November 16, 2007 is D Day for EC's vaunted Release 2.0
If you want a preview, EC released a demonstration CD. Here's a sample of the Vendor module from the disk. Here's a sample of the Purchase Model.
EC's launch as the industry knows has been waylaid by the withdrawal of the Big 4 and no sign off yet by the Lawyers LPLC.
Anyhow, we now have the benefit of having a peek under the bonnet as EC have released a demonstration disk giving us a video of a sample file.
First thoughts. The vid gives you the feel you are filling out a e-tax form, which didn't make me feel too good about this release. The visual interface looks like it needs a makeover. BUt then again this is just a demo vid.
The digital signing part looks great. The double authentication gives me confidence that it wont be easy for an outsider to hack.
The bit that I bet will make many of us feel a bit queasy is entering in all the bank account details for disbursement of cheques (whoops, I mean funds). No cheques here. We are going to have to obtain bank account details, enter them, check and re-check them. I know this is the future, but. I dont like the responsibility. Can we cut and past bank account details that clients supply us? I dont know but can we store commonly used bank account details, like our office or trust account?
Have a look at the demo I have posted and leave a comment on what you think.
Electronic Conveyancing Demonstration 07.11.07
You want a copy of the disk. Perhaps email ec at landexchange.vic.gov.au
Or ring them on 03 8636 2625
Saturday, November 10, 2007
Friday, November 09, 2007
Attorney-General, Philip Ruddock,
Ruddock was all about building a brave new tomorrow, such as the "harmonisation" of our laws. In particular, he said, he was passionate about harmonising the various statutes dealing with personal property security, electronic conveyancing, evidence, statutory declarations and powers of attorney.
Importantly, he had a "vision" about reducing red tape. Wow. It can't get much more exciting than that, surely.
Extract from debate between Ruddock and shadow Labor Senator Joe Ludwig.
Richard Ackland - SMH
November 9, 2007
Importantly, he had a "vision" about reducing red tape. Wow. It can't get much more exciting than that, surely.
Extract from debate between Ruddock and shadow Labor Senator Joe Ludwig.
Richard Ackland - SMH
November 9, 2007
Thursday, November 08, 2007
Digital Signatures in Electronic Conveyancing
Electronic Conveyancing in NSW
Please Note
The information in this newsletter is correct at time of publication but may change as the project develops. It reflects current thinking to generate discussion and feedback and is not a substitute for publication of Circulars announcing policy changes.
Digital Signatures in Electronic Conveyancing
Digital signature certificates are an essential requirement of electronic conveyancing. They replace manual signatures used on paper instruments to identify the person taking responsibility for the correctness of the information contained in an electronic instrument.
What are digital signatures?
A digital signature certificate is an electronic fingerprint that identifies the person to whom it was issued. It is an electronic record that identifies the person by name and other details as well as the organisation vouching for the person’s identity. When applied to an electronic instrument, the signature certificate tells the Land Registry who certified and signed the instrument.
Why are they necessary?
Digital signatures are necessary in electronic conveyancing to replace the traditional manual signatures on paper instruments identifying the person taking responsibility for the correctness of the instrument’s information. They allow the authenticity of the signature to be independently verified electronically as valid and belonging to the person named by it, and therefore for the entire instrument to be examined electronically.
How do you get one?
Digital signature certificates are purchased from private sector suppliers. To get one it is necessary first to have your identity independently verified in a similar manner to that necessary before opening a new bank account. After satisfying the identity verification requirement and paying the required fee, the signature certificate is delivered over the Internet or by mail. Signature certificates generally need to be renewed every two years.
Who can issue one?
Digital signature certificates suitable for electronic conveyancing can only be issued by a supplier accredited under the Commonwealth Government’s Gatekeeper program. This ensures the supplier’s security arrangements and procedures are sound and reliable. Details of the Gatekeeper program are available at http://www.agimo.gov.au/infrastructure/gatekeeper.
What do they cost?
Digital signature certificates from a Gatekeeper-accredited supplier cost between $100 and $200 each for a two-year validity period depending upon the type of certificate required. Current GST-inclusive pricing from one supplier is available at
http://www.verisign.com.au/gatekeeper/pricing.shtml
How will they be used?
Digital signature certificates will be used in signing instruments, information reports and settlement statements in NECS. When the instrument, report or statement has been certified by confirming each of the required certifications presented by the system, the signing procedure will be made available. To sign, a person registered with NECS as a Certifier must enter their digital signature certificate password (different from their NECS user-id password and not known to NECS). When the password is verified correct, the NECS system verifies the signature certificate with the Gatekeeper-accredited supplier who issued it to ensure it is valid and unrevoked, then adds the certificate to the instrument, report or statement as the verified identity of the person who certified and signed it. The signature certificate then becomes and inseparable part of the instrument, report or statement. Any organisation, such as a Land Registry or Revenue Office, receiving a certified and signed instrument or report can independently verify the included signature certificate with the supplier who issued it.
What should be done to keep them secure?
Digital signature certificates can be stored on the fixed hard-drive of computers or on removable storage devices such as a smartcard or USB memory stick. The person to whom the signature certificate is issued is responsible for its security. If a certificate stored on a shared computer is used by someone else to fraudulently certify and sign an instrument, report or statement, the responsibility for that certification and signing rests with the person to whom the certificate was issued.
For security reasons, storage of signature certificates on removable devices, such as a smartcard or USB memory stick, which can be kept under the responsible person’s control at all times is preferred and highly recommended. It is possible professional conduct regulations associated with electronic conveyancing may oblige legal practitioners and licensed conveyancers to store their signature certificates on such devices.
Please Note
The information in this newsletter is correct at time of publication but may change as the project develops. It reflects current thinking to generate discussion and feedback and is not a substitute for publication of Circulars announcing policy changes.
Digital Signatures in Electronic Conveyancing
Digital signature certificates are an essential requirement of electronic conveyancing. They replace manual signatures used on paper instruments to identify the person taking responsibility for the correctness of the information contained in an electronic instrument.
What are digital signatures?
A digital signature certificate is an electronic fingerprint that identifies the person to whom it was issued. It is an electronic record that identifies the person by name and other details as well as the organisation vouching for the person’s identity. When applied to an electronic instrument, the signature certificate tells the Land Registry who certified and signed the instrument.
Why are they necessary?
Digital signatures are necessary in electronic conveyancing to replace the traditional manual signatures on paper instruments identifying the person taking responsibility for the correctness of the instrument’s information. They allow the authenticity of the signature to be independently verified electronically as valid and belonging to the person named by it, and therefore for the entire instrument to be examined electronically.
How do you get one?
Digital signature certificates are purchased from private sector suppliers. To get one it is necessary first to have your identity independently verified in a similar manner to that necessary before opening a new bank account. After satisfying the identity verification requirement and paying the required fee, the signature certificate is delivered over the Internet or by mail. Signature certificates generally need to be renewed every two years.
Who can issue one?
Digital signature certificates suitable for electronic conveyancing can only be issued by a supplier accredited under the Commonwealth Government’s Gatekeeper program. This ensures the supplier’s security arrangements and procedures are sound and reliable. Details of the Gatekeeper program are available at http://www.agimo.gov.au/infrastructure/gatekeeper.
What do they cost?
Digital signature certificates from a Gatekeeper-accredited supplier cost between $100 and $200 each for a two-year validity period depending upon the type of certificate required. Current GST-inclusive pricing from one supplier is available at
http://www.verisign.com.au/gatekeeper/pricing.shtml
How will they be used?
Digital signature certificates will be used in signing instruments, information reports and settlement statements in NECS. When the instrument, report or statement has been certified by confirming each of the required certifications presented by the system, the signing procedure will be made available. To sign, a person registered with NECS as a Certifier must enter their digital signature certificate password (different from their NECS user-id password and not known to NECS). When the password is verified correct, the NECS system verifies the signature certificate with the Gatekeeper-accredited supplier who issued it to ensure it is valid and unrevoked, then adds the certificate to the instrument, report or statement as the verified identity of the person who certified and signed it. The signature certificate then becomes and inseparable part of the instrument, report or statement. Any organisation, such as a Land Registry or Revenue Office, receiving a certified and signed instrument or report can independently verify the included signature certificate with the supplier who issued it.
What should be done to keep them secure?
Digital signature certificates can be stored on the fixed hard-drive of computers or on removable storage devices such as a smartcard or USB memory stick. The person to whom the signature certificate is issued is responsible for its security. If a certificate stored on a shared computer is used by someone else to fraudulently certify and sign an instrument, report or statement, the responsibility for that certification and signing rests with the person to whom the certificate was issued.
For security reasons, storage of signature certificates on removable devices, such as a smartcard or USB memory stick, which can be kept under the responsible person’s control at all times is preferred and highly recommended. It is possible professional conduct regulations associated with electronic conveyancing may oblige legal practitioners and licensed conveyancers to store their signature certificates on such devices.
Monday, November 05, 2007
Misuse of LIV Copyright forms
From LIV - Friday Facts
"The LIV is aware that some practitioners have altered or misused LIV forms which are sold in hard copy or electronic format, either by photocopying, cutting and pasting large amounts of text into their own documents or using the document ostensibly in its original form but with modifications which are not immediately apparent. These practices are a breach of the LIV's copyright in the documents and have the potential to mislead fellow practitioners who can reasonably expect that the original standard form of document has been used. Changes to any of the provisions in LIV forms should always be made by special conditions which refer to additions or deletions. If you are aware of any practitioners who have altered or misused LIV copyright forms, please report the matter and provide copies of the documents to LIV CEO Mike Brett Young" by email to ceo@liv.asn.au
I have personally come across one or two instances of the boilerplate LIV General Conditions having been amended. Such a practice is in my view misleading. DO such practitioners expect any other lawyer to have to read the General Conditions line by line to see if there have been any unexpected changes?
"The LIV is aware that some practitioners have altered or misused LIV forms which are sold in hard copy or electronic format, either by photocopying, cutting and pasting large amounts of text into their own documents or using the document ostensibly in its original form but with modifications which are not immediately apparent. These practices are a breach of the LIV's copyright in the documents and have the potential to mislead fellow practitioners who can reasonably expect that the original standard form of document has been used. Changes to any of the provisions in LIV forms should always be made by special conditions which refer to additions or deletions. If you are aware of any practitioners who have altered or misused LIV copyright forms, please report the matter and provide copies of the documents to LIV CEO Mike Brett Young" by email to ceo@liv.asn.au
I have personally come across one or two instances of the boilerplate LIV General Conditions having been amended. Such a practice is in my view misleading. DO such practitioners expect any other lawyer to have to read the General Conditions line by line to see if there have been any unexpected changes?
Vic rapped on attitude to e-system
Les Taylor is still confident that a national system of electronic conveyancing will be achieved, writes Legal affairs editor Chris Merritt | November 02, 2007
THE organisation charged with developing a national electronic conveyancing system has accused Victoria of trying to "torpedo" the new system.
Les Taylor, who chairs the organisation known as the National Electronic Conveyancing System, said Victoria was trying to replace the planned national system with a network of state-based systems.
In an interview with The Australian, Mr Taylor has delivered a withering attack on Victoria's behaviour during negotiations aimed at establishing a national conveyancing system.
"I liken this very much to the problems incurred in the 1800s with different railway gauges," he said.
He was still confident that a national system of electronic conveyancing would be achieved, but he accused Victoria of reneging on an agreement to help build the system.
Instead, he said Victoria was trying to impose a federation of state-based systems that lack the support of banks and lawyers.
Mr Taylor, who is a former general counsel for the Commonwealth Bank, had reneged on its promise to hand over all the intellectual property underpinning its own electronic conveyancing system, known as ECV.
Mr Taylor, who is now overseas, made his criticism of Victoria before talks this week aimed at clearing the way for the establishment of a national e-conveyancing system.
As part of those talks, an agreement has been made on preconditions that Victoria had been insisting on before making available source codes for the software underpinning its e-conveyancing system.
Mr Taylor said Victoria had agreed in June at a meeting of the NECS steering committee to hand over those source codes so the system could be assessed by NSW officials.
Victorian officials had agreed to hand over the codes so NSW "could do a proper evaluation in order to determine what changes would be necessary if the Victorian model was used as a basis for an electronic system in NSW, and then Australia-wide".
A spokeswoman for Gavin Jennings, the minister responsible for e-conveyancing in Victoria, said the states were continuing to work on delivering "a nationally consistent system, as has been the objective for several years".
Victoria and Queensland believed the national e-conveyancing project was on track, the spokeswoman said.
Mr Taylor said the Queensland Government had endorsed a national model of e-conveyancing in June but now "seems to have joined forces with Victoria in an attempt to torpedo the national project and impose a federated model".
Mr Taylor said the Law Council and the state law societies had taken the same stance as the banks and wanted a seamless electronic conveyancing system covering the nation, rather than eight separate systems.
He said an external review of the Victorian system had been conducted last year for the NECS steering committee.
"It concluded that the Victorian system was not really capable of being transferred and incorporated into a national system," Mr Taylor said.
But he said this assessment was limited because Victoria had again refused to hand over source codes and other intellectual property associated with the ECV system.
THE organisation charged with developing a national electronic conveyancing system has accused Victoria of trying to "torpedo" the new system.
Les Taylor, who chairs the organisation known as the National Electronic Conveyancing System, said Victoria was trying to replace the planned national system with a network of state-based systems.
In an interview with The Australian, Mr Taylor has delivered a withering attack on Victoria's behaviour during negotiations aimed at establishing a national conveyancing system.
"I liken this very much to the problems incurred in the 1800s with different railway gauges," he said.
He was still confident that a national system of electronic conveyancing would be achieved, but he accused Victoria of reneging on an agreement to help build the system.
Instead, he said Victoria was trying to impose a federation of state-based systems that lack the support of banks and lawyers.
Mr Taylor, who is a former general counsel for the Commonwealth Bank, had reneged on its promise to hand over all the intellectual property underpinning its own electronic conveyancing system, known as ECV.
Mr Taylor, who is now overseas, made his criticism of Victoria before talks this week aimed at clearing the way for the establishment of a national e-conveyancing system.
As part of those talks, an agreement has been made on preconditions that Victoria had been insisting on before making available source codes for the software underpinning its e-conveyancing system.
Mr Taylor said Victoria had agreed in June at a meeting of the NECS steering committee to hand over those source codes so the system could be assessed by NSW officials.
Victorian officials had agreed to hand over the codes so NSW "could do a proper evaluation in order to determine what changes would be necessary if the Victorian model was used as a basis for an electronic system in NSW, and then Australia-wide".
A spokeswoman for Gavin Jennings, the minister responsible for e-conveyancing in Victoria, said the states were continuing to work on delivering "a nationally consistent system, as has been the objective for several years".
Victoria and Queensland believed the national e-conveyancing project was on track, the spokeswoman said.
Mr Taylor said the Queensland Government had endorsed a national model of e-conveyancing in June but now "seems to have joined forces with Victoria in an attempt to torpedo the national project and impose a federated model".
Mr Taylor said the Law Council and the state law societies had taken the same stance as the banks and wanted a seamless electronic conveyancing system covering the nation, rather than eight separate systems.
He said an external review of the Victorian system had been conducted last year for the NECS steering committee.
"It concluded that the Victorian system was not really capable of being transferred and incorporated into a national system," Mr Taylor said.
But he said this assessment was limited because Victoria had again refused to hand over source codes and other intellectual property associated with the ECV system.
Sunday, November 04, 2007
Where do you really want to live?
I'll be honest. I want to live within 15 kilometers from the city, in a south eastern or bayside suburb. With a couple of kids, we consider ourselves Mr and Mrs Average. Me, I am a working suburban lawyer and the misses works part time. I don't aspire to live in Caroline Springs or Fountain Gate neither suburb being close to family, friends or place of work.
I have just read the latest update from the National Real Estate Institute, "The average new home loan of $247,455 doesn’t provide for McMansion style housing, but for a basic family home." So that's the average home loan, that is causing all the stress about mortgage stress. I would kill for a $247,455 home loan. Because where I want to live that is not even going to cover for a 1 bedroom flat.
Without being too fancy, I have picked on finding a house in Bentleigh which is close to where I grew up and to where I work. It is not exactly an aspirational suburb but it is near enough to suburbs that would qualify for such a tag.
