topic Re: Understanding Nominations of Title (eCT or paper) in Victoria in Ask the PEXA Community

Understanding Nominations of Title (eCT or paper) in Victoria

NancyP — Thu, 14 Feb 2019 02:36:18 GMT

As a PEXA Direct Virtual Specialist (VIC) who helps practitioners learn how to use PEXA, I am often asked about Nominations. I hope our Victorian members find this article helpful as there seems to be some confusion in the community around this topic.

What is a Nomination?

A Nomination is an Administrative Notice used to request the Registrar to deal with a title in a particular way. Specifically, nominations lodged via PEXA relate to the current title in anticipation of an upcoming lodgement. It might assist if you think of nominating as "making the title available".

For more information please see the Certificates of Title and Administrative Notices Guide, available on the LUV website.

When do you need to lodge a Nomination?

To help you ascertain the answer, you will need to consider these questions:

What is the current format of the title - is it electronic (eCT) or paper?
Will lodgement be completed via PEXA or via the paper channel?
In the event the title is an eCT and lodgement is via PEXA, is the CT Controller a party to the transaction?

Where the title is currently a paper title and lodgement will be completed via PEXA, then a Nomination is required.

This will be lodged by the party who holds the paper title, thereby converting the paper title to an eCT and “making it available” to the lodgement case.

Where the title is currently an eCT and lodgement will be completed via the paper channel, then a Nomination to Paper Instrument is required.

This will be lodged by the CT Controller, who specifies details of the paper instrument in the Nomination to Paper Instrument.

Note: Lodging a Nomination to Paper Instrument does not convert the eCT to a paper title, nor does it mean that the new title will be issued as a paper title.

Where the title is currently an eCT and lodgement will be completed via PEXA

Scenario 1: A Nomination is not required if the CT Controller is a party to the transaction. See Example A
Scenario 2: A Nomination is required if the CT Controller is not a party to the transaction. See Example B

Example A

The CT Controller is the mortgagee on title. A Discharge of Mortgage and Transfer will be lodged together in the same lodgement case via PEXA. A Nomination is not required as the mortgagee is a party to the transaction, having prepared the Discharge of Mortgage which forms part of the lodgement case.

Example B

The CT Controller is the mortgagee on title, and the practitioner is lodging an instrument (eg ASP or APR) via PEXA. A Nomination is required as the mortgagee is not a party to the transaction. In this scenario the practitioner will need to invite the mortgagee into the workspace as CT Controller so that it can nominate the title (or "make the title available") to the lodgement case.

How do I create a Nomination?

Please refer to this guide.

Note: The Nomination must be signed and lodged prior to the upcoming lodgement. Please ensure that you review the Certifications in the Nomination before lodging same.

When do you need to lodge a Withdrawal of Nomination?

Scenario 1: The CT Controller has lodged a Nomination to Paper Instrument in anticipation of lodgement (eg Transfer) via the paper channel. Circumstances have changed and lodgement will be completed via PEXA instead. In this scenario the CT Controller will need to lodge a Withdrawal of Nomination (followed by a Nomination if the CT Controller is not a party to the PEXA transaction).

Scenario 2: The holder of a paper title has lodged a Nomination in anticipation of lodgement (eg Transfer) via PEXA. Circumstances have changed and lodgement will be completed via the paper channel instead. In this scenario the CT Controller will need to lodge a Withdrawal of Nomination, followed by a Nomination to Paper Instrument.

Scenario 3: The holder of a paper title or CT Controller, has lodged a Nomination in anticipation of lodgement (eg Transfer) via PEXA. For one reason or another, the anticipated lodgement is deleted and recreated in the workspace. In this scenario the CT Controller will need to lodge a Withdrawal of Nomination (a new Nomination may be required to be lodged depending on your specific scenario).

I hold an eCT on behalf of my client. Do I nominate to paper in PEXA if I want to convert it to a paper title?

Lodging a Nomination to Paper Instrument does not convert the eCT to a paper title. If you need to convert an eCT to paper title you will need to lodge your application directly with Land Use Victoria. The application form can be found on the LUV website.

