Create a Nomination - VIC | Help Centre

[EmilyBilling]

Last updated: 5 September 2019
Jurisdiction: VIC
Additional Resources: Help Card

 

Overview

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The next phase in the transition to 100% digital is underway in Victoria with conversion of paper certificates of title to electronic (eCT) representing an important component of the e-Conveyancing framework.

Currently in a paper transaction, a paper Certificate of Title must be handed over at settlement and lodged together with other documents for a dealing to be registered on title. The equivalent process where the title is electronic include:

• When the CT Controller nominates the eCT to the paper instrument in PEXA prior to settlement and/or lodgement, or
• When you represent a Proprietor on Title in a PEXA Workspace, and the title in unencumbered.

As a result, a Nomination will need to be lodged in PEXA by the party holding the eCT (CT Controller) for a PEXA or Paper transaction. Below are instructions for lodging a Nomination to a Paper Instrument and lodging a Nomination for a PEXA transaction.

 

Steps

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Create Nomination Document in a PEXA Workspace

When you represent a Proprietor on Title in a PEXA Workspace, and the title is unencumbered, you may be required to create a Nomination.  If you are in possession of a paper certificate of title (pCT) or if you are in control of an electronic title (eCT), the Nomination is required to be lodged prior to settlement.

You may also be invited into a Workspace as CT Controller specifically to lodge the Nomination where the transaction is occurring in PEXA, and the title is a paper certificate of title (pCT) that you are in possession of.
Note: If the title is electronic (eCT) and you are named as CT Controller then no nomination is required. 

CHECK YOUR INVITATIONS

1. Click on Invitations.  
2. You will see an invitation with the role of Proprietor on Title. Click View to view to details of the invitation. 
   
3. Following the left hand column, review Land Titles and Participants (to confirm details are correct).
   

CREATE THE NOMINATION

1. Select Documents from the left hand side navigation.
2. From the Create Document drop down menu, select Nomination.
   
3. The Nomination screen displays.Complete this screen as detailed below.
   • In the Where are you authorising this title to be used? field, selectThis PEXA workspace to lodge your Nomination via PEXA.
     Note: Before selecting this option, ensure that the documentation for which you require nomination for (e.g. transfer, discharge of mortgage, or mortgage) has already been created in PEXA.
   • In the Is the title currently paper? field, select Yes (The paper title (pCT) must be converted to eCT in VIC for the transaction to be completed in PEXA) or No (The CT is already in electronic format).
   • In the Do you wish to retain control of the title after the transaction field select Yes (You hold the CT and want to retain CT control) or No (You are relinquishing Ct control and do not require it after lodgement/settlement. 
     For example, your client has sold the property therefore will not require control of the eCT.
   • Click Save. 
     Verification is now automatically carried out between PEXA and the Land Registry for the Nomination and the Lodgement Instructions. PEXA will automatically refresh once information is received from the Land Registry and the Document Status will move to Prepared and Successful.

SIGN and lodge nomination

1. Click Sign against the Lodgement Instructions of the Nomination.
   
2. Click View next to each document on the Signing screen to see the rendered document.
   
3. Select all documents for Signing and click Sign Documents at the bottom of the screen
4. Type in your Signing password when requested.
   
   

   Verification is again automatically carried out between PEXA and the Land Registry after Signing.

   Note: the Nomination will automatically lodge with the land registry after signing.

   Result: At lodgement your document will be date and time stamped (local time) and a Dealing Number will be issued for the Nomination. 

Create Standalone Nomination Document for a Paper Instrument

Nominations provide permission for a party or parties to transact with a land title and is created and lodged by the party holding the Certificate of Title.

To create a standalone Nomination document, the Workspace must be created in the role of CT Controller (VIC), or Proprietor on Title. 

