Due Diligence Archives

The essential role of final title searches in property transactions

November 13, 2024

The essential role of final title searches in property transactions For property lawyers and conveyancers, the property settlement process is complex, requiring careful management to protect clients from potential legal and financial risks. A recent New South Wales Supreme Court case has underscored the critical need for conducting final title searches, which serve as a vital layer of security in transferring property ownership. In this case, the purchasers of a property in Blakehurst, a suburb in the St George area of Sydney, entered a contract to buy a home valued at $4,350,000. To complete the purchase, they obtained a mortgage loan from Westpac, which would be secured against the property following the settlement. However, a complication arose when a third party lodged a caveat against the property just before the final transfer. As a result, the New South Wales Land Registry Services (LRS) informed Westpac that the transfer of ownership and the associated mortgage could not be registered. This unexpected caveat highlights the importance of final title searches, especially close to settlement, to reveal any last-minute claims or encumbrances on a property’s title. Why final title searches are critical for smooth settlements Final title searches are an essential safeguard for

Preventing fraud: the essence of due diligence

June 24, 2024

Preventing fraud: the essence of due diligence Electronic conveyancing is a fast, accurate, and secure way to complete settlements, lodgments, and lodgment stages of a conveyancing transaction. However, it also provides criminals with new ways of perpetrating crime, such as identity fraud. To reduce the chance of fraud being perpetrated, ARNECC (Australian Registrars National Electronic Conveyancing Council) sets rules and ensures that participants, known as “Subscribers”, comply. The SettleIT team conducts due diligence to reduce the risk of identity fraud, the registration of fraudulent land transactions and to ensure that we are compliant with the ARNECC rules. Steps to the due diligence process Verification of identity SettleIT will thoroughly review identity documents provided by your client and ensure that the identification has been conducted using the standard verification identity procedure or the application of reasonable steps. SettleIT use remote verification of identity (VOI) services offered by InfoTrackID, an easy-to-use, online identity verification platform that compares the client’s Australian identity documents against official government records to verify the authenticity of the documents provided. The purpose of this is to ensure that the client is who they purport to be, and that the correct person is dealing with the land. Client Authorisation

How to add a layer of legitimacy to your identity verification process to reduce identity fraud

October 1, 2021

How to add a layer of legitimacy to your identity verification process to reduce identity fraud This is the second part of the SettleIT education series supporting practitioners to navigate the e-settlements and e-conveyancing landscape. See part one here. This article does not constitute legal advice. It is for general information purposes only.  There is the notion that introducing technology into sensitive areas such as identity verification is problematic, however it is much the opposite. With identity theft on the rise, security and legitimacy are of utmost importance to organisations, and by implementing trustworthy solutions, costly identity errors can be avoided. With the rise in identity fraud so too comes a rise in sophisticated ID verification tools. New methods of verification, such as video and fingerprinting, paired with high-quality facial scanning technology means more assuredness in confirming the question, “Is my client who they say they are?” Here are three cases which could have been completely avoided, or reduced any deemed negligence when identifying a client, had a technology solution been engaged. Case 1: Do you trust yourself? Michelangelo Alfredo Mascarello & Anor v Registrar-General of New South Wales [2018] NSWSC 284 The case: Two individuals impersonated property owners with stolen identification documents and instructed a lawyer to register a mortgage over their properties.

Working longer hours won’t grow your firm, but here are some things that will

April 21, 2021

Working longer hours won’t grow your firm, but here are some things that will We’ve all heard the old adage – work smarter not harder, but in a competitive market it is important to get ahead and stay ahead. You may find it tempting to work longer hours, especially if you’re at home. However, reality is working longer hours won’t necessarily equal firm growth. So, to move your firm forward this year, what strategies do you have in place to ensure you can achieve your growth goals? Here are three ideas. Understand your customers Understanding your customer base is key to any business success. Without clients, you don’t have anyone to offer your goods and services to. But in order to work smarter, you need to know what makes your client base unique. Do they only read emails and accept calls first thing in the morning? If so, make sure you keep your communications strictly during that time. This will save you time as your contact efforts don’t go to waste. Similarly, your clients may prefer a virtual meeting. This will reduce your travel time (as you won’t need to meet in person) and goes a long way to ensuring

Real Estate activity is rising, how is your firm keeping up?

December 22, 2020

Real estate activity is rising, how is your firm keeping up? Recent adjustments to stamp duty across NSW and Victoria aim to kickstart the economy and Real Estate Agents, property lawyers and conveyancers will benefit. In Victoria, stamp duty will be slashed up to 50%, but this will only apply to newly built homes up to the value of $1 million and will be available until June 2021. Alternatively, those in Victoria buying pre-existing homes can expect to receive a 25% discount, again up to $1 million. In NSW, stamp duty reforms are still underway with final decisions being announced in March, but under the current proposal, home buyers will be able to choose if they would prefer to pay stamp duty or an ongoing annual land tax. It is hoped that these changes will bring people back into the property market, which suffered heavily during the height of COVID-19. There has also been reported growth in the number of properties coming into the market now consumer confidence has recovered. Real Estate Agents are seeing an influx of requests for settlements to take place during the Christmas and New Year period as well as for interstate service as people look to move with remote working

Why you need a property lawyer or conveyancer when you buy a property

July 28, 2020

Why you need a property lawyer or conveyancer when you buy a property Buying a property is a huge milestone and likely to be the biggest purchase you’ll ever make, so it pays to have your wits about you. The process of buying a home can be exciting, but scary to navigate. There are plenty of things that you can do yourself, like a title search, but how do you know what you’re looking for or in fact where to find it? A property lawyer or conveyancer can gather the right documents, recommend the right connections to make sure your finances are in order and review the contract when you buy. Here’s some things a property lawyer or conveyancer can do to support your next property purchase. Conducting a title search There are many reasons why you may need to conduct a title search such as buying or selling property, proving ownership or refinancing your mortgage. A Certificate of Title (CT) is a public and legal record of land ownership, including interests and restrictions on the land. In Australia, state land registries hold the title information. It can be viewed by doing a Title Search through an authorised provider, like InfoTrack.