The latest facts and figures on Bentleigh are -
Lower Quartile $600,000
Median $700,000
Upper Quartile $807,000
Annual change 34.6%
If I can pick up my dream (not aspirational) home, I need to budget on paying $700,000 and being conservative I will only borrow 80% of the purchase price. I don't really want to pay mortgage insurance. Stamp duty, government fees and legals alone add $40,000 to the equation.
Price $700K
Mortgage $560K
Deposit $181K
Interest Rate 8%
Term 25 years
Monthly payment $4,322
Annual repayments $52,000
How does this accord with the reported average new loan of $248K ?
Bentleigh in my childhood (1960s) was just pretty average. About 10 to 15 years ago, Bentleigh saw a great influx of young parents with numbers of kids and toddlers swelling the numbers at kindergartens, creches and the local schools. Bentleigh was for generations affordable.
I find it hard to see this being repeated today.
PS If you were to buy the 700K house in Bentleigh with a $248K mortgage, you would need close to a $500K deposit. Mum, I need a loan. Son, start saving.
I have just read the latest update from the National Real Estate Institute, "The average new home loan of $247,455 doesn’t provide for McMansion style housing, but for a basic family home." So that's the average home loan, that is causing all the stress about mortgage stress. I would kill for a $247,455 home loan. Because where I want to live that is not even going to cover for a 1 bedroom flat.
Without being too fancy, I have picked on finding a house in Bentleigh which is close to where I grew up and to where I work. It is not exactly an aspirational suburb but it is near enough to suburbs that would qualify for such a tag.
The latest facts and figures on Bentleigh are -
Lower Quartile $600,000
Median $700,000
Upper Quartile $807,000
Annual change 34.6%
If I can pick up my dream (not aspirational) home, I need to budget on paying $700,000 and being conservative I will only borrow 80% of the purchase price. I don't really want to pay mortgage insurance. Stamp duty, government fees and legals alone add $40,000 to the equation.
Price $700K
Mortgage $560K
Deposit $181K
Interest Rate 8%
Term 25 years
Monthly payment $4,322
Annual repayments $52,000
How does this accord with the reported average new loan of $248K ?
Bentleigh in my childhood (1960s) was just pretty average. About 10 to 15 years ago, Bentleigh saw a great influx of young parents with numbers of kids and toddlers swelling the numbers at kindergartens, creches and the local schools. Bentleigh was for generations affordable.
I find it hard to see this being repeated today.
PS If you were to buy the 700K house in Bentleigh with a $248K mortgage, you would need close to a $500K deposit. Mum, I need a loan. Son, start saving.
Friday, November 02, 2007
Electronic property plan hits roadblock
ON Wednesday Tony Kelly thought the efforts of his top bureaucrats had finally achieved a breakthrough.
Kelly, the NSW Minister for Lands, had sent Warwick Watkins, the director general of his department, to Melbourne to sort out the feud that threatens to derail the establishment of a national system of electronic conveyancing.
The news appeared to be good. Kelly thought Victoria had returned to the fold and embraced the idea of a single national system -- the model favoured by the Australian Bankers Association, lawyers and non-lawyer conveyancers.
"There is no impasse. We are determined to get on and have a national system, and that is exactly what the ABA wants," Kelly said.
In the past few weeks, Kelly has been deeply involved in trying to smooth the way for a national e-conveyancing system. He has spoken to the ABA, Westpac and the Victorian minister responsible for e-conveyancing, Gavin Jennings.
"I had my director general go down and see his and they have agreed to move on. They have convened a meeting of all the directors general involved, to ensure they move forward."
Victorian officials, however, have a very different understanding of what came out of this week's talks, and it all came down to one word.
Jennings' spokeswoman said officials from the two states had agreed the goal was "a nationally consistent" system.
The word to watch is "consistent". It means the agreement between NSW and Victoria is at best incremental and at worst illusory.
A nationally consistent system, in the view of Jennings' spokeswoman, is a network of eight separate state-based e-conveyancing systems, preferably based on Victoria's Electronic Conveyancing Victoria (ECV) system.
"It is what Victoria has wanted all along," she said.
Despite that misunderstanding, there was some positive news from the talks. Kelly's office says Victoria has agreed to make the inner workings of its system available to NSW for assessment.
Until now, Victoria has only handed over a demonstration version of ECV and has been hanging on to the source code and supporting material. Victorian officials feared that NSW would simply examine their system and reject it. They have accused NSW of harbouring ambitions to control e-conveyancing nationally.
Victoria has been insisting on agreement in advance on the criteria NSW will use to assess ECV's viability. Kelly's office says agreement has been reached on that process and the next step will be when Victoria hands over the source code.
NSW and Victoria both say they want a national system, but the way forward will be complicated by Victoria's push for a federated structure.
Victoria has a lot at stake with ECV. The government has invested about $40 million in building the system and, those who have used it say it works well within the state.
The trouble starts at the border. The competing model for the national future of e-conveyancing -- a single seamless system -- enjoys the support of lawyers, banks and conveyancers. Together, these groups are the key private-sector parties with an interest in conveyancing. Without them, no e-conveyancing system can be viable.
Because of Victoria's different approach to the national future of conveyancing, the big banks are boycotting ECV. Unless they return, the Victorian system looks set to become a $40 million white elephant.
The state government knew about that risk long ago. Documents obtained by The Australian show that the state government was warned last December that its e-conveyancing system was incapable of being used as a single national system.
The warning was issued by independent consultants Daniel Brewer and Michael Bolton after the state government had spent $20 million on ECV.
The warning about the shortcomings of the Victorian system is recorded in the minutes of the organisation responsible for building the national e-conveyancing system, the National Electronic Conveyancing System (NECS), which consists of representatives of the state and territory governments, the Law Council, the Australian Institute of Conveyancers and the Australian Bankers Association.
NECS had commissioned an independent report on how ECV would fit into the planned national system being developed by NECS. Victoria developed ECV while part of NECS.
NECS has agreed to base the new national system, as far as possible, on the Victorian system. The minutes of the December meeting of the NECS steering committee show Victorian government official Genevieve Overell was present when the adverse report on ECV was discussed.
Brewer and Bolton found that the parts of ECV for settlement of conveyancing transactions "can be easily reused to meet the NECS requirements" for a single national system, but the shortcomings came to light when they examined the system's lodgment functions.
"It has been specifically designed for Victorian requirements and the underlying architecture is inadequate to satisfactorily meet the requirements of NECS for a national multi-jurisdictional system," the consultants said.
The minutes of the December meeting state: "Michael Bolton's view was that, in relation to the lodgment stage, it would be better to start constructing a system from scratch than trying to build around the ECV system to accommodate other jurisdictions' unique requirements."
After receiving that report, Victoria's Overell suggested another opinion be sought "given that Victoria has invested $20 million in the project".
Others at the meeting were, however, concerned about delaying the establishment of a national system.
Victoria's system might be a good standalone system for one state but "it will not suit the banking or legal market to structure ECV for each jurisdiction, as we will end up with a number of similar systems but not one national system", they said.
One of the points made at the meeting after the adverse report on ECV was that "evolution of ECV into NECS is important and it has to be through political agreement, including paying Victoria fair compensation".
The minutes of the next meeting, in March, show that NECS chairman Les Taylor "explained that it had not been an easy time of late and that everyone has tried to take into account the Victorian situation, noting that he does not want anyone to lose money".
"However, he confirmed that it was the banks that said at the outset that they would not support eight different systems, and that gave impetus to the national project."
The minutes of other NECS meetings, also obtained by The Australian, show Victorian government representatives repeatedly committed themselves to the NECS business plan of a single national electronic conveyancing system.
The June minutes show that "Queensland undertook a joint study with Victoria to see if ECV could handle Queensland's requirements".
The study found that "the design and architecture of ECV would appear flexible enough to be modified to meet forseeable requirements of the jurisdictions and NECS".
However, Australian Bankers Association director Ian Gilbert raised concerns about the scope of that assessment. He "noted that the results of the Queensland testing were to find out the ability of ECV to be modified from a land titles perspective and not from the perspective of other stakeholders, such as the banks".
He told the meeting that the banks had "serious concerns" about the development of two disparate processes.
"This resulted in the banks deciding to suspend further participation with ECV until there is a clear single way forward," the minutes say.
"He expressed concern about material emanating from Victoria since April representing that the banks are working with ECV.
"The banks have not changed their position since 2004, when they stated that 'banks support a national electronic system that will deliver a seamless, interoperable, flexible, electronic settlement and lodgment system that can accommodate inter-jurisdictional differences'," the minutes say.
Within Victoria, ECV is intended eventually to deliver cost savings of up to $395 on each transaction, according to government estimates.
Those savings have been placed at risk not by any flaw in ECV but because Victoria still hopes to build a federation of ECVs nationally instead of a single system.
Even if public servants around the country find a network of ECVs attractive, the reality is that their opinions do not matter. The private sector is the key to conveyancing and the main players in the private sector want something that Victoria is not offering.
The banks withdrew from ECV in protest at Victoria's lack of co-operation with the push to establish a single national system.
To justify their investment in e-conveyancing, the banks want the same system rolled out nationally. They want to deal with one system, not eight.
The Victorian government has now manoeuvred itself into a position where it desperately needs the banks to return to ECV, but it is pushing ahead with plans that have driven the banks away.
Unless the deadlock is broken, ordinary Victorians look set to pay a high price. Without the banks, the state government's $40 million investment is at risk of remaining relatively idle because most transactions will still be paper-based.
Because the state government has also increased government charges on paper-based conveyancing by up to 32 per cent, Victorians will soon be familiar with the ECV effect, even if they never go anywhere near the system.
The fee hike was intended to drive transactions to ECV, but none of that will work unless the banks' concerns are addressed.
In the final weeks before the launch of the latest version of ECV, Victorian officials say they are talking to three banks attracted to the idea of eight separate e-conveyancing systems.
The state government is also involved in negotiations aimed at addressing the concerns of the Legal Practitioners' Liability Committee about the new system. Those concerns triggered a warning from the Law Institute of Victoria that it could not recommend solicitors' participation in the system.
If these talks fail, Victorians might soon be asking the state government why it spent $40 million building a system that few of those in the business of conveyancing are prepared to use.
Chris Merritt, Legal affairs editor | November 02, 2007 The Australian
Kelly, the NSW Minister for Lands, had sent Warwick Watkins, the director general of his department, to Melbourne to sort out the feud that threatens to derail the establishment of a national system of electronic conveyancing.
The news appeared to be good. Kelly thought Victoria had returned to the fold and embraced the idea of a single national system -- the model favoured by the Australian Bankers Association, lawyers and non-lawyer conveyancers.
"There is no impasse. We are determined to get on and have a national system, and that is exactly what the ABA wants," Kelly said.
In the past few weeks, Kelly has been deeply involved in trying to smooth the way for a national e-conveyancing system. He has spoken to the ABA, Westpac and the Victorian minister responsible for e-conveyancing, Gavin Jennings.
"I had my director general go down and see his and they have agreed to move on. They have convened a meeting of all the directors general involved, to ensure they move forward."
Victorian officials, however, have a very different understanding of what came out of this week's talks, and it all came down to one word.
Jennings' spokeswoman said officials from the two states had agreed the goal was "a nationally consistent" system.
The word to watch is "consistent". It means the agreement between NSW and Victoria is at best incremental and at worst illusory.
A nationally consistent system, in the view of Jennings' spokeswoman, is a network of eight separate state-based e-conveyancing systems, preferably based on Victoria's Electronic Conveyancing Victoria (ECV) system.
"It is what Victoria has wanted all along," she said.
Despite that misunderstanding, there was some positive news from the talks. Kelly's office says Victoria has agreed to make the inner workings of its system available to NSW for assessment.
Until now, Victoria has only handed over a demonstration version of ECV and has been hanging on to the source code and supporting material. Victorian officials feared that NSW would simply examine their system and reject it. They have accused NSW of harbouring ambitions to control e-conveyancing nationally.
Victoria has been insisting on agreement in advance on the criteria NSW will use to assess ECV's viability. Kelly's office says agreement has been reached on that process and the next step will be when Victoria hands over the source code.
NSW and Victoria both say they want a national system, but the way forward will be complicated by Victoria's push for a federated structure.
Victoria has a lot at stake with ECV. The government has invested about $40 million in building the system and, those who have used it say it works well within the state.
The trouble starts at the border. The competing model for the national future of e-conveyancing -- a single seamless system -- enjoys the support of lawyers, banks and conveyancers. Together, these groups are the key private-sector parties with an interest in conveyancing. Without them, no e-conveyancing system can be viable.
Because of Victoria's different approach to the national future of conveyancing, the big banks are boycotting ECV. Unless they return, the Victorian system looks set to become a $40 million white elephant.
The state government knew about that risk long ago. Documents obtained by The Australian show that the state government was warned last December that its e-conveyancing system was incapable of being used as a single national system.
The warning was issued by independent consultants Daniel Brewer and Michael Bolton after the state government had spent $20 million on ECV.
The warning about the shortcomings of the Victorian system is recorded in the minutes of the organisation responsible for building the national e-conveyancing system, the National Electronic Conveyancing System (NECS), which consists of representatives of the state and territory governments, the Law Council, the Australian Institute of Conveyancers and the Australian Bankers Association.
NECS had commissioned an independent report on how ECV would fit into the planned national system being developed by NECS. Victoria developed ECV while part of NECS.
NECS has agreed to base the new national system, as far as possible, on the Victorian system. The minutes of the December meeting of the NECS steering committee show Victorian government official Genevieve Overell was present when the adverse report on ECV was discussed.
Brewer and Bolton found that the parts of ECV for settlement of conveyancing transactions "can be easily reused to meet the NECS requirements" for a single national system, but the shortcomings came to light when they examined the system's lodgment functions.
"It has been specifically designed for Victorian requirements and the underlying architecture is inadequate to satisfactorily meet the requirements of NECS for a national multi-jurisdictional system," the consultants said.
The minutes of the December meeting state: "Michael Bolton's view was that, in relation to the lodgment stage, it would be better to start constructing a system from scratch than trying to build around the ECV system to accommodate other jurisdictions' unique requirements."
After receiving that report, Victoria's Overell suggested another opinion be sought "given that Victoria has invested $20 million in the project".
Others at the meeting were, however, concerned about delaying the establishment of a national system.
Victoria's system might be a good standalone system for one state but "it will not suit the banking or legal market to structure ECV for each jurisdiction, as we will end up with a number of similar systems but not one national system", they said.
One of the points made at the meeting after the adverse report on ECV was that "evolution of ECV into NECS is important and it has to be through political agreement, including paying Victoria fair compensation".
The minutes of the next meeting, in March, show that NECS chairman Les Taylor "explained that it had not been an easy time of late and that everyone has tried to take into account the Victorian situation, noting that he does not want anyone to lose money".
"However, he confirmed that it was the banks that said at the outset that they would not support eight different systems, and that gave impetus to the national project."
The minutes of other NECS meetings, also obtained by The Australian, show Victorian government representatives repeatedly committed themselves to the NECS business plan of a single national electronic conveyancing system.
The June minutes show that "Queensland undertook a joint study with Victoria to see if ECV could handle Queensland's requirements".
The study found that "the design and architecture of ECV would appear flexible enough to be modified to meet forseeable requirements of the jurisdictions and NECS".
However, Australian Bankers Association director Ian Gilbert raised concerns about the scope of that assessment. He "noted that the results of the Queensland testing were to find out the ability of ECV to be modified from a land titles perspective and not from the perspective of other stakeholders, such as the banks".
He told the meeting that the banks had "serious concerns" about the development of two disparate processes.
"This resulted in the banks deciding to suspend further participation with ECV until there is a clear single way forward," the minutes say.
"He expressed concern about material emanating from Victoria since April representing that the banks are working with ECV.
"The banks have not changed their position since 2004, when they stated that 'banks support a national electronic system that will deliver a seamless, interoperable, flexible, electronic settlement and lodgment system that can accommodate inter-jurisdictional differences'," the minutes say.
Within Victoria, ECV is intended eventually to deliver cost savings of up to $395 on each transaction, according to government estimates.
Those savings have been placed at risk not by any flaw in ECV but because Victoria still hopes to build a federation of ECVs nationally instead of a single system.
