Loan Processing is perhaps the most tedious and crucial part of a mortgage loan application. Most loans are rejected at this stage for improper handling. With Processing Outsourcing one can decrease processing costs by up to 50%, Reduce processing complexity, Eliminate bottlenecks in post closing and servicing, improve customer service. Besides the budget associated with supporting an in-house mortgage processing department can be expensive. Recruiting and retaining qualified in-house mortgage loan processors can be frustrating, time-consuming and costly.
Area of Service :
• Loan Origination / Pre-qualification Support• Mortgage Loan Processing / Underwriting Back-Office• Due Diligence Audits • Document and Pipeline Management• Work flow Management/Business Process Re-engineering (Consultancy)• Existing/New Customer Support• Mortgage Servicing Back OfficeMortgage Acquisition and Origination Methods:
1. Lead generation through telemarketing and internet
2. Customer Acquisition analytics
3. 1003 Processing
4. Ordering Vendor services like Credit, Title and Deed
5. Supporting Doc verification
6. Property verification / valuation
7. Employment Verification / credit checks
8. Good Faith Estimates
9. Annual Percentage Ratio
10. Rate Adjustments
11. Payment Schedule
12. Security
13. Pre-payment
14. Rate Lock
15. Loan Submission
16. Funding
Currently the US market for mortgage processing is between $6 to 7.4 billion while the existing Indian corrolary is a measly $150 million. Express Computer Reports: Analysts expect this trend to accelerate, as labour costs constitute a significant portion of the overall costs that mortgage banks incur in servicing clients. Offshore outsourcing is expected to generate cost savings in the range of 30-50 percent.Mortgage banks are looking for ITO and BPO as long term strategic tools. India is fast becoming a Mortgage manufacturing hub, with its strong competitive advantage over other economies like China, Canada, Philipines etc.The loan processing is another area which can fetch in upto 50% of cost savings if offshored to destinations like India.
Works to India -
Tuesday, January 29, 2008
Monday, January 28, 2008
US: Despite Housing Slide, Real Estate Sites Sell
New York Times
TALK about an uh-oh moment.
It was late October, and Redfin, an online real estate brokerage firm based in Seattle, had received just three months earlier a $12 million investment led by the marquee venture capital firm Draper Fisher Jurvetson. In the interim, the mortgage industry melted down, foreclosures spiked and housing sales slowed to a crawl. Now, one of Redfin’s biggest markets, Los Angeles, was battling a series of wildfires and Redfin’s sales had stopped cold.
Redfin was not the only victim of bad timing. Venture capitalists poured about $50 million into three other real estate Web sites last year — Zillow, Terabitz and Trulia — only to watch the market enter a historic slide.
Now, although most of the real estate industry wishes it could fast-forward through 2008, these online start-ups are surviving nicely. Each company recently reported strong sales and increases in Web traffic. Trulia surged to the top by the end of 2007, from sixth place in 2006, according to Nielsen Online.
Although these sites are not growing as quickly as they might have during a bullish market, they are at least growing.
“In September, we thought it was maybe the beginning of a very long downturn,” said Glenn Kelman, Redfin’s chief executive. “But for whatever reason, the last few months have been very strong for us.”
Executives of Trulia, Zillow and Terabitz said they, too, were encouraged by recent results. Online real estate companies, they added, could be today’s version of the online travel agencies that flourished after the Sept. 11 attacks: a cheap alternative for suppliers looking to market a product that is suddenly in low demand.
In this case, brokers and agents have seen their marketing budgets shrink in lock step with their commissions as they struggle to sell homes.
“There’s no doubt that a lot of brokers are feeling some pain right now,” said Pete Flint, chief executive of Trulia, a real estate search service based in San Francisco. “They’re spending less on advertising than they were, but they’re spending a significantly larger portion online, because it’s cheaper, and it’s where the audience is.”
Mr. Flint would not disclose sales figures, but he said traffic was growing more than 10 percent monthly, “and revenues are growing much faster than that.”
Redfin is a slightly different story because it does not accept advertising from brokers and agents. Rather, the site competes with traditional brokerage firms to offer people a way to buy and sell homes without face-to-face contact with an agent.
