NECS Industry Discussions 
                                                            .........Have your say on the future of electronic conveyancing

Industry discussions in Sydney and Brisbane have taken place. We will be in  Melbourne and Adelaide on the 1st and 2nd November respectively.  

If you are involved with conveyancing, then the introduction of NECS will have a significant impact on your business. To voice your concerns and views on how NECS should work you could attend the NECS Industry Discussions. 

Details of the next sessions are listed below.  Further discussions will be held in other jurisdictions as required. 

09.00 am - 1.00 pm (Lunch provided afterwards)
                       
01 November    Melbourne     Department of Sustainability and the Environment
                                                    Hoddle Room (Room 2), Level 16, 570 Bourke St

Subscribers who are sole traders, Authorised Officers (representing Subscribers who are corporations, partnerships or government agencies) and Certifiers are required to hold a Gatekeeper-compliant digital signature certificate (DSC). Gatekeeper is the Commonwealth Government’s Public Key Infrastructure (PKI) framework for secure communication between businesses and government agencies and is endorsed for use by all State and Territory governments.

The DSC must be of at least a Grade 2 standard (requiring a 100-point identity verification check) but can be of either Type 1(for individuals) or Type 2 (for businesses).

This requirement covers the use of ABN-DSCs which are Type 2 Grade 2 DSCs. They allow for one officer of the business to have their identity and authority independently verified and for further officers of the business to be vouched for by that officer. ABN-DSCs were specially developed for business. The business accepts responsibility for verifying the identity of its officers and employees. They are convenient to obtain and are readily revoked but other than the first one issued to an authorised officer of the business, none of the other holders in the business have their identities independently verified. Additionally, industry practitioners providing certification and signing services for two businesses will require two separate DSCs and when an industry practitioner changes employer they will have to obtain a new DSC.

Identification of industry practitioners taking responsibility for the correctness of instruments, settlement statements and information reports is a key factor in the design of electronic conveyancing. Type 1 and Type 2 Gatekeeper DSCs at Grade 2 standard provide sufficient identification of Certifiers on the assumption that Subscribers opting for the ABN-DSC, accept full responsibility for verifying the identity of their employees and contractors who use them as Certifiers.

How will this impact on your industry practices?  Have your say on the forums: 
http://www.necs.gov.au/forums

References:
National Business Model v9 130706 Section 11 (Page 22)
NECS Operations Description v5 130706 Section 6 (Page 17)

For details of the Cth Government’s Gatekeeper PKI framework, see AGIMO's website.
For details of the types and grades of Gatekeeper DSCs available commercially, see Verisign.

Certificates of Title

Paper Certificates of Title issued by Land Registries in the Torrens System of title registration have traditionally determined the person entitled to deal in the land described in the Certificate. They have also as a secondary attribute provided some assurance of the identity of the person holding the Certificate.

Paper Certificates are inherently incompatible with the electronic business environment of the NECS and some change to the way they have traditionally been used in assuring the title registration process is inevitable.

The options for the future centre on at least three basic courses:

• Abolishing Certificates altogether and relying on other measures to ensure the party entitled to deal in the land is the one being represented in the transaction using the NECS

• Requiring the Certificate to be lodged with the Land Registry prior to using the NECS and the party entitled to deal in the land being issued with a unique code that identifies their right to deal

• Requiring Subscribers to obtain, verify and retain the Certificate prior to using the NECS in representing the party entitled to deal in the land.

Whatever each Land Registry requires concerning Certificates of Title is provided for in the jurisdiction’s requirements of the NECS and Users enter workspace information and Certifiers complete instrument certifications as required by the particular Land Registry where the instruments are to be lodged.

However, in the interests of:

•  Compatibility between jurisdictions
•  Less potential for confusion among NECS users
•  Greater convenience for industry practitioners servicing interstate clients

A uniform approach is desirable.

What are your views on Certificates ofTtitle?  Have your say on the forums: 
http://www.necs.gov.au/forums

References:
National Business Model v9 130706 Section 17.3 (Page 45)
NECS Operations Description v5 130706 Section 9.2.6.16 (Page 37)

• Click here to join the Forums
• Click here to go to the Forum discussions

A New Face at the National Office    

Ann Kinnear manages the Office’s consultation processes. Ann is an experienced legal practitioner with further qualifications in business administration and workplace training.

Ann Kinnear
Consultation Manager

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