Land dealing VOI rules close to finalisation

Verification of identity rules that will apply in the national electronic conveyancing system are close to finalisation, with face-to-face verification to be a requirement along with A$20 million of personal indemnity cover required for "identity agents".

The Australian Registrars' National E-Conveyancing Council expects to finalise its rules for verification of identity next month. Earlier this month it held a forum to update lenders and other stakeholders on the current state of play, with a focus on safe harbour verification of identity rules (conduct that will be deemed not to breach the rules).

ARNECC was set up in 2011 to co-ordinate a national approach to e-conveyancing. Its members are the land title registrars from each state and territory.

VOI standards currently apply in Western Australia, South Australia and New South Wales. Once the ARNECC rues are finalised they will be implemented nationally and will apply to land title transactions carried out electronically or using the old paper-based system.

To meet the safe harbour requirement for verification of identity, subscribers and identity agents will have to verify customers involved in land dealings face to face.

ARNECC's previous draft included a provision that registry documents, such as mortgages, must be witnessed at the same time as VOI was conducted.

Gadens partner Jon Denovan said that provision had been dropped. "Instead, mortgagees must be satisfied that the documents have been signed by the person identified in the VOI," Denovan said.

ZipID director Sean Simmon said ARNECC confirmed that subscribers would be responsible for ensuring their agents complied with the VOI rules.

An issue that remains contentious is the requirement for identity agents, including mortgage brokers and specialist groups such as ZipID, to have a minimum of $20 million of professional indemnity insurance in order to be considered within the safe harbour provisions.

Denovan said the Mortgage and Finance Association of Australia would be making further submissions on the insurance issue.