Buyers and sellers communicate with Redfin’s agents — in effect, customer service representatives on the Web — by phone and through e-mail to negotiate deals and arrange house visits, among other things. Customers pay far lower fees to Redfin than they would pay to traditional agents.
With home sales slowing, Mr. Kelman said that “we had to get very serious about figuring out what works and what doesn’t for sellers.” The company’s analysts pored through sales data and found that, among other things, listings that make their debuts on Fridays draw 7.7 percent more visitors than those introduced on Thursdays. In addition, listings priced at $351,001 receive significantly less attention online than those listed at $350,000, because of how real estate search engines filter their results.
The company began disseminating such tips to clients in December, around the same time Redfin’s results began improving. Since late September, the site’s share of real estate sales in which Redfin represented the buyer rose by 23 percent in Seattle, to nearly 2.5 percent, and jumped by 176 percent in the San Francisco area, to nearly 1 percent.
Zillow, which in September raised $30 million from Legg Mason Capital Management and others, attracted 20 percent more visitors in December 2007 than in December 2006, according to Spencer Rascoff, Zillow’s chief financial officer.
“Our growth actually accelerated in the back half of the year,” he said. “In a down market, buyers, sellers and agents need more tools.”
The amount of advertising revenue that Zillow generates for every 1,000 pages on its site has more than doubled from a year ago, Mr. Rascoff said, as the site has added more sales agents and advertising products that allow marketers to reach homeowners at specific addresses. (People wishing to see Zillow’s appraisal of a home type in the address).
Terabitz, which raised $10 million from Tudor Capital in July, builds and maintains online portals for real estate brokers and agents. The business only began selling its services in September, but Ashfaq Munshi, Terabitz’s chief executive, said he was pleased with the progress. The company this month introduced its first six brokerage sites, including that of Century 21 Abrams, Hutchinson and Associates, www.century21ah.com, which serves Middlesex and Mercer Counties in New Jersey.
Whether the success of the newcomers will spread to more established sites is an open question, said Kenneth Cassar, an analyst with Nielsen Online. “There’s dichotomy with what’s going on in this category, when it comes to visitors and advertisers,” he said. While the number of visitors is up, the number of ads run on real estate sites dropped 31 percent last year when compared with 2006.
In past years, Mr. Cassar said, consumers who visited these sites were usually in the market for a house, a new mortgage or goods to help them complete a remodeling. “Today, they want to understand the impact of the broader market on their local market,” he said. And as consumers find mostly bad news on that front, they are not exactly great targets for marketers who want to sell them new couches, new homes or a new mortgage.
“But people still need to live someplace and move from time to time,” Mr. Cassar said. “So there will be a consistent base of activity that’ll keep a number of these players quite happy.”
New York Times
By BOB TEDESCHI
Published: January 28, 2008
TALK about an uh-oh moment.
It was late October, and Redfin, an online real estate brokerage firm based in Seattle, had received just three months earlier a $12 million investment led by the marquee venture capital firm Draper Fisher Jurvetson. In the interim, the mortgage industry melted down, foreclosures spiked and housing sales slowed to a crawl. Now, one of Redfin’s biggest markets, Los Angeles, was battling a series of wildfires and Redfin’s sales had stopped cold.
Redfin was not the only victim of bad timing. Venture capitalists poured about $50 million into three other real estate Web sites last year — Zillow, Terabitz and Trulia — only to watch the market enter a historic slide.
Now, although most of the real estate industry wishes it could fast-forward through 2008, these online start-ups are surviving nicely. Each company recently reported strong sales and increases in Web traffic. Trulia surged to the top by the end of 2007, from sixth place in 2006, according to Nielsen Online.
Although these sites are not growing as quickly as they might have during a bullish market, they are at least growing.
“In September, we thought it was maybe the beginning of a very long downturn,” said Glenn Kelman, Redfin’s chief executive. “But for whatever reason, the last few months have been very strong for us.”
Executives of Trulia, Zillow and Terabitz said they, too, were encouraged by recent results. Online real estate companies, they added, could be today’s version of the online travel agencies that flourished after the Sept. 11 attacks: a cheap alternative for suppliers looking to market a product that is suddenly in low demand.
