Priority Notices (NSW/ QLD/ VIC)

EmilyBilling · ‎14-11-2016

A Priority Notice is a notice which is lodged against a title to reserve priority for a pending transaction that will affect that title. Refer to Priority Notice FAQs for additional information.

A Priority Notice, when recorded on title, has a twofold effect:

Reserve priority for the transaction set out in the Priority Notice, and
Notify parties searching the title that a transaction to be lodged against title is imminent.

Electronic and Paper Channels

Importantly, a Priority Notice may be created for a future dealing that will be completed in either the paper or the PEXA channel.

NSW & QLD - VIDEO AND TRAINING SIMULATOR

Follow the video and simulator below to see how to complete a Priority Notice in NSW or QLD.

Note: To launch the simulator in a new screen, click here.

Victoria

Follow the video and simulator below to see how to complete a Priority Notice in Victoria.
Note: To launch the simulator in a new screen, click here.

Roles

If the dealing is expected to occur in the paper channel, then a standalone Priority Notice is created in the role of Applicant;
If the dealing is expected to be processed electronically, in a PEXA Workspace, then the Priority Notice can be created by the participant in the role of either Incoming Proprietor or Incoming Mortgagee (providing the workspace has a financial settlement).

Duration

A Priority Notice will be effective on title for 60 calendar days from the date of lodgement. A Priority Notice may be extended for a period of 30 calendar days only once in NSW only. An extension is facilitated through the lodgement of an Extension of Priority Notice.

Note: The Subscriber that lodged the Priority Notice is the only Subscriber that may extend or Withdraw that Priority Notice.

Visibility of the Priority Notice

Once lodged, a Priority Notice against a title is displayed on any subsequent Title searches. For any titles added to a PEXA workspace, the existence of a Priority notice is indicated on the Land Titles screen.

Create and lodge a Priority Notice

Creating a Priority Notice in PEXA has the same general steps, regardless of whether you create it in the role of Applicant or Incoming Proprietor. The role of Applicant may only be used in stand-alone Workspaces (for example, a Priority Notice for a transfer that is commencing in paper).

Practitioner Example : Creating and lodging a priority notice

You'll need to create the Workspace in the role of the Incoming Proprietor, Incoming Mortgagee or Applicant.

Create a Priority Notice

From the Dashboard, click Create New Workspace
Complete the Workspace Details.

Select the Jurisdiction.
Select the Representative Role.
Enter the Land title reference and click Validate.
Enter Subscriber Workspace Reference.
In the Financial Settlement required option, select no.
If applicable, select the relevant Workgroup.

Click Save.
Following the left hand column, review Land Titles and Participants to confirm details are correct.
Create a Party Record.
1. Select Participants from the left hand side navigation.
2. From the Participants drop down menu, select Create Party.
3. Enter the party details.
Create Priority Notice.
1. Select Documents from the left hand side navigation.
2. Click Document and then Priority Notice.
3. Complete the Priority Notice screen.
Ensure Documents to be Lodged is complete.
A Priority Notice’s purpose and function is to preserve and protect the rights of the parties named in the Documents to be Lodged section of the Priority Notice.
1. Click Add Document button to add additional documents.
2. Enter relevant details for each document type.
  
  Note: The Order of lodgement in the Priority Notice screen can be moved and aligned using the arrows. The default order of lodgement is Withdrawal of Caveat, Discharge of Mortgage, Transfer, Mortgage, Caveat.
Click Save.

Verification is now automatically carried out between PEXA and the Land Registry for the Priority Notice 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.

Next to the Lodgement instructions of the Priority Notice, click the action cog and then View.
Review the document and click Back.
Click Sign against the Lodgement Instructions of the Priority Notice.
Select all documents for Signing and click Sign Documents at the bottom of the screen.
Type in your signing password when requested.
From the Lodgement Instruction action cog, select Submit for Lodgement.

PEXA will always create a Priority Notice in its own lodgement case. This will enable the participant to lodge the Priority Notice separately from the dealing(s) that the Priority Notice is for.

Financial Institutions EXAMPLE : CREATING AND LODGING A PRIORITY NOTICE

Example: We are Ullaru Bank, William and Amanda Wakefield have successfully applied for a loan, to be secured by a Mortgage with us. We need to lodge a Priority Notice in PEXA to reserve priority for this transaction. You can complete this exercise as either a Standalone Priority Notice, or as part of a Transfer/Refinance Workspace.

Create a Priority Notice

From the Dashboard, click Create New Workspace.
Complete the Workspace Details.

Select the Jurisdiction.
Select the Representative Role.
Enter the Land title reference and click Validate.
Enter Subscriber Workspace Reference.
In the Financial Settlement required option, select no.
If applicable, select the relevant Workgroup.

Click Save.
Following the left hand column, review Land Titles and Participants to confirm details are correct.
Check your Party Record.
1. Select Participants from the left hand side navigation.
2. Review as required.
Create Priority Notice.
1. Select Documents from the left hand side navigation.
2. Click Document and then Priority Notice.
3. Complete the Priority Notice screen.
Ensure Documents to be Lodged is complete.
A Priority Notice’s purpose and function is to preserve and protect the rights of the parties named in the Documents to be Lodged section of the Priority Notice.
1. Click the Add Document button to add additional documents.
2. Enter relevant details for each document type.
  
