The Legal Office is often just a great big paper processing machine. It receives, files, retrieves, creates, file notes, collates, copies, distributes and archives paper - piles of it. Think Conveyancing, think Commercial Litigation.
Whilst the term the "Paperless Office" was coined in the 80s with the advent of the PC and the wordprocessor, these tools actually spurred an addiction to paper no different to the junkie's addiction to heroin.
But we now have the tools available to create "digital paper". PDF techonology is the new Digital Paper and it can be just as addictive as crack cocaine.
Here's one experts take on the Paperless Office.
Wednesday, October 04, 2006
Tuesday, October 03, 2006
Banks Offshore Back Office Jobs
Not pleasant news for those who are about to be made redundant. But banks are looking to offshoring jobs to lower their costs of back office operations including mortgage processing.
In my experience banks see mortgage processing and settlements as a necessary evil and devote the minimum amount of resources that they think they can get away with.
The solution is smart technology to do the drudge work. Banks have not made enough of web services in the mortgage processing and settlements. This is where the focus should be and deploy staff to handle the non-routine questions. It seems that there is a uniform misconception that NECS will provide all the answers. NECS will be part of the answer not the whole answer.
Outsourcing is the short term quick fix to lowering costs and boosting the bottom line.
See the full story from Australian IT
In my experience banks see mortgage processing and settlements as a necessary evil and devote the minimum amount of resources that they think they can get away with.
The solution is smart technology to do the drudge work. Banks have not made enough of web services in the mortgage processing and settlements. This is where the focus should be and deploy staff to handle the non-routine questions. It seems that there is a uniform misconception that NECS will provide all the answers. NECS will be part of the answer not the whole answer.
Outsourcing is the short term quick fix to lowering costs and boosting the bottom line.
See the full story from Australian IT
Friday, September 29, 2006
NECS Forums
Get a greater insight into the mechanics of electronic conveyancing under NECS by signing up to the NECS Forums.
NECS wants your feedback with discussions covering pretty much all topics. For example: what is the future of CTs in an electronic environment? What are industry's preferences for paying fees, duties and taxes? How will clients hand over the balance of the purchase price? How will linked settlements work?
Sign up, read up on whats happening and contribute.
NECS National Consultation Forums
NECS wants your feedback with discussions covering pretty much all topics. For example: what is the future of CTs in an electronic environment? What are industry's preferences for paying fees, duties and taxes? How will clients hand over the balance of the purchase price? How will linked settlements work?
Sign up, read up on whats happening and contribute.
NECS National Consultation Forums
Thursday, September 28, 2006
Buying and selling real estate on line (like CHESS for shares)
Jon Denovan from Gadens does a video blog on eConveyancing. Listening to Jon you would almost think we can just about jump online and buy or sell and settle a property - just like a share trade.
Its a short highlight on the degree of change the new NECS property settlements system will bring about one day.
Thanks Jon for making it seem like its happening today.
Its a short highlight on the degree of change the new NECS property settlements system will bring about one day.
Thanks Jon for making it seem like its happening today.
Tuesday, September 26, 2006
Long live paper conveyancing
ANZ have admitted that not only did they lose the first original executed Transfer but their securities department have managed to lose the second replacement stamped Transfer.
Not only is it embarrassing but for the client but there are potential losses, unwanted scrutiny from, in this case, the Liquidator to the Transferor company. This has taken place over several months, was a related party transaction done for full consideration and the ripple effects are ever widening.
In the first case the ANZ lost the Transfer before it was stamped. If my memory serves me thats how the client realised the bank had not done the job as the stamp duty had not been withdrawn from the account. In the second case the Transfer had been stamped and sent to Securities for registration. Into the black hole I say.
If there is a third time round we have to revisit the State Revenue Office, look up records, etc. and as mentioned above our client will be put under unwanted scrutiny.
It is horribly tragic but these things happen all too often when important Deeds and Documents are shuffled from one person, company, law firm, financial institution, settlement agent to another and back again.
In a digital electronic environment it is unimaginable that anything like this would or could happen.
Not only is it embarrassing but for the client but there are potential losses, unwanted scrutiny from, in this case, the Liquidator to the Transferor company. This has taken place over several months, was a related party transaction done for full consideration and the ripple effects are ever widening.
In the first case the ANZ lost the Transfer before it was stamped. If my memory serves me thats how the client realised the bank had not done the job as the stamp duty had not been withdrawn from the account. In the second case the Transfer had been stamped and sent to Securities for registration. Into the black hole I say.
If there is a third time round we have to revisit the State Revenue Office, look up records, etc. and as mentioned above our client will be put under unwanted scrutiny.
It is horribly tragic but these things happen all too often when important Deeds and Documents are shuffled from one person, company, law firm, financial institution, settlement agent to another and back again.
In a digital electronic environment it is unimaginable that anything like this would or could happen.
Saturday, September 23, 2006
Lo Doc Loans – Caveat Emptor - Tax Blitz
Mortgage Brokers selling low-doc loans are the targets of and Australian Tax Office (ATO) probe into tax avoidance.
Take out a low doc loan is like raising the flag to have your affairs the subject of a tax audit.
The result has been numerous prosecutions involving borrowers and brokers. It is reported the most serious cases involved 16 finance brokers all who have been sent tax avoidance assessments.
As of July the ATO is said to have examined 133,000 loan records and uncovered 19,500 taxpayers with outstanding returns with at least 109 taxpayers being prosecuted. Convictions stemmed from failure to lodge tax returns or concealment of income. At least $24m in tax and penalties has been recouped.
Not everyone can qualify for a full income and security tested loan. Many Lo Doc borrowers are funding repayments from legitimate sources like inheritances and capital gains vis a vis property investments. Undoubtedly income has been concealed, most of it derived from the cash economy related to the building and construction industry.
Take out a low doc loan is like raising the flag to have your affairs the subject of a tax audit.
The result has been numerous prosecutions involving borrowers and brokers. It is reported the most serious cases involved 16 finance brokers all who have been sent tax avoidance assessments.
As of July the ATO is said to have examined 133,000 loan records and uncovered 19,500 taxpayers with outstanding returns with at least 109 taxpayers being prosecuted. Convictions stemmed from failure to lodge tax returns or concealment of income. At least $24m in tax and penalties has been recouped.
Not everyone can qualify for a full income and security tested loan. Many Lo Doc borrowers are funding repayments from legitimate sources like inheritances and capital gains vis a vis property investments. Undoubtedly income has been concealed, most of it derived from the cash economy related to the building and construction industry.
UK Energy Rating Certificates - vendor disclosure
You sell a house in the UK – part of the vendor disclosure requirements is providing prospective buyers with an Energy Performance Certificate (EPC)
Homes will be rated on a scale of A-G, similar to fridge ratings, as well as a list of practical measures to cut their fuel bills and carbon emissions. By acting on the recommendations listed in the Energy Performance Certificate, the average homeowner is expected to save £300 a year on fuel bills and help to reduce the 27% of the UK’s carbon emissions currently generated by our homes.
The EPC will be compulsory as part of Home Information Packs from 1 June 2007. The EPCs will outline the costs of heating, hot water and lighting in homes and give practical advice on how to cut these costs and reduce emissions
If one fifth of homeowners made the basic changes set out in their EPC they could save around £100 million a year on their energy bills and cut carbon emissions by the equivalent of taking 100,000 cars off the roads.
By cutting energy consumption, society will be working together to tackle climate change. A UK statistic is 27% of carbon emissions come from homes. Until now householders haven't had energy efficiency facts about their houses upfront; but next June 2007 every homebuyer will know exactly how energy efficient their homes are - and how they can improve this.
Trials will begin shortly with inspections being managed by Surveyors and Valuers Accreditors (certifiers for inspectors)
Source Department Communities and Local Government UK
But according to John Howard Prime Minister Australia – “There is no scientific evidence for climate change”
On the day the Kyoto Protocol came into effect the Prime Minister, John Howard, dismissed it as "next to useless" and harmful for Australia to participate in the international global warming agreement.
Victoria - what are you waiting for? Act now and follow the example and lead being set by the UK. Provide economic incentives, Ditto mortgage lenders could all be issuing green mortgages linked to Home Energy Ratings.
Homes will be rated on a scale of A-G, similar to fridge ratings, as well as a list of practical measures to cut their fuel bills and carbon emissions. By acting on the recommendations listed in the Energy Performance Certificate, the average homeowner is expected to save £300 a year on fuel bills and help to reduce the 27% of the UK’s carbon emissions currently generated by our homes.
The EPC will be compulsory as part of Home Information Packs from 1 June 2007. The EPCs will outline the costs of heating, hot water and lighting in homes and give practical advice on how to cut these costs and reduce emissions
If one fifth of homeowners made the basic changes set out in their EPC they could save around £100 million a year on their energy bills and cut carbon emissions by the equivalent of taking 100,000 cars off the roads.
By cutting energy consumption, society will be working together to tackle climate change. A UK statistic is 27% of carbon emissions come from homes. Until now householders haven't had energy efficiency facts about their houses upfront; but next June 2007 every homebuyer will know exactly how energy efficient their homes are - and how they can improve this.
Trials will begin shortly with inspections being managed by Surveyors and Valuers Accreditors (certifiers for inspectors)
Source Department Communities and Local Government UK
But according to John Howard Prime Minister Australia – “There is no scientific evidence for climate change”
On the day the Kyoto Protocol came into effect the Prime Minister, John Howard, dismissed it as "next to useless" and harmful for Australia to participate in the international global warming agreement.
Victoria - what are you waiting for? Act now and follow the example and lead being set by the UK. Provide economic incentives, Ditto mortgage lenders could all be issuing green mortgages linked to Home Energy Ratings.
Thursday, September 21, 2006
Land Title Fraud - Ontario - Fraudulent Power of Attorney
Response to Land Title Fraud Bruce Schneier Founder and CTO Counterpane Internet Security, Inc.
There seems to be a small epidemic of land title fraud in Ontario, Canada.
What happens is someone impersonates the homeowner, and then sells the house out from under him. The former owner is still liable for the mortgage, but can't get in his former house. Cleaning up the problem takes a lot of time and energy.
The problem is one of economic incentives. If banks were held liable for fraudulent mortgages, then the problem would go away really quickly. But as long as they're not, they have no incentive to ensure that this fraud doesn't occur. (They have some incentive, because the fraud costs them money, but as long as the few fraud cases cost less than ensuring the validity of *every* mortgage, they'll just ignore the problem and eat the losses when fraud occurs.)
The Article from The Toronto Star August 26, 2006
'My sense of security in Canada is gone' says Paul Reviczky, who learned about identity theft the hard way
Aug. 26, 2006. 07:47 AM
HAROLD LEVY
An 89-year-old man has been left both heartbroken and betrayed after his North York bungalow was stolen from him in the rising wave of title fraud.
Paul Reviczky, who fled Hungary in 1957 to escape Communist persecution, is one of the latest homeowners to discover that Ontario law favours banks, mortgage companies and purchasers over victims of fraud.
"I was shocked to learn that this could be the law in Canada," Reviczky says. "I fled Hungary to escape lawlessness like this and now my sense of security in Canada is gone."
Gerry Phillips, Ontario's minister of government services, vowed yesterday to change the land-registry system to protect homeowners like Reviczky from title fraud.
Reviczky purchased the property at 220 Sheppard Ave. W. in 1980 for $67,500 to generate a rental income that would help pay for the education of relatives back in Hungary.
The retired tobacco farmer, who came to Canada 49 years ago with his wife Ilona and his then 3-year-old daughter Marietta, says he felt so strongly about his duty to help out the family he left behind that he specified in his will that the property could not be sold after his death because the income was to be used for their support.
Since his wife's death in February 2005, he has lived alone in his home a few kilometres from the rental property.
Reviczky could not believe his ears on June 26 when his neighbour, a real estate agent, told him she had noticed on the computer that he had sold his rental property in May.
"So I went back to my office, got the record from the computer and showed it to him," Vivian Ho told the Toronto Star. "His face turned red and I was worried that he was going to have a heart attack."
Police believe Reviczky's most recent "tenants" forged his name on a power of attorney that purported to give a grandson named "Aaron Paul Reviczky" authority to sell the home on his behalf.
"I don't have a grandson named Aaron," Reviczky says. "I don't have any grandsons."
On May 15, "Aaron Paul Reviczky" sold the property on his behalf for $450,000 to a purchaser named Pegman Meleknia, who took out a mortgage of $337,500.
"I did not get the proceeds," Reviczky says.
Reviczky's lawyer, Tonu Toome, says it was "very painful" to have to break the news to Reviczky that he may lose his house forever — even though he was an innocent victim of fraud — because Ontario law recognizes the transaction as valid where the purchaser is unaware of the scam.
"I had to tell him that although he would ultimately receive financial compensation for the loss of his home, this would entail legal fees and an application to Ontario's Land Titles Assurance Fund, which could take several years," Toome says.
Says Reviczky: "I want my home ... not just some money."
Phillips, who bears responsibility for the province's land titles registration system, says he met last week with 50 representatives of all the communities affected by title fraud — including police, real property and financial institutions — to get advice on how to stem this increasingly prevalent crime.
"This is a high priority for our government and I want people to know that we are treating it seriously," Phillips says.
Earlier this summer, several other identity-theft victims in Toronto were also shocked to discover they weren't protected by the law.
Susan Lawrence is a North York widow who faces the loss of the 100-year-old Victorian home she had lived in for 30 years — after criminals used publicly available information to sell her house without her knowledge and put a $300,000 mortgage on it.
