Regulation and compliance update: NECS - Is electronic conveyancing really coming?

I have been a member of the National Project Team for several years now, representing on behalf of the MFAA non-bank lenders and smaller ADIs that don't have an extensive branch network. These lenders face different issues to lenders with large branch networks and significant in-house resources.

Customer identification verification (or CIV as it is called) is fundamental to the integrity of an electronic conveyancing system. People using the system will be certifying that they have followed prescribed procedures to identify the person dealing with the land. The protections of having a paper Certificate of Title and the signature on record will be lost, so CIV becomes much more important.

Customer identification can pose different challenges to lenders that don't have a branch network because they often do not meet their customers face to face. Addressing this issue and ensuring there is an even playing field has been a key focus of my contribution to the project.

It's important to recognise that NECS is not really a conveyancing system. Rather, it is a system for settling transactions. Contracts will be exchanged, and credit contracts and mortgages prepared in the ordinary way. However, it is expected that arranging settlement, settling, stamping, and registering will become a much simpler and more secure online activity.

There is still a fair way to go and at some time I will need to communicate with lenders in much more detail. In the meantime, I am happy to hear from any lenders seeking an update.

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