Thanks for your question @Pilar. Yes, bulk conversion will take place this weekend meaning that all titles where a major bank has a mortgage will be converted from paper (pCT) to electronic (eCT). A handy publication came from Land Vic last night and I encourage you to have a read:
http://www.dtpli.vic.gov.au/property-and-land-titles/land-titles/customer-information-bulletins
To your specific questions:
Who is required to complete the nomination? Is it the eCT control, incoming mortgagee or the purchaser's representative? If it's the purchaser's representative, do we complete this via PEXA or paper form?
The nomination is always completed by the party that has the control. As the October reform concerns only the Major Banks, the nomination will be completed by the Major (or their representative should control be transferred to them). The most common scenario is as follows:
Consumer A has sold their property. The property has a Major Bank X mortgage on it that needs to be discharged. Major Bank X lodges a nomination and then completes the discharge.
Generally, a purchaser's representative would only have control where the title is unencumbered, in eCT format and assigned to them which is not part of the October reform.
2. I have a settlement before 22 October and there is no incoming mortgagee. I'm assuming at settlement I will be handed over a pCT and paper discharge of mortgage. Will the LTO still accept the paper discharge of mortgage? In the LTO's recent bulletin, it was advised that a paper discharge of mortgage signed after 1 August 2016 will not be accepted unless lodged electronically by the mortgagee. If they will accept it, do I need to lodge it before 22 October?
Yes they will as this is a transaction that involves a transfer of land. The 1 August reform deals with stand-alone transactions not tied to a settlement or other instruments. For example, when a consumer pays of their loan and wants to discharge the mortgage. The bank is now required to lodge the discharge electronically.
Please keep the questions coming. This is important in order build your property community. I also encourage you to reach out to your PEXA Direct Specialist as we are keen to help you work through all your questions and build your digital expertise. @HeatherC @PaulMajor
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