In this case, brokers and agents have seen their marketing budgets shrink in lock step with their commissions as they struggle to sell homes.
“There’s no doubt that a lot of brokers are feeling some pain right now,” said Pete Flint, chief executive of Trulia, a real estate search service based in San Francisco. “They’re spending less on advertising than they were, but they’re spending a significantly larger portion online, because it’s cheaper, and it’s where the audience is.”
Mr. Flint would not disclose sales figures, but he said traffic was growing more than 10 percent monthly, “and revenues are growing much faster than that.”
Redfin is a slightly different story because it does not accept advertising from brokers and agents. Rather, the site competes with traditional brokerage firms to offer people a way to buy and sell homes without face-to-face contact with an agent.
Buyers and sellers communicate with Redfin’s agents — in effect, customer service representatives on the Web — by phone and through e-mail to negotiate deals and arrange house visits, among other things. Customers pay far lower fees to Redfin than they would pay to traditional agents.
With home sales slowing, Mr. Kelman said that “we had to get very serious about figuring out what works and what doesn’t for sellers.” The company’s analysts pored through sales data and found that, among other things, listings that make their debuts on Fridays draw 7.7 percent more visitors than those introduced on Thursdays. In addition, listings priced at $351,001 receive significantly less attention online than those listed at $350,000, because of how real estate search engines filter their results.
The company began disseminating such tips to clients in December, around the same time Redfin’s results began improving. Since late September, the site’s share of real estate sales in which Redfin represented the buyer rose by 23 percent in Seattle, to nearly 2.5 percent, and jumped by 176 percent in the San Francisco area, to nearly 1 percent.
Zillow, which in September raised $30 million from Legg Mason Capital Management and others, attracted 20 percent more visitors in December 2007 than in December 2006, according to Spencer Rascoff, Zillow’s chief financial officer.
“Our growth actually accelerated in the back half of the year,” he said. “In a down market, buyers, sellers and agents need more tools.”
The amount of advertising revenue that Zillow generates for every 1,000 pages on its site has more than doubled from a year ago, Mr. Rascoff said, as the site has added more sales agents and advertising products that allow marketers to reach homeowners at specific addresses. (People wishing to see Zillow’s appraisal of a home type in the address).
Terabitz, which raised $10 million from Tudor Capital in July, builds and maintains online portals for real estate brokers and agents. The business only began selling its services in September, but Ashfaq Munshi, Terabitz’s chief executive, said he was pleased with the progress. The company this month introduced its first six brokerage sites, including that of Century 21 Abrams, Hutchinson and Associates, www.century21ah.com, which serves Middlesex and Mercer Counties in New Jersey.
Whether the success of the newcomers will spread to more established sites is an open question, said Kenneth Cassar, an analyst with Nielsen Online. “There’s dichotomy with what’s going on in this category, when it comes to visitors and advertisers,” he said. While the number of visitors is up, the number of ads run on real estate sites dropped 31 percent last year when compared with 2006.
In past years, Mr. Cassar said, consumers who visited these sites were usually in the market for a house, a new mortgage or goods to help them complete a remodeling. “Today, they want to understand the impact of the broader market on their local market,” he said. And as consumers find mostly bad news on that front, they are not exactly great targets for marketers who want to sell them new couches, new homes or a new mortgage.
“But people still need to live someplace and move from time to time,” Mr. Cassar said. “So there will be a consistent base of activity that’ll keep a number of these players quite happy.”
New York Times
By BOB TEDESCHI
Published: January 28, 2008
Monday, January 21, 2008
FEDERAL GOVERNMENT JOINS IN DEVELOPMENT OF NECS
The Federal Government has now joined the State and Territory Governments and the banking, legal, conveyancing and information broker industries as a member of the National Electronic Conveyancing System Steering Committee. This is a significant step in the development of a truly national system for electronic conveyancing.
NECS has wide ranging national ramifications and fits in well with the Federal Government’s thrust of red tape reduction, harmonization of State and Territory functions and finding national solutions to national problems. The new Federal Attorney-General, Robert McClelland, has recently expressed his support for NECS and confirmed the Federal Government’s commitment to assist in its development.