Elizabeth Shepherd, an actress, lost her furnished Leslieville home to identity thieves, who rented the home and sold it to an accomplice after creating a false Elizabeth Shepherd. The accomplice took out a $250,000 mortgage, defaulted and disappeared.
Both women expect to spend years — and money they would rather not spend on lawyers — trying to sort out the mess.
Reviczky had put a "for rent" sign on his property on March 1 after the previous tenants who had lived there for 12 years had gone back to British Columbia.
Five days later, he agreed to rent the home to a couple who identified themselves as "Kristina and Adam Skurik." They signed rental papers and handed him $2,500 in $100 bills for first and last month's rent.
But the house remained empty. In mid-April, Reviczky says, he was told by Kristina Skurik that the couple had rented the house to someone who was coming from Russia.
The last time he ever saw either of the Skuriks was May 13, when Kristina gave him $1,250 in cash and told him the people would arrive "in a short time."
"Kristina was a very pretty, quiet girl, about 5 feet, 6 inches, and she appeared very likeable and trustworthy," Reviczky says.
A telephone check of listings throughout North America failed to turn up any Kristina or Adam Skurik.
Reviczky is now aware that he allegedly sold his house through the power of attorney that had been notarized by a North York lawyer named Sheldon Caplan, who said in an interview he is unable to discuss the case.
Reviczky says he was surprised to see at the bottom of the power of attorney — which Caplan notarized above what appears to be his scribbled initials — a notation that the document was "acknowledged before me this 18th day of April 2006 by Reviczky Paul, who is personally known to me of who has produced Drivers Licence."
"I have never retained solicitor Sheldon Caplan," Reviczky said in a statement he prepared for his lawyer. "I do not know him and did not communicate with him."
Toronto lawyer Satwant Singh Khosla, who represented the purchasers — parents who bought the property as an investment for their son — says his clients are "innocent buyers" who have suffered emotionally and financially because of the fraudulent transaction "through absolutely no fault of their own."
"It was a straightforward transaction," Khosla said. "We never realized that the power of attorney under which the property was transferred was fraudulent."
Khosla says his clients are on the hook for mortgage payments even though they have been unable to access the property because its legal status is in a state of flux.
Reviczky's daughter, Marietta Reviczky-Dolan, who lives in Montana, says people like her father should have the title returned to them and not left with the purchaser.
"They (the owners) have invested more than money in it," she says. "It is their past and their lives have been centred around it. It means more to them."
Meanwhile, the tiny house remains unoccupied and shows signs of disrepair, its yard often cluttered with garbage. It sits in a state of legal limbo while lawyers attempt to sort out the mess and the police hunt for the criminals and the $450,000 stolen along with Reviczky's heart.
Reviczky cannot even enter the home because that could technically be trespassing and police have told him that they will need consent from the new owners to enter the premises.
Toronto lawyer Sidney Troister, an expert on real estate and mortgage fraud, says the Reviczky case is perplexing because "while we can feel sorry for the first owner, we can feel equally sorry for the buyer, who like every other buyer could never be certain that their vendor is the real owner."
Troister says Ontario's land titles system is a good system, "except in the event of fraud where it breaks down, and leaves innocent owners and innocent buyers and lenders helpless and without speedy and fair relief."
"Until the province can prevent this type of fraud from happening, it must formulate a more responsive and all-inclusive compensation scheme for title fraud," Troister says.
"Innocent people, whether it is the innocent owner or the innocent buyer or lender, get hurt because the province does not protect innocent people registering documents in the system."
Ralph Roberts, a Michigan-based expert on mortgage fraud, says inroads will not be made into burgeoning real property and mortgage fraud until more homeowners and legislators become aware it exists. "There is not enough of a public awareness," he says. "People just keep getting dragged into it one after another."
Last month, state legislators in Michigan declared war against mortgage and title fraud after FBI disclosures that mortgage fraud losses in the state jumped from almost $9 million in 2003 to $26 million in 2005.
Several bills introduced in July contain an arsenal of measures, such as designating millions of dollars for investigation of unlicensed real estate brokers and making mortgage fraud a serious crime punishable by 10 years in prison for a first offence.
Mortgage and title fraud have also taken on a higher profile in Canada recently. Organizations such as the Law Society of Upper Canada have been meeting with their counterparts in the real estate and financial industries, and police authorities, to try and solve the problem.
Police forces in Greater Toronto are struggling to cope with a noticeable increase in complaints of title fraud. A report published in March 2005 by the law society says the fraud is often facilitated because the parties to the transaction may never know or actually meet each other in person.
"Without due diligence throughout the process, it is easy for fraudsters to pass themselves off and to take advantage of the lack of oversight," the report says.
"Mortgage fraud and other frauds relating to title are all on the rise," says Det. Steve Majoran of the Toronto force's fraud and forgery squad. "That's my overall impression."
Majoran advises people renting out their homes to check references and verify backgrounds "as best as you can," heeding gut feelings where an applicant puts you off, and to question offers of cash rent.
"You really have to do due diligence these days," he says.
Majoran, who cannot discuss individual cases, says title-fraud investigations can be challenging because they involve following a paper trail and tracking back through a scheme to try to determine who committed the crime, "often months after the fact."
"It's a total shock to the homeowner because the home has been stolen from under them without their knowledge — and usually without their complicity whatsoever," Majoran says.
"I found in a lot of title fraud cases that the person has worked all their life for a property and regards their home as their castle," he says. "To find it's been stolen right out from under them is totally devastating."
Gabriella Toth, who is Reviczky's niece, says she can't understand how anyone could steal an 89-year-old man's home.
"These have to be heartless persons," says Toth, a vice-principal at a Toronto high school. "I think he was targeted because he is elderly."
With files from Associated Press
There seems to be a small epidemic of land title fraud in Ontario, Canada.
What happens is someone impersonates the homeowner, and then sells the house out from under him. The former owner is still liable for the mortgage, but can't get in his former house. Cleaning up the problem takes a lot of time and energy.
The problem is one of economic incentives. If banks were held liable for fraudulent mortgages, then the problem would go away really quickly. But as long as they're not, they have no incentive to ensure that this fraud doesn't occur. (They have some incentive, because the fraud costs them money, but as long as the few fraud cases cost less than ensuring the validity of *every* mortgage, they'll just ignore the problem and eat the losses when fraud occurs.)
The Article from The Toronto Star August 26, 2006
'My sense of security in Canada is gone' says Paul Reviczky, who learned about identity theft the hard way
Aug. 26, 2006. 07:47 AM
HAROLD LEVY
An 89-year-old man has been left both heartbroken and betrayed after his North York bungalow was stolen from him in the rising wave of title fraud.
Paul Reviczky, who fled Hungary in 1957 to escape Communist persecution, is one of the latest homeowners to discover that Ontario law favours banks, mortgage companies and purchasers over victims of fraud.
"I was shocked to learn that this could be the law in Canada," Reviczky says. "I fled Hungary to escape lawlessness like this and now my sense of security in Canada is gone."
Gerry Phillips, Ontario's minister of government services, vowed yesterday to change the land-registry system to protect homeowners like Reviczky from title fraud.
Reviczky purchased the property at 220 Sheppard Ave. W. in 1980 for $67,500 to generate a rental income that would help pay for the education of relatives back in Hungary.
The retired tobacco farmer, who came to Canada 49 years ago with his wife Ilona and his then 3-year-old daughter Marietta, says he felt so strongly about his duty to help out the family he left behind that he specified in his will that the property could not be sold after his death because the income was to be used for their support.
Since his wife's death in February 2005, he has lived alone in his home a few kilometres from the rental property.
Reviczky could not believe his ears on June 26 when his neighbour, a real estate agent, told him she had noticed on the computer that he had sold his rental property in May.
"So I went back to my office, got the record from the computer and showed it to him," Vivian Ho told the Toronto Star. "His face turned red and I was worried that he was going to have a heart attack."
Police believe Reviczky's most recent "tenants" forged his name on a power of attorney that purported to give a grandson named "Aaron Paul Reviczky" authority to sell the home on his behalf.
"I don't have a grandson named Aaron," Reviczky says. "I don't have any grandsons."
On May 15, "Aaron Paul Reviczky" sold the property on his behalf for $450,000 to a purchaser named Pegman Meleknia, who took out a mortgage of $337,500.
"I did not get the proceeds," Reviczky says.
Reviczky's lawyer, Tonu Toome, says it was "very painful" to have to break the news to Reviczky that he may lose his house forever — even though he was an innocent victim of fraud — because Ontario law recognizes the transaction as valid where the purchaser is unaware of the scam.
"I had to tell him that although he would ultimately receive financial compensation for the loss of his home, this would entail legal fees and an application to Ontario's Land Titles Assurance Fund, which could take several years," Toome says.
Says Reviczky: "I want my home ... not just some money."
Phillips, who bears responsibility for the province's land titles registration system, says he met last week with 50 representatives of all the communities affected by title fraud — including police, real property and financial institutions — to get advice on how to stem this increasingly prevalent crime.
"This is a high priority for our government and I want people to know that we are treating it seriously," Phillips says.
Earlier this summer, several other identity-theft victims in Toronto were also shocked to discover they weren't protected by the law.
Susan Lawrence is a North York widow who faces the loss of the 100-year-old Victorian home she had lived in for 30 years — after criminals used publicly available information to sell her house without her knowledge and put a $300,000 mortgage on it.
Elizabeth Shepherd, an actress, lost her furnished Leslieville home to identity thieves, who rented the home and sold it to an accomplice after creating a false Elizabeth Shepherd. The accomplice took out a $250,000 mortgage, defaulted and disappeared.
Both women expect to spend years — and money they would rather not spend on lawyers — trying to sort out the mess.
Reviczky had put a "for rent" sign on his property on March 1 after the previous tenants who had lived there for 12 years had gone back to British Columbia.
Five days later, he agreed to rent the home to a couple who identified themselves as "Kristina and Adam Skurik." They signed rental papers and handed him $2,500 in $100 bills for first and last month's rent.
But the house remained empty. In mid-April, Reviczky says, he was told by Kristina Skurik that the couple had rented the house to someone who was coming from Russia.
The last time he ever saw either of the Skuriks was May 13, when Kristina gave him $1,250 in cash and told him the people would arrive "in a short time."
"Kristina was a very pretty, quiet girl, about 5 feet, 6 inches, and she appeared very likeable and trustworthy," Reviczky says.
A telephone check of listings throughout North America failed to turn up any Kristina or Adam Skurik.
Reviczky is now aware that he allegedly sold his house through the power of attorney that had been notarized by a North York lawyer named Sheldon Caplan, who said in an interview he is unable to discuss the case.
Reviczky says he was surprised to see at the bottom of the power of attorney — which Caplan notarized above what appears to be his scribbled initials — a notation that the document was "acknowledged before me this 18th day of April 2006 by Reviczky Paul, who is personally known to me of who has produced Drivers Licence."
"I have never retained solicitor Sheldon Caplan," Reviczky said in a statement he prepared for his lawyer. "I do not know him and did not communicate with him."
Toronto lawyer Satwant Singh Khosla, who represented the purchasers — parents who bought the property as an investment for their son — says his clients are "innocent buyers" who have suffered emotionally and financially because of the fraudulent transaction "through absolutely no fault of their own."
"It was a straightforward transaction," Khosla said. "We never realized that the power of attorney under which the property was transferred was fraudulent."
Khosla says his clients are on the hook for mortgage payments even though they have been unable to access the property because its legal status is in a state of flux.
Reviczky's daughter, Marietta Reviczky-Dolan, who lives in Montana, says people like her father should have the title returned to them and not left with the purchaser.
"They (the owners) have invested more than money in it," she says. "It is their past and their lives have been centred around it. It means more to them."
Meanwhile, the tiny house remains unoccupied and shows signs of disrepair, its yard often cluttered with garbage. It sits in a state of legal limbo while lawyers attempt to sort out the mess and the police hunt for the criminals and the $450,000 stolen along with Reviczky's heart.
Reviczky cannot even enter the home because that could technically be trespassing and police have told him that they will need consent from the new owners to enter the premises.
Toronto lawyer Sidney Troister, an expert on real estate and mortgage fraud, says the Reviczky case is perplexing because "while we can feel sorry for the first owner, we can feel equally sorry for the buyer, who like every other buyer could never be certain that their vendor is the real owner."
Troister says Ontario's land titles system is a good system, "except in the event of fraud where it breaks down, and leaves innocent owners and innocent buyers and lenders helpless and without speedy and fair relief."
"Until the province can prevent this type of fraud from happening, it must formulate a more responsive and all-inclusive compensation scheme for title fraud," Troister says.
"Innocent people, whether it is the innocent owner or the innocent buyer or lender, get hurt because the province does not protect innocent people registering documents in the system."
Ralph Roberts, a Michigan-based expert on mortgage fraud, says inroads will not be made into burgeoning real property and mortgage fraud until more homeowners and legislators become aware it exists. "There is not enough of a public awareness," he says. "People just keep getting dragged into it one after another."
Last month, state legislators in Michigan declared war against mortgage and title fraud after FBI disclosures that mortgage fraud losses in the state jumped from almost $9 million in 2003 to $26 million in 2005.
Several bills introduced in July contain an arsenal of measures, such as designating millions of dollars for investigation of unlicensed real estate brokers and making mortgage fraud a serious crime punishable by 10 years in prison for a first offence.
