Many of our staff are concerned about COVID-19 transmission and balancing that against obligations (as Subscriber/Representative) under the Participation Rules and each State's e-conveyancing laws
Verification of Identity at face to face interviews:
We note Rule 2.1 states :"The verification of identity must be conducted during a face-to-face in-person interview between the Identity Verifier and the Person Being Identified" . Rule 3.1 states "At the face-to-face in-person interview described in paragraph 2.1, the Identity Verifier must ensure that the Person Being Identified produces original Documents in one of the Categories in the following table, starting with Category 1". Each of this oblige a staff member from a Subscriber/Representative to be at a face-to-face in-person interview.
Further we note paragraph (e) of Schedule 9 that states "I witnessed [full name of the Person Being Identified] execute the completed Client Authorisation or grant the mortgage]" This again requires the verifier to be in close proximity to the person being verified in order to give this certification.
Can PEXA please ask each Registrar for their urgent views on how Subscribers should comply with the face to face obligation in light of COVID-19 without exposing the person conducting the VOI to risks to their health.
The taking of mortgages imposes additional obligations on Subscribers that involve staff (of a Subscriber/Representative) being in close proximity with mortgagees. This is for two reasons:
Paragraph (e) of Schedule 9 that states "I witnessed [full name of the Person Being Identified] execute the completed Client Authorisation or grant the mortgage]". This requires the verifier to be in close proximity to the person granting the mortgage.
Rule 6.13.1 (a) requires that a Representative must …" ensure that the mortgagor grants a mortgage on the same terms as the mortgage signed by, or on behalf of, the mortgagee". A certification is given the "The Certifier holds a mortgage granted by the mortgagor on the same terms as this Registry Instrument or Document". In order to comply with this rule/make this certification, does the Subscriber/Certifier need to be in close proximity to the mortgagor and its mortgage document in order to assess they are on the "same terms"?
We ask for PEXA to seek urgent views from the Registrars on how Subscribers should comply with these obligation in relation to mortgages without needlessly exposing the staff member/Certifier to increasing risks of COVID 19 transmission
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Hi PEXA, Can we please really query this. We have had different answers from PEXA.
In a discharge of mortgage involving "Financial Settlement" when we fill in the Financial Settlement Statement there is PEXA and lodgement fees to pay and we will need to fill in a source for those. The dropdown box only gives us the option of selecting Trust Account. For discharges the fees are not significant so we don't typically get funds in trust upfront.
Can we use our linked office account instead of trust account as the source funds to pay PEXA and lodgement fees? Or is Trust Account the only choice we have? This is where we have been told different answers. The above answer from PEXA says "no" but we have been told yes from other PEXA contacts
If we can use our linked office account can we put a $ limit on how much can be used. Is there ability to impose a daily limit?
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The recently published letter covering the NSW waiver and Victorian exemptions for Victoria says:
Non - ELN enabled Jurisdiction as part of the Refinance Transaction set]
It uses the words "Refinance Transaction". If you are doing a transaction involving Victoria and NT (or TAS, ACT which are also non ELN enabled) over unencumbered title that is not a "refinance" and technically you must lodge the standalone Victorian mortgage (even though if it were NSW it falls within the waiver CR 1/2017). Has anyone had cause to consider this? For an incoming mortgagee it means a deal that is Vic + NT that involves a discharge (i.e a refi) is able to be done in paper but if they were the incoming mortgagee for the same deal but without needing a discharge (i.e a not a refinance because title is unencumbered) there is no exemption in Victoria and the stand alone mortgage is required to be lodged in PEXA (despite it being linked with a non ELN enabled jurisdiction). Interested in views of the community
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To lodge the NMF in PEXA a paper NMF will also have to had been created and signed. It would be great if PEXA built the functionality to prepare the paper NMF within PEXA as well. Why? Because of MPR 6.13.1(a) and certification 5(b). Creating a paper NMF outside of PEXA and another within PEXA is what is happening in practice. There is still scope for human error to inadvertently create differences between the two (for example a title ref might be wrong in the paper NMF or a word deleted in the additional terms and conditions).
If an identical NMF that is to be signed in the paper world (ie with execution clauses) could be created in the same workspace in which you create the PEXA NMF (and which pulls the same title information etc) that would eliminate mismatches. Is there any thoughts on building that functionality (or does it exist already)?
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We're new to PEXA. Some commercial transactions require a proprietor on title to show a third party (like a buyer of their business or shares) that a "Discharge of Mortgage" is ready /signed in escrow as part of completion deliverables under a sale transaction. In the pre-paperless world normally you show a prospective buyer a signed paper discharge as evidence that security will be discharged. If there is workspace created by an outgoing mortgagee where they have prepared and signed a discharge of mortgage (but not yet lodged), is there a way to show a third party that the discharge of mortgage has been signed within PEXA and is ready to lodge? For example to invite an interested party into the workspace with "view only" rights? We probably could take a screen shot and show the interested party that there is a discharge of mortgage ready - but that does seem a bit cumbersome.
PS: great if the NMF could be added to the training environment
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