Even if public servants around the country find a network of ECVs attractive, the reality is that their opinions do not matter. The private sector is the key to conveyancing and the main players in the private sector want something that Victoria is not offering.
The banks withdrew from ECV in protest at Victoria's lack of co-operation with the push to establish a single national system.
To justify their investment in e-conveyancing, the banks want the same system rolled out nationally. They want to deal with one system, not eight.
The Victorian government has now manoeuvred itself into a position where it desperately needs the banks to return to ECV, but it is pushing ahead with plans that have driven the banks away.
Unless the deadlock is broken, ordinary Victorians look set to pay a high price. Without the banks, the state government's $40 million investment is at risk of remaining relatively idle because most transactions will still be paper-based.
Because the state government has also increased government charges on paper-based conveyancing by up to 32 per cent, Victorians will soon be familiar with the ECV effect, even if they never go anywhere near the system.
The fee hike was intended to drive transactions to ECV, but none of that will work unless the banks' concerns are addressed.
In the final weeks before the launch of the latest version of ECV, Victorian officials say they are talking to three banks attracted to the idea of eight separate e-conveyancing systems.
The state government is also involved in negotiations aimed at addressing the concerns of the Legal Practitioners' Liability Committee about the new system. Those concerns triggered a warning from the Law Institute of Victoria that it could not recommend solicitors' participation in the system.
If these talks fail, Victorians might soon be asking the state government why it spent $40 million building a system that few of those in the business of conveyancing are prepared to use.
Chris Merritt, Legal affairs editor | November 02, 2007 The Australian
Wednesday, October 31, 2007
Why are interest rates going up - Tim Colebatch explains
WHEN interest rates were low, the Howard Government claimed the credit, and was given it by grateful voters. Now that rates have risen, and are set to rise still higher, should it take the blame?
In part, no. In part, yes. Interest rates in Australia were bound to rise. Some of the factors that have pushed them up were desirable, others unforeseeable. And in two crucial areas, it has taken pressure off interest rates.
But interest rates have risen more than they would have had the Government treated "keeping interest rates low" as a policy priority, and not just a slogan. It has neglected key jobs, thrown money where it buys votes rather than where the economy needs it, and turned off the "automatic stabilisers" by which budget policy usually takes pressure off interest rates.
As Access Economics director Chris Richardson put it recently: "The Government is throwing money into the economy and the Reserve Bank is taking it out again. We have one foot on the accelerator and the other on the brake. No wonder we're blowing smoke."
There are more important issues for the economy, but certainly there is no economic issue more important for voters. The average new home loan in Melbourne is now approaching $250,000. Add the five interest rate rises since the 2004 election, the sixth likely next month, the seventh expected early next year, and the banks' plans to raise margins, and the monthly payments on that loan would be up almost $400 a month since John Howard pledged to keep interest rates low.
Howard keeps pointing out that they were higher in the past, and so they were. But the people who remember the 17 per cent rates are not the ones paying big mortgages now. They remember when mortgage rates were 6 per cent. Now they are looking at paying 9 per cent. Talking about what went wrong in the 1980s won't solve that.
Nor can the Government credibly use its old line that interest rates are higher here because we are growing and the rest of the world isn't. The International Monetary Fund has just updated its database, and it shows that between 1996 and 2006, of 30 advanced economies, Australia ranked exactly 15th in economic growth per head. The economy overall grew 14th fastest out of the 30 over that decade. Our unemployment rate is now the equal 14th lowest of the 30. A standout? Not us: we are the average Western country.
The Government can defend its record on three grounds. First, as Peter Costello keeps telling us, growth is the goal of economic policy — and one of the things growth does is that it raises interest rates. As the economy grows, fewer resources are left unused, competition for them increases, and their price rises. We could let prices rise to create an inflationary spiral — or try to ration resources by raising interest rates. That's the low-cost option.
Second, Australia's economy has been hit by an X-factor that no one saw coming: the mining boom. Last year half of all the growth in construction across the country was in Western Australia. Mining investment has more than doubled in two years, and is still surging. In mining and construction in the west, everything is in short supply, prices are rising rapidly, and the ripples are reaching the east too.
Third, as Costello and Howard now concede, WorkChoices was designed to slow the pace of wage growth. Tilt the bargaining rules in favour of the employer, as they have done, and you get smaller wage rises and hence less inflationary pressure. Whether it is fair or unfair is another matter, but as Reserve Bank Governor Glenn Stevens says, anything that frees up the labour market helps to hold down inflation.
The same is true of the controversial section 457 visas used to bring in contract workers from overseas wherever employers identify shortages. While it would be better to retrain some of the million or more Australians who are unemployed, underemployed or prematurely retired, it is a low-cost way to cut through inflationary bottlenecks.
But in other ways, the Howard Government has made inflation worse, and helped push interest rates up. On skills training, it dropped the ball in its first budget. Many of its cost savings came from scrapping Working Nation, set up by the Keating government to retrain the unemployed so that, as recovery came, Australia would have the skilled workers to meet its needs. That ball remained dropped until recently.
In 2005-06, the OECD Employment Outlook records, Australia invested just 0.04 per cent of its GDP in training the unemployed, the third lowest among the OECD's 25 rich members. By then, skills shortages were already acute. Skills shortages cause wage rises which cause inflation which causes higher interest rates. On this one, Howard's Government has no excuse.
Second, instead of using budget policy to ease pressure on interest rates, as in the past, Howard has increased the pressure by shovelling money into voters' pockets while the Reserve tries to slow their spending. On Treasury projections, personal income tax will shrink from 12.1 per cent of GDP in 2004-05 to just 10.3 per cent in 2008-09 — adding $20 billion a year to consumers' spending power.
In past booms, monetary and fiscal policy have worked together. More jobs and higher wages increased tax revenues, reducing the need for rate rises to slow the economy. Now the Government has dropped its end so it can deliver big tax cuts.
That means interest rates have to do all the work. So as taxes go lower, rates go higher.
Tim Colebatch is The Age economics editor.
This story was found at: http://www.theage.com.au/articles/2007/10/29/1193618793576.html
In part, no. In part, yes. Interest rates in Australia were bound to rise. Some of the factors that have pushed them up were desirable, others unforeseeable. And in two crucial areas, it has taken pressure off interest rates.
But interest rates have risen more than they would have had the Government treated "keeping interest rates low" as a policy priority, and not just a slogan. It has neglected key jobs, thrown money where it buys votes rather than where the economy needs it, and turned off the "automatic stabilisers" by which budget policy usually takes pressure off interest rates.
As Access Economics director Chris Richardson put it recently: "The Government is throwing money into the economy and the Reserve Bank is taking it out again. We have one foot on the accelerator and the other on the brake. No wonder we're blowing smoke."
There are more important issues for the economy, but certainly there is no economic issue more important for voters. The average new home loan in Melbourne is now approaching $250,000. Add the five interest rate rises since the 2004 election, the sixth likely next month, the seventh expected early next year, and the banks' plans to raise margins, and the monthly payments on that loan would be up almost $400 a month since John Howard pledged to keep interest rates low.
Howard keeps pointing out that they were higher in the past, and so they were. But the people who remember the 17 per cent rates are not the ones paying big mortgages now. They remember when mortgage rates were 6 per cent. Now they are looking at paying 9 per cent. Talking about what went wrong in the 1980s won't solve that.
Nor can the Government credibly use its old line that interest rates are higher here because we are growing and the rest of the world isn't. The International Monetary Fund has just updated its database, and it shows that between 1996 and 2006, of 30 advanced economies, Australia ranked exactly 15th in economic growth per head. The economy overall grew 14th fastest out of the 30 over that decade. Our unemployment rate is now the equal 14th lowest of the 30. A standout? Not us: we are the average Western country.
The Government can defend its record on three grounds. First, as Peter Costello keeps telling us, growth is the goal of economic policy — and one of the things growth does is that it raises interest rates. As the economy grows, fewer resources are left unused, competition for them increases, and their price rises. We could let prices rise to create an inflationary spiral — or try to ration resources by raising interest rates. That's the low-cost option.
Second, Australia's economy has been hit by an X-factor that no one saw coming: the mining boom. Last year half of all the growth in construction across the country was in Western Australia. Mining investment has more than doubled in two years, and is still surging. In mining and construction in the west, everything is in short supply, prices are rising rapidly, and the ripples are reaching the east too.
Third, as Costello and Howard now concede, WorkChoices was designed to slow the pace of wage growth. Tilt the bargaining rules in favour of the employer, as they have done, and you get smaller wage rises and hence less inflationary pressure. Whether it is fair or unfair is another matter, but as Reserve Bank Governor Glenn Stevens says, anything that frees up the labour market helps to hold down inflation.
The same is true of the controversial section 457 visas used to bring in contract workers from overseas wherever employers identify shortages. While it would be better to retrain some of the million or more Australians who are unemployed, underemployed or prematurely retired, it is a low-cost way to cut through inflationary bottlenecks.
But in other ways, the Howard Government has made inflation worse, and helped push interest rates up. On skills training, it dropped the ball in its first budget. Many of its cost savings came from scrapping Working Nation, set up by the Keating government to retrain the unemployed so that, as recovery came, Australia would have the skilled workers to meet its needs. That ball remained dropped until recently.
In 2005-06, the OECD Employment Outlook records, Australia invested just 0.04 per cent of its GDP in training the unemployed, the third lowest among the OECD's 25 rich members. By then, skills shortages were already acute. Skills shortages cause wage rises which cause inflation which causes higher interest rates. On this one, Howard's Government has no excuse.
Second, instead of using budget policy to ease pressure on interest rates, as in the past, Howard has increased the pressure by shovelling money into voters' pockets while the Reserve tries to slow their spending. On Treasury projections, personal income tax will shrink from 12.1 per cent of GDP in 2004-05 to just 10.3 per cent in 2008-09 — adding $20 billion a year to consumers' spending power.
In past booms, monetary and fiscal policy have worked together. More jobs and higher wages increased tax revenues, reducing the need for rate rises to slow the economy. Now the Government has dropped its end so it can deliver big tax cuts.
That means interest rates have to do all the work. So as taxes go lower, rates go higher.
Tim Colebatch is The Age economics editor.
This story was found at: http://www.theage.com.au/articles/2007/10/29/1193618793576.html
Tuesday, October 30, 2007
Web 2.0? Don't bank on it just yet
AUSTRALIAN bank infrastructure is "not robust enough" to deliver secure web 2.0 banking and financial services.
That's the warning last week's Future of Banking and Financial Services event in Sydney heard but demand and overseas influence will change how banking is done, delegates were told.
Bank of Queensland chief information officer Iain Blacklaw said such plans captured the imagination but for his bank web 2.0 is "at the furthest edges of the radar screen".
Compared to call centres, ATMs or eftpos "internet banking is the most pervasive but with the least stability. I wonder if the next generation has exponentially more risks?"
He said "Australian banks are not robust enough at the infrastructure level" for the financial services explored overseas where they use wikis - collaborative websites - that invite customers to participate in financial product design.
Wells Fargo built a bank in the virtual world of Second Life and, closer to home, AMP is testing an online environment where customers use avatars - virtual representations of themselves - to try products.
Some commentators believe new classes of financial services will emerge, such as the peer-to-peer lending pioneered by zopa.com.
Executive general manager of IT and management services at Challenger Derek Goh and Goldman Sachs JB Were CIO Richard Tait said that web 2.0 services for Australians were far off.
But Mr Tait said some collaborative tools were good for the bank's use.
"(We are) trying to get people to collaborate and come up with things that will make a lot of money," he said. But legal obligations could stymie some information-sharing tools.
Geoff Wenborn, general manager of technology and innovation at NAB, said banks could not afford to ignore customer expectations of interactive banking tools.
"We have to be able to invest in and provide a robust and secure back end while meeting our regulatory obligations (and) making it open and easy to use.
"It is an enormous challenge," he said.
It is a challenge that Michael Neary, Telstra's enterprise and government industry director, said the finance sector must tackle because there was a sea change in consumer expectations.
"Banking was once a place you go, now it's far more a thing that you do," Dr Neary said.
Telstra research found 4.95 million Australians wanted access to mobile banking services and the mobile phone may replace card payment systems, he said.
Next year's Telstra pilot with Visa and NAB demonstrated at the conference will have about 250 Melburnians use their mobile phones to pay for items less than $35. This sort of payments system was also in demand overseas: Japan has 43,000 terminals that takepayments from mobile phones, Dr Neary said.
But the shift to new technology will be hampered by the skills drought.
Many financial institutions at the conference said it was difficult to find and keep IT staff but they were divided as to whether offshoring was the best solution.
Suncorp CIO Jeff Smith - overseeing the $355 million two to three year program to integrate Suncorp and Promina's information systems - was a DIY proponent. "We aim to have as much in-house as possible," he said, adding that intellectual property was among a bank's greatest assets.
He said offshoring did not lend itself to supporting more agile organisations where there were six-month projects and smaller teams, which was increasingly the case in the financial sector.
Like Suncorp the Bank of Queensland keeps as much IT work as possible in Australia.
And although his was part of a global organisation, Mr Tait claimed that "offshoring is not part of our agenda".
"If we are not sitting on the same floor as the business guys as they are thinking things through then it's a problem," he said. Being even a floor above or below the business team could lead to a mismatch between IT strategy and business plans, he said.
And he questioned the wisdom of more offshoring.
"The real issue with offshoring is are we cutting off our feeder stock for IT management?
"It could be a significant issue for us."
Beverley Head
October 30, 2007
This story was found at: http://www.theage.com.au/articles/2007/10/29/1193618795944.html
That's the warning last week's Future of Banking and Financial Services event in Sydney heard but demand and overseas influence will change how banking is done, delegates were told.
Bank of Queensland chief information officer Iain Blacklaw said such plans captured the imagination but for his bank web 2.0 is "at the furthest edges of the radar screen".
Compared to call centres, ATMs or eftpos "internet banking is the most pervasive but with the least stability. I wonder if the next generation has exponentially more risks?"
He said "Australian banks are not robust enough at the infrastructure level" for the financial services explored overseas where they use wikis - collaborative websites - that invite customers to participate in financial product design.
Wells Fargo built a bank in the virtual world of Second Life and, closer to home, AMP is testing an online environment where customers use avatars - virtual representations of themselves - to try products.
Some commentators believe new classes of financial services will emerge, such as the peer-to-peer lending pioneered by zopa.com.
Executive general manager of IT and management services at Challenger Derek Goh and Goldman Sachs JB Were CIO Richard Tait said that web 2.0 services for Australians were far off.
But Mr Tait said some collaborative tools were good for the bank's use.
"(We are) trying to get people to collaborate and come up with things that will make a lot of money," he said. But legal obligations could stymie some information-sharing tools.
Geoff Wenborn, general manager of technology and innovation at NAB, said banks could not afford to ignore customer expectations of interactive banking tools.
"We have to be able to invest in and provide a robust and secure back end while meeting our regulatory obligations (and) making it open and easy to use.
"It is an enormous challenge," he said.
It is a challenge that Michael Neary, Telstra's enterprise and government industry director, said the finance sector must tackle because there was a sea change in consumer expectations.
"Banking was once a place you go, now it's far more a thing that you do," Dr Neary said.
Telstra research found 4.95 million Australians wanted access to mobile banking services and the mobile phone may replace card payment systems, he said.
Next year's Telstra pilot with Visa and NAB demonstrated at the conference will have about 250 Melburnians use their mobile phones to pay for items less than $35. This sort of payments system was also in demand overseas: Japan has 43,000 terminals that takepayments from mobile phones, Dr Neary said.
But the shift to new technology will be hampered by the skills drought.
Many financial institutions at the conference said it was difficult to find and keep IT staff but they were divided as to whether offshoring was the best solution.
Suncorp CIO Jeff Smith - overseeing the $355 million two to three year program to integrate Suncorp and Promina's information systems - was a DIY proponent. "We aim to have as much in-house as possible," he said, adding that intellectual property was among a bank's greatest assets.
He said offshoring did not lend itself to supporting more agile organisations where there were six-month projects and smaller teams, which was increasingly the case in the financial sector.
Like Suncorp the Bank of Queensland keeps as much IT work as possible in Australia.