Mortgage and title fraud have also taken on a higher profile in Canada recently. Organizations such as the Law Society of Upper Canada have been meeting with their counterparts in the real estate and financial industries, and police authorities, to try and solve the problem.
Police forces in Greater Toronto are struggling to cope with a noticeable increase in complaints of title fraud. A report published in March 2005 by the law society says the fraud is often facilitated because the parties to the transaction may never know or actually meet each other in person.
"Without due diligence throughout the process, it is easy for fraudsters to pass themselves off and to take advantage of the lack of oversight," the report says.
"Mortgage fraud and other frauds relating to title are all on the rise," says Det. Steve Majoran of the Toronto force's fraud and forgery squad. "That's my overall impression."
Majoran advises people renting out their homes to check references and verify backgrounds "as best as you can," heeding gut feelings where an applicant puts you off, and to question offers of cash rent.
"You really have to do due diligence these days," he says.
Majoran, who cannot discuss individual cases, says title-fraud investigations can be challenging because they involve following a paper trail and tracking back through a scheme to try to determine who committed the crime, "often months after the fact."
"It's a total shock to the homeowner because the home has been stolen from under them without their knowledge — and usually without their complicity whatsoever," Majoran says.
"I found in a lot of title fraud cases that the person has worked all their life for a property and regards their home as their castle," he says. "To find it's been stolen right out from under them is totally devastating."
Gabriella Toth, who is Reviczky's niece, says she can't understand how anyone could steal an 89-year-old man's home.
"These have to be heartless persons," says Toth, a vice-principal at a Toronto high school. "I think he was targeted because he is elderly."
With files from Associated Press
Sunday, September 17, 2006
doomsayers
By a fellow blogger Bob Browning UK
"The first UK e-conveyancing pilot is being launched in October 2007. I am sure it will be successful. Participation is voluntary and therefore will only be used by technology early adopters and evangelists in larger law firms, with client who are keen to be at the forefront of technology.
I predict that the results will be published showing unbounded enthusiasm by users and great business benefits.
Wait until the thing goes live. Average punters are going to be told that they won't be signing their conveyancing documents because the technology for electronic signature is so complex that the solicitor (who probably doesn't fully understand it) has to sign everything on their behalf. This is for transactions involving 6-7 figure sums of money.
The first e-conveyancing transaction that goes pear-shaped will hit the front pages in the first year and the project will spiral out of control as people try and rescue their careers from disaster"
This is the doomsayers view and such comments would have been the same for electronic share trading, electronic banking, internet e-commerce which we all now take for granted
"The first UK e-conveyancing pilot is being launched in October 2007. I am sure it will be successful. Participation is voluntary and therefore will only be used by technology early adopters and evangelists in larger law firms, with client who are keen to be at the forefront of technology.
I predict that the results will be published showing unbounded enthusiasm by users and great business benefits.
Wait until the thing goes live. Average punters are going to be told that they won't be signing their conveyancing documents because the technology for electronic signature is so complex that the solicitor (who probably doesn't fully understand it) has to sign everything on their behalf. This is for transactions involving 6-7 figure sums of money.
The first e-conveyancing transaction that goes pear-shaped will hit the front pages in the first year and the project will spiral out of control as people try and rescue their careers from disaster"
This is the doomsayers view and such comments would have been the same for electronic share trading, electronic banking, internet e-commerce which we all now take for granted
Thursday, September 14, 2006
Tuesday, September 12, 2006
A third realestate portal - propertyseek.com.au
Crikey.com.au breaks the news on Seek's online real estate classifieds play
12 September Crikey editor Misha Ketchell writes:
"In recent times Crikey has been the beneficiary of an intriguingly steady trickle of tips about online jobs site Seek branching out into the other big classified advertising category -- real estate.
In June, a source claimed that the 25%-PBL-owned Seek was looking at both developing property services internally and acquiring remaining property classifieds businesses. It was also claimed that Seek "has bought large volumes of free to air television and outdoor media to market something large in September and October".
A few weeks later we heard that Seek head of M&A, Jason Lenga, was in the final negotiations to purchase an online real estate lead generation business based in NSW – whatpricemyhouse.com. (He said it was a side deal with some mates.)
Now, finally, we've got what appear to be the juicy details:
Seek, despite their denials, are actively behind the PBL/Seek entry into the online real estate business. The new portal will launch at the beginning of October and will be called propertyseek.com.au.
Most heavily involved have been four real estate franchise groups at a Corporate level: LJ Hooker, Century 21, Elders and Raine & Horne NSW (not national). It was these four groups that approached PBL about launching another real estate portal, after the relative failure of their earlier attempts; propertypage.com.au and homehound.com.au.
It is believed that the Franchise Heads/Corporate want to make the new website exclusive ie. force the individual franchisees within their groups to advertise on the new site and stop advertising anywhere else online.
Why? Well here's the kicker. For every individual franchisee, eg LJ Hooker Parramatta, that LJ Hooker Corporate can convince/force to advertise on the new website, the more equity that LJ Hooker Corporate gets in the new business.
So the individual offices pay to advertise on this new website only so Head office/corporate make more money (more equity). The cost to advertise on the new site will be $175 per month with a 30% price increase after the first year.
Needless to say there is no love lost between the individual real estate offices and their Franchise Heads (corporate). This new business "model" will do nothing to help those relationships. Most real estate offices will probably see this for what it is: Head office trying to squeeze the little guys so Head office can profit. And all this after two previously unsuccessful attempts by the abovementioned Franchise groups to run their own website (propertypage.com.au and homehound.com.au).
The prospect of these individual real estate agencies being told "where to advertise" is unlikely to be successful, particularly when their competitors will be free to advertise wherever they like! Add this to the fact that that the main people profiting from the new website will be the Corporate Head offices by way of their equity stake and the likelihood of this getting off the ground seems to be wishful thinking more than careful planning.
So it seems to be on, and the online turf war is about to get a whole lot more interesting. If Seek can make serious inroads into the property market, James Packer might yet get to score another victory over News Ltd and Fairfax without buying into the dinosaur world of dead tree newspaper journalism."
Source Crikey.com.au
12 September Crikey editor Misha Ketchell writes:
"In recent times Crikey has been the beneficiary of an intriguingly steady trickle of tips about online jobs site Seek branching out into the other big classified advertising category -- real estate.
In June, a source claimed that the 25%-PBL-owned Seek was looking at both developing property services internally and acquiring remaining property classifieds businesses. It was also claimed that Seek "has bought large volumes of free to air television and outdoor media to market something large in September and October".
A few weeks later we heard that Seek head of M&A, Jason Lenga, was in the final negotiations to purchase an online real estate lead generation business based in NSW – whatpricemyhouse.com. (He said it was a side deal with some mates.)
Now, finally, we've got what appear to be the juicy details:
Seek, despite their denials, are actively behind the PBL/Seek entry into the online real estate business. The new portal will launch at the beginning of October and will be called propertyseek.com.au.
Most heavily involved have been four real estate franchise groups at a Corporate level: LJ Hooker, Century 21, Elders and Raine & Horne NSW (not national). It was these four groups that approached PBL about launching another real estate portal, after the relative failure of their earlier attempts; propertypage.com.au and homehound.com.au.
It is believed that the Franchise Heads/Corporate want to make the new website exclusive ie. force the individual franchisees within their groups to advertise on the new site and stop advertising anywhere else online.
Why? Well here's the kicker. For every individual franchisee, eg LJ Hooker Parramatta, that LJ Hooker Corporate can convince/force to advertise on the new website, the more equity that LJ Hooker Corporate gets in the new business.
So the individual offices pay to advertise on this new website only so Head office/corporate make more money (more equity). The cost to advertise on the new site will be $175 per month with a 30% price increase after the first year.
Needless to say there is no love lost between the individual real estate offices and their Franchise Heads (corporate). This new business "model" will do nothing to help those relationships. Most real estate offices will probably see this for what it is: Head office trying to squeeze the little guys so Head office can profit. And all this after two previously unsuccessful attempts by the abovementioned Franchise groups to run their own website (propertypage.com.au and homehound.com.au).
The prospect of these individual real estate agencies being told "where to advertise" is unlikely to be successful, particularly when their competitors will be free to advertise wherever they like! Add this to the fact that that the main people profiting from the new website will be the Corporate Head offices by way of their equity stake and the likelihood of this getting off the ground seems to be wishful thinking more than careful planning.
So it seems to be on, and the online turf war is about to get a whole lot more interesting. If Seek can make serious inroads into the property market, James Packer might yet get to score another victory over News Ltd and Fairfax without buying into the dinosaur world of dead tree newspaper journalism."
Source Crikey.com.au
Sunday, September 10, 2006
Fraud Statistics
John Barry of the Victorian Land Titles Office noted that in Victoria, the number of fraudulent applications were estimated to be of the order of 1 in 19,000.
In Victoria the witnessing requirement is only for an adult person. In other states where the witnessing requirement is for a qualified person the incidence of fraud was no less.
But with the introduction of the 100 point test and E-conveyancing, his
expectation was that the incidence of fraud would decrease.
In Victoria the witnessing requirement is only for an adult person. In other states where the witnessing requirement is for a qualified person the incidence of fraud was no less.
But with the introduction of the 100 point test and E-conveyancing, his
expectation was that the incidence of fraud would decrease.
Uniform Torrens Title
As the focus of electronic conveyancing has become a national agenda, so in the absence of a National Torrens Title Property Register, the debate is turning to a uniform Torrens Title system across State registers.
A paper has been produced by the Australian Property Law Group convened by Murray McCutcheon.
Quoting from its introduction -
The Torrens system has now been in operation for almost 150 years. It has been a great success in bringing certainty and legal predictability into land transactions. Its success is evident from the way it quickly spread from South Australia to every Australian state and territory, and then to many overseas countries.
However, while its central tenets have remained fairly constant over the 150 years, many of its incidental aspects have diverged from state to state. If anything, as time goes on, that divergence is increasing, not decreasing. This creates many practical difficulties, particularly for organizations with property interests in more than one state or territory.
The LIV Victoria has published a draft response in support of the establishment of a national best practice model. The LIV considers that every effort should be made towards uniformity. The Property Law Committee of the Property and Environmental Law Section of the LIV has provided comments upon which this submission is based and is
available to discuss any of those comments further. The LIV would be pleased to continue its participation in the project.
A paper has been produced by the Australian Property Law Group convened by Murray McCutcheon.
Quoting from its introduction -
The Torrens system has now been in operation for almost 150 years. It has been a great success in bringing certainty and legal predictability into land transactions. Its success is evident from the way it quickly spread from South Australia to every Australian state and territory, and then to many overseas countries.
However, while its central tenets have remained fairly constant over the 150 years, many of its incidental aspects have diverged from state to state. If anything, as time goes on, that divergence is increasing, not decreasing. This creates many practical difficulties, particularly for organizations with property interests in more than one state or territory.
The LIV Victoria has published a draft response in support of the establishment of a national best practice model. The LIV considers that every effort should be made towards uniformity. The Property Law Committee of the Property and Environmental Law Section of the LIV has provided comments upon which this submission is based and is
available to discuss any of those comments further. The LIV would be pleased to continue its participation in the project.
Friday, September 08, 2006
Buy Sell Contract Property Online
Really, how far away is the day when you can contract to buy property online?
Steps 3,4 & 5 are not that far away.
In fact, the US website www.buysiderealty.com is already doing Step 3. The site is bringing vendors, buyers and the agents together and bringing bringing qualified bidders to the table. You will need to register to make a bid. But have a look at the homes for sale in Hollywood as an example.
- Properties are listed for sale online - thats a given
- Vendor disclosure and buyers completing due diligence online - have a look at 247legal.com.au
- Make an offer to the vendor
- counter-offer, offer, acceptance & consideration
- Contract
Steps 3,4 & 5 are not that far away.
In fact, the US website www.buysiderealty.com is already doing Step 3. The site is bringing vendors, buyers and the agents together and bringing bringing qualified bidders to the table. You will need to register to make a bid. But have a look at the homes for sale in Hollywood as an example.
domain vs realestate.com.au
How do these 2 sites create the top 10 or top 20 properties for a suburb search
Example - Bentleigh 3204
domain:
realestate.com.au:
Even when you go top 20
domain give precedence to LJH for another 3 spots 11, 12 & 13
realestate.com.au give over 6 spots to hockingstuart.
Yet Buxtons probably are leading the listings in the Bentleigh area.
How does it work?
Example - Bentleigh 3204
domain:
- LJ Hooker 8 of the top 10
- Ray White 1 and
- Buxton 1
realestate.com.au:
- hocking stuart 1,
- LJHooker 4,
- Buxton 3,
- Wilson Pride 1,
- Sandy Anderson 1
- hocking stuart +1 for advertised top space
Even when you go top 20
domain give precedence to LJH for another 3 spots 11, 12 & 13
realestate.com.au give over 6 spots to hockingstuart.
Yet Buxtons probably are leading the listings in the Bentleigh area.
How does it work?
Fairfax Domain meets Google Maps
It is interesting to see Fairfax domain.com.au switching to Google Maps.
realestate.com.au maps are still driven by Telstra Sensis owned whereis.
Nothing wrong with whereis. I have enjoyed using the whereis mapping service from time to time. Cant remember who domain used to use, but switching to google maps is a very smart move, judging by the innovative uses US websites have adopted with Google Maps.
Will realestate.com.au switch to the google juggernaut?
realestate.com.au maps are still driven by Telstra Sensis owned whereis.
