1. Land Services Group Industry Stakeholder Group Meeting 4 June 2014 Priority Notices

2. Land Services Group Introduction Today it is intended to: Highlight key themes in relation to legislative amendments Review Priority Notice functionality Discuss issues raised in relation to Priority Notices as part of the consultation on the alignment paper Consider this in terms of broader consultation with industry stakeholders

3. Land Services Group Legislative Reforms Drafting Instructions have been sent to Parliamentary Counsel Introduction of Priority Notice legislative provisions are targeted for the end of 2014 This will enable functionality to be available on the first day of SAILIS Early introduction of Priority Notices will allow for market maturity and provide the necessary confidence for the removal of duplicate certificates of title on day one of electronic conveyancing

4. Land Services Group Lodgement of Priority Notices Can be lodged by a person who enters into a contract for the purchase of land, or for any other dealing with land, with the registered proprietor or another person entitled to deal with the land When lodged over part of a certificate of title the portion must be accurately defined with reference to an approved plan Ability to enter a customer reference number has been included. This number will be visible on the account holder’s work flow searches and on the notice itself

5. Land Services Group Period of Validity Valid for 60 days Ability to extend for 30 days A subsequent Priority Notice can be lodged but it only takes effect from lodgement and therefore is subject to any other Priority Notice or other instrument lodged in the interim Can be withdrawn by lodging party

6. Land Services Group Cancellation Registrar-General will have discretionary power to cancel the Priority Notice on application by a person with an interest in the land if satisfied that the Priority Notice does not protect a valid interest in land, and after giving notice and opportunity to respond The Court can on application by a person with an interest in the land make an order to cancel the notice Civil liability provisions where a person who suffers loss due to wrongful lodgement can claim damages are included in the proposed legislative amendments

7. Land Services Group Treatment of Subsequent Instruments An instrument lodged while a Priority Notice is in force may not be registered or recorded while the Priority Notice is in force Once a Priority Notice ceases to have effect subsequent instruments will be registered in same manner and priority as if the Priority Notice had not been lodged

8. Land Services Group Instruments that can still be registered Priority Notices will not prevent the registration of: Instruments lodged prior to the Priority Notice Instruments that are consented to by the lodging party of the Priority Notice Caveats Worker’s liens Warrants of sale Court orders Statutory charges, statutory orders or statutory authorisations A transfer consequential on a statutory charge, order or authorisation, a warrant of sale or the exercise of a statutory body or officer

9. Land Services Group Instruments that can still be registered A heritage agreement under the Native Vegetation Act 1991 or the Heritage Places Act 1993 A land management agreement under the Development Act 1993 An entry in the State Heritage register under the Heritage Places Act 1993 A notice of intention to acquire land under the Land Acquisition Act 1969 The registration or recording of an instrument lodged by the Crown. Another interest that if registered will not affect the interest the subject of the Priority Notice

10. Land Services Group Priority Notice Title Selection Screen

11. Land Services Group Lodge Priority Notice

12. Land Services Group Priority Notice Product

13. Land Services Group Priority Notice Information All current Priority Notices will be displayed on the Register Search and on a Check Search Expired, Completed, Cancelled or Withdrawn Priority Notices will be displayed on the Register Search and on a Check Search for 90 days Priority Notices will not be displayed on a Historical Search but can be searched as a separate product Priority Notices (active and historical) will be able to be purchased as a product

14. Land Services Group Priority Notices- Feedback from Alignment Paper General support for: Introduction of Priority Notices Optional application Application to all instruments Validity period of 60 days List of exceptions were generally supported with some additional exceptions recommended

15. Land Services Group Priority Notices- Feedback from Alignment Paper Submissions also proposed that: Extensions should be allowed There should be facility to update, amend or correct There should be the ability to warn priority notice Priority Notices should be included in the historical search

16. Land Services Group Next steps Broader consultation with stakeholders on detailed policy Seeking views in relation to the timing of this consultation given that it is targeted to introduce Priority Notices in the 2014/15 financial year

17. Land Services Group Questions

18. Land Services Group Consultation on alignment of paper and electronic requirements

19. Land Services Group Feedback Received 6 submission predominantly from industry representative bodies Table of feedback has been published on our website under National Electronic Conveyancing Note: Priority Notice matters were addressed in previous presentation

20. Land Services Group Client Authorisations General support for the introductions of Client Authorisations in paper Generally supported the application of this reform to all instruments with a few exceptions such as caveats and other priority type instruments It was submitted that further codification of reasonable steps and entitlement to enter into transaction is required

21. Land Services Group Removal of Duplicate Certificates of Title General Support for removal of duplicate titles Mixed responses received regarding whether duplicate titles should be declared void from a particular date or whether there should be production and/or destruction obligations It was submitted that consideration should be given to capturing date of birth Submissions highlighted the need for a publicity campaign prior to implementing this reform due to titles being held for security or discharges that have been returned to customers but not yet lodged

22. Land Services Group Consents by Mortgagees Generally supportive that no additional consent in absence of removal of duplicate certificates of title is required Submissions differed in relation to the obligation to provide notification Submissions differed in relation to the inclusion of legislative amendments required to protect the first interest

23. Land Services Group Mortgagee Provisions Generally supportive of the mortgagee being required to take reasonable steps to verify the identity of the mortgagor Submissions highlighted if a mortgage is cancelled there is a need for the failure to take reasonable steps to verify identity to have contributed to the fraud Submissions differed on opinions of the role of the Court versus the role of the Registrar-General when making a determination regarding cancelling a mortgage

24. Land Services Group Common Mortgage Form Finance organisations generally supported the Common Mortgage Form Other stakeholders submitted further details are required Concerns were raised regarding the length of time the mortgage counterpart should be held for Concerns were raised regarding establishing that the terms and conditions of registered mortgage are the same as the signed counterpart

25. Land Services Group Certifications General support for aligning certifications in paper to those required for electronic conveyancing It was submitted that the certification to obtain originals or copies of all supporting evidence is too broad Clarification points were raised in relation to the applicability of certifications in different circumstances

26. Land Services Group Self-represented parties Queries where raised in relation to how the Lands Titles Office will determine legal authority to enter into transaction Queries were raised in relation to the benefit of certifications given from a self-represented party It was submitted that a practitioner will be forced to assume greater responsibility when dealing with a self-represented party It was submitted that the Registrar-General should provide advisory officers who are available to the self-represented person to verify documents prior to settlement

27. Land Services Group Execution clauses There was general support for the removal of execution clauses as a consequence of introducing Client Authorisations Submissions highlighted the consequential loss of the ability to compare signatures unless the Client Authorisations are lodged with the Lands Titles Office

28. Land Services Group Next Steps Further consultation on detailed aspects of individual reforms Timing of consultation Format- information sessions held by Land Services Group similar to those held for Verification of Identity

29. Land Services Group Questions