Create the workspace in the role of the CT controller 

1. From the Dashboard, click Create New Workspace.
   
2. Complete Workspace Details.
3. Select the Jurisdiction (VIC);
4. Select the Representative Role (CT Controller);
5. Enter the Land title reference and click Validate;
6. Enter Subscriber Workspace Reference;
7. There is no Financial Settlement;
8. If applicable, select the relevant Workgroup;
9. Click Save.
10. Following the left hand column, review Land Titles and Participants (to confirm details are correct).
    

create, VIEW AND SIGN THE nomination

1. Select Documents from the left hand side navigation.
2. From Create Document pull down menu, select Nomination.
   
3. Click Create Document. 
4. Select Nomination Document.

Result: The Nomination screen is displayed and pre­-populated

1. In the Where are you authorising this title to be used? field - This field will default to Paper Instrument. This is because there isn’t a lodgement case already in the Workspace.
2. In the Do you wish to retain control of the title after the transaction? field select Yes if you hold the eCT and want to retain CT control.
3. Select the relevant Document Type.
   
4. Click Add External Party (mandatory field). 
   
5. Select the Party type.
6. Enter the Organisation type, Organisation identifier, ACN and Organisation name.
7. Click Confirm to save.
8. Click Save. 
   

Verification is now automatically carried out between PEXA and the Land Registry for the Nomination and the Lodgement Instructions. PEXA will automatically refresh once information is received from the Land Registry and the Document Status will move to Prepared and Successful.

SIGN AND LODGE THE NOMINATION

1. Click Sign against the Lodgement Instructions of the Nomination.
   
2. Click View next to each document on the Signing screen to see the rendered document.
3. Select all documents for Signing and click Sign Documents at the bottom of the screen. 
   
4. Type in your Signing password when requested.
   
   

   Verification is again automatically carried out between PEXA and the Land Registry after Signing. 

5. NOTE: the Nomination will automatically be lodged with the land registry after signing.

Result: At lodgement your document will be date and time stamped (local time) and a Dealing Number will be issued for the Nomination.

Issuing Instructions Implications

Do you wish to retain control of the title after the transaction?

• If you select NO, you are able to select Issuing Instructions (electronic or paper) in the Lodgement instructions of your lodgement case. 
• If I select YES, you cannot select Issuing Instructions for the related lodgement case. No participant can select Issuing Instructions as the CT Controller has selected to retain CT Control. Hence, if you select to retain CT Control, you have no issuing instructions.

[Hume]

Does the nomination have to be lodged first then change the Discharge lodgement instructions to the other FI in a refi like we do now for a clear CT?

[BrettCS]

Hi @Hume,

With the Nomination, you are correct, it has it's own lodgement case and it should be lodged first, before the main transaction.

Then, the Lodgement Instructions that contain the Discharge document can be edited. If it is a standalone (no financial settlement) transaction, it can be signed and submitted for lodgement. If it is part of financial settlement, like a transfer or refinance, then the Responsible Subscriber (usually the incoming mortgagee) for the transaction can edit the lodgement instructions and issuing instructions, and wait for settlement date.

If you have any further questions please ask.

[Hume]

ok cool thanks, so they (the bank they are refinancing to) can edit lodgement instructions for the mortgage and the discharge? Do we change the issuing instructions to electronic and to the incoming Bank?

[Hume]

All good I re-read your comments and understand now....thanks

[BrettCS]

Hi @Hume,

Thanks.

Yes, the Incoming Mortgagee (the bank they are refinancing to) are considered the responsible subscriber and they can determine the issuing instructions and where it is to be issued to (for the lodgement case that contains the mortgage and discharge).

Feel free to send through any further questions.

[BGoodwin]

I understand the Nomination in relation to a VIC eCT can only be created by the CT Controller which would normally be the Mortgagee on title.

Even in a Master Panel set-up the CT Controller's PEXA representative subscriber cannot create the Nomination unless control of the eCT is transferred via lodgement of a paper Administrative Notice form.

If this is correct, and as many mortgagees we act for don't want to be involved in PEXA, this makes the discharge process involving eCT's very awkward.

I'd love to be told I'm incorrect, before we need to process one.

[GeorgePolus]

Hi @BGoodwin

It is correct that the VIC Registrar will not allow a party to be represented as CT Controller.  