Nothing wrong with whereis. I have enjoyed using the whereis mapping service from time to time. Cant remember who domain used to use, but switching to google maps is a very smart move, judging by the innovative uses US websites have adopted with Google Maps.
Will realestate.com.au switch to the google juggernaut?
Friday, September 01, 2006
Net impact on Fairfax's earnings
Fairfax Media reported flat earnings and a fall in net profit yesterday as weak advertising markets continued to harm its bottom line.
Fairfax's net profit fell 7 per cent to $227.45 million in the year to June 30 while its underlying net profit before one-off items was down 4 per cent to $228.48 million.
Fairfax chief executive David Kirk said advertising markets in Australia weakened further in the second half compared with the first six months.
"As expected, trading conditions remain constrained in our core publishing markets," Fairfax said.
Growth in publishing would be achieved by continued diversification into regional, business and magazine publishing, Mr Kirk said, along with cost management.
Fairfax reported earnings before interest and tax of $425.5 million, in line with its June forecast and steady with the previous year's result, while revenue rose 2 per cent to $1.91 billion.
Fairfax's metropolitan papers, including The Age, The Sydney Morning Herald and The Australian Financial Review reported growth in circulation and readership.
However, metropolitan advertising fell 1.6 per cent to $1.04 billion which caused EBIT to fall 10 per cent to $231.1 million.
Mr Kirk said the impact was a mix of cyclical and structural factors particularly in employment and real estate advertising in New South Wales and Victoria.
"There is no doubt that we are seeing some structural movement of that online and some of it won't come back, but a good deal of it also has to be cyclical," he said.
The main bright spot for Fairfax was the continuing improvement in the profitability of its digital arm.
Fairfax Digital's revenue rose 75.6 per cent to $96.4 million while earnings before interest, tax, depreciation and amortisation leapt from $6.6 million in 2004-05 to $24.3 million last financial year.
Source news.com.au
Fairfax's net profit fell 7 per cent to $227.45 million in the year to June 30 while its underlying net profit before one-off items was down 4 per cent to $228.48 million.
Fairfax chief executive David Kirk said advertising markets in Australia weakened further in the second half compared with the first six months.
"As expected, trading conditions remain constrained in our core publishing markets," Fairfax said.
Growth in publishing would be achieved by continued diversification into regional, business and magazine publishing, Mr Kirk said, along with cost management.
Fairfax reported earnings before interest and tax of $425.5 million, in line with its June forecast and steady with the previous year's result, while revenue rose 2 per cent to $1.91 billion.
Fairfax's metropolitan papers, including The Age, The Sydney Morning Herald and The Australian Financial Review reported growth in circulation and readership.
However, metropolitan advertising fell 1.6 per cent to $1.04 billion which caused EBIT to fall 10 per cent to $231.1 million.
Mr Kirk said the impact was a mix of cyclical and structural factors particularly in employment and real estate advertising in New South Wales and Victoria.
"There is no doubt that we are seeing some structural movement of that online and some of it won't come back, but a good deal of it also has to be cyclical," he said.
The main bright spot for Fairfax was the continuing improvement in the profitability of its digital arm.
Fairfax Digital's revenue rose 75.6 per cent to $96.4 million while earnings before interest, tax, depreciation and amortisation leapt from $6.6 million in 2004-05 to $24.3 million last financial year.
Source news.com.au
Thursday, August 24, 2006
Your call is important to us
This is the crap on-hold voice over pithy message you get from HSBC settlements. 42 minutes and holding. What the fuck do they think we do all day? That we as lawyers only have time for 8 calls in the day.
Is it just a bad hair day HSBC?
You are pushing the industry to the limits of melt down. A legal suit may make you wake up. Probably a class action. You are on notice.
PS - The actual time was 53 minutes. The individual we spoke to was the only employee staffing the settlements area. His co-worker was on lunch. Time of making the call was approx 12.25pm 24 August 2006. For the record the phone was picked up at 1:17pm. Reason for the call - Settlement had fallen over and needed to be re-booked. Pretty simple call to make. Opportunity Cost to HSBC - Nil. Opportunity Cost to Hayton Kosky Lawyers $150 per hour - Additional cost to Client - $125
HSBC - Are you serious - 2 employees only?
Actual forget the money. I want my Fifty Three Minutes Back. In that time I could have watched 2 re-runs of Kath & Kim. I could have gone for a 10K jog. I could chugged a couple of crownies with a mate.
If I treated my customers in that way I may as well close the doors.
Is it just a bad hair day HSBC?
You are pushing the industry to the limits of melt down. A legal suit may make you wake up. Probably a class action. You are on notice.
PS - The actual time was 53 minutes. The individual we spoke to was the only employee staffing the settlements area. His co-worker was on lunch. Time of making the call was approx 12.25pm 24 August 2006. For the record the phone was picked up at 1:17pm. Reason for the call - Settlement had fallen over and needed to be re-booked. Pretty simple call to make. Opportunity Cost to HSBC - Nil. Opportunity Cost to Hayton Kosky Lawyers $150 per hour - Additional cost to Client - $125
HSBC - Are you serious - 2 employees only?
Actual forget the money. I want my Fifty Three Minutes Back. In that time I could have watched 2 re-runs of Kath & Kim. I could have gone for a 10K jog. I could chugged a couple of crownies with a mate.
If I treated my customers in that way I may as well close the doors.
realestate.com reports strong revenue growth
STRONG growth in the number of visitors to its websites and increased spending by real estate agents on advertising and subscriptions has helped property website group realestate.com.au nearly double its revenue and boost its profit.
Managing director Simon Baker said most of the 88 per cent increase in revenue for last financial year was from "organic growth", helped by more visitors to its flagship websites rather than from acquisitions.
Mr Baker said a better measure of underlying profitability was its gross profit, which rose 134 per cent from the previous year.
Source The Age
Managing director Simon Baker said most of the 88 per cent increase in revenue for last financial year was from "organic growth", helped by more visitors to its flagship websites rather than from acquisitions.
Mr Baker said a better measure of underlying profitability was its gross profit, which rose 134 per cent from the previous year.
Source The Age
Wednesday, August 23, 2006
Electronic lodgement Stage 1 trials for Banks to begin shortly
It is reported that Stage one trials with EC Victoria involve the testing online mortgage document lodgment are about to begin. The trials will involve only the banks and will involve only two dealings
1. discharge of mortgage
2. registration of a fresh mortgage
Both these dealings are an integral part of the electronic conveyancing process.
According to the Australian Bankers Association, Mr David Bell, the banks that will be participating in this limited pilot include:
“It is important that we have nationally consistent processes for all participants to follow in property conveyancing, otherwise the advantages of electronic conveyancing will not be fully realised,” Mr Bell concluded.
Question. Will the borrower still sign a Mortgage? I assume the Borrower / Mortgagor will still execute a Mortgage in favour of the Bank, which the Bank will retain on file. The bank obviously wont be lodging the Mortgage over the counter.
Obs: I assume this Trial can only be effective for a Refinance. Logically if you are not registering a Transfer electronically, the Trial will exclude all Sales & Purchases.
We look forward to getting the feedback from the results.
The (un)official word is 2 major banks have already started the trial.
1. discharge of mortgage
2. registration of a fresh mortgage
Both these dealings are an integral part of the electronic conveyancing process.
According to the Australian Bankers Association, Mr David Bell, the banks that will be participating in this limited pilot include:
- ANZ
- Bendigo Bank
- Commonwealth Bank
- Macquarie Bank
- nab
- Suncorp; and
- Westpac
“It is important that we have nationally consistent processes for all participants to follow in property conveyancing, otherwise the advantages of electronic conveyancing will not be fully realised,” Mr Bell concluded.
Question. Will the borrower still sign a Mortgage? I assume the Borrower / Mortgagor will still execute a Mortgage in favour of the Bank, which the Bank will retain on file. The bank obviously wont be lodging the Mortgage over the counter.
Obs: I assume this Trial can only be effective for a Refinance. Logically if you are not registering a Transfer electronically, the Trial will exclude all Sales & Purchases.
We look forward to getting the feedback from the results.
The (un)official word is 2 major banks have already started the trial.
Tuesday, August 22, 2006
ANZ expands opening hours to meet changing customer needs
The ANZ recognizes that behind any technical advances made online you need to back this up with a dose of old fashioned quality customer service.
More than 80 ANZ bank branches nationally will open until 7pm on Thursdays or Fridays, while others such as the Doncaster Shopping Centre branch will begin 9am-to-5pm Saturday trading.
The ANZ group managing director, personal division, Brian Hartzer, said that the move was made in response to customer feedback and a desire to be more competitive. Mr Hartzer said the bank recognised that many customers were not happy doing complicated transactions, making mortgage inquiries or seeking financial advice online.
"Internet banking and ATMs are fantastic developments, but when people want to talk about their mortgage or they want to talk about their financial needs, they want to do that in a branch," Mr Hartzer said.
In the mortgage business, technology will only ever be half the equation. Without a doubt people make up the other half who are responsive to customer and client needs.
More than 80 ANZ bank branches nationally will open until 7pm on Thursdays or Fridays, while others such as the Doncaster Shopping Centre branch will begin 9am-to-5pm Saturday trading.
The ANZ group managing director, personal division, Brian Hartzer, said that the move was made in response to customer feedback and a desire to be more competitive. Mr Hartzer said the bank recognised that many customers were not happy doing complicated transactions, making mortgage inquiries or seeking financial advice online.
"Internet banking and ATMs are fantastic developments, but when people want to talk about their mortgage or they want to talk about their financial needs, they want to do that in a branch," Mr Hartzer said.
In the mortgage business, technology will only ever be half the equation. Without a doubt people make up the other half who are responsive to customer and client needs.
Sunday, August 20, 2006
Ford Is Slashing Production 20% in 4th Quarter
News headlines are Ford US is planning to cut by one-fifth the number of vehicles it plans to build in the final three months of the year. Ford and GM are having to deal with rolling losses made even harder by a double edged sword. Falling demand and rising costs. With oil at record high levels, Detroit’s market share has dropped to its lowest level in history, while Asian brands, known for their fuel efficiency, are setting sales records.
Ford cannot continue much longer without a radical change in its business model,” said John Casesa, an industry analyst with Casesa Strategic Partners. Both companies “have got to resize, restructure and reinvent themselves.”
“This is only the resizing,” he said.
Turning the ship around is not that easy for Ford or GM, given the long time lines involved in getting new models to market. Five years is probably the average time. Models being released today, work started on design 5 years ago. Cars being designed today wont see production til 2011.
I see parallels for the conveyancing and mortgage industry. Profits are being squeezed as there is always price pressure on conveyancing and rising costs of wages, rent and overhead. As an industry we have no say in the total level of properties being turned over.
I do however see the benefits of increased productivity via implementing digital and electronic conveyancing mechanisms which will dramaticaly lower the cost side of the equation.
Law firms and conveyancing companies will need to embrace technology to stay competitive.
Financial institutions are always under pressure to lower costs. The industry benchmark for mortgage and loan processing I believe is approximately $300. Can this be lowered to $50? I believe it can.
These changes I see will be brought to being over the next 5 years. Everyone needs to change if they want to stay in the game.
Ford cannot continue much longer without a radical change in its business model,” said John Casesa, an industry analyst with Casesa Strategic Partners. Both companies “have got to resize, restructure and reinvent themselves.”
“This is only the resizing,” he said.
Turning the ship around is not that easy for Ford or GM, given the long time lines involved in getting new models to market. Five years is probably the average time. Models being released today, work started on design 5 years ago. Cars being designed today wont see production til 2011.
I see parallels for the conveyancing and mortgage industry. Profits are being squeezed as there is always price pressure on conveyancing and rising costs of wages, rent and overhead. As an industry we have no say in the total level of properties being turned over.
I do however see the benefits of increased productivity via implementing digital and electronic conveyancing mechanisms which will dramaticaly lower the cost side of the equation.
Law firms and conveyancing companies will need to embrace technology to stay competitive.
Financial institutions are always under pressure to lower costs. The industry benchmark for mortgage and loan processing I believe is approximately $300. Can this be lowered to $50? I believe it can.
These changes I see will be brought to being over the next 5 years. Everyone needs to change if they want to stay in the game.
Friday, August 18, 2006
PC problems – upgrade your RAM
Whilst you dont get the Windows Blue Screen of Death so much these days, PCs can labour with having too many windows open, trouble printing large documents and generally grinding to a halt which calls for a reboot.
An agent called me and said he was having trouble printing a 126 page vendors statement. I downloaded the same document from the 247legal website but had no problem with printing it to my Xerox N2125. My PC is 12 months old and has 1Gb of RAM.
The problem I suspect was Nick’s PC needs a memory upgrade.
PCs which are now more than a couple of years old, probably only have 256Mb RAM. And even recently configured PCs have just 512Mb.
The simplest solution is double the memory for all your office PCs. All machines with 256, add another stick of 256. Ditto for machines with a 512 stick of RAM. Double it and your have a PC with 1Gb of RAM. A stick of RAM is about $50. You service your car don’t you.
An agent called me and said he was having trouble printing a 126 page vendors statement. I downloaded the same document from the 247legal website but had no problem with printing it to my Xerox N2125. My PC is 12 months old and has 1Gb of RAM.
The problem I suspect was Nick’s PC needs a memory upgrade.
PCs which are now more than a couple of years old, probably only have 256Mb RAM. And even recently configured PCs have just 512Mb.