Note: Where there is an upcoming lodgement to be completed via PEXA, the new title can be issued as a paper title if the appropriate selection is made in the Lodgement Instructions.

What about the paper titles we hold in Deeds?

For bulk conversion of paper titles to eCTs please contact Land Use Victoria to discuss.

Questions?

Please contact your PEXA Direct Specialist or post your question below.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

Jcawood — Tue, 15 May 2018 03:44:55 GMT

With scenario A, if there is no mortgage on title and the vendor's legal practitioner has control of the eCT, would the same principles apply? Would we need to nominate the eCT to the financial settlement workspace or is signing the transfer sufficient to make us a party to the transaction and therefore not required to nominate the title to the workspace?

Re: Understanding Nominations of Title (eCT or paper) in Victoria

NancyP — Tue, 15 May 2018 10:52:15 GMT

Yes that is correct, a nomination will not be required in the scenario you described.

Kind regards
Nancy

Re: Understanding Nominations of Title (eCT or paper) in Victoria

PeggyAve — Wed, 29 Aug 2018 07:04:47 GMT

Hi, I am just a little confused where we have control of pCT for proprietor on title I have been advised that you do not need to create a role as CT controller is that correct? If so, when creating the nomination I have been advised that we should remove the Lodgement Instruction ahead of the nomination? Can you please confirm.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

NancyP — Wed, 29 Aug 2018 08:14:28 GMT

That is correct there is no need to create an additional role of CT Controller for a Transfer workspace, if you hold the paper title and you represent the proprietor on title. The Nomination should be created (and lodged) after the Transfer document has been created, within the same workspace. Please note Lodgement Instructions are not normally removed unless you intend to delete all documents in that lodgement. I recommend that you contact your PEXA Direct Specialist if you need further clarification on the process.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

PeggyAve — Wed, 29 Aug 2018 22:59:29 GMT

Nancy, thank you for your reply. It is contrary to the telephone advice I received from PEXA when I was told to remove the document ie. lodgement instruction for the Nomination. As you have indicated in your reply that deleted all documents from the workspace.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

NancyP — Fri, 31 Aug 2018 07:24:25 GMT

Without knowing the details of your workspace it may have been necessary to remove the Lodgement Instructions in your scenario, or perhaps there was misunderstanding over the telephone. Our sincere apologies if you were misinformed. I understand your PEXA Direct Specialist has been in contact with you to clarify. Thank you for taking the time to post on Community.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

TisherLiner — Mon, 03 Dec 2018 05:52:08 GMT

Hi Nancy,

In scenario 2 (withdrawal of nomination) what happens if the person who created the original nomination (Party A) has subsequently transferred control of the title to another subscriber (Party B) before lodging the withdrawal. Will Party A still be able/need to create the withdrawal or will Party B be able to create the withdrawal as the current CT controller?

Re: Understanding Nominations of Title (eCT or paper) in Victoria

NancyP — Tue, 04 Dec 2018 01:28:35 GMT

Great question. We would recommend that Party A lodges a Withdrawal of Nomination before transferring CT Control to Party B. There may be issues if Party A has lodged a Nomination, then attempts to transfer CT control of that title to Party B while the Nomination is in place.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

Ashlee_Cameron — Mon, 15 Apr 2019 23:12:35 GMT

Hi Nancy,

Do all parties in a VIC transaction need to be represented for a nomination to be completed?

Example: We have been invited to a workspace as CT controller. There are 3 registered proprietors as tenants in common. One of the proprietors has died and the Estate solicitors are lodging a transmission for the deceased's share. The other 2 remaining proprietors are unrepresented (their shares are remaining the same). Can we complete a nomination as just the CT controller with the other 2 proprietors unrepresented?

Also, with the lodgement instructions for the nomination, can we select to have paper titles returned to our office? We were instructed that the party lodging the transmission is responsible for providing instructions re: certificate of title after lodgement.

Thanks.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

NancyP — Tue, 16 Apr 2019 00:09:56 GMT

Yes if you hold the title you can lodge a Nomination as CT Controller in the Transmission workspace, with the remaining tenants in common proprietors unrepresented.

