electronic Conveyancing Office

6. CLIENT IDENTITY VERIFICATION Issue A transacting party does not sign registry instruments directly Importance Title register integrity Fraud prevention Allocation of liability Proposal A purpose-built CIV standard based on current banking industry practice under AML legislation 6 © National Electronic Conveyancing Office

7. CLIENT AUTHORISATION Issue Subscriber must be authorised Importance Provides confidence that participants have authority to act for clients Proposal A standard form Client Authorisation prescribed for all participants in NECS 7 © National Electronic Conveyancing Office

8. OPERATIONAL ROLES Issue User entitlement to carry out specific functions Importance Allocation of responsibility Confidence of all users Proposal Subscriber -legal entity, has business relationship with NECS Certifier - certifies Subscriber compliance with NECS requirements Either subscriber or certifier must be qualified 8 © National Electronic Conveyancing Office

9. INSTRUMENT CERTIFICATION Issue The extent and nature of certifications Importance Reliance on data by land registries Confidence of participants and community Proposal Five certifications in total Two given when committing to Participation Rules - correctness of instrument information, compliance with legal requirements Three given before signing instruments - Client Identity Verification done, Client Authorisation obtained, Supporting Evidence OK 9 © National Electronic Conveyancing Office

10. DIGITAL SIGNATURES Issue A secure system for signing documents in an electronic environment Importance Certainty as to identity, security, authentication and non-repudiation in electronic transactions Proposal Use of Gatekeeper-accredited DSCs – government-regulated framework Organisation DSCs with prescribed CIV checks on Child Certificate 10 © National Electronic Conveyancing Office

11. MORTGAGE COUNTERPARTS Issue Mortgagor not represented Importance Accommodating current conveyancing practices Proposal Mortgagee signing for mortgagee only with the mortgagee certifying CIV on the mortgagor and separate signing by mortgagor Optional signing by both mortgagor and mortgagee 11 © National Electronic Conveyancing Office

12. SETTLEMENT DISBURSEMENTS Issue Electronic funds transfers from settlement go to the correct account Importance Risk of error in entering bank details Settlement still proceeds Proposal components Optional use of Trust Accounts Optional pre-establishment of account details Co-signing by banks of their customer’s account details Mandatory dual entry of account details 12 © National Electronic Conveyancing Office

13. CONTROL OF THE RIGHT TO DEAL Issue There will be no paper Certificate of Title in the electronic environment Importance The paper CT currently plays a role in fraud prevention and protection of the register Proposal Control of the right to deal determined from register and supported by identification 13 © National Electronic Conveyancing Office

14. LEGAL FRAMEWORK Issue Development of a single national legal framework Importance No net increase in risk Confidence that all significant risks are known, have been fairly allocated and will be effectively managed Proposal Consistent Legislation in each jurisdiction Legislation enables Land Registry authorisation of Electronic Lodgment Networks (ELN) 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 14 © National Electronic Conveyancing Office

15. THE NEED FOR A NATIONAL ELECTRONIC CONVEYANCING DATA STANDARD What is the National Electronic Conveyancing Data Standard (NECDS)? A common format for transmission of data Why is it important? All users can communicate with each other via web services without changes to their own systems Provides faster, more convenient and more efficient system interactions What will the NECDS help us achieve? A National system with a common language for the entire process Reduction in the amount of rework needed Straight through processing in the conveyancing industry 15 © National Electronic Conveyancing Office

16. THE DEVELOPMENT PROCESS How National Office is working with LIXI to develop the NECDS NECDS Working Group – jurisdictions and industry Completed so far NECDS Requirements Document – defines the process flow of messages needed for transactions between NECS and LR and Subscribers and NECS Current work Development of a single controlled NECS Vocabulary Ultimate goal Detailed XML Schema for each transaction or NECDS 16 © National Electronic Conveyancing Office

17. ELECTRONIC CONVEYANCING WORKSHOPS 2009 Simon Libbis Executive Director Ann Kinnear Operations Manager