The simplest solution is double the memory for all your office PCs. All machines with 256, add another stick of 256. Ditto for machines with a 512 stick of RAM. Double it and your have a PC with 1Gb of RAM. A stick of RAM is about $50. You service your car don’t you.
Office Equipment. Protecting them from power surges
Power black outs or brown outs are not irregular occurrences in our neck of the woods. The power companies are no longer state monopolies and I suspect cost cutting affects maintenance.
Last week a power surge hit us and knocked out 2 PCs and the telephone system. The PCs were fixed by replacing their power supply units. Ditto with the PABX, its power supply unit had to be replaced. The total cost of repairs was approximately $500 plus down time. We will make a claim against the electricity supplier.
What we have done to stop this reoccurring is all essential equipment like the File Server, Routers, Modems etc are all hooked up to a UPS (battery backup). Theoretically these units never shut down.
All other non essential equipment, PC workstations, printers etc, are now plugged into power boards with surge protection. Surge protection power boards are a $20 hardware item.
This weekend backups my own advice - another power interuption, although client workstations had to be rebooted, happy to say no damaged units.The File Server, Router Modem all kept humming along without interuption because of the UPS. Ditto for the automatic daily backup.
Last week a power surge hit us and knocked out 2 PCs and the telephone system. The PCs were fixed by replacing their power supply units. Ditto with the PABX, its power supply unit had to be replaced. The total cost of repairs was approximately $500 plus down time. We will make a claim against the electricity supplier.
What we have done to stop this reoccurring is all essential equipment like the File Server, Routers, Modems etc are all hooked up to a UPS (battery backup). Theoretically these units never shut down.
All other non essential equipment, PC workstations, printers etc, are now plugged into power boards with surge protection. Surge protection power boards are a $20 hardware item.
This weekend backups my own advice - another power interuption, although client workstations had to be rebooted, happy to say no damaged units.The File Server, Router Modem all kept humming along without interuption because of the UPS. Ditto for the automatic daily backup.
Scan everything
How many workplaces scan? I suspect not too many. Yet the legal office and real estate agency are prime candidates.
Our legal practice pretty much only does property and commercial work. When we open a new file for a purchase we scan the Contract of Sale. Ditto when a property is sold the Contract is scanned. This is just the beginning. Leases, wills, title deeds. They all become digital documents. They are scanned, saved, archived and can be retrieved at any time for viewing, reviewing, printing, emailing and even marking up with electronic sticky notes. Best of all they are backed up. It is pretty hard to lose a document.
Yet the other day, I kicked myself for not scanning a police report. No prizes for guessing, the police report just disappeared. I swear I left it with an office assistant on her pile of stuff. This really irritated me but I had no-one to blame really except myself. I am a scan junkie. All those important and not so important personal documents get the once through the scanner treatment – passport, drivers licence, marriage and birth certificates and even the kids class lists. Bingo bango.
How much time is wasted or potentially saved if you and your staff have instant ready access to key client documents. Most estate agencies run a property management division. Why would you not scan each and every residential tenancy agreement or commercial lease?
Our legal practice pretty much only does property and commercial work. When we open a new file for a purchase we scan the Contract of Sale. Ditto when a property is sold the Contract is scanned. This is just the beginning. Leases, wills, title deeds. They all become digital documents. They are scanned, saved, archived and can be retrieved at any time for viewing, reviewing, printing, emailing and even marking up with electronic sticky notes. Best of all they are backed up. It is pretty hard to lose a document.
Yet the other day, I kicked myself for not scanning a police report. No prizes for guessing, the police report just disappeared. I swear I left it with an office assistant on her pile of stuff. This really irritated me but I had no-one to blame really except myself. I am a scan junkie. All those important and not so important personal documents get the once through the scanner treatment – passport, drivers licence, marriage and birth certificates and even the kids class lists. Bingo bango.
How much time is wasted or potentially saved if you and your staff have instant ready access to key client documents. Most estate agencies run a property management division. Why would you not scan each and every residential tenancy agreement or commercial lease?
Friday, August 11, 2006
Conveyancing Bill - Victoria
The Conveyancing Bill was introduced into Parliament this week (August 2006).
Under the Bill, conveyancers will be required to:
The Bill defines the work that licensed conveyancers may carry out, being “conveyancing work” which means legal work carried out in connection with any transaction that creates, varies, transfers, conveys or extinguishes a legal or equitable interest in any real or personal property, such as, for example, any of the following transactions:
The definition specifically excludes conveyancers from a range of legal work, such as commencing legal proceedings; applying for probate or letters of administration; establishing a corporation; creating a trust or will; giving investment or financial advice; the sale of a business; and advice in relation to obtaining consent to a development, an adverse possession application or other legal work as prescribed by regulation.
There also will be some transitory provisions and is not expected to come into effect until 1 July 2008
The Bill can be viewed at www.dms.dpc.vic.gov.au
Conveyancing Companies have been operating in a quasi-legal environment for the best part of 20 years. Conveyancing companies I have no doubt do legal work that should only be carried out by a qualified legal practitioner. Yet conveyancing companies have carried on without fear of prosecution for breaches of the Legal Practice Act.
The Law Institute of Victoria has done too little too late by prosecuting the business of conveyancer Lydia Maric. If there is a victory for legal practice it will be a hollow victory. Regulation of the conveyancing industry is now a foregone conclusion.
Reported by the Australian "Now that the Government has introduced legislation opening the market, the Law Institute should abandon its legal action and pay compensation," Ms Ludwell said. For almost a year, Ms Maric's business has been restricted by a Law Institute injunction that has required her to pay solicitors to complete forms that she considers part of her normal work. While the Supreme Court of Victoria has still not handed down its judgment on the Law Institute's test case, Ms Maric's legal bill from that court action is believed to be about $150,000.
For the consumer will the cost of conveyancing services come down as the government predicts? That's a moot point. I would have thought the compliance costs for conveyancing companies would increase. Theorectically there will be fewer back yard conveyancers as compliance costs make it harder for them to survive as a part time vocation.
I dont think it will be the regulation of conveyancing companies that will have the biggest effect on pricing of conveyancing services, it will be the advent and adoption of electronic & digital conveyancing that potentially will have the greatest effect on productivity and costs of providing conveyancing services.
Under the Bill, conveyancers will be required to:
- have undertaken mandatory professional qualifications;
- have gained at least 12 months relevant practical work experience
- not be disqualified, such as having been an undischarged bankrupt or having been convicted of an offence involving dishonesty;
- have professional indemnity insurance;
- disclose to clients all costs and any commissions received;
- actively supervise their conveyancing business;
- have their trust accounts audited annually; and
- contribute to a Fidelity Fund to compensate consumers who lose money because of fraudulent conduct by conveyancers.
The Bill defines the work that licensed conveyancers may carry out, being “conveyancing work” which means legal work carried out in connection with any transaction that creates, varies, transfers, conveys or extinguishes a legal or equitable interest in any real or personal property, such as, for example, any of the following transactions:
- the sale of a freehold interest in land;
- the creation, sale or assignment of a leasehold interest in land;
- the grant of a mortgage or other charge.
The definition specifically excludes conveyancers from a range of legal work, such as commencing legal proceedings; applying for probate or letters of administration; establishing a corporation; creating a trust or will; giving investment or financial advice; the sale of a business; and advice in relation to obtaining consent to a development, an adverse possession application or other legal work as prescribed by regulation.
There also will be some transitory provisions and is not expected to come into effect until 1 July 2008
The Bill can be viewed at www.dms.dpc.vic.gov.au
Conveyancing Companies have been operating in a quasi-legal environment for the best part of 20 years. Conveyancing companies I have no doubt do legal work that should only be carried out by a qualified legal practitioner. Yet conveyancing companies have carried on without fear of prosecution for breaches of the Legal Practice Act.
The Law Institute of Victoria has done too little too late by prosecuting the business of conveyancer Lydia Maric. If there is a victory for legal practice it will be a hollow victory. Regulation of the conveyancing industry is now a foregone conclusion.
Reported by the Australian "Now that the Government has introduced legislation opening the market, the Law Institute should abandon its legal action and pay compensation," Ms Ludwell said. For almost a year, Ms Maric's business has been restricted by a Law Institute injunction that has required her to pay solicitors to complete forms that she considers part of her normal work. While the Supreme Court of Victoria has still not handed down its judgment on the Law Institute's test case, Ms Maric's legal bill from that court action is believed to be about $150,000.
For the consumer will the cost of conveyancing services come down as the government predicts? That's a moot point. I would have thought the compliance costs for conveyancing companies would increase. Theorectically there will be fewer back yard conveyancers as compliance costs make it harder for them to survive as a part time vocation.
I dont think it will be the regulation of conveyancing companies that will have the biggest effect on pricing of conveyancing services, it will be the advent and adoption of electronic & digital conveyancing that potentially will have the greatest effect on productivity and costs of providing conveyancing services.
Wednesday, August 09, 2006
Stock Fraud
A question I have often asked myself how common is stock fraud given there no longer is any share scrip and share trading operates within the confines of a tightly regulated industry. Until recently I had not heard or read reports of stock fraud within the Australian public companies (ASX) trading environment.
How similar is the Electronic Conveyancing industry for property compared to Paperless Share Trading on the ASX. One common element is just as there isn’t share scrip under EC there wont be any paper or duplicate titles. Updating the Titles Register via Transfers and Mortgages will be executed by licenced lawyers, conveyancers and banking staff on behalf of clients and financial institutions.
Stock Fraud
A report just published by ASIC - Mr Neville John Kakoschke, a former options advisor and stockbroker, has pleaded guilty today in the Adelaide District Court to 27 forgery charges arising from an investigation by ASIC. A further 25 forgery charges were acknowledged.
Mr Kakoschke, of Thorngate in South Australia, was employed as a dealer’s representative of two stockbroking firms, Dicksons Limited, between July 1997 and June 2002, and Bell Potter Securities Ltd, between June 2002 and April 2003.
ASIC alleged that between 13 September 2001 and 11 March 2003, Mr Kakoschke forged collateral lodgement forms thus allowing him to use his clients’ shares without their consent as security for trading on other clients’ accounts as well as for his personal options accounts. This placed clients’ shares worth about $1,283,980 at risk without their knowledge.
As a consequence of Mr Kakoschke’s trading, some of his clients had no further collateral available to enable them to continue options trading. It is alleged that rather than tell these clients the true situation, Mr Kakoschke forged the third party collateral forms and used this collateral to continue trading on these accounts.
The charges are being prosecuted by the Commonwealth Director of Public Prosecutions.
Mr Kakoschke has been remanded on bail for sentencing in the District Court on 29 September 2006.
Predicatively rogue employees or principals may very well be one risk that will lead to title fraud under the Electronic Conveyancing regime. One measure against unauthorised dealings is that when a New Dealing is created under EC, the system wil generate a notification, email or letter, that is sent to the Registered Proprietor giving notice of the proposed dealing. Its an alert to the owner that something is afoot with their property. This is a preventative measure to stop unauthorised dealings ever getting registered. The public will need to be educated to notify the Land Titles Office of any change of address to ensure they receive such a Notice. Perhaps this is a service Insurance Companies could offer to their clients. Or Councils might be given this responsibility. Food for thought.
Then there is always the title insurance angle giving protection to owners and financial institutions against finanical loss for unauthorised or fraudulent dealings I for one will recommend every client to take out Title Insurance. You insure your car against theft, don’t you.
How similar is the Electronic Conveyancing industry for property compared to Paperless Share Trading on the ASX. One common element is just as there isn’t share scrip under EC there wont be any paper or duplicate titles. Updating the Titles Register via Transfers and Mortgages will be executed by licenced lawyers, conveyancers and banking staff on behalf of clients and financial institutions.
Stock Fraud
A report just published by ASIC - Mr Neville John Kakoschke, a former options advisor and stockbroker, has pleaded guilty today in the Adelaide District Court to 27 forgery charges arising from an investigation by ASIC. A further 25 forgery charges were acknowledged.
Mr Kakoschke, of Thorngate in South Australia, was employed as a dealer’s representative of two stockbroking firms, Dicksons Limited, between July 1997 and June 2002, and Bell Potter Securities Ltd, between June 2002 and April 2003.
ASIC alleged that between 13 September 2001 and 11 March 2003, Mr Kakoschke forged collateral lodgement forms thus allowing him to use his clients’ shares without their consent as security for trading on other clients’ accounts as well as for his personal options accounts. This placed clients’ shares worth about $1,283,980 at risk without their knowledge.
As a consequence of Mr Kakoschke’s trading, some of his clients had no further collateral available to enable them to continue options trading. It is alleged that rather than tell these clients the true situation, Mr Kakoschke forged the third party collateral forms and used this collateral to continue trading on these accounts.
The charges are being prosecuted by the Commonwealth Director of Public Prosecutions.
Mr Kakoschke has been remanded on bail for sentencing in the District Court on 29 September 2006.
Predicatively rogue employees or principals may very well be one risk that will lead to title fraud under the Electronic Conveyancing regime. One measure against unauthorised dealings is that when a New Dealing is created under EC, the system wil generate a notification, email or letter, that is sent to the Registered Proprietor giving notice of the proposed dealing. Its an alert to the owner that something is afoot with their property. This is a preventative measure to stop unauthorised dealings ever getting registered. The public will need to be educated to notify the Land Titles Office of any change of address to ensure they receive such a Notice. Perhaps this is a service Insurance Companies could offer to their clients. Or Councils might be given this responsibility. Food for thought.
Then there is always the title insurance angle giving protection to owners and financial institutions against finanical loss for unauthorised or fraudulent dealings I for one will recommend every client to take out Title Insurance. You insure your car against theft, don’t you.
