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ELECTRONIC CONVEYANCING

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Electronic Conveyancing (EC) is a world-first online settlement and lodgment system developed in collaboration with the conveyancing industry. EC eliminates the need for paper-based settlements, drawing cheque and meeting to exchange documents on settlement day. In the EC system, vendors and purchasers engage registered Subscribers to act on their behalf. The Subscriber uses the online EC system on behalf of their clients to settle land transactions - including the payment of duty to the relevant state tax or revenue office - and lodge documents electronically from their personal computers.

Benefits of using EC

Buyers and sellers of property can reduce the cost of their transaction by using EC. The various benefits of EC are:

  • estimated savings of $235-$395 per typical four party settlement
  • estimated $70m p/a in annual industry and community savings by 2012
  • lower statutory fees than those charged under the paper system
  • improved housing affordability
  • removal of physical settlement and manual lodgement processes
  • substitution of bank cheques with multi-lateral electronic funds transfers
  • elimination of most paper documents and associated red tape
  • greater certainty - reduced incidence of delayed and failed property settlements and lost or incorrect documentation

EC is designed to be as safe as the existing paper-based conveyancing and lodgment system, which will continue to operate alongside Electronic Conveyancing for those who wish to continue to transact in paper.

EC Subscribers

For a property transaction to be processed through the EC system, all parties must be EC Subscribers. These parties are typically an incoming mortgagee, an outgoing mortgagee (both financial institutions), and the vendor’s and purchaser’s representatives (solicitors or conveyances). The vendor and purchaser do not subscribe to EC, but engage the services of an EC Subscriber. Subscribers will require consent from their clients in the form of a signed Representation Agreement to process a transaction through the EC system.

Who can subscribe?

  • Financial Institutions
  • Conveyancers
  • Solicitors
  • Individuals - provided they meet the minimum requirements.

What does EC provide to Subscribers?

  • A safe, secure and auditable mechanism for settlement funds transfer
  • Pre-settlement validation of the Registrar's instruments
  • Settlement and lodgement in one continuous process

Instruments that can be processed using EC

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  • Discharge of Mortgage
  • Mortgage
  • Transfer alone
  • Various combinations of the above (eg: D-T-M)
  • Withdrawal of Caveat (cannot be stand alone)

The EC system allows electronic financial property settlement and the lodgment of land transfers, mortgages and discharges of mortgage and withdrawal of caveats (not stand alone) into Land Victoria and the electronic payment of duty to the relevant state tax or revenue office.

 

System requirements

You will need an active Internet connection to access Electronic Conveyancing (EC). The browsers and operating systems compatible with EC are outlined below.

Windows XP - SP2

  • Mozilla Firefox 2.0n
  • Microsoft Internet Explorer 6.0 SP1
  • Microsoft Internet Explorer 7.0


Windows Vista

  • Mozilla Firefox 2.0n
  • Microsoft Internet Explorer 7.0


Note:
Your browser must be set to accept Cookies which are necessary for digital signing and EC login. This option can usually be located in the Privacy tab of the Tools - Internet Options menu within your browser.

Locally installed software

The following software needs to be installed onto your PC in order to use the EC system.

Digital Signing Certificate

  • Software to allow your PC to use the USB security token is provided on a CD that is packaged with your token. Support for these drivers and software is provided by VeriSign.


Common Signing Interface

  • Common Signing Interface (CSI) Applet - This is used for electronic signing and needs to be installed in order to use a Digital Signing Certificate.
  • If you attempt to sign and you do not have CSI installed, EC will prompt you to install the Applet and will guide you through an installation process.

Online lodgement and settlement

What is e-Lodge?

Electronic Conveyancing (EC) provides the facility to process and electronically lodge conveyancing documents including:

  • Instruments
  • Registrar's Instructions
  • Administrative Notices (e.g. Certificate of Title conversion requests).

All Instruments, Registrar's Instructions and Administrative Notices are digitally signed by Subscribers before being validated and submitted to LV. After validation and when lodged with LV, the Instruments, Registrar's Instructions and Administrative Notices follow the normal Registration process.

What is e-Settle?