And although his was part of a global organisation, Mr Tait claimed that "offshoring is not part of our agenda".
"If we are not sitting on the same floor as the business guys as they are thinking things through then it's a problem," he said. Being even a floor above or below the business team could lead to a mismatch between IT strategy and business plans, he said.
And he questioned the wisdom of more offshoring.
"The real issue with offshoring is are we cutting off our feeder stock for IT management?
"It could be a significant issue for us."
Beverley Head
October 30, 2007
This story was found at: http://www.theage.com.au/articles/2007/10/29/1193618795944.html
Rebellion frustrates e-conveyance
VICTORIA and Queensland have threatened to go it alone on their land title and property transfer systems, but banks and the industry say they're not interested in dealing with players outside the agreed National Electronic Conveyancing System.
Australian Bankers Association director Ian Gilbert said the banks were "dismayed" there had been "alternative discussions" between the states outside the joint initiative to form a central communications exchange.
Victoria, which is to launch its own e-conveyancing system on November 16, has refused to share its software with other states unless they agree to certain conditions.
Mr Gilbert said the banks had invested with the Victorian Government in developing the software, "with the expectation that it would find its way into the national process and, eventually, into a national system. At this juncture, that hasn't happened."
The fate of the $44 million e-conveyancing project is uncertain since the major banks pulled out in September, citing frustration over Victoria's flagging commitment to NECS.
A co-operative venture between state government agencies and industry, NECS aims to establish a nationwide exchange and settlement platform for real estate transactions by 2010.
Simon Libbis, executive director of the National Electronic Conveyancing Office, said all parties had agreed to develop common data standards, and in May engaged the Lending Industry XML Initiative (LIXI) to assist with its mortgage and bank processing expertise.
"With eight land registries and the banks, lawyers and conveyancing firms, it's fairly clear we couldn't get everyone to change their systems to meet the requirements of a central system," he said.
"The whole idea of NECS was to have a system that allows all those systems to talk to each other."
Mr Libbis said five jurisdictions and NECO had signed the agreement with LIXI, and it was understood the ACT was in the process of signing.
"Victoria and Queensland have given us no indication of their plans, so we're working on the basis they don't intend to sign," he said.
"Every other state is strongly supportive as well as the industry, particularly the lending institutions, so we are just getting on with it," he said. "The announcement of our death was a bit exaggerated".
A NECO steering committee meeting will be held in Brisbane on November 23, and the rebel states' alternative position would be discussed then.
The ABA's Mr Gilbert said a national e-conveyancing system required more than just a piece of software: there had to be a governance structure, rules for participation and common data standards to support the process.
"It's recognised the system will need flexibility to accommodate the different state requirements, but there's a core piece that could operate in a fairly standardised way," he said.
"For users, it's important that there should be seamless interoperability across the jurisdictions, with a single point of entry."
Victoria and Queensland were essentially suggesting a return to a state-centric approach, with each jurisdiction using similar software but without the nationwide interoperability.
Mr Gilbert said bankers wanted the NECS steering committee to "bring everybody back to the original focus", and "work collaboratively towards delivering" an e-conveyancing system.
Karen Dearne | October 30, 2007
The Australian IT
Australian Bankers Association director Ian Gilbert said the banks were "dismayed" there had been "alternative discussions" between the states outside the joint initiative to form a central communications exchange.
Victoria, which is to launch its own e-conveyancing system on November 16, has refused to share its software with other states unless they agree to certain conditions.
Mr Gilbert said the banks had invested with the Victorian Government in developing the software, "with the expectation that it would find its way into the national process and, eventually, into a national system. At this juncture, that hasn't happened."
The fate of the $44 million e-conveyancing project is uncertain since the major banks pulled out in September, citing frustration over Victoria's flagging commitment to NECS.
A co-operative venture between state government agencies and industry, NECS aims to establish a nationwide exchange and settlement platform for real estate transactions by 2010.
Simon Libbis, executive director of the National Electronic Conveyancing Office, said all parties had agreed to develop common data standards, and in May engaged the Lending Industry XML Initiative (LIXI) to assist with its mortgage and bank processing expertise.
"With eight land registries and the banks, lawyers and conveyancing firms, it's fairly clear we couldn't get everyone to change their systems to meet the requirements of a central system," he said.
"The whole idea of NECS was to have a system that allows all those systems to talk to each other."
Mr Libbis said five jurisdictions and NECO had signed the agreement with LIXI, and it was understood the ACT was in the process of signing.
"Victoria and Queensland have given us no indication of their plans, so we're working on the basis they don't intend to sign," he said.
"Every other state is strongly supportive as well as the industry, particularly the lending institutions, so we are just getting on with it," he said. "The announcement of our death was a bit exaggerated".
A NECO steering committee meeting will be held in Brisbane on November 23, and the rebel states' alternative position would be discussed then.
The ABA's Mr Gilbert said a national e-conveyancing system required more than just a piece of software: there had to be a governance structure, rules for participation and common data standards to support the process.
"It's recognised the system will need flexibility to accommodate the different state requirements, but there's a core piece that could operate in a fairly standardised way," he said.
"For users, it's important that there should be seamless interoperability across the jurisdictions, with a single point of entry."
Victoria and Queensland were essentially suggesting a return to a state-centric approach, with each jurisdiction using similar software but without the nationwide interoperability.
Mr Gilbert said bankers wanted the NECS steering committee to "bring everybody back to the original focus", and "work collaboratively towards delivering" an e-conveyancing system.
Karen Dearne | October 30, 2007
The Australian IT
Sunday, October 28, 2007
Mr Ruddock, we need a referendum.
What if the States do not resolve their impasse over a uniform national approach to electronic conveyancing?
Will you support a referendum to bring matters of property within Federal jurisdiction, which are currently state controlled matters?
We understand you do support a national approach with quotes such as -
"The same jealousies that resulted in different rail-gauge widths in the 19th century are sabotaging a national electronic conveyancing system in the 21st century," Mr Ruddock said.
"I have been pressing for the states and territories to focus on the need for a national electronic conveyancing system for some time. A national electronic conveyancing system would remove red tape for business and lower costs for home buyers."
It is simple - Australia has eight separate land registries, eight different conveyancing and property laws, eight different scales of land transfer duties, land registry fees and land tax. There is no uniform approach to conveyancing, planning, survey, vendor disclosure and taxation
At least in the UK, England and Wales have a single land registry system, which will support the introduction of uniform single electronic conveyancing standard. This year, 2007, the UK have introduced a uniform standard to vendor disclosure which includes a energy efficiency (think of the climate change debate) and building inspection report. And they will over time roll out electronic conveyancing unimpeded by parochial state or county rules.
Australia would benefit hugely and immeasurably from property laws being centrally and Federally controlled. This country could have
* a single property register
* uniform property codes
* uniform conveyancing laws
* uniform property transfer fees - stamp duty on transfer and land registration
* uniform taxation of land - land tax, CGT, GST, income tax and negative gearing
* uniform vendor disclosure on the sale of property
* uniform laws for estate agents
* uniform survey regulations
* uniform approach to planning with local input
We already have a common unified approach to GST and CGT on property. We also have the Uniform Credit Code. This needs to be extended to all matters pertaining to property.
Only the States stand in the way of a single unified approach to property laws, management and taxation - and the States would never ever support transferring their current rights. By heck they would lose the right to tax it as they see fit.
What is the Federal government's view?
My personal view is let the people cast their vote. Just maybe the people can see the wisdom for change.
Will you support a referendum to bring matters of property within Federal jurisdiction, which are currently state controlled matters?
We understand you do support a national approach with quotes such as -
"The same jealousies that resulted in different rail-gauge widths in the 19th century are sabotaging a national electronic conveyancing system in the 21st century," Mr Ruddock said.
"I have been pressing for the states and territories to focus on the need for a national electronic conveyancing system for some time. A national electronic conveyancing system would remove red tape for business and lower costs for home buyers."
It is simple - Australia has eight separate land registries, eight different conveyancing and property laws, eight different scales of land transfer duties, land registry fees and land tax. There is no uniform approach to conveyancing, planning, survey, vendor disclosure and taxation
At least in the UK, England and Wales have a single land registry system, which will support the introduction of uniform single electronic conveyancing standard. This year, 2007, the UK have introduced a uniform standard to vendor disclosure which includes a energy efficiency (think of the climate change debate) and building inspection report. And they will over time roll out electronic conveyancing unimpeded by parochial state or county rules.
Australia would benefit hugely and immeasurably from property laws being centrally and Federally controlled. This country could have
* a single property register
* uniform property codes
* uniform conveyancing laws
* uniform property transfer fees - stamp duty on transfer and land registration
* uniform taxation of land - land tax, CGT, GST, income tax and negative gearing
* uniform vendor disclosure on the sale of property
* uniform laws for estate agents
* uniform survey regulations
* uniform approach to planning with local input
We already have a common unified approach to GST and CGT on property. We also have the Uniform Credit Code. This needs to be extended to all matters pertaining to property.
Only the States stand in the way of a single unified approach to property laws, management and taxation - and the States would never ever support transferring their current rights. By heck they would lose the right to tax it as they see fit.
What is the Federal government's view?
My personal view is let the people cast their vote. Just maybe the people can see the wisdom for change.
Friday, October 26, 2007
E-conveyancing 'shemozzle' looms
FOR a lawyer who says he is "red-hot for anything digital", Brett Hayton has a bleak prediction for next month's launch of electronic conveyancing in Victoria.
"It will be a shemozzle," he said.
Mr Hayton said there was very little chance of a flood of electronic property deals when the new pilot system went live on November 16. The reason was that the numbers were stacked against the new system.
Mr Hayton's assessment is not based on a distaste for technology. As well as running Hayton Kosky Lawyers in Bentleigh, Victoria, he has spent years developing his own web-based system for handling property transactions.
His experience with that system, known as 247legal.com.au, has informed his assessment of the Victorian Government's plans.
"There are problems with the government system," he said.
"They must be looking at things over generations.
"It's like they have adopted the view 'build it and they will come'."
In order to make electronic conveyancing a reality, he said, each transaction required four key players - two banks and two lawyers.
Non-lawyer conveyancers might take the place of solicitors in some transactions, but that does not affect his argument.
The problem in Victoria, as he sees it, is that the big banks have withdrawn from the system and there is no obligation on solicitors to switch to the electronic system.
"So let's assume that 50 per cent of lawyers sign up for it. That means a maximum of only one in four transactions is going to be electronic.
"Three-quarters of them will still be on paper - and that's the biggest drawback to the system."
Mr Hayton might even have overestimated the take-up rate among solicitors. Two weeks ago, Law Institute of Victoria chief executive Michael Brett Young warned the state's solicitors that the institute "cannot recommend that its members enter the scheme".
He issued that warning after the Legal Practitioners Liability Committee raised concerns about the possible risks to lawyers who took part.
Talks aimed at resolving the committee's concerns are continuing. But a spokeswoman for the institute said yesterday that nothing had changed.
Mr Hayton, however, said safety was not the main issue with the new system. He was more concerned about the possibility that Victoria's switch to electronic conveyancing might be about to result in two separate systems - paper and electronic.
He is also concerned that other states might adopt this part of the Victoria model - complicating conveyancing by allowing two separate systems to operate side by side in every state. "I once raised this issue at a meeting and asked how I was to know whether a particular transaction was going to be electronic or paper. Do I ring around?
"There was no answer.
"I don't want to see a 50-50 system. It needs to be made compulsory to use the new system and that needs to happen sooner rather than later to avoid mucking around with dual systems.
"The banks have a cogent view. They deal nationally. They don't care where a transaction is settled, but they deal with seven systems now and they don't want to deal with 14."
If these concerns are resolved, he believes firms that embrace electronic conveyancing will eventually have a significant cost advantage over their paper-based competitors.
Eventually, that will place them on the winning side of the rationalisation that he believes will flow through the industry.
Chris Merritt | October 26, 2007
The Australian
"It will be a shemozzle," he said.
Mr Hayton said there was very little chance of a flood of electronic property deals when the new pilot system went live on November 16. The reason was that the numbers were stacked against the new system.
Mr Hayton's assessment is not based on a distaste for technology. As well as running Hayton Kosky Lawyers in Bentleigh, Victoria, he has spent years developing his own web-based system for handling property transactions.
His experience with that system, known as 247legal.com.au, has informed his assessment of the Victorian Government's plans.
"There are problems with the government system," he said.
"They must be looking at things over generations.
"It's like they have adopted the view 'build it and they will come'."
In order to make electronic conveyancing a reality, he said, each transaction required four key players - two banks and two lawyers.
Non-lawyer conveyancers might take the place of solicitors in some transactions, but that does not affect his argument.
The problem in Victoria, as he sees it, is that the big banks have withdrawn from the system and there is no obligation on solicitors to switch to the electronic system.
"So let's assume that 50 per cent of lawyers sign up for it. That means a maximum of only one in four transactions is going to be electronic.
"Three-quarters of them will still be on paper - and that's the biggest drawback to the system."
Mr Hayton might even have overestimated the take-up rate among solicitors. Two weeks ago, Law Institute of Victoria chief executive Michael Brett Young warned the state's solicitors that the institute "cannot recommend that its members enter the scheme".
He issued that warning after the Legal Practitioners Liability Committee raised concerns about the possible risks to lawyers who took part.
Talks aimed at resolving the committee's concerns are continuing. But a spokeswoman for the institute said yesterday that nothing had changed.
Mr Hayton, however, said safety was not the main issue with the new system. He was more concerned about the possibility that Victoria's switch to electronic conveyancing might be about to result in two separate systems - paper and electronic.
He is also concerned that other states might adopt this part of the Victoria model - complicating conveyancing by allowing two separate systems to operate side by side in every state. "I once raised this issue at a meeting and asked how I was to know whether a particular transaction was going to be electronic or paper. Do I ring around?
"There was no answer.
"I don't want to see a 50-50 system. It needs to be made compulsory to use the new system and that needs to happen sooner rather than later to avoid mucking around with dual systems.
"The banks have a cogent view. They deal nationally. They don't care where a transaction is settled, but they deal with seven systems now and they don't want to deal with 14."
If these concerns are resolved, he believes firms that embrace electronic conveyancing will eventually have a significant cost advantage over their paper-based competitors.
Eventually, that will place them on the winning side of the rationalisation that he believes will flow through the industry.
Chris Merritt | October 26, 2007
The Australian
Monday, October 22, 2007
What a waste of paper
What is the largest vendors statement that you might have prepared? We have recently completed a job at a suburb called Waterways and the vendors statement was 430 pages.
This is probably not a record, but when the agent wants 6 copies, no-one wants the responsibility to print the document. Lets see now, 6 copies time 430 pages equals 2580.
As an industry is there support for a standard to create and distribute the section 32 electronically (and still satisfy the legal requirementsof the vendor signing / purchaser acknowledging receipt)?
Is anyone prepared to comment?
This is probably not a record, but when the agent wants 6 copies, no-one wants the responsibility to print the document. Lets see now, 6 copies time 430 pages equals 2580.
As an industry is there support for a standard to create and distribute the section 32 electronically (and still satisfy the legal requirementsof the vendor signing / purchaser acknowledging receipt)?
Is anyone prepared to comment?
Sunday, October 21, 2007
Thursday, October 18, 2007
Not related to conveyancing as such
Alex Roy's Cannonball dreams started with a movie, but it didn't star Burt Reynolds. The film was C'était un Rendez-vous. Made in 1976, it's a dashing precursor to every Jackass-inspired digicam stunt ever posted on YouTube — nine heart-pounding minutes choreographed to a screaming drivetrain. Through a bumper-mounted camera, the viewer becomes the car — traveling more than 80 mph as the anonymous driver revs into the enormous traffic circle around Paris' Arc de Triomphe, steers hammer-down from the Champs Élysées to Sacré-Coeur in Montmartre (through 16 red lights, wrong-way one-ways, stunned pedestrians, garbage trucks, and median strips) to meet up with a beautiful blonde waiting patiently in the park at the Montmartre church.
Wednesday, October 17, 2007
EC Heavy weight title fight
There has been plenty of action before the main fight scheduled for November 16.
Victoria, the heavy weight promoter of the electronic conveyancing crown, is in trouble as the competition between the contenders is hotting up and not a punch has been thrown.