In the Nomination, you can select yes or no to the question "Do you wish to retain eCT/electronic control of the title after the transaction?"

If you select yes, this means the title will be issued to your firm as an eCT after registration of the Transmission. No issuing instructions can be entered into the Lodgement Instructions for the Transmission, as those instructions are already specified in the Nomination.

If you select no, this means that issuing instructions for the title will need to be entered in the Lodgement Instructions for the Transmission. The title can only be issued to a party in the Transmission lodgement case. In your scenario it can only be issued to the Estate solicitors.

If you require a paper title, your options are as follows:

Option 1

Select yes to retain eCT control of the title after registration of the Transmission. Following registration, you can make an application to convert the eCT to a paper title. This application is made directly with Land Use Victoria, and the form can be found here.

Option 2

Select no and have the title issued to the Estates solicitors as a paper title, then make arrangements to collect the paper title from that firm.

I hope that helps.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

Eliza — Thu, 30 May 2019 23:24:07 GMT

I have a paper CT needed as security for a separate transfer of property. Can I nominate the Paper CT to eCT in a separate workspace so that the bank has access?

Re: Understanding Nominations of Title (eCT or paper) in Victoria

MeganTenn — Fri, 31 May 2019 06:40:07 GMT

Hi ,

If the document is being lodged via PEXA, then you will need to be invited into that workspace as the CT Controller so you can nominate the title, making it available for the transaction within the workspace.

If the document is being lodged via paper and you have a paper title, you will need to hand over the paper title at settlement, as usual.

Re: Understanding Nominations of Title (eCT or paper) in Victoria

lisa — Mon, 02 Sep 2019 07:17:27 GMT

Hi and all ,

In response with your Scenario 1:

Where the title is currently an eCT and lodgement will be completed via PEXA

Scenario 1: A Nomination is not required if the CT Controller is a party to the transaction. See Example A
Scenario 2: A Nomination is required if the CT Controller is not a party to the transaction. See Example B

Example A

I inform that your above advice is correct, but is only limited to the situations where the Mortgagee of Title or the eCT controller is one of the Big 4 banks (e.g. CBA, ANZ, NAB and Westpac).

If the mortgagee on title or eCT controller is not one of the big 4 banks, then a Nomination must be completed and lodged for settlement to proceed.

Further practical note:

If an error message appears under Lodgement Instructions requiring that a Nomination is required, do not "edit" the Lodgement Instructions as the error message will disappear. The fact that the error message disappears does not mean that the Nomination no longer needs to be completed and lodged.
Do not rely entirely on the outstanding "Tasks" in the workspace. It acts as a guide only. Sometimes it may not show all required tasks that needs to be done. (E.g. verify source funds etc).

Hope this will help other PEXA users!

Kind regards,

Lisa

Re: Understanding Nominations of Title (eCT or paper) in Victoria

TaniaB — Wed, 28 Oct 2020 06:40:17 GMT

Hi,

We are holding a paper CT for a client who is now using another conveyancer and they want the title. There is no transaction yet, so we can't convert the title to an eCT as a standalone action in PEXA and then transfer eCT control - we have to send an application to convert to eCT to the LTO. Is it possible for the new conveyancer to invite us to the workspace as a CT controller once the property has sold and we just nominate the paper title as we would if we were a participant? I'm presuming to nominate the paper title and destroy it we would still need a VOI and client authorisation?

Thanks

Re: Understanding Nominations of Title (eCT or paper) in Victoria

lisa — Wed, 28 Oct 2020 07:28:06 GMT

Hi TaniaB,

The easiest way is to wait until the property is sold and then the conveyancer invites you as the CT controller, in which case you will just need to nominate the title to the relevant workspace.

Alternatively, you can put in an application to the LTO to convert the pCT to an eCT and then transfer eCT control on PEXA. This application form can be completed and sent to the LTO by email.

You will require to obtain your client's consent and authorisation no matter which above method you choose to take.

Hope this helps!