The ACT closes in on eConvaceyancing mandate

July 27, 2020

The ACT closes in on eConveyancing mandate On June 1, the Australian Capital Territory (ACT) introduced amendments to the Electronic Conveyancing National Law (ACT) Act 2020 and the Land Titles (Electronic Conveyancing) Legislation Amendment Act 2020 (ACT). The changes mean the ACT is slowly introducing elements of the e-conveyancing workflow to assist lawyers and conveyancers with the transition prior to mandating. What does this mean for you? Now that land titles in the ACT are kept electronically it follows that lodgments should also be filed electronically. The aim is also to protect against fraudulent activity. In an effort to enhance compliance, the onus now is on lawyers, conveyancers and financial institutions (if necessary), to complete; Verification of Identity (VOI) of their client and a client authorisation form (CAF). Lawyers and conveyancers are also required to retain supporting evidence proving they are allowed to deal with a particular property. Important dates to note: Monday 17th August 2020Banks will begin creating workspaces and lodging standalone Discharges and Mortgages. From this date financial institutions can create workspaces and send invitations for Refinancing where the Settlement Date is on or after Monday August 31. Monday 7th September 2020Legal and conveyancing practitioners can begin creating workspaces and sending invitations

New NSW building law could be a game changer for apartment safety

July 22, 2020

New NSW building law could be a game changer for apartment safety Matthew Bell, Senior Lecturer and Co-Director of Studies for Construction Law, University of Melbourne This article is republished from The Conversation under a Creative Commons license. Read the original article. Three years have passed since a cladding-fuelled fire claimed 72 lives in Grenfell Tower, London, on June 14 2017. The construction industry and its regulators around the world are still grappling with how to create effective regulations to ensure dwellings are built to keep their occupants safe. The New South Wales Parliament passed two important bills last week: the Design and Building Practitioners Bill 2020 and the Residential Apartment Buildings (Compliance and Enforcement Powers) Bill 2020. This put in place two important pieces of the “jigsaw puzzle”, as NSW Better Regulation Minister Kevin Anderson put it. The Residential Apartment Buildings Bill in particular could be a game changer and is the focus of this article. The law is expected to take effect on September 1 2020. New powers to order serious defects be fixed The centrepiece of the legislation is an ability for the Secretary of the Department of Customer Service to order the correction of “serious defects” in residential apartment buildings. In practice, the NSW building commissioner and his

3 ways to complete your NSW Electronic Duties Return (EDR) or eDuties services

April 21, 2020

3 ways to complete your NSW Electronic Duties Return (EDR) or eDuties services Recently, Revenue NSW announced an update that commencing May 4, 2020, “all complex assessing and refund applications must be lodged digitally through our eDuties service.” This is a result of the unprecedented COVID-19 environment and the challenges lawyers, conveyancers and the financial industry now face since in person meetings have been put on hold and social distancing has come into play. So how does an electronic duty return work? Solicitors and conveyancers can self-assess transfer duty online and integrate with an Electronic Lodgement Network Operator (ELNO) for electronic settlements. Accountants and financial advisors can self-assess discretionary trust deeds, family trust deeds, unit trust deeds and security trusts. A list of transactions that must be processed on EDR can be found in the Duties document matrix. eDuties, on the other hand, is a portal that enables solicitors, conveyancers, accountants and financial advisors to lodge online, complex duties assessments or refunds that must be processed by Revenue NSW. Please note that eDuties does not replace self-assessment of EDR transactions. Since COVID-19, the legal profession has been under pressure to complete various elements of their matters electronically and ERD is another step in that shift towards

Say “Yes! I am open for business.” to your clients. Four solutions to maintain business as usual.

April 7, 2020

Say “Yes! I am open for business.” to your clients. Four solutions to maintain business as usual. Despite the current climate, you don’t need to put your processes on hold. Whether it be property settlements, verifying your client’s identity, signing important documents or keeping your sensitive information safe, you can say ‘Yes! I am open for business.” Here are four ways to maintain business as usual, in an environment when things certainly aren’t usual. Verify your client’s identity remotely, in lieu of face to face. Since COVID-19 and the necessity of working from home, as well as ARNECC’s updated verification of identity (VOI) recommendations, new VOI solutions are emerging almost daily. However, it is important to pay attention to what is being verified, whether official documents are checked against government records and if the security and privacy of your client’s data is guaranteed. InfoTrack’s remote VOI solution, InfoTrackID, ticks all these boxes. The Solution features four layers of identity verification smarts which are a first for the Australian legal industry. These layers of verification all work together to reduce identity fraud whilst adhering to social distancing guidelines and keeping clients safe. Amanda Spencer from Bridge Legal, an InfoTrack client, said “Once

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