The big banks have hung up their gloves and reckon the Victorian competition is for pussies and has joined ranks calling for a national competition.
The lawyers have cried foul and dont want to punch on with the conveyancers in the opposing corner.
Even the master builders have chipped in and I didn't even know they were a contestant.
The punters thinking that the price of admission would be cut found that even though hardly a front row ticket has been sold has just been told the ticket prices have been upped by 30%.
At the moment this all looks to be shaping up to be an all in brawl.
If you missed the October Newsletter here's the proverbial link
Victoria, the heavy weight promoter of the electronic conveyancing crown, is in trouble as the competition between the contenders is hotting up and not a punch has been thrown.
The big banks have hung up their gloves and reckon the Victorian competition is for pussies and has joined ranks calling for a national competition.
The lawyers have cried foul and dont want to punch on with the conveyancers in the opposing corner.
Even the master builders have chipped in and I didn't even know they were a contestant.
The punters thinking that the price of admission would be cut found that even though hardly a front row ticket has been sold has just been told the ticket prices have been upped by 30%.
At the moment this all looks to be shaping up to be an all in brawl.
If you missed the October Newsletter here's the proverbial link
Saturday, October 13, 2007
LTO Fees - paper vs electronic
Is our government ripping off the public? The new frontier of electronic conveyancing is beckoning and we are getting a sneak preview of the proposed fees under the new electronic regime. The government spins the spin that electronic conveyancing will lower the costs of conveyancing. But the facts are now on the table.
The fees on the left are for paper lodgement.
The fees on the right are for electronic lodgement.
There are no monetary savings using electronic, just a financial penalty for the consumer if they continue with paper lodgement. Electonic lodgement fees are the old paper lodgement fees and over the counter charges are 20 to 30% increases which the consumer has to pay. Go figure? It smacks of monopolistic behaviour. Are government dealings regulated by ACCC?
Refer Google Spreadsheet for the fees
Friday, October 12, 2007
E-conveyancing system in trouble
A feud between Victoria's solicitors and non-lawyer conveyancers threatens to undermine the launch of an electronic conveyancing system that could cut $70 million from the cost of home ownership.
Electronic Conveyancing Victoria is due to begin full operations on November 16 but there is a risk that solicitors may boycott the scheme.
Law Institute of Victoria chief executive Michael Brett Young has warned the state's solicitors that without changes the institute "cannot recommend that its members enter the scheme".
Unless the stand-off is resolved, it threatens to undermine the viability of the e-conveyancing system, which could cut the cost of conveyancing transactions by between $235 and $395, the state Government says.
The scheme had already been rocked when major banks withdrew from it last month because of frustration with a lack of co-operation between Victoria and authorities working on a national e-conveyancing project.
If solicitors join the major banks on the sidelines, the Victorian system would be deprived of the two main industry groups that are central players in most conveyancing transactions.
The institute's concerns were triggered by an adverse assessment of the system by the organisation that provides professional indemnity insurance for the state's solicitors.
The institute is also concerned that non-lawyer conveyancers will be using the new system before their new regulatory regime comes into force next year.
The institute says current legislation governing conveyancers does not provide enough insurance cover.
Mr Brett Young says this means solicitors "do not feel confident" about entering into electronic conveyancing transactions with unregulated conveyancers. However, non-lawyer conveyancers say their insurance cover has satisfied the state Government and solicitors are simply trying to dominate the new system.
Although the major banks have withdrawn from the e-conveyancing system, the Government says talks are continuing. Other financial institutions are still involved, including the Australian Securities Exchange, Bendigo Bank and the credit unions.
To justify the investment made by its members in the Victorian project, a national system needs to emerge, the Australian Bankers Association says.
After the big banks withdrew, the Victorian Government made the software underpinning the system available to all other states for assessment.
Queensland's Department of Natural Resources and Water had earlier conducted tests on the Victorian system and, according to Victoria, found that it could be adapted cost-effectively to meet Queensland's needs.
In Victoria, however, the system's launch may be marred if the state's solicitors heed the institute's warning about potential risks in using the new system.
The institute's concerns originated with the Legal Practitioners Liability Committee, a statutory authority that provides professional indemnity insurance for Victoria's solicitors and most national law firms, but they are also linked to the long-standing antipathy between solicitors and non-lawyer conveyancers, who have won government approval to compete for legal work in conveyancing transactions.
In the current issue of the Law Institute Journal, Mr Brett Young writes that the committee "believes there are greater risks for practitioners operating in this system than under the current system".
"Without the committee's endorsement, the institute cannot recommend that its members enter the scheme."
Talks aimed at resolving the committee's concerns are under way, but that organisation's assessment of the new system appears to be at odds with one commissioned by the Victorian Government.
A spokeswoman for Environment Minister Gavin Jennings, whose department is responsible for the system, said there was a low level of risk associated with the new system.
"A risk assessment by a major accounting and consulting firm has been undertaken to determine the level of cover required by participants. This identified that the level of risk was very low," the spokeswoman said.
Mr Brett Young writes in the Law Institute Journal that the 2008 start date for the conveyancers' regulatory system "raises questions about the ability of conveyancers to be involved in the process, particularly in relation to their ongoing insurance requirements".
"The institute believes the current conveyancing legislation does not provide sufficient insurance coverage for solicitors to feel confident entering into e-conveyancing transactions with unregulated conveyancers," he writes.
However, the rules governing the system require all users of the new system to have a set level of insurance cover. A Mallesons Stephen Jaques overview states that the system's users will be required to sign contracts agreeing to comply with the rules.
The Australian Institute of Conveyancers, which represents non-lawyer conveyancers, says the institute's concerns appear to be based on a misapprehension.
Conveyancers institute Victorian chief executive Jill Ludwell says a government working group responsible for e-conveyancing had talked to the group's insurance broker and was satisfied with the insurance cover in policies for its members.
"We showed them our policy, they had a look and said they were satisfied with $1 million in professional indemnity cover and fidelity cover of $50,000," she says. "Electronic Conveyancing Victoria laid down guidelines for indemnity insurance and that is well and truly covered by members of the conveyancers institute. We get on very well with ECV. We have members helping them get the whole thing up and running. We have no problems with ECV and they seem to have no problems with us," she says.
Ms Ludwell says the law institute's warning to solicitors about participating in the system amounts to a threat to conveyancers. "They have it in their minds that electronic conveyancing is going to be legal work."
She rejects Mr Brett Young's assertions that conveyancers have not participated in consultations over the insurance requirement for e-conveyancing. "We have been consulted, and just not in their hearing," Ms Ludwell says.
Mr Brett Young writes in the Law Institute Journal that the law institute supports the system but unless its concerns are addressed, the launch date will be meaningless. He says he would not characterise the committee's view of the new system as an adverse risk assessment.
"They have some concerns over insurance and they want those concerns dealt with," he said. "They are looking to be included in the ongoing review of the system to make sure their concerns are addressed."
One of the committee's main concerns was the possibility that solicitors might be liable under the new system to compensate victims of fraudulent transactions if the fraud had been caused by others, such as conveyancers.
Ms Ludwell says this concern seems baseless because solicitors and conveyancers already work on opposite sides of paper-based conveyancing transactions. "What's the difference?"
Mr Brett Young says the new system posed risks for solicitors that were not present in traditional paper-based conveyancing.
Parties to the new system need to warrant that they have taken reasonable steps to ensure the information provided by another party, such as a conveyancer, is correct, Mr Brett Young says. If the information proves false and the conveyancer has inadequate insurance, there is a risk of liability falling to the solicitor, he says.
Mr Brett Young says he would like to see Victoria's system running as soon as possible. "But it will only work if you get all of the stakeholders on board. These issues can be addressed very quickly and we could then move forward," he says.
Mr Jennings' spokeswoman says the new system will not alter the substance of conveyancing transactions.
The Government has been working with the law institute for more than two and a half years on the e-conveyancing project. Within two weeks, the law institute is due to report on its assessment of the legal framework for the system. The Government will then hold discussions with law institute representatives.
Chris Merritt | October 12, 2007
Business Australian
Electronic Conveyancing Victoria is due to begin full operations on November 16 but there is a risk that solicitors may boycott the scheme.
Law Institute of Victoria chief executive Michael Brett Young has warned the state's solicitors that without changes the institute "cannot recommend that its members enter the scheme".
Unless the stand-off is resolved, it threatens to undermine the viability of the e-conveyancing system, which could cut the cost of conveyancing transactions by between $235 and $395, the state Government says.
The scheme had already been rocked when major banks withdrew from it last month because of frustration with a lack of co-operation between Victoria and authorities working on a national e-conveyancing project.
If solicitors join the major banks on the sidelines, the Victorian system would be deprived of the two main industry groups that are central players in most conveyancing transactions.
The institute's concerns were triggered by an adverse assessment of the system by the organisation that provides professional indemnity insurance for the state's solicitors.
The institute is also concerned that non-lawyer conveyancers will be using the new system before their new regulatory regime comes into force next year.
The institute says current legislation governing conveyancers does not provide enough insurance cover.
Mr Brett Young says this means solicitors "do not feel confident" about entering into electronic conveyancing transactions with unregulated conveyancers. However, non-lawyer conveyancers say their insurance cover has satisfied the state Government and solicitors are simply trying to dominate the new system.
Although the major banks have withdrawn from the e-conveyancing system, the Government says talks are continuing. Other financial institutions are still involved, including the Australian Securities Exchange, Bendigo Bank and the credit unions.
To justify the investment made by its members in the Victorian project, a national system needs to emerge, the Australian Bankers Association says.
After the big banks withdrew, the Victorian Government made the software underpinning the system available to all other states for assessment.
Queensland's Department of Natural Resources and Water had earlier conducted tests on the Victorian system and, according to Victoria, found that it could be adapted cost-effectively to meet Queensland's needs.
In Victoria, however, the system's launch may be marred if the state's solicitors heed the institute's warning about potential risks in using the new system.
The institute's concerns originated with the Legal Practitioners Liability Committee, a statutory authority that provides professional indemnity insurance for Victoria's solicitors and most national law firms, but they are also linked to the long-standing antipathy between solicitors and non-lawyer conveyancers, who have won government approval to compete for legal work in conveyancing transactions.
In the current issue of the Law Institute Journal, Mr Brett Young writes that the committee "believes there are greater risks for practitioners operating in this system than under the current system".
"Without the committee's endorsement, the institute cannot recommend that its members enter the scheme."
Talks aimed at resolving the committee's concerns are under way, but that organisation's assessment of the new system appears to be at odds with one commissioned by the Victorian Government.
A spokeswoman for Environment Minister Gavin Jennings, whose department is responsible for the system, said there was a low level of risk associated with the new system.
"A risk assessment by a major accounting and consulting firm has been undertaken to determine the level of cover required by participants. This identified that the level of risk was very low," the spokeswoman said.
Mr Brett Young writes in the Law Institute Journal that the 2008 start date for the conveyancers' regulatory system "raises questions about the ability of conveyancers to be involved in the process, particularly in relation to their ongoing insurance requirements".
"The institute believes the current conveyancing legislation does not provide sufficient insurance coverage for solicitors to feel confident entering into e-conveyancing transactions with unregulated conveyancers," he writes.
However, the rules governing the system require all users of the new system to have a set level of insurance cover. A Mallesons Stephen Jaques overview states that the system's users will be required to sign contracts agreeing to comply with the rules.
The Australian Institute of Conveyancers, which represents non-lawyer conveyancers, says the institute's concerns appear to be based on a misapprehension.
Conveyancers institute Victorian chief executive Jill Ludwell says a government working group responsible for e-conveyancing had talked to the group's insurance broker and was satisfied with the insurance cover in policies for its members.
"We showed them our policy, they had a look and said they were satisfied with $1 million in professional indemnity cover and fidelity cover of $50,000," she says. "Electronic Conveyancing Victoria laid down guidelines for indemnity insurance and that is well and truly covered by members of the conveyancers institute. We get on very well with ECV. We have members helping them get the whole thing up and running. We have no problems with ECV and they seem to have no problems with us," she says.
Ms Ludwell says the law institute's warning to solicitors about participating in the system amounts to a threat to conveyancers. "They have it in their minds that electronic conveyancing is going to be legal work."
She rejects Mr Brett Young's assertions that conveyancers have not participated in consultations over the insurance requirement for e-conveyancing. "We have been consulted, and just not in their hearing," Ms Ludwell says.
Mr Brett Young writes in the Law Institute Journal that the law institute supports the system but unless its concerns are addressed, the launch date will be meaningless. He says he would not characterise the committee's view of the new system as an adverse risk assessment.
"They have some concerns over insurance and they want those concerns dealt with," he said. "They are looking to be included in the ongoing review of the system to make sure their concerns are addressed."
One of the committee's main concerns was the possibility that solicitors might be liable under the new system to compensate victims of fraudulent transactions if the fraud had been caused by others, such as conveyancers.
Ms Ludwell says this concern seems baseless because solicitors and conveyancers already work on opposite sides of paper-based conveyancing transactions. "What's the difference?"
Mr Brett Young says the new system posed risks for solicitors that were not present in traditional paper-based conveyancing.
Parties to the new system need to warrant that they have taken reasonable steps to ensure the information provided by another party, such as a conveyancer, is correct, Mr Brett Young says. If the information proves false and the conveyancer has inadequate insurance, there is a risk of liability falling to the solicitor, he says.
Mr Brett Young says he would like to see Victoria's system running as soon as possible. "But it will only work if you get all of the stakeholders on board. These issues can be addressed very quickly and we could then move forward," he says.
Mr Jennings' spokeswoman says the new system will not alter the substance of conveyancing transactions.
The Government has been working with the law institute for more than two and a half years on the e-conveyancing project. Within two weeks, the law institute is due to report on its assessment of the legal framework for the system. The Government will then hold discussions with law institute representatives.
Chris Merritt | October 12, 2007
Business Australian
Boycott by Lawyers?
THE bad blood between Victoria's lawyers and the state's conveyancers has just about gone far enough.
At the very least, this antipathy appears to be one of the factors behind the possible boycott by solicitors of Victoria's new system of electronic conveyancing.
That system, the first in the nation, is expected to lead to significant cost savings for everyone who buys and sells property. It deserves to be supported by lawyers.
If solicitors withdraw from the new system, it will have two possible consequences.
In the short term, it will hurt consumers of legal services. Those who choose to leave their conveyancing work with solicitors will be forced to use traditional paper-based conveyancing. And thanks to the Victorian Government, the cost of that traditional service is about to rise.
In the long-term, a boycott will almost certainly backfire.
When South Australia invented the system of Torrens title, that state's solicitors reacted in much the same way and boycotted the new-fangled system.
They favoured the old-system form of title that, when viewed objectively, is nothing but a make-work scheme for the legally trained.
That left a lucrative gap in the market. The result: South Australia is now one of the greatest strong-holds for non-lawyer conveyancers.
If Victoria's solicitors want to achieve the same outcome, they should go right ahead. The conveyancers will steal their lunch.
Chris Merritt | October 12, 2007
Business Australian
I agree with Chris' conclusion, and the comment about lawyers antipathy, but the quotation about a possible lawyer's boycott is not supported by any direct quotation.
At the very least, this antipathy appears to be one of the factors behind the possible boycott by solicitors of Victoria's new system of electronic conveyancing.
That system, the first in the nation, is expected to lead to significant cost savings for everyone who buys and sells property. It deserves to be supported by lawyers.
If solicitors withdraw from the new system, it will have two possible consequences.
In the short term, it will hurt consumers of legal services. Those who choose to leave their conveyancing work with solicitors will be forced to use traditional paper-based conveyancing. And thanks to the Victorian Government, the cost of that traditional service is about to rise.
In the long-term, a boycott will almost certainly backfire.
When South Australia invented the system of Torrens title, that state's solicitors reacted in much the same way and boycotted the new-fangled system.
They favoured the old-system form of title that, when viewed objectively, is nothing but a make-work scheme for the legally trained.
That left a lucrative gap in the market. The result: South Australia is now one of the greatest strong-holds for non-lawyer conveyancers.
If Victoria's solicitors want to achieve the same outcome, they should go right ahead. The conveyancers will steal their lunch.
