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Aoife

1 July 2018 mandate NSW | FAQs

Hi Community,

From 1 July 2018, standalone transfers, standalone caveats and Non-Authorised Deposit-taking Institution discharges, mortgages and refinances are moving online in New South Wales, see timeline here.

Below are some of your more frequently asked questions regarding the transition online for these instrument types. I will continue to add to the post as questions arise or feel free to ask your question directly below.

 

What is a standalone transfer?

A standalone Transfer is a Transfer of Land that is lodged in its own right without the requirement of any other instrument. For example, there is no Mortgage or Discharge of Mortgage to be lodged against the same folio of the register at the time of the Transfer.

What will lR nsw do if a practitioner settles via paper instead of online after 1 July?

The 1 July compliance date refers to the lodgement of dealings, not settlement. LRS NSW and NSW Office of Registrar General (ORG) won’t do anything if a settlement doesn't occur electronically. 

 

However, from a PEXA perspective, when a transfer is lodged on the platform financial settlement must subsequently occur online. This is because PEXA must obtain an electronic stamp from the OSR prior to lodgement – which may or may not be $0 – as set out in ARNECC’s Model Operating Requirements (MOR).

what are the penalties for not transacting electronically?

There will be no penalties. If a practitioner attempts to lodge in paper from 1 July 2018, the registry staff will refuse to accept the dealing for lodgement.

Will requisition fees be applied?

No, requisition fees will not apply.

 

Are there currently waivers for e-Conveyancing in NSW?

Yes, the registrar has granted waivers to assist the market transition to e-conveyancing. Practitioners lodging in paper under a waiver must complete a waiver form available on the NSW LRS website here. Un-represented parties may also be eligible for a waiver.

 

Breakdown of waivers

Waiver reference

Waiving

For

Description

CR 7-2018

Conveyancing Rules (CR8)

Practitioners

Monetary Consideration Exception

Where consideration is greater than or equal to
$100M

CR 3-2018

Conveyancing Rules (CR8.5)

Practitioners

Transfer Exceptions

- Land Tax – where Land Tax must be paid from
settlement funds

- Simultaneous Settlement – where funds from
one settlement are required for another (This is
useful when one or more linked settlements are
out of scope
)

- WAL – settlements that include the transfer of
a Water Access Licence

- Transfers affecting less than all the registered
proprietors

CR 2/2018

Conveyancing Rules (CR8.2)

Mortgagees

Non-Land Securities

Transactions where there is a non-land security

CR 1/2018

Conveyancing Rules (CR8.2)

Mortgagees

Non ELN-enabled jurisdictions

Transactions where there is a land security in a non
ELN-enabled jurisdiction

PR 1/2018

NSW Participation Rules (PR4.4 & 4.3)

Local Government

Local Government Organisations insurance

Local Government organisations may subscribe to the
ELN without satisfying the insurance restrictions in
PR 4.3 and 4.4 e.g. councils

PR2/2016

NSW Participation Rules (PR 4.4 & Schedule 6)

Non-ADI’s that hold an ACL

Insurance for Non-ADI’s with ACL

Non-ADI’s that hold an Australian Credit Licence may
subscribe to the ELN without satisfying the insurance
restrictions

Cheers 

 

Aoife