Tuesday, August 08, 2006
What Do Real Estate Agents Do Exactly? Where's the Value and Innovation?
Heres a link to one US consumer's reaction to dealing with his estate agent.
There are lessons herein for any Agent to continually work to lift their game. The best listing tool is word of mouth - recommendation.
One thing the vendor criticised was the Agent didn't suggest ideas on how to improve the look of our home for potential buyers. I had a look at Barb Schwarz's website StagedHomes.com, a service dedicated to preparing your home for sale, giving the home a makeover pre-sale. Have a look at the before and after photos. Also she has a pretty convincing video when America's ABC 20/20 program did a 4 hour makeover. You would almost have to say many homes are poorly presented by their vendors and simply wont attract top dollar. Many a canny investor takes advantage of such properties as opportunity to makeover the investment and add instant value. Look no further than second hand car dealers, they have been detailing cars for years.
I still cant believe Americans get charged a 6% commission.
There are lessons herein for any Agent to continually work to lift their game. The best listing tool is word of mouth - recommendation.
One thing the vendor criticised was the Agent didn't suggest ideas on how to improve the look of our home for potential buyers. I had a look at Barb Schwarz's website StagedHomes.com, a service dedicated to preparing your home for sale, giving the home a makeover pre-sale. Have a look at the before and after photos. Also she has a pretty convincing video when America's ABC 20/20 program did a 4 hour makeover. You would almost have to say many homes are poorly presented by their vendors and simply wont attract top dollar. Many a canny investor takes advantage of such properties as opportunity to makeover the investment and add instant value. Look no further than second hand car dealers, they have been detailing cars for years.
I still cant believe Americans get charged a 6% commission.
Monday, August 07, 2006
NECS Operations Description – Another Roadmap
NECS has published another roadmap document – here’s the link. The Roadmap is 50 pages long and does get into a lot of detail on the ins and outs of the end system.
In the introduction there are a couple of interesting bits, one is the outcomes the Banks want.The Banks pretty much hold all the cards in terms of what NECS needs to achieve as a National Electronic Settlements and Registration system
What the banks want
Banks have developed a set of business principles expressing their desired outcomes from consultation on the operation of the NECS among which are:
I cannot see a problem with NECS accommodating the above, except getting the State Revenue Offices to provide consistency on timing and payment of transfer duty. Cutting through the rhetoric, what do the banks really want? It's really simple, a system that operates as though there is a single national titles database. One common point of entry, common data entry, common forms - as it should be.
What NECS is not about
The National Business Model again makes it clear what NECS is not about. It is worth repeating them here.
The NBM does not however encompass the whole of the conveyancing process, and in particular include any aspects of the:
A truly end to end digital electronic conveyancing system
will be a series of interlinked web services solutions that encompass -
247Legal is working on its own roadmap and we believe the starting point from its perspective is digital vendor disclosure. Beta testing for the Victorian model is well underway with many estate agents and clients with champion results and feedback.
A final observation about roadmaps. Nothing can beat good old fashioned beta testing and that means ECV getting its pilot underway. Have you got a definite start date? The feedback the users give under the pilot will be invaluable. The system needs to be dead easy to navigate and use. This can only be gotten right through testing and refinement. This also requires clever and inspirational design.
In the introduction there are a couple of interesting bits, one is the outcomes the Banks want.The Banks pretty much hold all the cards in terms of what NECS needs to achieve as a National Electronic Settlements and Registration system
What the banks want
Banks have developed a set of business principles expressing their desired outcomes from consultation on the operation of the NECS among which are:
- common data and process standards for cross-jurisdictional application
- as far as possible common data rather than simply a common interface
- as far as possible standard templates for registrable documents
- common system entry and exit points
- deployment of open architecture to enable participants to transmit and respond to data openly as far as possible
- electronic settlement as a single financial settlement provider in all jurisdictions
- as far as possible harmonised stamp duty regimes among jurisdictions
- agreement between all participants on the governance and definition of consistent data and core process
- standards, including data configuration and data input requirements
- appropriate reporting standards (eg management information systems, audit and compliance, status of applications, traffic, payments, history etc).
I cannot see a problem with NECS accommodating the above, except getting the State Revenue Offices to provide consistency on timing and payment of transfer duty. Cutting through the rhetoric, what do the banks really want? It's really simple, a system that operates as though there is a single national titles database. One common point of entry, common data entry, common forms - as it should be.
What NECS is not about
The National Business Model again makes it clear what NECS is not about. It is worth repeating them here.
The NBM does not however encompass the whole of the conveyancing process, and in particular include any aspects of the:
- disclosures required of vendors prior to sale
- preparation and exchange of contracts for sale
- pre-settlement investigations undertaken on behalf of purchasers
- procurement of any insurances required by purchasers
- creation of loan documentation by lenders
- non-financial aspects of settlement
- processes for examining and registering instruments once lodged with a Land Registry.
A truly end to end digital electronic conveyancing system
will be a series of interlinked web services solutions that encompass -
- digital vendor disclosure
- exchange of electronic contracts
- pre-settlement investigations
- digital mortgage and loan documentation
- NECS electronic settlements & registration
247Legal is working on its own roadmap and we believe the starting point from its perspective is digital vendor disclosure. Beta testing for the Victorian model is well underway with many estate agents and clients with champion results and feedback.
A final observation about roadmaps. Nothing can beat good old fashioned beta testing and that means ECV getting its pilot underway. Have you got a definite start date? The feedback the users give under the pilot will be invaluable. The system needs to be dead easy to navigate and use. This can only be gotten right through testing and refinement. This also requires clever and inspirational design.
Wednesday, August 02, 2006
Title Tracking Service
Victoria's Landata has introduced a new Title tracking transaction alert system.
For example you have just signed a Contract of Sale, you can now place a 3 month, 6 or 12 month alert on the certificate of title for the property.
The service alerts subscribers if a mortgage is registered against the title, if a caveat has been lodged or if there is a transfer dealing on the property they are interested in.
Subscribers to the service can track activity on the title between the signing of the contract of sale through to settlement, find out if a property is withdrawn from sale, has been sold or check the progress of a subdivision. The service costs roughly $3 for 3 months or $12 for 12 months.
For example you have just signed a Contract of Sale, you can now place a 3 month, 6 or 12 month alert on the certificate of title for the property.
The service alerts subscribers if a mortgage is registered against the title, if a caveat has been lodged or if there is a transfer dealing on the property they are interested in.
Subscribers to the service can track activity on the title between the signing of the contract of sale through to settlement, find out if a property is withdrawn from sale, has been sold or check the progress of a subdivision. The service costs roughly $3 for 3 months or $12 for 12 months.
Sunday, July 30, 2006
40 or 50 year home loan
Back in May 06 I wrote that the US has introduced the 50 year home loan
Well here it is now reported Westpac and the Commonwealth Bank confirmed they would consider introducing mortgages over 40 or even 50 years.
As I said back then the 40 or 50 year home loan is effectively an interest only home loan. The borrower is hardly making any dent into principal repayments on an annual basis. You better hope that the capital value of your house goes up. Though that is not always the case and is not guaranteed.
And as is starting to be reported, there is more and more middle class default and bankruptcy petitions. Bankruptcy is no longer the reserve for the lower income or failed entrepenuer.
The 50 year mortgage does not help the Borrower ever get ahead in reducing the principal owing on their mortgage and creating a buffer against unexpected hard times. Combine this with 95% Loans, where are we heading?
Am I being overally pessimistic? Interest only loans have been popular for a long time with investors. But for a long time now, first home buyers are buying into an expensive market it may appear a godsend until things start to go pear shaped. A once often quoted rule was banks would lend you 3 times your annual earnings. Now it might be 4 times. But with, say Sydney as an example, the cost of the median house is 8 times your average annual earnings. Things aint easy.
Well here it is now reported Westpac and the Commonwealth Bank confirmed they would consider introducing mortgages over 40 or even 50 years.
As I said back then the 40 or 50 year home loan is effectively an interest only home loan. The borrower is hardly making any dent into principal repayments on an annual basis. You better hope that the capital value of your house goes up. Though that is not always the case and is not guaranteed.
And as is starting to be reported, there is more and more middle class default and bankruptcy petitions. Bankruptcy is no longer the reserve for the lower income or failed entrepenuer.
The 50 year mortgage does not help the Borrower ever get ahead in reducing the principal owing on their mortgage and creating a buffer against unexpected hard times. Combine this with 95% Loans, where are we heading?
Am I being overally pessimistic? Interest only loans have been popular for a long time with investors. But for a long time now, first home buyers are buying into an expensive market it may appear a godsend until things start to go pear shaped. A once often quoted rule was banks would lend you 3 times your annual earnings. Now it might be 4 times. But with, say Sydney as an example, the cost of the median house is 8 times your average annual earnings. Things aint easy.
Saturday, July 29, 2006
When looking for property The Age claims only 2% use just the internet
Statistics.
There are three kinds of commonly recognised untruths:
Lies, damn lies and statistics.
- Mark Twain
Here's a direct quote from the Age Domain Property Section
"When looking for a property 84% of people use newspapers. 45% use newspapers only and 39% use newspapers and the internet equally. Only 2% use just the internet.
Make of that what you want. Quoting another source 98% of all properties for sale are advertised on the web and are responsible for 50% of all resulting sales.
Let's just do the quick test of listed properties for sale in Brighton & Brighton East
The statistics tell me there are at least three times more properties for sale on the net. The ratio is 3:1. And this is only for a single demographic - Brighton - upper income blue chip. I understand areas like the Mornington Penisula the ratio is actually much higher.
The quote from Mark Twain is accurate; statistics are often used to lie to the public because most people do not understand how statistics work. I am not saying the Age is making it up. They are quoting from research carried out by Quantum Research. But you sure do need to question things when statistics are quoted, especially the quotation of favourable numbers.
Agents, vendors and buyers dont lie - they know where the value and utility lies. All too often print advertising for many properties is just not part of the marketing mix.
And I think Murdoch deserves the last word when he forecast a gloomy future for newspapers with the growth of the internet, saying he doesn't know "anybody under the age of 30 who has ever looked at a classified ad".
The owner of the Herald Sun, Sun, Times, Sunday Times and the News of the World, who once described newspaper classified advertising revenue as providing "rivers of gold", now says: "Sometimes rivers dry up".
This is a generational change.
There are three kinds of commonly recognised untruths:
Lies, damn lies and statistics.
- Mark Twain
Here's a direct quote from the Age Domain Property Section
"When looking for a property 84% of people use newspapers. 45% use newspapers only and 39% use newspapers and the internet equally. Only 2% use just the internet.
Make of that what you want. Quoting another source 98% of all properties for sale are advertised on the web and are responsible for 50% of all resulting sales.
Let's just do the quick test of listed properties for sale in Brighton & Brighton East
- realestate.com.au 200+
- The Age Domain 66
The statistics tell me there are at least three times more properties for sale on the net. The ratio is 3:1. And this is only for a single demographic - Brighton - upper income blue chip. I understand areas like the Mornington Penisula the ratio is actually much higher.
The quote from Mark Twain is accurate; statistics are often used to lie to the public because most people do not understand how statistics work. I am not saying the Age is making it up. They are quoting from research carried out by Quantum Research. But you sure do need to question things when statistics are quoted, especially the quotation of favourable numbers.
Agents, vendors and buyers dont lie - they know where the value and utility lies. All too often print advertising for many properties is just not part of the marketing mix.
And I think Murdoch deserves the last word when he forecast a gloomy future for newspapers with the growth of the internet, saying he doesn't know "anybody under the age of 30 who has ever looked at a classified ad".
The owner of the Herald Sun, Sun, Times, Sunday Times and the News of the World, who once described newspaper classified advertising revenue as providing "rivers of gold", now says: "Sometimes rivers dry up".
This is a generational change.
Microsoft Plan for the Future - All roads lead to the Internet
The company detailed how it was spending heavily on building Internet services into its products, but that any payoff from the effort would not come for a few years. Microsoft executives reporting to analysts Washington 27 July 2006
Microsoft’s size and broad portfolio of products, the executives said, would prove an advantage in competing against Google, the current leader in Internet services. Internet search, according to Microsoft, will increasingly become seamlessly integrated into the Windows desktop operating system, Office productivity software, cellphones powered by Windows.
Microsoft executives acknowledge that as computing increasingly gravitates to the Web and often toward ad-supported services, it creates both a technical and business challenge for a company whose great strength is in personal computer desktop software.
But the Microsoft vision is that Internet services can complement rather than cannibalize the company’s traditional business if they are built into products like Windows.
“Microsoft’s current offerings represent a huge advantage that we can migrate into this services world,” said Ray Ozzie, the chief software architect.
Microsoft’s size and broad portfolio of products, the executives said, would prove an advantage in competing against Google, the current leader in Internet services. Internet search, according to Microsoft, will increasingly become seamlessly integrated into the Windows desktop operating system, Office productivity software, cellphones powered by Windows.
Microsoft executives acknowledge that as computing increasingly gravitates to the Web and often toward ad-supported services, it creates both a technical and business challenge for a company whose great strength is in personal computer desktop software.
But the Microsoft vision is that Internet services can complement rather than cannibalize the company’s traditional business if they are built into products like Windows.
“Microsoft’s current offerings represent a huge advantage that we can migrate into this services world,” said Ray Ozzie, the chief software architect.