  Note: The Order of lodgement in the Priority Notice screen can be moved and aligned using the arrows. The default order of lodgement is Withdrawal of Caveat, Discharge of Mortgage, Transfer, Mortgage, Caveat.
Click Save.
Note: If you are creating this Workspace as part of a Transfer or Refinance Workspace, some of these documents will prepopulate (see the note below on Auto Populating Data in a Priority Notice).

Verification is now automatically carried out between PEXA and the Land Registry for the Priority Notice 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.

Next to the Lodgement instructions of the Priority Notice, click the action cog and then View.
Review the document and click Back.
Click Sign against the Lodgement Instructions of the Priority Notice.
Select all documents for Signing and click Sign Documents at the bottom of the screen.
Type in your signing password when requested.
From the Lodgement Instruction action cog, select Submit for Lodgement.

PEXA will always create a Priority Notice in its own lodgement case. This will enable the participant to lodge the Priority Notice separately from the dealing(s) that the Priority Notice is for.

What happens if a dealing is lodged that does not match the Priority Notice?

While a Priority Notice is in effect, any dealing, except those excluded in section 74W(2) of the Real Property Act 1990 NSW or Transfer of Land Act 1958 - Sect 91F Victoria will lodge and be visible as an unregistered dealing, the dealing will only become registered once the following occurs:

The dealing(s) identified in the Priority Notice are lodged and registered on title, or;
The Priority Notice is withdrawn, or;
The Priority Notice expires.

Auto populating Priority Notice in the Roles of Incoming Proprietor and Incoming Mortgagee

When creating a Priority Notice in the role of Incoming Proprietor or Incoming Mortgagee, PEXA speeds up the creation of your Priority Notice through the use of data returned from the Land Registry to pre-populate information.

If there is…	The Priority Notice is prepopulated with a document type of…
One or more Caveats on title (VIC only)	‘Withdrawal of Caveat’ for each Caveat on title.
One or more Mortgages on title	‘Discharge of Mortgage' for each Mortgage on title.
If your Workspace has a…	The Priority Notice is prepopulated with…
Transfer	‘Transfer’ for each transfer. The transferees will be named as the as the Receiving Parties for each Transfer.
Incoming Proprietor parties exist in the Workspace, but no transfer yet	‘Transfer’. All parties identified as Incoming Proprietors will be named as the Receiving Parties
Mortgage	‘Mortgage’ for each mortgage, complete with the incoming Mortgagee named as party receiving on each mortgage.
Caveat (VIC only)	‘Caveat’.
Mortgagee party has been created or invited into the Workspace	‘Mortgage’, complete with the Incoming Mortgagee named as party receiving on each mortgage.

Note: This functionality is not leveraged for a standalone Priority Notice created in the role of Applicant.

withdrawal of a priority notice

A Priority Notice automatically lapses after 60 days, however the Subscriber that lodged the Priority Notice has the ability to Withdraw that Priority Notice.

A Priority Notice for a dealing that may occur in either the paper or PEXA channel, may be created, extended and/or withdrawn from within the same PEXA workspace. This new feature has been designed to minimise transaction costs to PEXA members.

To do this:

Navigate to the Workspace where the Priority Notice was lodged.
If this was a standalone Workspace, from your Dashboard, navigate to the Completed folder.
Find the relevant Workspace (remember you can sort or filter to assist in locating your Workspace) and click View.
Navigate to the Documents Screen.
You will notice the Priority Notice is listed as Registered.
From the Action Cog, select Withdraw Priority Notice.
The Withdrawal of Priority Notice lodgement case is automatically created.
View the Withdrawal of Priority Notice.
Sign and lodge the withdrawal of Priority Notice as normal.
Note: If the Workspace includes financial settlement, PEXA will ask the user if the Withdrawal of Priority Notice is to be created in its own lodgement case or in the lodgement case linked to financial settlement.

Extending a priority notice (NSW only)

An extension of a Priority Notice is facilitated through the lodgement of an Extension of Priority Notice. To lodge an extension, you can return to the existing workspace in which the original Priority Notice resides.

An extension of Priority Notice will always be created in its own lodgement case.
Only a user from the subscriber organisation that created a Priority Notice may extend or withdraw the Priority Notice.

To do this:

Navigate to the Workspace where the Priority Notice was lodged.
If this was a standalone Workspace, from your Dashboard, navigate to the Completed folder.
Find the relevant Workspace (remember you can sort or filter to assist in locating your Workspace) and click View.
Navigate to the Documents Screen.
You will notice the Priority Notice is listed as Registered.
From the Action Cog, select Extend Priority Notice.
The Extension of Priority Notice lodgement case is automatically created.
View the Extension of Priority Notice.
Sign and Lodge the Extension of Priority Notice as normal.