Source NECS
December newsletter
NECS has wide ranging national ramifications and fits in well with the Federal Government’s thrust of red tape reduction, harmonization of State and Territory functions and finding national solutions to national problems. The new Federal Attorney-General, Robert McClelland, has recently expressed his support for NECS and confirmed the Federal Government’s commitment to assist in its development.
Source NECS
December newsletter
The Risk of Innovation: Will Anyone Embrace It?
THE Prius has become one of the hottest cars in America — an amazing development, because this hybrid-electric car requires some rather large changes in how people behave.
I learned the need for Prius-style adaptation early this month, when I rented a Prius from Budget Rent A Car in Seattle. Much to my embarrassment, I couldn’t get it to go forward. Once I got going and arrived at my destination, I couldn’t figure out how to put it in reverse.
Fortunately, another Prius owner on the premises — they seem to be everywhere these days — gave me a quick lesson. You start the Prius by pressing a button on the dashboard, not once but twice. To put it in drive or reverse, you manipulate a very small stick protruding from the dashboard.
The next morning, I awoke before dawn and started the Prius, but no matter how many times I pressed the button, I couldn’t get it to move. I finally called Budget roadside assistance, and a polite man talked me back from my private technology disaster. It turns out that I had failed to tap the brake while moving the gear shifter in a certain inexplicable way.
I don’t think I can adapt to the behaviors required by the Prius. But thousands of people are, and Toyota, its maker, is reaping the benefits.
Whether humans will embrace or resist an innovation is the billion-dollar question facing designers of novel products and services. Why do people adapt to some new technologies and not to others? Fortunes are made and lost on the answer.
Great innovations have foundered over human stubbornness. Consider the Picturephone, trumpeted by AT&T at the New York World’s Fair in 1964 as a major technological advance. Engineers reasoned that if hearing someone’s voice over the phone was terrific, wouldn’t seeing a face be even better?
Consumers didn’t think so. AT&T’s Picturephone, which would have added around $90 to a person’s monthly phone bill in 1974, a huge amount for the time, “was superfluous, adding little information to voice alone, especially considering its high price,” said Kenneth Lipartito, a professor of history at Florida International University.
Even today, when adding video to a phone is a trivial cost, consumers may rebel. Video-conferencing often remains an activity forced on people by their employers.
Resistance to technology is an omnipresent risk for every innovator. Even a device as fabulously freeing as the personal computer struck some people as an abomination. In 1990, the poet Wendell Berry famously declared his perpetual allegiance to the typewriter in his essay, “Why I Am Not Going to Buy a Computer.”
Few people joined him, however, a reminder that rejection isn’t the real specter facing new gear. Adaptable humans usually trade one technology for another, rather than reject any and all. To be accepted, innovations must deliver benefits — enough benefits to make change worthwhile.
“As consumers we’re constantly asking ourselves, where do we draw the line? How far do we go?” says Mitchell Kapor, chairman of the Open Source Applications Foundation in San Francisco.
Businesses crave a sweet spot: where the line is drawn in favor of the innovator. The late Akio Morita, founder of Sony, talked about satisfying appetites that people didn’t even know they had. He achieved such a feat with the Sony Walkman, the music player introduced in 1979. While at the Lotus Development Corporation, Mr. Kapor created another such “killer app,” or application: the spreadsheet for the PC.
Killer apps are sought-after innovations because people get addicted to them and make behavioral changes that might otherwise be unthinkable. “Those who benefit from a technology adapt to its constraints and become dependent on it,” says John Staudenmaier, editor of the journal Technology and Culture and a historian of technology at the University of Detroit Mercy.
Dependency drives profits, the ultimate arbiter — for some — of an innovation’s success. Look how Apple has converted the mania for the iPod into record profits — and a record stock price.
IPod “addiction” seems benign. Yet some worry that other innovations may harbor health threats. As a result, they may be vulnerable to what Marc Ventresca, a lecturer at the Saïd Business School at Oxford, calls the “frog boiling” problem. For the frog, gradually rising heat causes no alarm — until the water is so hot that death is imminent.
“Adaptation can sometimes be dangerous, but the hazard isn’t apparent until it is ‘too late,’” Mr. Ventresca says.