Wednesday, July 26, 2006
Tuesday, July 25, 2006
Banks failing in the online environment
The Age reported Four of Australia's largest banks have received the thumbs down in a review of their online banking systems with the ANZ emerging as "the best of a bad bunch".
An independent study by US research group Forrester, found that illegible text, poor layouts and missing information were just some of the major design flaws that forced customers to turn to more expensive call centres and branches, or even to seek out alternative offerings from competitors.
Presentation was cited in the report as being the most common shortcoming of the websites, all of which were hampered either by illegible text, missing content or poor page layout.
"To effectively use its [Westpac's] site, users need the dexterity of a 15-year-old to accurately use the rollover menus, a magnifying glass to read the text, and a lot of patience to made through the material," the report said.
An example quoted was ANZ made its customers click through five pages before they could even get started on a home loan application after attempts to apply directly from the home loan page failed.
CBA lost points because its home page gave no indication that visitors could actually research and apply for a credit card or home loan online, and it was also missing important data such as key credit card fees.
The reported concluded all the Big 4 could take a leaf out of and learn from international peers such as www.bankofamerica.com which uses a tab system to present rates and fees without clutter.
Source The Age - Louisa Hearn
An independent study by US research group Forrester, found that illegible text, poor layouts and missing information were just some of the major design flaws that forced customers to turn to more expensive call centres and branches, or even to seek out alternative offerings from competitors.
Presentation was cited in the report as being the most common shortcoming of the websites, all of which were hampered either by illegible text, missing content or poor page layout.
"To effectively use its [Westpac's] site, users need the dexterity of a 15-year-old to accurately use the rollover menus, a magnifying glass to read the text, and a lot of patience to made through the material," the report said.
An example quoted was ANZ made its customers click through five pages before they could even get started on a home loan application after attempts to apply directly from the home loan page failed.
CBA lost points because its home page gave no indication that visitors could actually research and apply for a credit card or home loan online, and it was also missing important data such as key credit card fees.
The reported concluded all the Big 4 could take a leaf out of and learn from international peers such as www.bankofamerica.com which uses a tab system to present rates and fees without clutter.
Source The Age - Louisa Hearn
Thursday, July 20, 2006
NECS - Updates to the National Business Model
At its meeting in early June 2006 the National Steering Committee guiding the development of electronic conveyancing considered a couple of significant changes to the National Business Model (NBM).
New Definitions of Industry Roles
The announcement by the Victorian Government in January 2006 that it intends to regulate conveyancers in Victoria with a licensing scheme similar to those already in place in NSW, SA, WA, NT and Tasmania provided the opportunity to tighten up the definitions of industry roles that will use the NECS to conduct electronic conveyancing.
The model now provides for three distinct roles:
- Subscribers, who are the insured user of the NECS and generally a corporation, partnership, government agency or sole trader
- Users, who are employees or contractors of the Subscriber and work under the Subscriber’s day to day supervision preparing the information required for settlements and lodgments
- Certifiers, who are Users as well as legal practitioners, licensed conveyancers, or employees or contractors of the Subscriber specially authorised by the Subscriber to certify and sign instruments and settlements on its behalf
These changed arrangements provide a much stronger control framework for the benefit of all participants in electronic conveyancing and their benefits include:
- clear allocation of respective responsibilities in use of the NECS
- full control for Subscribers over who is covered at any time by their professional indemnity and fidelity insurance
- confidence for all transacting parties that only regulated practitioners can certify and sign instruments and settlements
- flexibility for practitioners and non-practitioners to work for multiple legal and/or conveyancing practices
- freedom for practitioners to use the same digital signature certificate with multiple concurrent or sequential employers.
National Licensing of Licensed Service Providers (LSPs)
The previous intention to license LSPs separately in each jurisdiction has been changed to a single licensing system determined and managed by the NECS. The change will:
- reduce duplication in licensing processes
- provide greater market scope for and competition among LSPs
- benefit Subscribers who choose to use an LSP to connect to the NECS.
All jurisdictions and potential licensees are to be consulted on the criteria and process for licensing LSPs. By LSPs I presume this will mean the current list of certificate brokers and possibly legal software providers.
Source Electronic Conveyancing in NSW - Newsletter No. 19
Wednesday, July 19, 2006
Email - what not to do or how to do it right
My experience tells me that most lawyers and law firms have yet to focus on picking up their game in the technology stakes. I get giddy when I do receive an email from a fellow practitioner with a PDF attachment, the attachment being the firm’s letterhead and correspondence therein. Only yesterday that was the case when I received email correspondence from Dibbs Abbott Stillman as a PDF as well as a PDF attachment of the Lessee’s Notice of Objection. The documents are sent and received exactly as the sender intended, just as if they were sent by Her Majestys Postal Service. This was a clear example of what to do, not what not to do.
I don’t wish to sermonize on what not to do. But if you are going to use email as a delivery mechanism for legal correspondence don’t use the firm’s letterhead by sending a Word attachment. That’s just not kosher for any number of reasons, security and authenticity being the top 2 reasons not to. So most likely your firm letterhead is a Word template. You have just finished typing your correspondence. Instead of printing the Word document to the HP / Xerox Printer, you print to PDF (as long as you have the correct PDF software installed). Attach the PDF to the email. That's all you have to do. And secondly you have an electronic copy for archiving.
Link to an article Please don't send me Microsoft Word documents
Follow the good practice of Dibbs Abbott Stillman.
And that goes double for the Law Firms that dont yet use email and dont have any email address printed on their letterhead. I would say 90% plus of my clients have email. Email does have its problems (spam) and detractors but it is still a fantastic efficient form of communication for legal practices and clients.
I don’t wish to sermonize on what not to do. But if you are going to use email as a delivery mechanism for legal correspondence don’t use the firm’s letterhead by sending a Word attachment. That’s just not kosher for any number of reasons, security and authenticity being the top 2 reasons not to. So most likely your firm letterhead is a Word template. You have just finished typing your correspondence. Instead of printing the Word document to the HP / Xerox Printer, you print to PDF (as long as you have the correct PDF software installed). Attach the PDF to the email. That's all you have to do. And secondly you have an electronic copy for archiving.
Link to an article Please don't send me Microsoft Word documents
Follow the good practice of Dibbs Abbott Stillman.
And that goes double for the Law Firms that dont yet use email and dont have any email address printed on their letterhead. I would say 90% plus of my clients have email. Email does have its problems (spam) and detractors but it is still a fantastic efficient form of communication for legal practices and clients.
Sunday, July 16, 2006
Music not a product - its a service
The digital age reflects this new paradigm - delivery of a service - pure and simple.
Download the song.
Download the song.
Saturday, July 15, 2006
Ninety eight per cent - 98%
98% 98% 98% 98% 98% 98% 98% 98%
98% of all properties for sale are now advertised on the internet, and half of all sales are transacted primarily on the basis of internet advertising. Source: Real Estate Institute of Australia
98% or even 99% is about as close to 100% as you'll get. There will always be a number of properties that sell without being listed on the net. They would generally be off market transactions or sold after being "just listed". It reminds me of restaurant ratings or even wine scoring. Some guides employ stars like the Red Michelin guide others rank the restaurant on a point scale out of 20. There is one point of view that a restaurant cannot ever achieve a perfect score thus the best score you can achieve is 19 always leaving room for the restaurant to innovate and theorectically do one better. Pierre Gagnaire, famous French chef and Former apprentice with other famous chef Paul Bocuse opened a restaurant in Saint-Etienne in 1992 for which he obtained an impressive 19.5/20 mark in the Gault-et-Millaz Guide and 3 stars in the Michelin Guide.
BTW - have you ever seen a wine given a perfect score 100/100 or would it justly deserve such an accolade ?
So there you have it - property listings online vis a vis restaurant guides.
98% of all properties for sale are now advertised on the internet, and half of all sales are transacted primarily on the basis of internet advertising. Source: Real Estate Institute of Australia
98% or even 99% is about as close to 100% as you'll get. There will always be a number of properties that sell without being listed on the net. They would generally be off market transactions or sold after being "just listed". It reminds me of restaurant ratings or even wine scoring. Some guides employ stars like the Red Michelin guide others rank the restaurant on a point scale out of 20. There is one point of view that a restaurant cannot ever achieve a perfect score thus the best score you can achieve is 19 always leaving room for the restaurant to innovate and theorectically do one better. Pierre Gagnaire, famous French chef and Former apprentice with other famous chef Paul Bocuse opened a restaurant in Saint-Etienne in 1992 for which he obtained an impressive 19.5/20 mark in the Gault-et-Millaz Guide and 3 stars in the Michelin Guide.
BTW - have you ever seen a wine given a perfect score 100/100 or would it justly deserve such an accolade ?
So there you have it - property listings online vis a vis restaurant guides.
Friday, July 14, 2006
Spell Checkers - dont forget to use them!
This piece fo gobbledy gook was form a slocitor I have a lot fo repsect fro - What was she thinking ?
Tuesday, July 11, 2006
Title Fraud
Do I rightly or wrongly sense a general fear amongst legal practitioners that when the duplicate Certificate of Title is eliminated under the EC regime, title fraud will make a sudden unwelcome appearance, as if it doesn't exist now?
I dont know the statistics on title fraud, but I do know it does exist today. Because there is a Duplicate Title, title fraud is here, it does occur and it is very hard to eliminate. Perhaps title fraud can be reduced by eliminating the CT with better safeguards and procedures in place? Pehaps someone can illuminate us on the current incidence of title fraud in Australia.
How hard is it, to forge the signature of the true owner to transfer the deed to himself? Or forge the signature of a bank official for that matter to discharge a mortgage? To obtain a replacement duplicate of title? To remortgage the title which is the most common title fraud?
Land Registry Victoria collect approximately $1000 for every transfer and $75 for every mortgage and discharge. Perhaps to alleviate fear, a percentage of fees paid can be placed into an indemnity fund. Or possibly in future there is a compulsory levy on every transaction so every property owner is covered by title insurance.
New regulations will require a tighter regime on identifying borrowers are the rightful owner of the security especially when executing the mortgage.
But we live in a fool's paradise if we think title fraud cant or wont happen simply because we have duplicate CTs.
Land title fraud - NSW Law Society Bulletin
In recent Caveats the Law Society has warned the profession about two types of land title fraud which have become apparent over recent times.
The first is the application for issue of new certificates of title by fraudsters pretending to be the registered proprietors. The fraudsters then borrow money against the property, thus seeking to give the innocent mortgagee title propriety over the innocent registered proprietor.
The second fraud relates to forged certificates of title. The forged certificates of title are of varied quality, and a number have apparently been registered.
In regard to the forged certificate of title, Land and Property Information NSW (LPI) is arranging for a much more secure form of certificate, which will include paper with a watermark, secure management of blank documents, foil crests, and individual numbering. These steps should prevent all but the most sophisticated forgeries.
In the meantime, solicitors should consider having certificates of title authenticated by the LPI before certifying title, particularly in matters where there is a refinance on otherwise unencumbered properties (although this is not the only indicator), or better still arrange to have the title deed produced at the LPI.
As to the fraudulent issue of certificates of title, practitioners should avoid witnessing any document unless they personally know the person to whose signature they attest. Solicitors need to be aware that fraudsters are able to obtain a false identity with the use of passports, driver’s licences and birth certificates. If a solicitor chooses to witness a document for a transfer of mortgage or other title documents, the solicitor should be very careful, and at least make copies of the documents upon which certification is relied.
If there is to be a refinance on unencumbered property, it may be worthwhile delaying payment pending registration of the dealings.
April 2003
Identity Fraud - 13 arrested in probe
The Age reports 12 July 2006
ONE of Australia's largest identity fraud syndicates has been smashed after allegedly stealing mail and corrupting bank employees to scam tens of millions of dollars from unsuspecting victims, police say.
Bogus NSW drivers' licences, Medicare cards and Australian passports have been intercepted by investigators, who say they were among the most sophisticated ever seized in Australia.
The gang's alleged mastermind, Oliver Yu, 22, from the northern Sydney suburb of Gordon, is among 13 people arrested in the past two months by the Identity Crime Task Force (ICTF) after a 12-month surveillance operation.
Nine men and one woman, aged 20 to 41, have been charged with 230 offences, and police have deported two Malaysian nationals and released one man pending further inquiries.
The syndicate is believed responsible for the theft of tens of millions of dollars, but police say they may never know the true extent of the gang's crimes.
The ring, recruited "runners" to steal personal information from unsuspecting victims, were specialists in stealing mail, credit card fraud or personal loans. The syndicate, which allegedly operated in NSW, Queensland, Victoria and probably WA and which had links to South-East Asia, allegedly used the identity of individuals and multinational companies, and also created false identities, to steal money from banks.
NSW Police Online - 'It has been alleged that people within the syndicate assumed the identity of individuals and companies as well as created false identities which were allegedly used to obtain money from a number of financial institutions.'
These gangs have specialists who produce the fake ID and documentation and others who execute the fraud. The take is then split amongst the participants paying commissions not unlike any other legitimate business.
Who bears the Loss?
Like all fiascos these things often play themselves out in the Courts.
As you can see – the duplicate CT provides scant protection when we are facing determined gangs of fraudsters of increasing sophistication in identity and document fraud.
I dont know the statistics on title fraud, but I do know it does exist today. Because there is a Duplicate Title, title fraud is here, it does occur and it is very hard to eliminate. Perhaps title fraud can be reduced by eliminating the CT with better safeguards and procedures in place? Pehaps someone can illuminate us on the current incidence of title fraud in Australia.