Chris Merritt | October 12, 2007
Business Australian
I agree with Chris' conclusion, and the comment about lawyers antipathy, but the quotation about a possible lawyer's boycott is not supported by any direct quotation.
States debate the merits of new electronic conveyancing system
THE Victorian Government believes its new electronic conveyancing system could be a sound platform for the development of a national system.
Queensland's Department of Natural Resources and Water has already assessed the new system and, according to the Victorian Government, "found it could be adapted cost-effectively to meet that state's needs".
When the Victorian system goes live on November 16, it will enable electronic settlement for property sales and lodgment of land transfers as well as electronic payment of duty to the State Revenue Office.
It has been in development for five years and builds on the existing Victorian system of electronic lodgment and discharge of mortgages.
It will be the only system of its kind in Australia.
The Victorian Department of Sustainability and Environment, which is responsible for the new system, believes it has accelerated the development of electronic conveyancing around the nation.
But Victoria has only just made the software that underpins the new system available to all other states for assessment. For much of the development period, officials in NSW say they were unable to see the substance of what the Victorians were building.
That period of interstate suspicion appears to be ending. But it did little to foster the development of a national system. Each state has different methods of transferring and registering title to land.
Sources in NSW say there is no doubt that the Victorian system does not meet the needs of its northern neighbour.
Parts of it may be capable of being adapted, but NSW officials want a system that has been designed to meet the needs of their state.
So does this mean Australia is on the verge of a bout of parochialism of the type that left the nation with inconsistent rail gauges?
Responsibility for heading off that sort of calamity rests with an organisation known as the National Electronic Conveyancing System (NECS).
The steering committee for that organisation is chaired by Les Taylor, former general counsel of the Commonwealth Bank and one-time corporate lawyer of the year.
NECS brings together all the states as well as those organisations whose members are involved in conveyancing - including the Law Council, the Australian Bankers Association and the Australian Institute of Conveyancers. Despite the different requirements of the different states, all members of NECS are committed to overcoming the differences and establishing a truly national system.
The Law Council representative on that body is John Corcoran, a former president of the Law Institute of Victoria and an executive member of the Law Council.
"We want a seamless national system," he said.
"Everyone wants that. The question is: how do you deliver that?"
When the NECS steering committee met in Perth at the end of June, it made a decision that could provide a way forward.
"We decided that to the maximum extent possible, we want to use the Victorian system that has been developed.
"We want to adapt what the Victorians have done. So whether you are conveyancing a property at Toowoomba, Perth or anywhere, you just go online and do it through the national system," he said.
"You might need to change the system rules, or the way you identify someone who uses the system, but to the largest extent possible, the investment that has been made should be utilised. In my view there is no risk of a rail-gauge type problem."
One of the main reasons for this is that the key players - lawyers, bankers and conveyancers - are not prepared to tolerate interstate inconsistency.
"The lawyers and banks are key stakeholders. The banks were involved in developing the Victorian pilot but they are now stepping back and want to see it integrated into the national scheme," Mr Corcoran said.
"Right from the beginning, the Law Council has backed a truly national system."
The Australian Bankers Association acting chief executive Ian Gilbert said the banks had tested the Victorian system and found that it worked.
"But we want it to find its way through to a national system. The states need to get together.
"For our members, if it is going to be viable - given the investment involved - then the system needs to be national," Mr Gilbert said.
Chris Merritt | October 12, 2007
Australian Business
Queensland's Department of Natural Resources and Water has already assessed the new system and, according to the Victorian Government, "found it could be adapted cost-effectively to meet that state's needs".
When the Victorian system goes live on November 16, it will enable electronic settlement for property sales and lodgment of land transfers as well as electronic payment of duty to the State Revenue Office.
It has been in development for five years and builds on the existing Victorian system of electronic lodgment and discharge of mortgages.
It will be the only system of its kind in Australia.
The Victorian Department of Sustainability and Environment, which is responsible for the new system, believes it has accelerated the development of electronic conveyancing around the nation.
But Victoria has only just made the software that underpins the new system available to all other states for assessment. For much of the development period, officials in NSW say they were unable to see the substance of what the Victorians were building.
That period of interstate suspicion appears to be ending. But it did little to foster the development of a national system. Each state has different methods of transferring and registering title to land.
Sources in NSW say there is no doubt that the Victorian system does not meet the needs of its northern neighbour.
Parts of it may be capable of being adapted, but NSW officials want a system that has been designed to meet the needs of their state.
So does this mean Australia is on the verge of a bout of parochialism of the type that left the nation with inconsistent rail gauges?
Responsibility for heading off that sort of calamity rests with an organisation known as the National Electronic Conveyancing System (NECS).
The steering committee for that organisation is chaired by Les Taylor, former general counsel of the Commonwealth Bank and one-time corporate lawyer of the year.
NECS brings together all the states as well as those organisations whose members are involved in conveyancing - including the Law Council, the Australian Bankers Association and the Australian Institute of Conveyancers. Despite the different requirements of the different states, all members of NECS are committed to overcoming the differences and establishing a truly national system.
The Law Council representative on that body is John Corcoran, a former president of the Law Institute of Victoria and an executive member of the Law Council.
"We want a seamless national system," he said.
"Everyone wants that. The question is: how do you deliver that?"
When the NECS steering committee met in Perth at the end of June, it made a decision that could provide a way forward.
"We decided that to the maximum extent possible, we want to use the Victorian system that has been developed.
"We want to adapt what the Victorians have done. So whether you are conveyancing a property at Toowoomba, Perth or anywhere, you just go online and do it through the national system," he said.
"You might need to change the system rules, or the way you identify someone who uses the system, but to the largest extent possible, the investment that has been made should be utilised. In my view there is no risk of a rail-gauge type problem."
One of the main reasons for this is that the key players - lawyers, bankers and conveyancers - are not prepared to tolerate interstate inconsistency.
"The lawyers and banks are key stakeholders. The banks were involved in developing the Victorian pilot but they are now stepping back and want to see it integrated into the national scheme," Mr Corcoran said.
"Right from the beginning, the Law Council has backed a truly national system."
The Australian Bankers Association acting chief executive Ian Gilbert said the banks had tested the Victorian system and found that it worked.
"But we want it to find its way through to a national system. The states need to get together.
"For our members, if it is going to be viable - given the investment involved - then the system needs to be national," Mr Gilbert said.
Chris Merritt | October 12, 2007
Australian Business
Thursday, October 11, 2007
Agents Selling Authorities
You are selling and have chosen an agent. The Agent has prepared the Agents Selling Authority, usually exclusive for 90 days. But what if you are not happy with the level of service? You are locked in. Have you read the fine print. Probably not.
A suggestion made by estate agent Terry Ryder of McGrath Partners suggests that you consider putting a termination clause in the agency agreement. "It should give you the right to sack your agent if you're not happy with their level of service. Because in standard agreements, you're kind of locked in. A prudent seller would insist on writing in a clause which gives you the right to terminate without incurring any financial penalty."
Take Action
If you aren't happy with the treatment you've received as a buyer or vendor, you can make a complaint to the Real Estate Institute in your State or Territory. You could also contact the Department of Fair Trading, or equivalent in your State.
If you've been left out of pocket, and it was the agent's fault, seek legal advice in relation to your rights.
Top 10 questions to ask agents
1.How long have you been working in this area?
2.What comparable homes have you sold in this area lately?
3.What is the state of the market?
4.How long is it taking you to sell well-priced listings at the moment?
5.How much is my home worth? How have you come up with that figure?
6.Should I sell by auction or private treaty? Why?
7.What marketing strategy do you suggest? Why?
8.What will you do to introduce buyers to my property?
9.How does my house present? What should I do to maximise the sale price?
10.Do you have a list of recent vendors I can speak to?
Source Metropole Property Newsletter
A suggestion made by estate agent Terry Ryder of McGrath Partners suggests that you consider putting a termination clause in the agency agreement. "It should give you the right to sack your agent if you're not happy with their level of service. Because in standard agreements, you're kind of locked in. A prudent seller would insist on writing in a clause which gives you the right to terminate without incurring any financial penalty."
Take Action
If you aren't happy with the treatment you've received as a buyer or vendor, you can make a complaint to the Real Estate Institute in your State or Territory. You could also contact the Department of Fair Trading, or equivalent in your State.
If you've been left out of pocket, and it was the agent's fault, seek legal advice in relation to your rights.
Top 10 questions to ask agents
1.How long have you been working in this area?
2.What comparable homes have you sold in this area lately?
3.What is the state of the market?
4.How long is it taking you to sell well-priced listings at the moment?
5.How much is my home worth? How have you come up with that figure?
6.Should I sell by auction or private treaty? Why?
7.What marketing strategy do you suggest? Why?
8.What will you do to introduce buyers to my property?
9.How does my house present? What should I do to maximise the sale price?
10.Do you have a list of recent vendors I can speak to?
Source Metropole Property Newsletter
Monday, October 01, 2007
Master Builders Association response to EC
VICTORIA will be the first Australian state to enter the brave new world of "electronic conveyancing", but not everyone is happy with the proposed online system for exchanging mortgage documents.
The Master Builders Association says the State Government is using the new system to increase conveyancing fees. This would further reduce housing affordability, as its building and construction members would pass the added costs to consumers.
According to an MBA submission, land transfer fees would remain the same for electronic conveyancing, but would rise by between 16 and 32 per cent for those who stick with paper.
MBA executive director Brian Welch said the Land Victoria increase was yet another weight on housing affordability.
"Those who stick with the paper trail system are going to be penalised," he said.
"We support the initiative … but it discriminates heavily against people who are not computer-based; who are not literate with these systems.
"The State Government finds taxation all too easy to increase and it impacts on housing once again."
Source The Age Natalie Craig 1 Oct 07
You would have thought a positive step was to reduce transfer fees on electronic conveyancing transactions. It sends a positive signal to promote uptake and second the productivity savings are built into the cost of the transaction. Anyhow transfer fees bear no relation to the cost of the transaction, as the MBA point out the transfer fee is a tax. The MBA response is also consistent with the view the government wants to see a return on their investment in EC. The government can charge whatever they like as they hold the monopoly. BH
The Master Builders Association says the State Government is using the new system to increase conveyancing fees. This would further reduce housing affordability, as its building and construction members would pass the added costs to consumers.
According to an MBA submission, land transfer fees would remain the same for electronic conveyancing, but would rise by between 16 and 32 per cent for those who stick with paper.
MBA executive director Brian Welch said the Land Victoria increase was yet another weight on housing affordability.
"Those who stick with the paper trail system are going to be penalised," he said.
"We support the initiative … but it discriminates heavily against people who are not computer-based; who are not literate with these systems.
"The State Government finds taxation all too easy to increase and it impacts on housing once again."
Source The Age Natalie Craig 1 Oct 07
You would have thought a positive step was to reduce transfer fees on electronic conveyancing transactions. It sends a positive signal to promote uptake and second the productivity savings are built into the cost of the transaction. Anyhow transfer fees bear no relation to the cost of the transaction, as the MBA point out the transfer fee is a tax. The MBA response is also consistent with the view the government wants to see a return on their investment in EC. The government can charge whatever they like as they hold the monopoly. BH
Tuesday, September 04, 2007
Attorney-General Philip Ruddock
Attorney-General Philip Ruddock today expressed disappointment in the failure of the states and territories to cooperate in efforts to create a national electronic conveyancing system.
"The same jealousies that resulted in different rail-gauge widths in the 19th century are sabotaging a national electronic conveyancing system in the 21st century," Mr Ruddock said.
"I have been pressing for the states and territories to focus on the need for a national electronic conveyancing system for some time. A national electronic conveyancing system would remove red tape for business and lower costs for home buyers."
The Victorian Government has developed a pilot electronic conveyancing system.
"It is now being reported that Victoria has not yet shared its system with the other states to see if it can be used nationally," Mr Ruddock said.
"As a result, the private sector has lost confidence in the ability of the states and territories to deliver a national system."
"I am extremely disappointed that the failure of states and territories to cooperate has undermined such an important project."
The Australian Government has monitored the development of NECS through the Standing Committee of Attorneys-General (SCAG).
"While I recognise that NECS involves a range of ministers, I am disappointed that the Victorian Attorney-General has been unable to provide leadership on such an important national issue."
"I call on the states and territories to work together in the national interest and make a national electronic conveyancing system a reality."
This is a media release issued by AG Phil Ruddock 3/9/07
"The same jealousies that resulted in different rail-gauge widths in the 19th century are sabotaging a national electronic conveyancing system in the 21st century," Mr Ruddock said.
"I have been pressing for the states and territories to focus on the need for a national electronic conveyancing system for some time. A national electronic conveyancing system would remove red tape for business and lower costs for home buyers."
The Victorian Government has developed a pilot electronic conveyancing system.
"It is now being reported that Victoria has not yet shared its system with the other states to see if it can be used nationally," Mr Ruddock said.
"As a result, the private sector has lost confidence in the ability of the states and territories to deliver a national system."
"I am extremely disappointed that the failure of states and territories to cooperate has undermined such an important project."
The Australian Government has monitored the development of NECS through the Standing Committee of Attorneys-General (SCAG).
"While I recognise that NECS involves a range of ministers, I am disappointed that the Victorian Attorney-General has been unable to provide leadership on such an important national issue."
"I call on the states and territories to work together in the national interest and make a national electronic conveyancing system a reality."
This is a media release issued by AG Phil Ruddock 3/9/07
Monday, September 03, 2007
Banks drop conveyancing pilot
The AFR reports the major banks had walked out of Victoria's electronic conveyancing system, known as ECV, which was to begin operating in November.
Without the bank's support there is no ECV.
The banks have invested heavily in ECV on the condition that it would be used as a model for the national system. The report continues the banks have become increasingly frustrated by a lack of dialogue between Victoria and the other states. They withdrew because Victoria has still to make its software available to the national body NECO.
In a letter to NECO, the Australian Bankers Association called for a national project team to be set up to improve co-operation. "Only through a national project ... can banks and other stakeholders approach a NECO project with confidence that there is one project, one process and one national outcome. Without this the banks will not be able to recommit to work on a project that lacks any certainty of a national roll-out or application"
Bendigo Bank is one of the few entities still in talks with the Victorian Government about the state's electronic conveyancing system (ECV).
Extracts from Australian Financial Review Matthew Drummond 3/9/07
copy articles
Without the bank's support there is no ECV.
The banks have invested heavily in ECV on the condition that it would be used as a model for the national system. The report continues the banks have become increasingly frustrated by a lack of dialogue between Victoria and the other states. They withdrew because Victoria has still to make its software available to the national body NECO.
In a letter to NECO, the Australian Bankers Association called for a national project team to be set up to improve co-operation. "Only through a national project ... can banks and other stakeholders approach a NECO project with confidence that there is one project, one process and one national outcome. Without this the banks will not be able to recommit to work on a project that lacks any certainty of a national roll-out or application"
Bendigo Bank is one of the few entities still in talks with the Victorian Government about the state's electronic conveyancing system (ECV).
Extracts from Australian Financial Review Matthew Drummond 3/9/07
copy articles
Thursday, August 30, 2007
Electronic Conveyancing - An update from Mr Madden
29 May 2007 Public Accounts and Estimates Committee 13
Mr RICH-PHILLIPS - I would like to ask you about the funding for the electronic conveyancing system — firstly, about the contradiction in the information contained in the budget overview which refers to the funding being provided, $6 million over four years, and budget paper 3, which refers to the funding being provided in one year, being the 07–08 year.
The CHAIR — What page is this?
Mr RICH-PHILLIPS — That is page 333. Can you just clarify, please, which is correct — the overview or the budget paper? Is it one year or is it four years?
Mr MADDEN — I am informed that it is over one year.
Mr RICH-PHILLIPS — I understand that is $6 million in addition to $24 million that was provided for the land exchange program. Can you tell the committee how that existing money has been expended in setting up this electronic conveyancing system and how the additional $6 million was spent?
Mr MADDEN — I might ask Peter Harris, secretary of the department, to reply to that. I would ask, Chair, that if there are any supplementary questions that they come through me so that I can respond.
The CHAIR — That is fine. They always do, Minister; don’t worry.
