Welcome to NECSpress, the e-newsletter for the National Electronic Conveyancing System.

In this edition: 

NECS RACES AHEAD DURING 2008

During 2008  significant milestones were reached on the path to NECS. Highlights included -

• co-operative commitment from the Commonwealth and all State and Territory Governments to
   the development of a single national system.
• enthusiastic involvement of industry in defining system requirements and common
   data standards.         
• unprecedented agreement among land registries on consistent business practices and system 
   requirements.
 

National Project Team Up and Running

The first NECSpress of 2008 reported on the intention to establish the National Project Team (NPT).  Since then a meeting of industry and government stakeholders  developed a proposal for the NPT, the proposal was endorsed by the National Steering Committee (NSC) and the NPT met for the first time in May 2008.

The NPT is already providing vital input to the development of NECS and has established itself as the critical link between industry and government. Details of its progress and the inclusion of an additional member are reported in issues 33 and 34 .

The NPT provides a link for participants in all industry sectors to have their say on the development of NECS through the members listed.
 

NECS Data Standards Well Advanced

2008 was a busy year for the NECS Data Standards Working Group.  A first draft of the requirements for NECS-to-Land Registry transactions was completed in April and by year’s end the requirements for Subscriber-to-NECS transactions were completed.  The next stage is to review these requirements for consistency and completeness and then move on to develop the content of the transaction messages.

Industry has enthusiastically embraced this co-operative and consultative  process managed by LIXI with a wide range of representatives of financial institutions, lawyers, conveyancers, information brokers, software providers, land registries and liability insurers participating regularly.  
 

State Project Teams Getting It Done

During 2008 the State Project Teams (SPT) has concentrated on defining the  land  registry requirements for NECS and developing a consistent approach to their business practices.

The requirements for NECS are documented in the NECS Requirements Definition (NRD) . The SPT has been endorsing and where necessary,expanding the level of detail on these requirements for inclusion in the NRD.  Most States and Territories now have a small team dedicated to reviewing their requirements and readying their systems and procedures for the commencement of NECS.

As a consistent approach to business practices will provide efficiency and convenience benefits to all stakeholders, the SPT has been developing consistent positions on a number of critical national business practices and documentation issues. There has been significant progress in relation to Client Identity Verification, Client Authorisation and Instrument Certification and work is continuing on Supporting Evidence, Control of the Right to Deal and Fee Invoicing and Payment Collection issues.  For a full understanding of these  issues and how the SPT is developing a consistent approach for use in all jurisdictions, see the paper available. 

Input from industry will see resolution of these issues and others during the first half of 2009.  Read on to see how you can have you say.

YOU CAN HELP SHAPE NECS 

As NECS draws closer, it is important that the views of all stakeholder groups are taken into account. That is why we have the NPT.  The documentation and practice issues mentioned above are among a wide range of matters currently being considered by the NPT.  To assist with the discussion and gathering of feedback, papers are being developed for the widest possible exposure of the options available in resolving each issue. 

 So far six issues papers have been published that you can find on our website .

Development of Business Practices  

A number of key land registry business practices will benefit from a consistent approach.  These practices are considered in the context of the NECS risk assessment and management strategy .This paper explains the approach adopted for developing these practices together with issues that need to be considered regarding their implementation.

Digital Signature Certificates 

NECS requires the use of Gatekeeper-accredited Digital Signature Certificates (DSCs) for the signing of electronic documents.This paper outlines the options for DSCs under this framework and canvasses the benefits and disadvantages of each option in the context of the NECS risk assessment and management strategy .

Client Identity Verification Standard  
 
A range of issues need to be considered before reaching agreement on a consistent national standard for Client Identity Verification.This paper includes discussion on the alternative standards available and the principles agreed by the SPT to guide implementation.

Client Authorisation Agreement

Client Authorisation relates to the need for a subscriber to obtain specific authority to use NECS from the party involved in the transaction.This paper outlines the principles agreed by the land registries in guiding the implementation of a uniform Client Authorisation Agreement in all jurisdictions  and includes a draft template that would form the agreement when completed and signed. 

Instrument Certification Wordings           

Instruments lodged through NECS will need to be certified.This paper deals with the nature and extent of those certifications.  Land registries need to be assured that the dealings lodged for registration are correct, in compliance with all legal requirements and supported by all necessary documentation.  

Signing Mortgage Counterparts Instruments

The land registries have different requirements for signing mortgage instruments in their paper systems.  Developing a consistent approach to dealing with mortgage  instruments in NECS has given rise to three options. The paper outlines some of the benefits and disadvantages of the three options with the aim of determining the  best outcome for all stakeholders.

The way in which these and other issues are resolved will play an important role in determining how NECS works and what it means for you. Have a look at the papers already available and let your industry sector’s NPT member know what you think.When papers are published on new issues we will let you know in the future with a special email.
 

 Want to know more?

Please check out the NECS website www.necs.gov.au or contact us at:
Level 2, 10-16 Queen St
Melbourne Vic 3000
Ph: 03 8626 4545
Email: info@necs.gov.au