How hard is it, to forge the signature of the true owner to transfer the deed to himself? Or forge the signature of a bank official for that matter to discharge a mortgage? To obtain a replacement duplicate of title? To remortgage the title which is the most common title fraud?
Land Registry Victoria collect approximately $1000 for every transfer and $75 for every mortgage and discharge. Perhaps to alleviate fear, a percentage of fees paid can be placed into an indemnity fund. Or possibly in future there is a compulsory levy on every transaction so every property owner is covered by title insurance.
New regulations will require a tighter regime on identifying borrowers are the rightful owner of the security especially when executing the mortgage.
But we live in a fool's paradise if we think title fraud cant or wont happen simply because we have duplicate CTs.
Land title fraud - NSW Law Society Bulletin
In recent Caveats the Law Society has warned the profession about two types of land title fraud which have become apparent over recent times.
The first is the application for issue of new certificates of title by fraudsters pretending to be the registered proprietors. The fraudsters then borrow money against the property, thus seeking to give the innocent mortgagee title propriety over the innocent registered proprietor.
The second fraud relates to forged certificates of title. The forged certificates of title are of varied quality, and a number have apparently been registered.
In regard to the forged certificate of title, Land and Property Information NSW (LPI) is arranging for a much more secure form of certificate, which will include paper with a watermark, secure management of blank documents, foil crests, and individual numbering. These steps should prevent all but the most sophisticated forgeries.
In the meantime, solicitors should consider having certificates of title authenticated by the LPI before certifying title, particularly in matters where there is a refinance on otherwise unencumbered properties (although this is not the only indicator), or better still arrange to have the title deed produced at the LPI.
As to the fraudulent issue of certificates of title, practitioners should avoid witnessing any document unless they personally know the person to whose signature they attest. Solicitors need to be aware that fraudsters are able to obtain a false identity with the use of passports, driver’s licences and birth certificates. If a solicitor chooses to witness a document for a transfer of mortgage or other title documents, the solicitor should be very careful, and at least make copies of the documents upon which certification is relied.
If there is to be a refinance on unencumbered property, it may be worthwhile delaying payment pending registration of the dealings.
April 2003
Identity Fraud - 13 arrested in probe
The Age reports 12 July 2006
ONE of Australia's largest identity fraud syndicates has been smashed after allegedly stealing mail and corrupting bank employees to scam tens of millions of dollars from unsuspecting victims, police say.
Bogus NSW drivers' licences, Medicare cards and Australian passports have been intercepted by investigators, who say they were among the most sophisticated ever seized in Australia.
The gang's alleged mastermind, Oliver Yu, 22, from the northern Sydney suburb of Gordon, is among 13 people arrested in the past two months by the Identity Crime Task Force (ICTF) after a 12-month surveillance operation.
Nine men and one woman, aged 20 to 41, have been charged with 230 offences, and police have deported two Malaysian nationals and released one man pending further inquiries.
The syndicate is believed responsible for the theft of tens of millions of dollars, but police say they may never know the true extent of the gang's crimes.
The ring, recruited "runners" to steal personal information from unsuspecting victims, were specialists in stealing mail, credit card fraud or personal loans. The syndicate, which allegedly operated in NSW, Queensland, Victoria and probably WA and which had links to South-East Asia, allegedly used the identity of individuals and multinational companies, and also created false identities, to steal money from banks.
NSW Police Online - 'It has been alleged that people within the syndicate assumed the identity of individuals and companies as well as created false identities which were allegedly used to obtain money from a number of financial institutions.'
These gangs have specialists who produce the fake ID and documentation and others who execute the fraud. The take is then split amongst the participants paying commissions not unlike any other legitimate business.
Who bears the Loss?
- The financial institution who has lent the money to the fraudsters. But more than likely they will hold a registered first mortgage
- The real owner of the property whose property is encumbered and may have even lost their status as a registered proprietor through a fraudulent transfer
- The land registry - through a claim on the indemnity fund
- Legal Practitioners and their professional indemnity funds for their unwitting participation
Like all fiascos these things often play themselves out in the Courts.
As you can see – the duplicate CT provides scant protection when we are facing determined gangs of fraudsters of increasing sophistication in identity and document fraud.
Implausible, unthinkable, inconceivable, staggering belief
Having reported on the downright ill treatment Westpac dished out the other week, I get this heterodoxy in today's inbox -
"My name is Luke (surname supplied) from the CBA, today I recived (sic) the discharge of mortgage request from your office via mail. I have completed the request and forwarded this on to our discharge settlments (sic) office to complete, thank you for the discharge authority that was attached, if you have any questions prior to settlement I may be able to help.
Have a good day,
Luke
Discharge Officer
CBD Lending Support (3010 002)"
I picked myself up off the ground and emailed Luke straight back -
"Is this the new Commonwealth Bank – emailing the Lawyer – if its true – that’s a great step in the right direction"
Luke's response right back was -
"Sorry brett but this is just my thing, hopfuly (sic) it will catch on. i personaly (sic) are taking care of the the discharges through out the CBD area, but if there is any thing you need, use me as your point of contact, not just discharges, any question and the least i can do is point in the right direction.
Any way, have a good week
hear from you soon."
110% to Luke at the CBA for initiative - no its not a change in direction or policy at the CBA but one individual taking the initiative. Maybe, just maybe Luke's initiative may as he says catch on.
"My name is Luke (surname supplied) from the CBA, today I recived (sic) the discharge of mortgage request from your office via mail. I have completed the request and forwarded this on to our discharge settlments (sic) office to complete, thank you for the discharge authority that was attached, if you have any questions prior to settlement I may be able to help.
Have a good day,
Luke
Discharge Officer
CBD Lending Support (3010 002)"
I picked myself up off the ground and emailed Luke straight back -
"Is this the new Commonwealth Bank – emailing the Lawyer – if its true – that’s a great step in the right direction"
Luke's response right back was -
"Sorry brett but this is just my thing, hopfuly (sic) it will catch on. i personaly (sic) are taking care of the the discharges through out the CBD area, but if there is any thing you need, use me as your point of contact, not just discharges, any question and the least i can do is point in the right direction.
Any way, have a good week
hear from you soon."
110% to Luke at the CBA for initiative - no its not a change in direction or policy at the CBA but one individual taking the initiative. Maybe, just maybe Luke's initiative may as he says catch on.
Sunday, July 09, 2006
Vote to rebuild the twin towers
I dont usually get political - this link is to vote for the immediate rebuilding of the WTC. These two mighty reflective towers must emerge once again from the dust of ground zero.
Once they are back again, the face of the nation can be restored and terrorism will have failed for its utter stupidity.
Digital Mortgage & Loan Agreements - UCCC
The path to creating a uniform digital mortgage & loan regime in Australia is riddled with hurdles created by some states embracing the Electronic Transactions (ET) Act and other states specifically exempting the UCCC from the key ET Act.
As at July 2006:
The following states have embraced the acceptance of the digital mortgage & loan (by not creating a specific exemption under their local ET Act) -
The States that look to be transitioning to accept -
I certainly stand to be corrected on the status of the above. But what goes? Uniform Consumer Credit Code is really a tautology. But really, we have yet to see a Financial Institution embrace any form of digital or electronic mortgage or loan contract. I am certain however this will change.
As at July 2006:
The following states have embraced the acceptance of the digital mortgage & loan (by not creating a specific exemption under their local ET Act) -
- Victoria
- Tasmania
- ACT
The States that look to be transitioning to accept -
- New South Wales - amendments have been passed
- South Australia
- Queensland
- Western Australia
I certainly stand to be corrected on the status of the above. But what goes? Uniform Consumer Credit Code is really a tautology. But really, we have yet to see a Financial Institution embrace any form of digital or electronic mortgage or loan contract. I am certain however this will change.
Saturday, July 08, 2006
Comm Bank offers conveyancing in WA
Anyone buying or selling in WA can now have their conveyancing performed by the Commonwealth Bank via a joint venture with Clayton Utz. Effectively the CBA is offering the home loan and the conveyancing together. At the moment the service is limited to WA.
Putting aside the potential conflict of interest that others will raise, in fact the interests of the mortgagee and the buyer are closely aligned. If the buyer's vested interest as the registered proprietor is flawed the mortgagee's interest as mortgagee would also be flawed. The mortgagee's interest is dependent on the buyer / borrower securing good clear title.
My question is how good is the service? I personally would not rate the service provided by any of the Big 4 financial institutions's mortgage & loan settlements' service as any higher than average and quite often below par. I would argue they will have to do better than that.
Conveyancing is often percieved as an under-rated service. Quite the opposite, clients value their lawyers input and advice in assisting managing and structuring their affairs from the family and business perspective. The routine part of conveyancing maybe just that, but it is part of the whole service the legal industry provides every day which clients value.
One point the FinReview article raised was the CommBank conveyancing service had slashed conveyancing fees in the west by 50%. No doubt many will be attracted by the price and the convenience factor.
The CommBank's website is eCommLegal
Putting aside the potential conflict of interest that others will raise, in fact the interests of the mortgagee and the buyer are closely aligned. If the buyer's vested interest as the registered proprietor is flawed the mortgagee's interest as mortgagee would also be flawed. The mortgagee's interest is dependent on the buyer / borrower securing good clear title.
My question is how good is the service? I personally would not rate the service provided by any of the Big 4 financial institutions's mortgage & loan settlements' service as any higher than average and quite often below par. I would argue they will have to do better than that.
Conveyancing is often percieved as an under-rated service. Quite the opposite, clients value their lawyers input and advice in assisting managing and structuring their affairs from the family and business perspective. The routine part of conveyancing maybe just that, but it is part of the whole service the legal industry provides every day which clients value.
One point the FinReview article raised was the CommBank conveyancing service had slashed conveyancing fees in the west by 50%. No doubt many will be attracted by the price and the convenience factor.
The CommBank's website is eCommLegal
Friday, July 07, 2006
New Federalism
The Hon Peter Costello MP
Treasurer
of the Commonwealth of Australia
Dear Mr Costello,
Now that you are about to nationalise the State controlled Ports into a single National Ports Authority for the country's economic benefit, having already created the National Electricity Grid, the inland waterways would make a sensible target. Its been a long time since the waterways were used as transport routes given we now have national highways and rail links. You know and I know, it has been over 100 years since States could tax goods passing from one state to the next.
Also, how come England & Wales have a single combined Torrens land database but our State mandarins would argue we need to maintain eight provincial based databases? For that matter why haven't you combined the vehicle registration databases. Wouldn't that mean significant savings in overhead and the ability to track all those stolen vehicles. I believe our crime fighters understand the benefits of tracking criminal suspects when there is a little bit of interstate co-operation. This is not a complete list as you are probably hard working on the realignment of State boundaries into more relevant economic zones. When you have completed the above you have my vote. Anyhow, thanks for putting the issue back on the table.
Or perhaps these are the simple issues that we put to a referendum. Let the public decide.
Always happy to offer some unsolicited advice and support,
Yours Faithfully
Link to Age Article by William Birnbauer 06 August 2006
'Crazy' State System costing us billions
Treasurer
of the Commonwealth of Australia
Dear Mr Costello,
Now that you are about to nationalise the State controlled Ports into a single National Ports Authority for the country's economic benefit, having already created the National Electricity Grid, the inland waterways would make a sensible target. Its been a long time since the waterways were used as transport routes given we now have national highways and rail links. You know and I know, it has been over 100 years since States could tax goods passing from one state to the next.
Also, how come England & Wales have a single combined Torrens land database but our State mandarins would argue we need to maintain eight provincial based databases? For that matter why haven't you combined the vehicle registration databases. Wouldn't that mean significant savings in overhead and the ability to track all those stolen vehicles. I believe our crime fighters understand the benefits of tracking criminal suspects when there is a little bit of interstate co-operation. This is not a complete list as you are probably hard working on the realignment of State boundaries into more relevant economic zones. When you have completed the above you have my vote. Anyhow, thanks for putting the issue back on the table.
Or perhaps these are the simple issues that we put to a referendum. Let the public decide.
- Should the ports be under Commonwealth or State control?
- Should inland waterways be under Commonwealth control?
- Should we have a National Land & Property Register?
- Should we have a National Vehicle Register?
Always happy to offer some unsolicited advice and support,
Yours Faithfully
Link to Age Article by William Birnbauer 06 August 2006
'Crazy' State System costing us billions
Sunday, July 02, 2006
double commissions
Litigation sometimes arises involving the agents' commission of business agents and real estate agents. How does this arise? As put by a leading retired QC, Chester Porter: One often hears of people say, "Get lots of agents to sell your property." This advice can lead to trouble. After the sale, two agents each claim commission and often the vendor is in the purchaser's hands as to who was the effective cause of the sale. Some owners have finished up paying two commissions. Porter, who was a leading criminal barrister, says he found these cases difficult.
He makes another observation about the smart, small shopkeeper who kept three sets of books. The first was correct and showed the true position of the business. The second was for the Commission for Taxation and showed a somewhat reduced profit. The third showed a vastly improved profit and was for the prospective purchaser.
Now surely that doesn't happen.
Source Chester Porter - Walking on Water : A life in the Law
He makes another observation about the smart, small shopkeeper who kept three sets of books. The first was correct and showed the true position of the business. The second was for the Commission for Taxation and showed a somewhat reduced profit. The third showed a vastly improved profit and was for the prospective purchaser.
Now surely that doesn't happen.
Source Chester Porter - Walking on Water : A life in the Law
Saturday, July 01, 2006
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