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Subscribers
are required to get specific authorisation from the Clients to
represent them in electronic transactions using the NECS. The authorisation is:
- In writing
- Prepared using a standard format provided by the NECS
- Separate from any existing letter of engagement or agreement between the Subscriber and Client.
The
authorisation establishes an agency relationship between the Client (as
principal) and the Subscriber (as agent) and can be tailored to suit:
- A particular role only (eg vendor, purchaser, mortgagee)
- A single transaction (eg 23 Barker Street, Dogtown, NSW)
- A type of transaction (eg residential or commercial transactions)
- A period of time (eg one year)
- An ongoing relationship (ie indefinitely until revoked)
- Combinations of the above.
The
authorisation also authorises the Subscriber (and its Users and
Certifiers) to enter the Client’s information including financial
account details into a NECS workspace and to certify and sign
instruments, settlement statements and information reports on the
Client’s behalf.
One
of the certifications given by Certifiers in completing instruments is
to the effect that the Subscriber they represent is in possession of a
properly completed and currently valid Client Authorisation for the
transacting party being represented.
Client
Authorisations can be withdrawn or replaced at any time by the Client
and the Subscriber is obliged to act in accordance with the
authorisation in effect at the time. Regulations prescribing the form
and effect of Client Authorisations, including how they must be
retained and for how long by Subscribers, are provided for in each
jurisdiction.
Subject
to agreement being reached between the jurisdictions and legal
practitioner and licensed conveyancer associations, prescription of the
requirements for Client Authorisations can be uniform in all
jurisdictions.
The
NECS provides a facility for Clients to withdraw specific Client
Authorisations by notification directly to the NECS. This online
facility requires Clients to notify:
- details of the authorisation including the identity of the Subscriber
- details of any transactions currently underway using the NECS
- verifiable Client details
- reason for the withdrawal.
On receipt of such an advice, the NECS (using clerical resources):
- verifies the bona fides of the Clientidentifies the relevant transactions currently underway by the Subscriber
- suspends further activity by the Subscriber on the identified transactions
- contacts the Subscriber to confirm the withdrawal
- advises the Client that the withdrawal has been made effective.
How will this impact on your industry practices? Have your say on the forums:
http://www.necs.gov.au/forums
References:
NECS Operations Description v5 130706 Sections 9.2.3.3 and 9.2.3.4 (Page 32)
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