Mr HARRIS — In answer to the basic question for the committee’s benefit, the electronic conveyancing project has proved to be very successful and has met its technical milestones for being deliverable. If I could just ensure that it is in everybody’s mind that this electronic exchange will effectively replace the exchange that might occur otherwise, which would be managed by conveyancers. So when cheques are handed over and titles are provided as a result of a property transaction, this will now be able to occur electronically, with a significant estimated saving for every property transaction of the order of $300 or $400 on average.
It is quite an important piece of technological development for the property industry. It has substantial application outside Victoria — it is potentially a national system — and it has generated quite a lot of interest from the kind of institutions that are involved in electronic conveyancing. In terms of the funding, the project was supplied with funding on an incremental basis, and it has built up by cost over time according to its success. So having met each of its individual technical milestones, this last segment of funding approved by the government budget for this year will ensure that in effect this system is available in Victoria. I believe — I might look across at my adviser at this point — it will be available in the early part of 2008, if not earlier than that.
Ms OVERELL — Yes; the middle of 2008.
Mr HARRIS — Certainly it will be completed in the coming year. Those savings will then flow on to institutions and obviously on behalf of purchasers who care to use the electronic system. The paper-based system will nevertheless remain available for those who do not want to take advantage of that, and there undoubtedly will be some reasons determined by the individual institutions — banks and the like — as to whether or not they choose to go down this path. But we think the savings are very attractive, and the project is therefore likely to be considered quite a success.
Mr RICH-PHILLIPS — I understand the project has been on trial since 2005 and that there have been a couple of trials. I am curious as to why the extra $6 million is required now, if the project is already to a trial stage.
Mr MADDEN — First of all, in terms of the development of this, I understand that it has been ongoing for some time. This is the sort of technology you do not just do on your own. I also understand that you have got to bring people along with you, particularly if you are relying on many of the large financial institutions. I understand that financial institutions such as Westpac, ANZ, Commonwealth Bank, National Australia Bank, Macquarie Bank and Bendigo Bank are already using the mortgage transaction as part of their electronic conveyancing systems, so it is important that those sorts of stakeholders have confidence in the product and that when the extension of that is fully operating, people can feel completely confident about that.
Mr RICH-PHILLIPS — Are there concerns now?
Mr MADDEN — Let us also appreciate that this puts Victoria at the forefront of other Australian states and that in actual fact it is a world leader in terms of financial property settlement and lodgement of land transfers and mortgages. This is groundbreaking, and in terms of the intellectual property that goes with this we will see countries from around the world wanting to replicate what we are doing here in this state. I am not sure whether you have any more comments, Peter, in relation to any of those matters.
Mr RICH-PHILLIPS — You mentioned the banks that are trialling the system now. Have there been any problems in the trial? Have they expressed any concerns with the system that is currently running?
Mr MADDEN — My understanding is that those financial institutions are currently using the system and at this point it appears that they are very supportive of it, so I think all the indications are very supportive, But, of course, I suppose you have to trial these things before you roll them out completely, and that is just the cautious nature of how you would manage something that could have quite profound change and significant implications for the operation of any organisation. As I said, one of the great elements of this is that what we will see — I do not know if you are aware of the way in which they exchange titles and mortgages and all sorts of things at the last minute. Everyone has to come together at the last minute and often you have four parties involved, sitting around the table, and they all have to find a place to meet, and what you do not want is a glitch at the last minute because not only does it stop that transaction, but because there are a lot of linked transactions often for similar times of the day, people sell one property, purchase, and try to combine the dates so that they are not having to use different forms of credit. So it is important that the operation of this is absolutely sound, and no doubt you would not have the banks supportive of it if they did not feel confident about it, and we would expect that when they take it on board fully, it will be a world leader.
The CHAIR — Our family had a transaction last week and it went through very smoothly. In fact it was a day or so ahead of what they originally expected, so I am very grateful for the new system. (BH - what new system is he referring to????? he's getting ahead of himself here)
PUBLIC ACCOUNTS AND ESTIMATES COMMITTEE
Inquiry into budget estimates 2007–08
Melbourne — 29 May 2007
Gordon Rich-Phillips
Party: Liberal Party
House: Legislative Council
Member Public Accounts and Estimates Cttee since 1999.
Justin Madden
Party: Australian Labor Party
House: Legislative Council
Portfolio/Position: Minister for Planning
Ms Genevieve Overell,
General Manager, Office of Planning and Urban Design, Department of Sustainability and Environment
Mr Peter Harris,
Secretary of the Department of Sustainability and Environment;
Mr Bob. Stensholt
Party: Australian Labor Party
Chair, Public Accounts and Estimates Cttee since 2007.
Mr RICH-PHILLIPS - I would like to ask you about the funding for the electronic conveyancing system — firstly, about the contradiction in the information contained in the budget overview which refers to the funding being provided, $6 million over four years, and budget paper 3, which refers to the funding being provided in one year, being the 07–08 year.
The CHAIR — What page is this?
Mr RICH-PHILLIPS — That is page 333. Can you just clarify, please, which is correct — the overview or the budget paper? Is it one year or is it four years?
Mr MADDEN — I am informed that it is over one year.
Mr RICH-PHILLIPS — I understand that is $6 million in addition to $24 million that was provided for the land exchange program. Can you tell the committee how that existing money has been expended in setting up this electronic conveyancing system and how the additional $6 million was spent?
Mr MADDEN — I might ask Peter Harris, secretary of the department, to reply to that. I would ask, Chair, that if there are any supplementary questions that they come through me so that I can respond.
The CHAIR — That is fine. They always do, Minister; don’t worry.
Mr HARRIS — In answer to the basic question for the committee’s benefit, the electronic conveyancing project has proved to be very successful and has met its technical milestones for being deliverable. If I could just ensure that it is in everybody’s mind that this electronic exchange will effectively replace the exchange that might occur otherwise, which would be managed by conveyancers. So when cheques are handed over and titles are provided as a result of a property transaction, this will now be able to occur electronically, with a significant estimated saving for every property transaction of the order of $300 or $400 on average.
It is quite an important piece of technological development for the property industry. It has substantial application outside Victoria — it is potentially a national system — and it has generated quite a lot of interest from the kind of institutions that are involved in electronic conveyancing. In terms of the funding, the project was supplied with funding on an incremental basis, and it has built up by cost over time according to its success. So having met each of its individual technical milestones, this last segment of funding approved by the government budget for this year will ensure that in effect this system is available in Victoria. I believe — I might look across at my adviser at this point — it will be available in the early part of 2008, if not earlier than that.
Ms OVERELL — Yes; the middle of 2008.
Mr HARRIS — Certainly it will be completed in the coming year. Those savings will then flow on to institutions and obviously on behalf of purchasers who care to use the electronic system. The paper-based system will nevertheless remain available for those who do not want to take advantage of that, and there undoubtedly will be some reasons determined by the individual institutions — banks and the like — as to whether or not they choose to go down this path. But we think the savings are very attractive, and the project is therefore likely to be considered quite a success.
Mr RICH-PHILLIPS — I understand the project has been on trial since 2005 and that there have been a couple of trials. I am curious as to why the extra $6 million is required now, if the project is already to a trial stage.
Mr MADDEN — First of all, in terms of the development of this, I understand that it has been ongoing for some time. This is the sort of technology you do not just do on your own. I also understand that you have got to bring people along with you, particularly if you are relying on many of the large financial institutions. I understand that financial institutions such as Westpac, ANZ, Commonwealth Bank, National Australia Bank, Macquarie Bank and Bendigo Bank are already using the mortgage transaction as part of their electronic conveyancing systems, so it is important that those sorts of stakeholders have confidence in the product and that when the extension of that is fully operating, people can feel completely confident about that.
Mr RICH-PHILLIPS — Are there concerns now?
Mr MADDEN — Let us also appreciate that this puts Victoria at the forefront of other Australian states and that in actual fact it is a world leader in terms of financial property settlement and lodgement of land transfers and mortgages. This is groundbreaking, and in terms of the intellectual property that goes with this we will see countries from around the world wanting to replicate what we are doing here in this state. I am not sure whether you have any more comments, Peter, in relation to any of those matters.
Mr RICH-PHILLIPS — You mentioned the banks that are trialling the system now. Have there been any problems in the trial? Have they expressed any concerns with the system that is currently running?
Mr MADDEN — My understanding is that those financial institutions are currently using the system and at this point it appears that they are very supportive of it, so I think all the indications are very supportive, But, of course, I suppose you have to trial these things before you roll them out completely, and that is just the cautious nature of how you would manage something that could have quite profound change and significant implications for the operation of any organisation. As I said, one of the great elements of this is that what we will see — I do not know if you are aware of the way in which they exchange titles and mortgages and all sorts of things at the last minute. Everyone has to come together at the last minute and often you have four parties involved, sitting around the table, and they all have to find a place to meet, and what you do not want is a glitch at the last minute because not only does it stop that transaction, but because there are a lot of linked transactions often for similar times of the day, people sell one property, purchase, and try to combine the dates so that they are not having to use different forms of credit. So it is important that the operation of this is absolutely sound, and no doubt you would not have the banks supportive of it if they did not feel confident about it, and we would expect that when they take it on board fully, it will be a world leader.
The CHAIR — Our family had a transaction last week and it went through very smoothly. In fact it was a day or so ahead of what they originally expected, so I am very grateful for the new system. (BH - what new system is he referring to????? he's getting ahead of himself here)
PUBLIC ACCOUNTS AND ESTIMATES COMMITTEE
Inquiry into budget estimates 2007–08
Melbourne — 29 May 2007
Gordon Rich-Phillips
Party: Liberal Party
House: Legislative Council
Member Public Accounts and Estimates Cttee since 1999.
Justin Madden
Party: Australian Labor Party
House: Legislative Council
Portfolio/Position: Minister for Planning
Ms Genevieve Overell,
General Manager, Office of Planning and Urban Design, Department of Sustainability and Environment
Mr Peter Harris,
Secretary of the Department of Sustainability and Environment;
Mr Bob. Stensholt
Party: Australian Labor Party
Chair, Public Accounts and Estimates Cttee since 2007.
Sunday, August 26, 2007
Commsec - 1 million clients
Thirteen years ago, CommSec — or Commonwealth Securities to give it its full name — was a dream in the minds of a clutch of the bank's executives. What would have been the odds of the lumbering Commonwealth Bank launching a stockbroking business that, little more than a decade later, would book more trades on the stock exchange than anyone else?
But a bunch of bankers, used to the bureaucratic ways of the Commonwealth, slipped under the guard of the stockbroking establishment and built a business that now boasts close to 1.5 million accounts, or about a million customers. Its clients have either deserted high-charging established firms or they're new investors who feel comfortable doing their own transactions at a fraction of the rates charged by the big broking firms.
CommSec general manager Matthew Comyn says his full-service broking rivals "tend to look after their most valuable clients but if you're not getting much service and you're paying $100 a trade, and research is more or less freely available from a lot of different sources, then paying $19.95 a trade with us is a fairly easy decision for a lot of people."
Source The Age - Christopher Webb
Full Article Link
But a bunch of bankers, used to the bureaucratic ways of the Commonwealth, slipped under the guard of the stockbroking establishment and built a business that now boasts close to 1.5 million accounts, or about a million customers. Its clients have either deserted high-charging established firms or they're new investors who feel comfortable doing their own transactions at a fraction of the rates charged by the big broking firms.
CommSec general manager Matthew Comyn says his full-service broking rivals "tend to look after their most valuable clients but if you're not getting much service and you're paying $100 a trade, and research is more or less freely available from a lot of different sources, then paying $19.95 a trade with us is a fairly easy decision for a lot of people."
Source The Age - Christopher Webb
Full Article Link
Monday, August 20, 2007
seek.com.au 2007 results
Online job advertiser Seek has reported 62.8 per cent net profit increase and remains confident of future employment conditions and growth prospects.
For the year ended June 30, 2007, net profit increased to $55.5 million from $34.1 million.
Sales revenue jumped to $157 million from $106.2 million.
Earnings before interest, tax, depreciation and amortisation were up to $80.3 million from $49 million.
"We have continued to enjoy strong growth over the past 12 months and have increased our market leadership position," joint chief executive Paul Bassat said.
"SEEK continues to lead the market in unaided awareness, ad volumes, unique browsers and market reach."
Mr Bassat said a "structural shift" was taking place in the Australian classifieds market, and it was likely to follow the US, where 38 per cent of employment advertising is online.
That compared with Australia's 23 per cent and underpinned the rosy outlook.
"Growth opportunities are still evident in the SME (small and medium enterprise) market and a focus on customer acquisition and retention is central to our growth strategy for the year ahead," he said.
"Increasing our market penetration in QLD, SA and WA as well as the Government and Healthcare sectors are also high on our agenda.
Source The Age
For the year ended June 30, 2007, net profit increased to $55.5 million from $34.1 million.
Sales revenue jumped to $157 million from $106.2 million.
Earnings before interest, tax, depreciation and amortisation were up to $80.3 million from $49 million.
"We have continued to enjoy strong growth over the past 12 months and have increased our market leadership position," joint chief executive Paul Bassat said.
"SEEK continues to lead the market in unaided awareness, ad volumes, unique browsers and market reach."
Mr Bassat said a "structural shift" was taking place in the Australian classifieds market, and it was likely to follow the US, where 38 per cent of employment advertising is online.
That compared with Australia's 23 per cent and underpinned the rosy outlook.
"Growth opportunities are still evident in the SME (small and medium enterprise) market and a focus on customer acquisition and retention is central to our growth strategy for the year ahead," he said.
"Increasing our market penetration in QLD, SA and WA as well as the Government and Healthcare sectors are also high on our agenda.
Source The Age
realestate.com.au 2007 results
Online company Real.estate.com.au Ltd has booked an 83.2 per cent increase annual profit and says it is looking for opportunities to enter new markets.
The property search website operator made a net profit of $15.06 million for fiscal 2007, up from $8.2 million in the previous year.
Revenue rose 77.4 per cent to $107.97 million, on the back of organic growth.
"In the coming year we will continue to improve our existing operations while looking for opportunities to enter new markets," chief executive and managing director Simon Baker said.
The main Australian operations delivered earnings before interest, tax, depreciation and amortisation (EBITDA) of $39.13 million, up from $21.14 million, as the margin improved to 45 per cent from 38 per cent.
The United Kingdom operation made an EBITDA loss of $8.18 million in the year ended June 30, compared to a loss of $2.96 million.
But the company's new businesses in Italy and Luxembourg were profitable with EBITDA margins of seven per cent and nine per cent, respectively.
Mr Baker said the company's flagship Australian site, realestate.com.au, continued to gain market share.
In June, it had 100 per cent more unique browsers than the country's second site, domain.com.au, according to Nielsen/NetRatings.
Overall, 7.14 million people visited the websites owned and operated by the group, which was up 44 per cent than in June 2006.
In July, that number rose to 7.6 million.
The number of real estate agent subscribers increased by 59 per cent over the year to 17,011, from 10,713.
Agents are the company's core customers and agent subscriptions are a key performance and revenue driver.
Property listings rose 84 per cent to 1.083 million in June, from a year ago.
In February, Mr Baker said real estate agents were beginning to question the value of traditional media for property listings.
He said that realestate.com.au was significantly cheaper than print media alternatives and had an average revenue per listing per month of between $15 and $20.
The company did not declare a final dividend.
The group operates a stable of global websites including realestate.com.au, property.com.au, homesite.com.au, realcommercial.com.au and propertylook.com.au.
Source The Age
The property search website operator made a net profit of $15.06 million for fiscal 2007, up from $8.2 million in the previous year.
Revenue rose 77.4 per cent to $107.97 million, on the back of organic growth.
"In the coming year we will continue to improve our existing operations while looking for opportunities to enter new markets," chief executive and managing director Simon Baker said.
The main Australian operations delivered earnings before interest, tax, depreciation and amortisation (EBITDA) of $39.13 million, up from $21.14 million, as the margin improved to 45 per cent from 38 per cent.
The United Kingdom operation made an EBITDA loss of $8.18 million in the year ended June 30, compared to a loss of $2.96 million.
But the company's new businesses in Italy and Luxembourg were profitable with EBITDA margins of seven per cent and nine per cent, respectively.
Mr Baker said the company's flagship Australian site, realestate.com.au, continued to gain market share.