That said, Land VIC together with PEXA have been working together to streamline the Nominations and management of CT control processes.  In short there are five initiatives on the table for implementation in 2017.  Socialisation with Law Firms and Financial Institutions has been conducted throughout January.  The exact timing for deployment of new features will be communicated by end Feb.  The five initiatives are:

1. Eliminate the need for a Nomination when a CT Controller is the transacting participant in a PEXA workspace.

2. Leverage knowledge of CT Controller and Transacting Party role to identify:

   • Participants eligible to lodge a Nomination
   • Automate the creation of a Nomination
   • Predict default values for CT direction
3. Electronic Transfer of CT Control
   • Provide for transfer of CT Control in PEXA
   • Enable bulk transfer of CT Control in a single Document.
   • Enable automation for rapid data entry

4. Enable assignment of CT Control to a represented party where a panel member is representing a panel master.

5. Streamline Nomination creation process

If you are keen to participate and provide input to the socialisation process for the streamlining of the Land VIC Nomination process, please respond to my private message and we will be in contact with you. 

[BGoodwin]

Thank you @GeorgePolus for the opportunity to discuss the upcoming streamlining of the nomination process. It's all great news but I still can't get past that we as a subscriber (Panel Solicitor) cannot deal with an eCT without involving our represented subscriber (Mortgagee on Title) in signing a Transfer of Control Administrative Notice (in paper at present and electronically in future) to give us eCT Control, when we can sign a Discharge, Mortgage, paper CT Administrative Advice, and financial settlement without involving our client. It's simply not logical to me, and I'm sure easily fixed with permission of Land VIC.

I wonder if other community members acting for Financial Institutions have any thoughts on this subject.

[LG]

Hi @GeorgePolus

I'm wondering if any of the initiatives mentioned above will be deployed? I believe number 3 is but wanted to check if any others are in the pipeline?

Number 4 would be great news for us as we are panel members and it would be consistent the NSW approach. 

[GeorgePolus]

Hi Barry,

Transfer of CT Control will be deployed as promised in PEXA Release 6.1 on July 24, 2017.  

In the first iteration (Rls 6.1) a Party in possession of CT Control will be enabled to create a Transfer of CT Control passing CT Control to another PEXA Subscriber.   This is known as the 'Push' model for Transfer of CT Control.

NOTE:  As part of Rsl 6.1 we have also built automation functionality which will allow many hundreds of title references to be uploaded and automated creation of Transfer of CT Control.   

Approximately 6 weeks thereafter (Sept 2017)  PEXA will release the 'Pull' model for Transfer of CT Control.  In this model a Panel Member may request CT Control be passed to it by its' Panel Master.   Once again the automation feature will allow upload of many hundreds of title references and auto creation of transfer of CT Control.

In November 2017, as part of Rls 7.0, Land VIC will make a number of updates also. 

1. Allow a Panel Member to direct CT Control to a represented Panel Master via Issuing Instructions in the Lodgement Instructions.   (For example, when a Panel Member is acting in the role of Incoming Mortgagee for a Panel Master, the Panel Member may direct CT Control to the Panel Master as part of the Mortgage lodgement case, as opposed to completing a separate lodgement to Transfer CT Control).
   
   
2. Remove the requirement for a Participant in possession of  CT Control to Nominate a Title to an electronic Lodgement Case. 

[nicolalambrakis]

I have a query regarding the Document Types when creating a nomination, what is the difference between the Transfer and Transfer by Mortgagee.  When would each document type be used?  How is the nomination treated differently for each option?

Thank you

[BGoodwin]

Hi @nicolalambrakis a "Transfer by Mortgagee" is as the name suggests a "Transfer of land by mortgagee or annuitant". The mortgagee or annuitant being the proprietor of the mortgage or charge described in exercise of the power of sale conferred by the Transfer of Land Act 1958 transfers to the transferee the estate and interest of the registered proprietor in the land described for the consideration expressed.

Whereas a "Transfer" is the usual property conveyance where the transferor transfers to the transferee the estate and interest specified in the land described for the consideration expressed.

They are different documents and Land Victoria need to know what documents they are expecting to be lodged against the title,

Hope that helps.

Cheers.

[GeorgePolus]

Hi Nicola,

Barry has provided a most eloquent response re: the different Transfer dealing types.   Thank you Barry. 

As for the Nomination, it is independent of Document Type.   

A Nomination is a means by which the Party in possession of CT Control (the electronic proxy for possession of a paper duplicate Certificate of Title) passes the title, along with the dealing set, to the Registrar.    It follows that any paper dealing that requires presentation of the paper duplicate Certificate of Title will require, when processed via the electronic  channel, the title to be Nominated.