Settlement, as provided by the EC system, is a seamless and continuous process which allows for:

  • online financial settlement of property transactions via the Financial Settlement Manager
  • the electronic lodgement of Instruments, Registrar's Instructions and Administrative Notices with LV
  • the sending of duty and land tax information (including the payment of stamp duty and sending of agreed Notice of Acquisition data information) to the relevant state tax or revenue office. In Victoria this is the State Revenue Office (SRO).

 

The role of the Electronic Lodgment File (ELF) in EC

EC uses the ELF as a means of collecting, controlling and remitting all the required lodgment and settlement data.

  • The ELF provides for the property settlement details to be irrevocably and non-repudiably digitally signed when the participating Subscribers have completed their data input.
  • Subscribers also add and verify details in the ELF for both the source and the disbursement of funds.
  • In addition, all participating Subscribers (eg financial institutions, solicitors and/or conveyancers) will digitally sign a financial summary of the transaction.
  • A settlement time and date will be agreed between the parties using the ELF. At this agreed settlement time, all Elf’s that are ready are 'frozen' for processing.
  • A pre-lodgement check is performed on all ready ELFs to ensure that the Registrar's Instruments are validated for assured lodgement. ELFs that do not pass this validation will not be processed.
  • EC will extract the financial data from each ELF, create a Financial Settlement File and forward this to ASX. A participating Subscriber can stop settlement at any time prior to the ELF being frozen for processing. The consequence of this action is the same as would apply in the paper system.

After financial settlement

Following successful financial settlement, ASX will send details of individual financial line items to the relevant financial institutions to debit/credit their customer’s bank accounts and advise EC of the successful financial settlement.

EC will notify participating Subscribers of the successful financial SETTLEMENT submit the Registrar’s Instruments and Instructions to LV for lodgment and submit duty and land tax data to the relevant state tax or revenue office. EC will then notify participating Subscribers that the ELF has been successfully processed

 

Confidentiality and Conveyancing


 Conveyancing depends upon a substantial degree of mutual co-operation. Attorneys have to maintain their confidentiality with lenders and clients .with lenders; it is clearly our duty to report to a lender any circumstance about the transaction which might affect their decision to lend. It is not possible to list completely the circumstances in which such disclosure might be required, but often it would be some arrangement between the vendor, and the purchaser which affects the purchase price. If the circumstance will not affect the lender's decision, then no harm is done by the disclosure. If we conclude that the lender's decision might be affected by the circumstance, then we would have a duty to inform the lender. Very occasionally a conflict will arise between the lay client and the lender where other rules will apply.

In the general run of conveyancing, it is common also for us to be asked, and to ask on your behalf, about matters such as the progress of mortgage applications, and other circumstances which will affect a conveyance. The very process of conveyancing involves the asking, and answering, of many questions between solicitors about the properties, and the clients. It is a process of enquiry and disclosure.

There are no hard and fast guide-lines as to what can be disclosed. We hope that our decisions will be made with common sense, starting from the prime requirement of confidentiality. In particular, if anything sensitive might need to be disclosed, we will make sure that you know of the disclosure, and in most circumstances we will ask for your specific consent first before making the disclosure.

This is important. We are happy to discuss it with you at any time. We will assume that we have your authority to disclose non-sensitive material to someone else, within the transaction and who has a proper interest. We ask you to be sure to let us know immediately if you wish, as you are quite free to do, to restrict this discretion.

Please note now also that we must operate within the Money Laundering laws. These can require us to report to the police any transaction which we consider to be suspicious. To be fair, if we had the faintest idea that a client might be asking us to do such a thing we would not be involved to begin with.

 

Property/Conveyancing
In the highly competitive conveyancing and property law markets, WNS currently provides to multiple clients a wide range services, including those shown below for both Freehold and Leasehold properties:

Re-mortgage/Re-finance Legal Processes:

·         Categorize, index and set up new instructions

·         Obtain Office Copy Entries and capture details

·         Send letter and questionnaire to clients

·         Obtain redemption statement and deeds from existing lender

·         Prepare occupiers waiver

·         Chase documents and update system/screens

·         Carry out searches

·         Do OS1 and K16

·         Send COT, new building insurance details and ID

·         Prepare completion statements, invoices and TTS

·         1 to 2 Transfers of Equity

·         Deeds of postponement

Property Sale Processes:

40% of the overall process can be outsourced

Property Purchase Processes:

65% of the overall process can be outsourced

Onshore operations remain post room & scanning, client communication and finance/client account.

 

Question and Answer

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