While people may be fearful of allowing a seductive technology to imperil them — the “Frankenstein effect” — they may also fear the consequences of not changing their ways. As the case of climate change illustrates, many consumers are enthusiastic about changing their behavior — in this case, the way they drive cars — if they believe that by adapting to new technologies they will save themselves and the planet. Think of the Prius again.
FOR technological innovators, the cash register can ring either way. They may achieve a smash-hit breakthrough, or simply make a slight improvement in a technology that humans already feel comfortable with. Most innovators no longer even try to predict human reactions to their creations.
Henry Kressel, a partner at Warburg Pincus and a co-author of “Competing for the Future: How Digital Innovations Are Changing the World,” says, “You throw technologies into the market and see what sticks.”
The hope is that passionate “early adopters” will blaze a path toward mass acceptance of a new technology. Yet the truth is that no one can tell in advance which innovations people will adapt to and which will become the next example of the Picturephone.
Where people draw the line can be known only after the fact. Which is why innovation is always a risky — even humbling — business.
NY Times
G. Pascal Zachary teaches journalism at Stanford and writes about technology and economic development.
I learned the need for Prius-style adaptation early this month, when I rented a Prius from Budget Rent A Car in Seattle. Much to my embarrassment, I couldn’t get it to go forward. Once I got going and arrived at my destination, I couldn’t figure out how to put it in reverse.
Fortunately, another Prius owner on the premises — they seem to be everywhere these days — gave me a quick lesson. You start the Prius by pressing a button on the dashboard, not once but twice. To put it in drive or reverse, you manipulate a very small stick protruding from the dashboard.
The next morning, I awoke before dawn and started the Prius, but no matter how many times I pressed the button, I couldn’t get it to move. I finally called Budget roadside assistance, and a polite man talked me back from my private technology disaster. It turns out that I had failed to tap the brake while moving the gear shifter in a certain inexplicable way.
I don’t think I can adapt to the behaviors required by the Prius. But thousands of people are, and Toyota, its maker, is reaping the benefits.
Whether humans will embrace or resist an innovation is the billion-dollar question facing designers of novel products and services. Why do people adapt to some new technologies and not to others? Fortunes are made and lost on the answer.
Great innovations have foundered over human stubbornness. Consider the Picturephone, trumpeted by AT&T at the New York World’s Fair in 1964 as a major technological advance. Engineers reasoned that if hearing someone’s voice over the phone was terrific, wouldn’t seeing a face be even better?
Consumers didn’t think so. AT&T’s Picturephone, which would have added around $90 to a person’s monthly phone bill in 1974, a huge amount for the time, “was superfluous, adding little information to voice alone, especially considering its high price,” said Kenneth Lipartito, a professor of history at Florida International University.
Even today, when adding video to a phone is a trivial cost, consumers may rebel. Video-conferencing often remains an activity forced on people by their employers.
Resistance to technology is an omnipresent risk for every innovator. Even a device as fabulously freeing as the personal computer struck some people as an abomination. In 1990, the poet Wendell Berry famously declared his perpetual allegiance to the typewriter in his essay, “Why I Am Not Going to Buy a Computer.”
Few people joined him, however, a reminder that rejection isn’t the real specter facing new gear. Adaptable humans usually trade one technology for another, rather than reject any and all. To be accepted, innovations must deliver benefits — enough benefits to make change worthwhile.
“As consumers we’re constantly asking ourselves, where do we draw the line? How far do we go?” says Mitchell Kapor, chairman of the Open Source Applications Foundation in San Francisco.
Businesses crave a sweet spot: where the line is drawn in favor of the innovator. The late Akio Morita, founder of Sony, talked about satisfying appetites that people didn’t even know they had. He achieved such a feat with the Sony Walkman, the music player introduced in 1979. While at the Lotus Development Corporation, Mr. Kapor created another such “killer app,” or application: the spreadsheet for the PC.
Killer apps are sought-after innovations because people get addicted to them and make behavioral changes that might otherwise be unthinkable. “Those who benefit from a technology adapt to its constraints and become dependent on it,” says John Staudenmaier, editor of the journal Technology and Culture and a historian of technology at the University of Detroit Mercy.
