on 27-09-2016 03:05 PM - last edited on 16-12-2016 02:45 PM by EmilyBilling
The next phase in the transition to 100% digital is underway in Victoria with the conversion of paper certificates of title into electronic (eCT) form.
In the first instance, the major banks are converting their titles. This will occur over two stages:
Earlier today PEXA and Land Victoria hosted a webinar for 300 lawyers and conveyancers. An opportunity for Victorian practitioners to get a better understanding of Land Victoria’s Bulk Conversion of Titles project and what it means for the way you settle property.
Led by Land Victoria, this recording will cover:
Please download the file from the right hand side column, under the title 'Attachments'.
Read the FAQs:
We've put together a list of frequently asked questions. Read them here.
Land Victoria have shared this helpful recourse: http://www.delwp.vic.gov.au/property-and-land-titles/forms,-guides-and-fees/certificate-of-title-man...
Bulk Conversion Podcast
The bulk conversion of land titles in Victoria - What lawyers need to know
The recent bulk conversion of land titles in Victoria affects property and conveyancing transactions. The Law Institute Victoria is joined by two experts – property lawyer and consultant Russell Cocks and Land Registry Victoria manager of business services Paul Major – to explain the conversion and how practitioners will need to adjust their settlement and conveyancing work. To listen to the podcast, please click here.
If you have any questions, please ask below and we will assist.
on 28-09-2016 12:04 PM
Can PEXA / LTO confirm that in a sale scenario, when an outgoing mortgagee nominates an eCT to a paper instrument (eg, discharge of mortgage) and elects to not have control of the eCT returned to them, what effects the change in control of the eCT? Is it the transfer of land which would be registered after the discharge of mortgage?
Also, if we, as the purchaser's legal representative (not as an incoming mortgagee), are PEXA subscribers (and assume we are), and we lodge a paper discharge and paper transfer, what will cause the title to issue as a eCT? And, if it issues as an eCT, who has control? Is it us as the subscriber and legal representative for the purchaser? Is it the purchaser?
on 04-10-2016 04:42 PM
Firstly, at this stage the bulk conversion of title extends only to the major banks (ANZ, CBA, NAB and Westpac). In this scenario, let’s assume that the mortgage on title is with a major bank and that the transaction is a regular Discharge, Transfer & Mortgage. The major bank would lodge a stand-alone nomination in PEXA which would release CT control. The paper settlement would proceed as normal. When the paper documents are lodged, the lodging party (incoming mortgagee) would receive CT control.
To answer your second question. For any paper transactions lodged the determination of output type, be it paper or electronic, is established by the lodging party in our customer record at Land Victoria. If the record is set to PEXA-active (meaning they are a PEXA Subscriber) then the lodging party can receive CT control or the title will be issued in paper.
I hope that answers your questions. We're about to post some FAQ's from last weeks webinar.
on 18-10-2016 10:28 PM
I have gone through the webinar recording and LTO guides. I'm still a little confused about the following:
I apologies if these questions have already been answered.
on 19-10-2016 11:53 AM - last edited on 19-10-2016 12:41 PM by EmilyBilling
Thanks for your question @Pilar. Yes, bulk conversion will take place this weekend meaning that all titles where a major bank has a mortgage will be converted from paper (pCT) to electronic (eCT). A handy publication came from Land Vic last night and I encourage you to have a read:
To your specific questions:
The nomination is always completed by the party that has the control. As the October reform concerns only the Major Banks, the nomination will be completed by the Major (or their representative should control be transferred to them). The most common scenario is as follows:
Consumer A has sold their property. The property has a Major Bank X mortgage on it that needs to be discharged. Major Bank X lodges a nomination and then completes the discharge.
Generally, a purchaser's representative would only have control where the title is unencumbered, in eCT format and assigned to them which is not part of the October reform.
2. I have a settlement before 22 October and there is no incoming mortgagee. I'm assuming at settlement I will be handed over a pCT and paper discharge of mortgage. Will the LTO still accept the paper discharge of mortgage? In the LTO's recent bulletin, it was advised that a paper discharge of mortgage signed after 1 August 2016 will not be accepted unless lodged electronically by the mortgagee. If they will accept it, do I need to lodge it before 22 October?
Yes they will as this is a transaction that involves a transfer of land. The 1 August reform deals with stand-alone transactions not tied to a settlement or other instruments. For example, when a consumer pays of their loan and wants to discharge the mortgage. The bank is now required to lodge the discharge electronically.
Please keep the questions coming. This is important in order build your property community. I also encourage you to reach out to your PEXA Direct Specialist as we are keen to help you work through all your questions and build your digital expertise. @HeatherC @PaulMajor
on 19-10-2016 04:57 PM
Have the Banks (ANZ, CBA, NAB, Westpac) provided contact details for the internal teams that will be handling the requests for administrative notices to be registered on title?
It can be difficult at the best of times to find a phone number or email address for a query with the major banks.
Also, could you please confirm the following:
I have a purchase settlement (acting for the incoming bank) taking place tomorrow where a paper title and discharge of mortgage will be handed over by NAB. The transfer of land will need to go to the SRO for assessment prior to lodging/registration. My understanding is the paper title will automatically become invalid on Saturday 22 October. The NAB will need to lodge once an administrative notice ‘nomination to paper instrument’ via PEXA before the discharge (and transfer of land and our clients mortgage) will be accepted by the LTO.
on 20-10-2016 11:47 AM
I have clarified the following with the 4 major banks,
Question 1 : All queries related to a specific paper settlement with an eCT should be directed to the booking settlements line for the discharging bank, these details can be found on the discharge instructions received from the discharging party.
Question 2 : The four major banks and Land Victoria have worked tirelessly over the past few weeks to ensure the existence of paper title at settlement is not a reality. We all feel confident this will be the case however to be sure of whether a title is electronic control or paper a party should always complete a final search enquiry. If electronic control exists on the final search and you are holding a paper title then this paper is not valid for lodgement purposes.
If electronic control exists and no nomination is in place as stated in my response to question one you should make contact with the party holding electronic control requesting such nomination be completed.
Please note it is important that you contact the most appropriate business brand were this to be the case ie is it Westpac or St George