Wednesday, 17 December 2014

Will NSW also adopt the Verification of identity requirements by mortgagees?

Following on from Victoria and other states, in New South Wales, new requirements for verification of the identity of mortgagors will apply from 1 January 2015.

The NSW amendments (like the Victorian provisions) require a mortgagee of land to take reasonable steps to ensure that the person who executed the mortgage, or on whose behalf the mortgage was executed, as mortgagor, is the same person who is, or is to become, the registered proprietor of the land that is security for the payment of the debt to which the mortgage relates.

These provisions are being enacted in anticipation of electronic conveyancing commencing nationally in the near future. 

Once all states have the appropriate legislative regime in place, there will be no further impediments to the commencement of  electronic conveyancing.

The major banks have now decided to accept electronic conveyancing as inevitable and have taken the necessary steps for it to become the standard form of a conveyancing transaction.  

Those of us who like paper titles and mortgages will soon no longer be able to conduct conveyancing business in the 'old-fashioned' way! I don't believe I am the only person who is nervous about this process! However, we all have to move with the times.

W G Stark
Hayden Starke Chambers 

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