There are three distinct Nomination types - these are:

• Convert pCT to eCT and Nominate to Lodgement Case.
  Any Participant in an electronic transaction who is in possession of the paper duplicate CT is able to complete this type of Nomination.   Upon signing of the Nomination dealing, the Participant certifies that they have destroyed or marked invalid and securely stored the original paper duplicate.  
  
  
• Nominate eCT to Lodgement Case
  Only a Participant in possession of CT Control may complete this type of Nomination.   PEXA identifies the Legal Entity Name of the CT Controller for all eCT's on the Land Title Screen. 
  
  In 2017, in an effort to streamline the electronic process, the VIC Registrar enabled a new business rule:
  
  If the party in possession of CT Control (the CT Controller) is dealing in the lodgement case, a Nomination is not required.   
  
  For example, if a Mortgagee on Title is discharging a mortgage, and the Mortgagee is CT Controller, then the Discharge, and any dealings following in the lodgement case, may be lodged without the title being Nominated to the lodgement case.
  
  Example 2.   If a second Mortgage is being added to a title by a Mortgagee other than the CT Controller, the CT Controller, who is not a party in the new Mortgage dealing, must Nominate the title to the second Mortgage dealing. 
  
  
• Nominate eCT to Paper Dealing.
  Only a Participant in possession of CT Control may complete this type of Nomination.  PEXA identifies the Legal Entity Name of the CT Controller for all eCT's on the Land Title Screen. 
  
  NOTE:  It is not possible to 'Convert pCT to eCT and Nominate to a paper dealing'.   The Registrar expects that if the title is in paper format and the dealing set is paper, then the title will be produced with the paper dealing set. 
  
  

Please let me @GeorgePolus know if you have more questions.

Regards

George 

[nicolalambrakis]

Thank you - you've both been very helpful & informative.

[CohenVeshut]

When nominating an eCT to a paper transfer of land (i.e. no mortgage on title), who does PEXA refer to when asking for the "Parties in Paper Instruction"?

Is this the incoming eCT handler (i.e. the incoming mortgagee or transferee's solicitor/conveyancer) advised by the transferee's representative, the parties named in the transfer (i.e. Transferor and/or Transferee) or the party who signed the transfer on behalf of the transferee (e.g. Individual of [Organisation])?

[GeorgePolus]

Hi Ariel,

Unlike NSW, where the Registrar requires the names and dealing type of all parties represented in the Lodgement Case, LUV require only sufficient information to enable the LUV examiner of the paper lodgement to be certain that the set of dealings lodged in paper against the title match those for which the title has been nominated.

So, for a Transfer - Mortgage lodgement case, you should name at least the name(s) of the Transferor(s).   But, to prevent some fraudulent Transfer arriving in paper prior to the intended dealing, you would best serve your clients interests by naming both the Transfer(s) and Transferee(s).

Please let me @GeorgePolus know if you have more questions.

Regards

George

[WantrupAssociates]

Refer to "Parties in Paper Instruction"? Since, there is no mortgage over the property, who should be the proper "Parties in Paper Instruction" as PEXA required. On the Transfer of Land the solicitor has singed on behalf  of both parties. We a bit confuse who should we fill the details in this section. Should it be the solicitor who signed the Transfer of Land on client behalf or the Transferee. Many thanks for your help.

[GeorgePolus]

Hi Wantrup Associates,

• If the title is an eCT, then the name of the CT Controller will be specified on the Land Title search and Land Title screen in PEXA. It will be the CT Controller who is required to Nominate the title to the dealing.
• If the title is an eCT and the dealing will be lodged via the paper channel, then the party named as CT Controller will be required to Nominate the eCT to the paper dealing via PEXA.
• If the title is an eCT and the dealing will be lodged via the electronic channel, then the party named as CT Controller will be required to Nominate the eCT to the PEXA electronic lodgement case.
• If the title is paper and the dealing will be lodged via the electronic channel, then the party in possession of the paper CT will be required to Nominate the title to the PEXA electronic lodgement case.
• If the title is paper and the dealing is to be lodged via the paper channel, then the paper title must accompany the dealing lodged at Land Use Vic. There will be no requirement for a Nomination. Please let me know if you require additional information.

Regards, George