Industry Digital Transformation - Q&As

[EmilyBilling]

Industry Digital Transformation
A list of commonly asked questions on Industry Digital Transformation. 

Is the industry heading towards digital?

The industry is moving to become 100% digital. 

Industry participants including Lenders, Conveyancers, Lawyers, Land Registries and Revenue Offices are responding to consumer demand for end-to-end digital services as well as seeking operational efficiencies through the strategic application of digital technology. In a practical sense, this means that the old process that involves cheques and paper is diminishing as technology fundamentally transforms the way we all interact and transact.

who is driving the change?

The industry is asking “how can we get more subscribers on the electronic network generating a greater throughput of transactions?”

The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) has responded with strategic priorities that support acceleration of the uptake of e-Conveyancing.

Land Victoria was the first Land Registry to launch a digital transformation strategy for property transactions, beginning with the recent reforms to mortgages and discharges of mortgage.

Who benefits from the transformation to 100% digital? 

Everyone. Now that the network is operational, there are significant benefits for all in moving from paper to electronic processing as quickly as possible.

what are the nsw land registry changes regarding the electronic lodgement of standalone mortgages an...

Land and Property Information (LPI) New South Wales is following Land Use Victoria and Landgate’s lead and bringing property transactions online. 
From 1 March 2017, Authorised Deposit-taking Institutions (ADI) or their Representatives are required to lodge standalone discharges of mortgage and consumer mortgages in PEXA. If you need to lodge electronically in New South Wales contact our dedicated Support Centre for assistance. 
The LPI changes are available here.

What are the New land registry changes regarding the electronic lodgement of refinance transactions?

Land Use Victoria and Land & Property Information have all announced changes to the way refinances are to be lodged from 1 August 2017:

Land Use Victoria

From 1 August 2017, refinance transactions, where the transacting parties to discharges of mortgage and mortgages are authorised deposit-taking institutions (ADIs) under the Banking Act 1959 (Cth), are to be lodged electronically (both retail and commercial mortgages).

These changes are contained in Land Use Victoria Customer Information Bulletin 162 available at: http://www.dtpli.vic.gov.au/property-and-land-titles/land-titles/customer-information-bulletins

Land & Property Information

Where both mortgagee(s) in a refinance transaction are ADIs, any combination of mortgages and discharges of mortgage signed on or after 1 August 2017 must be lodged electronically, except where the mortgages and discharges of mortgage are to be lodged with any other dealing, affecting the same folio(s) of the Register.

These changes are contained in LPI Conveyancing rules (Section 12E Real Property Act 1900) available at: http://www.nswlrs.com.au/__data/assets/pdf_file/0016/215116/Conveyancing_Rules_October_2016.pdf

what are the recent land victoria changes?

On 30 September 2015, Land Victoria announced changes to the way in which discharges of mortgage and mortgages are lodged:

• From 1 March 2016 a discharging mortgagee or their conveyancer, lawyer, or lodging agent must lodge all discharges of mortgage signed on or after 1 March 2016, except where the discharge of mortgage is to be lodged with any transfer of land or mortgage for the same folio(s) of the Register (mortgagees can no longer hand the Certificate of Title and discharge of mortgage to the customer to lodge).

From 1 August 2016, Authorised Deposit-taking Institutions must electronically lodge:

• all discharges of mortgage signed on or after 1 August 2016, except where the discharge of mortgage is to be lodged with any transfer of land or mortgage for the same folio(s) of the Register.
• all standalone mortgages governed by the National Credit Code signed on or after 1 August 2016, except where the mortgage is to be lodged with any transfer of land or discharge of mortgage for the same folio(s) of the Register.

The changes are contained in the Registrar’s requirements for paper conveyancing available at www.delwp.vic.gov.au/publications.

are commercial mortgages in scope?

From 1 August 2016, Australian Deposit-taking Institutions or their representatives must electronically lodge:

• all discharges of mortgage (including discharges of commercial mortgages) signed on or after 1 August 2016, except where the discharge of mortgage is to be lodged with any transfer of land or mortgage for the same folio(s) of the Register
• all mortgages governed by the National Credit Code signed on or after 1 August 2016 (but not including commercial mortgages), except where the mortgage is to be lodged with any transfer of land or discharge of mortgage for the same folio(s) of the Register.

why are these changes being made?

There are a number of objectives, including:

• Minimise Borrower and Lender inconvenience and re-work: When documents are lost by the Borrower they are difficult to replace or when Borrowers forget to lodge them, this can cause reconciliation problems. Planning is underway for a bulk conversion of paper Certificates of Title to electronic Certificates of Title and part of the planning includes reducing the potential for reconciliation issues.
• Encourage subscriber uptake and transaction throughput in PEXA: There are significant benefits for all industry participants transacting electronically, particularly as we move to implementation of the national mortgage scheduled for 2017. There are around 13,000 discharges of mortgage and 19,000 new mortgages in scope, which are lodged each year. Requiring these transactions to be lodged electronically will increase activity on the PEXA platform and provide scope for Lenders to consider electronic processing for all their transactions.

what is pexa's response to this industry forum and how is it supporting it?

We are very pleased with Land Victoria’s strategy to assist the industry to transition to 100% digital, this is a very important first step. PEXA is well-positioned to support this change and assist Lenders to make the transition to electronic processing.
Entry to PEXA can take place in a number of different ways and the process can be quite simple. Lenders can subscribe to PEXA and perform their own transactions, or use a representative to carry out transactions on their behalf. There are already a significant number of legal and conveyancing practices transacting on behalf of Lenders in PEXA.

what assistance does pexa offer?

We have a team of dedicated Account and Deployment Managers ready to work with you to determine your requirements and develop a deployment plan tailored to your business needs. Contact us at transformation@pexa.com.au.

when do I need to be ready to transact in PExa?

Prior to 1 August 2016. 
Lenders and their representatives are rapidly joining the PEXA network. To ensure your organisation can be supported prior to 1 August, we strongly encourage you to contact us as soon as possible to begin the process. It is very important not to leave it to the last minute.

how long will it take to get on board pexa?

As soon as you contact us we’ll be able to determine the quickest, easiest pathway for your business to be transacting in PEXA.

my organisation outsources its mortgage processing to a legal/ conveyancing practice. what should I ...

Contact us to discuss how we can best work with you and your provider to get them transacting in PEXA on your behalf.

what is the industry transformation timeline?

To stay up to date with the most recent industry timeline, click here. This page is updated whenever an updated timeline is released, you can view the latest timeline at the bottom of the page.