In June, it had 100 per cent more unique browsers than the country's second site, domain.com.au, according to Nielsen/NetRatings.
Overall, 7.14 million people visited the websites owned and operated by the group, which was up 44 per cent than in June 2006.
In July, that number rose to 7.6 million.
The number of real estate agent subscribers increased by 59 per cent over the year to 17,011, from 10,713.
Agents are the company's core customers and agent subscriptions are a key performance and revenue driver.
Property listings rose 84 per cent to 1.083 million in June, from a year ago.
In February, Mr Baker said real estate agents were beginning to question the value of traditional media for property listings.
He said that realestate.com.au was significantly cheaper than print media alternatives and had an average revenue per listing per month of between $15 and $20.
The company did not declare a final dividend.
The group operates a stable of global websites including realestate.com.au, property.com.au, homesite.com.au, realcommercial.com.au and propertylook.com.au.
Source The Age
Sunday, August 12, 2007
Living in the 70s
In the mid 80s I worked for a merchant bank that traded bills and bonds. Screen trading was relatively new. Before screen trading, the market for bills, bonds and cash was traders ringing around the market place with their peers to conduct a trade, are you a seller or a buyer, and at what price and quantity? It was less than perfect market. It was also conducted in a certain time frame. All day trading was halted around 11am or it was a case of forward trading. The primary reason for the limited time frame for trading was the necessity to physically settle all trades same day. Settlements were done in the afternoon after bank cheques were drawn (for tens of millions) and you had drawn up your round for physically exchanging bank cheques and securities. Then you got on your bike (or tram) and went from one bank to another settling the trades.
Two changes to the market took place in the mid to late eighties. One, the introduction of screen trading. Two, Austraclear introduced electronic settlements of fixed interest products. In 2006, SFE Austraclear has an inventory of over $600 Billion in securities and trades over $30B daily. The new ASX Austraclear System simplifies settlement complexities and enhances straight-through-processing (STP), office integration and cross border opportunities to facilitate the registering, bookkeeping, clearing and settlement of a broader range of derivative, security and cash asset classes. (source ASX)
The property market - in a nutshell "we" seem to be stuck in the 1970s.
It is an obvious thing to say that "we" need to emulate systems like Austraclear and CHESS. Our current settlement systems for property conveyancing and mortgage processing are hapless. And the efforts of the Land Registries, Revenue Offices, Financial Institutions and Law Societies to bring about the necessary changes on a national basis seems to have been reduced to a morass or quagmire.
First to bring about change "we" don't need big bang changes. What "we" need to do is start to solve the communication quandries between the parties to the settlements chain. With a concerted commitment and co-operation by the Financial Institutions this could be solved quite easily.
Two changes to the market took place in the mid to late eighties. One, the introduction of screen trading. Two, Austraclear introduced electronic settlements of fixed interest products. In 2006, SFE Austraclear has an inventory of over $600 Billion in securities and trades over $30B daily. The new ASX Austraclear System simplifies settlement complexities and enhances straight-through-processing (STP), office integration and cross border opportunities to facilitate the registering, bookkeeping, clearing and settlement of a broader range of derivative, security and cash asset classes. (source ASX)
The property market - in a nutshell "we" seem to be stuck in the 1970s.
It is an obvious thing to say that "we" need to emulate systems like Austraclear and CHESS. Our current settlement systems for property conveyancing and mortgage processing are hapless. And the efforts of the Land Registries, Revenue Offices, Financial Institutions and Law Societies to bring about the necessary changes on a national basis seems to have been reduced to a morass or quagmire.
First to bring about change "we" don't need big bang changes. What "we" need to do is start to solve the communication quandries between the parties to the settlements chain. With a concerted commitment and co-operation by the Financial Institutions this could be solved quite easily.
Sunday, July 22, 2007
The top 10 shitty things lawyers have to contend with FIs
- Haven't I faxed you the Contract, Transfer and Title 3 times already? CBA
- Look, we sent you a copy of the Transfer , yet the name of the Mortgagor is wrong, you need to redo the Mortgage documents. Even worse the ANZ not once but twice lost a stamped Transfer
- For the sixth time, we need a letter confirming the amount of the original loan and the payout figure. Our client urgently needs this to get a deposit release Westpac
- How do I navigate through this phone system - I just want to book in a settlement or change the time
- Quote "We have lost or misplaced the bank cheques; did our settlement clerk take the cheque(s) by mistake?" NAB
- We cant find the title. Which bank, (our firm alone deals with banks that lose titles on average 3 to 4 times a year)
- What do you mean I cant email you? I have a 50 page document I need to send you. This is the year 2010. Westpac: phone, fax or post.
- I have been put on hold for 53 minutes - HSBC
- How come you cant give a payout figure? Settlement is tomorrow and the other side needs three days notice. And hey, how come I cant ever speak to the same person twice?
- What's the loan status? ANZ - two million telephone inquiries a year relating to the status of loan applications
11 What do you mean the title is still in the vendors name? I purchased this ppty 9 months ago - CBA
Friday, July 13, 2007
NECS - the benefits to all industry participants
Electronic / digital conveyancing, because of its nature,
• will provide industry participants with opportunities to organise their work and staffing needs more efficiently,
• to service a wider geographical distribution of transacting parties,
• to save time and expense preparing and correcting documentation, and
• to have greater confidence in the transaction process and in the other participants representing transacting parties.
These benefits will be greater the more an industry participant uses electronic conveyancing.
How will legal and conveyancing practices benefit?
Legal and conveyancing practices will benefit from opportunities to streamline their operations, saving staff time and expense through seamless integration with their case management systems. The information they already collect from their clients will be sent to the NECS and used to prepare the instruments required for the transaction.
• Paralegals and clerks will sign-on to the NECS through their in-house systems and ensure everything is in order for a legal practitioner or licensed conveyancer to certify and sign the instruments prior to the agreed time for settlement.
• Settlement will occur without having to obtain a bank cheque or send anyone to a pre-agreed location to exchange cheques and instruments.
• Lodgment will occur automatically after settlement without the need to instruct a lodging agent, and notification of lodgment will be received and recorded in in-house case management systems almost immediately.
• The conveyancing process will be completed much faster and with less effort.
It will be possible to handle many more transactions at the same time with no additional resources and to settle any number of matters on the same day.
How will financial institutions and other mortgage lenders benefit?
Financial institutions and other mortgage lenders will similarly benefit from opportunities to streamline their operations.
• The information many lenders already collect and have stored in their loan documentation systems will be automatically used through connections with NECS to populate workspaces and prepare instruments.
• Loans officers will sign-on to NECS through their in-house documentation systems and ensure everything is in order for a supervisor to certify and sign discharge of mortgage and/or new mortgage instruments prior to the agreed time for settlement.
• Settlement will occur without having to obtain a bank cheque or send anyone to a pre-agreed location to exchange cheques and instruments.
• Lodgment will occur automatically after settlement without the need to instruct a lodging agent, and notification of lodgment will be received and recorded in in-house documentation systems almost immediately.
• The process of documenting loans and lodging mortgages will be completed much faster with less effort and resources.
• The same number of staff will be able to handle a significantly greater number of loans and mortgages.
The full benefit of investments in in-house systems will be realised with straight-through processing to the Land Registry via NECS.
How will sole practitioners benefit?
Sole practitioners and small legal and conveyancer practices generally will benefit from the convenience and cost savings possible using NECS.
The practitioner will be able to complete all aspects of a conveyance without having to leave the office or having to use a courier or agent to deliver documents for client signing, to pick-up bank cheques, to attend settlement or to lodge instruments with the Land Registry.
They will be able to complete each conveyance and obtain these benefits using nothing more than an Internet browser. Alternatively, they can install and use one of a number of case management systems specially tailored by software development companies for legal and conveyancer practices.
How will the Land Registry benefit?
The Land Registry will benefit from lodgment of electronic instruments suitable for electronic examination and, ultimately, automatic registration. The electronic instruments will have been checked for consistency and completeness during preparation with opportunities for practitioners and lenders to make corrections on the spot. These checks and corrections during preparation will mean the Land Registry will not have to issue as many requisitions for additional or clarifying information during examination.
Source NSW NECS Update
• will provide industry participants with opportunities to organise their work and staffing needs more efficiently,
• to service a wider geographical distribution of transacting parties,
• to save time and expense preparing and correcting documentation, and
• to have greater confidence in the transaction process and in the other participants representing transacting parties.
These benefits will be greater the more an industry participant uses electronic conveyancing.
How will legal and conveyancing practices benefit?
Legal and conveyancing practices will benefit from opportunities to streamline their operations, saving staff time and expense through seamless integration with their case management systems. The information they already collect from their clients will be sent to the NECS and used to prepare the instruments required for the transaction.
• Paralegals and clerks will sign-on to the NECS through their in-house systems and ensure everything is in order for a legal practitioner or licensed conveyancer to certify and sign the instruments prior to the agreed time for settlement.
• Settlement will occur without having to obtain a bank cheque or send anyone to a pre-agreed location to exchange cheques and instruments.
• Lodgment will occur automatically after settlement without the need to instruct a lodging agent, and notification of lodgment will be received and recorded in in-house case management systems almost immediately.
• The conveyancing process will be completed much faster and with less effort.
It will be possible to handle many more transactions at the same time with no additional resources and to settle any number of matters on the same day.
How will financial institutions and other mortgage lenders benefit?
Financial institutions and other mortgage lenders will similarly benefit from opportunities to streamline their operations.
• The information many lenders already collect and have stored in their loan documentation systems will be automatically used through connections with NECS to populate workspaces and prepare instruments.
• Loans officers will sign-on to NECS through their in-house documentation systems and ensure everything is in order for a supervisor to certify and sign discharge of mortgage and/or new mortgage instruments prior to the agreed time for settlement.
• Settlement will occur without having to obtain a bank cheque or send anyone to a pre-agreed location to exchange cheques and instruments.
• Lodgment will occur automatically after settlement without the need to instruct a lodging agent, and notification of lodgment will be received and recorded in in-house documentation systems almost immediately.
• The process of documenting loans and lodging mortgages will be completed much faster with less effort and resources.
• The same number of staff will be able to handle a significantly greater number of loans and mortgages.
The full benefit of investments in in-house systems will be realised with straight-through processing to the Land Registry via NECS.
How will sole practitioners benefit?
Sole practitioners and small legal and conveyancer practices generally will benefit from the convenience and cost savings possible using NECS.
The practitioner will be able to complete all aspects of a conveyance without having to leave the office or having to use a courier or agent to deliver documents for client signing, to pick-up bank cheques, to attend settlement or to lodge instruments with the Land Registry.
They will be able to complete each conveyance and obtain these benefits using nothing more than an Internet browser. Alternatively, they can install and use one of a number of case management systems specially tailored by software development companies for legal and conveyancer practices.
How will the Land Registry benefit?
The Land Registry will benefit from lodgment of electronic instruments suitable for electronic examination and, ultimately, automatic registration. The electronic instruments will have been checked for consistency and completeness during preparation with opportunities for practitioners and lenders to make corrections on the spot. These checks and corrections during preparation will mean the Land Registry will not have to issue as many requisitions for additional or clarifying information during examination.
Source NSW NECS Update
Thursday, July 12, 2007
Hocking Stuart groups sold
Real estate group Hocking Stuart has been sold - to a group of its own real estate agents.
Greg Hocking and Andrew Stuart, who launched the business in 1985 from an office in Albert Park, today announced the sale to eight franchisees of Hocking Stuart offices around the state.
But neither would say how much they had sold their business for.
Mr Hocking said he was pleased to have sold out of the business.
"It has always been our goal to see Hocking Stuart pass into the hands of ... successors," he said.
The company, which last financial year said it had achieved sales in excess of $2.4 billion, has 42 offices across Victoria, 500 employees and around 11,000 properties under management.
It will now look nationally for a new chief executive officer.
Individual Hocking Stuart offices will remain owned by their directors.
Mr Hocking said he and Mr Stuart had been discussing "an exit strategy" for a number of years.
The company's name and branding would not change, Mr Hocking said, because the new owners were all already involved with the business.
"So from a grass roots level we know what to expect," he said.
Mr Hocking will now focus on a mortgage broking business he has been developing for the last 12 months, while Mr Stuart has retained an interest in Hocking Stuart's Albert Park office.
Source The Age
Clay Lucas
Greg Hocking and Andrew Stuart, who launched the business in 1985 from an office in Albert Park, today announced the sale to eight franchisees of Hocking Stuart offices around the state.
But neither would say how much they had sold their business for.
Mr Hocking said he was pleased to have sold out of the business.
"It has always been our goal to see Hocking Stuart pass into the hands of ... successors," he said.
The company, which last financial year said it had achieved sales in excess of $2.4 billion, has 42 offices across Victoria, 500 employees and around 11,000 properties under management.
It will now look nationally for a new chief executive officer.
Individual Hocking Stuart offices will remain owned by their directors.
Mr Hocking said he and Mr Stuart had been discussing "an exit strategy" for a number of years.
The company's name and branding would not change, Mr Hocking said, because the new owners were all already involved with the business.
"So from a grass roots level we know what to expect," he said.
Mr Hocking will now focus on a mortgage broking business he has been developing for the last 12 months, while Mr Stuart has retained an interest in Hocking Stuart's Albert Park office.
Source The Age
Clay Lucas
Monday, July 09, 2007
LIXI selected for the National Electronic Conveyancing System
The National Electronic Conveyancing Office (NECO) has announced an agreement with LIXI to create common data standards for the National Electronic Conveyancing System (NECS).
The NECS project is a co-operative initiative governed by a National Steering Committee (NSC) consisting of representatives of government land administrations, revenue commissioners, lawyers, conveyancers, bankers and the information brokers and law stationers.
Whilst this is a complex process involving different jurisdictional and industry policies and practices, Simon Libbis, executive director of NECO, says announcing data standards is a major milestone.
“LIXI’s facilitation of data standards for the national roll out of electronic conveyancing is crucial to the project’s progression. LIXI has demonstrated world class innovation and we are very excited to have their expertise available for electronic conveyancing” he said.
According to Socrates Vasiliadis, this agreement solidifies the importance of one standard for the industry.
“This announcement means LIXI is validated as the data standard for the industry and delivers value to our members. This project will change the way transfer of ownership of property is managed and will help the whole settlement process become more simplified” he said.
Property transactions in Australia account for 28% of GDP. The benefits that are expected to flow from the National Electronic Conveyancing System are:
* consumer and practitioner convenience
* user efficiency and consumer benefits
* straight-through processing from dealing preparation to registration
* single interface for national businesses
* common functionality for users in all jurisdictions
* easier cross-border transactions
* transparent application of jurisdiction rule differences.
Industry uptake in LIXI membership has increased since companies are now able to join without licensing IP. Members can therefore join yet hold off on purchasing IP until they’re ready to implement e-commerce facilities in the future.
Source lixi.org.au
The NECS project is a co-operative initiative governed by a National Steering Committee (NSC) consisting of representatives of government land administrations, revenue commissioners, lawyers, conveyancers, bankers and the information brokers and law stationers.
Whilst this is a complex process involving different jurisdictional and industry policies and practices, Simon Libbis, executive director of NECO, says announcing data standards is a major milestone.
“LIXI’s facilitation of data standards for the national roll out of electronic conveyancing is crucial to the project’s progression. LIXI has demonstrated world class innovation and we are very excited to have their expertise available for electronic conveyancing” he said.
According to Socrates Vasiliadis, this agreement solidifies the importance of one standard for the industry.
“This announcement means LIXI is validated as the data standard for the industry and delivers value to our members. This project will change the way transfer of ownership of property is managed and will help the whole settlement process become more simplified” he said.
Property transactions in Australia account for 28% of GDP. The benefits that are expected to flow from the National Electronic Conveyancing System are:
* consumer and practitioner convenience
* user efficiency and consumer benefits
* straight-through processing from dealing preparation to registration
* single interface for national businesses
* common functionality for users in all jurisdictions
* easier cross-border transactions
* transparent application of jurisdiction rule differences.
Industry uptake in LIXI membership has increased since companies are now able to join without licensing IP. Members can therefore join yet hold off on purchasing IP until they’re ready to implement e-commerce facilities in the future.
Source lixi.org.au
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