Dependency drives profits, the ultimate arbiter — for some — of an innovation’s success. Look how Apple has converted the mania for the iPod into record profits — and a record stock price.
IPod “addiction” seems benign. Yet some worry that other innovations may harbor health threats. As a result, they may be vulnerable to what Marc Ventresca, a lecturer at the Saïd Business School at Oxford, calls the “frog boiling” problem. For the frog, gradually rising heat causes no alarm — until the water is so hot that death is imminent.
“Adaptation can sometimes be dangerous, but the hazard isn’t apparent until it is ‘too late,’” Mr. Ventresca says.
While people may be fearful of allowing a seductive technology to imperil them — the “Frankenstein effect” — they may also fear the consequences of not changing their ways. As the case of climate change illustrates, many consumers are enthusiastic about changing their behavior — in this case, the way they drive cars — if they believe that by adapting to new technologies they will save themselves and the planet. Think of the Prius again.
FOR technological innovators, the cash register can ring either way. They may achieve a smash-hit breakthrough, or simply make a slight improvement in a technology that humans already feel comfortable with. Most innovators no longer even try to predict human reactions to their creations.
Henry Kressel, a partner at Warburg Pincus and a co-author of “Competing for the Future: How Digital Innovations Are Changing the World,” says, “You throw technologies into the market and see what sticks.”
The hope is that passionate “early adopters” will blaze a path toward mass acceptance of a new technology. Yet the truth is that no one can tell in advance which innovations people will adapt to and which will become the next example of the Picturephone.
Where people draw the line can be known only after the fact. Which is why innovation is always a risky — even humbling — business.
NY Times
G. Pascal Zachary teaches journalism at Stanford and writes about technology and economic development.
Sunday, January 20, 2008
Pulped — Vic forests end up as copy paper
MOST of the trees logged in Victoria's native forests last year ended up as pulp, much of it exported to Japan to become photocopying paper. More than 85% of the 1.59 million cubic metres of the state's native forest logged last financial year — the equivalent of 4745 MCGs — was turned into woodchips, sawdust and waste.
The figures were released after a freedom-of-information request. They show that despite claims the industry is based on providing sawlogs for the state's building needs, this type of wood accounted for only 11.9% of the amount logged, with the remaining 2.8% turned into shipping pallets.
VicForests, the quasi-government agency charged with commercialising the state's forests, said the figures were only indicative as it does not keep records on how the wood is used, but are based on "our industry knowledge".
Luke Chamberlain, of the Wilderness Society, said poor industry practice meant vast areas of forest were being logged for a small amount of sawlog.
He said plantation wood could supply most of the state's needs, other than the highest-quality sawlogs, which he argues should be logged selectively rather than the current practice of clear-felling large coupes of native forest.
"These figures prove that logging of our native forest is not driven by the need for sawlogs, but for woodchips," he said.
"Under the national competition policy and the rules under which VicForests was established, it must be commercially viable and obviously it isn't."
The Sunday Age reported in December that VicForests sold last year's harvest for $99 million but reported a $17,000 loss. Last year, pulp fetched about $10 a metric tonne, while high-quality sawlogs fetched more than $70.
Two of the three big mills that bought the timber — Australian Paper, a subsidiary of PaperlinX and Japanese-owned South East Fibre Exports — posted a combined profit of $87 million last financial year, the Australian Securities Exchange and Australian Securities and Investments Commission filings show.
The privately held Midway did not release its profit.
David Pollard, chief executive of VicForests, said the "proportional and total sawlog level was lower than previous years because of bushfires and subsequent low sawlog-producing fire-salvage operation".
"The amount of pulp log produced in any year is about twice the amount of sawlogs."
Mr Chamberlain said this could not be independently verified as the volume of differing types of wood is not provided in VicForests' annual report or on its website.
Mr Pollard said paper manufacture from pulp was "one of the highest value-adding industries in Australia" and that the pulp industry helps to keep the price of sawlog timber lower.
The Age - 20/1/08
Peter Weekes
The figures were released after a freedom-of-information request. They show that despite claims the industry is based on providing sawlogs for the state's building needs, this type of wood accounted for only 11.9% of the amount logged, with the remaining 2.8% turned into shipping pallets.
VicForests, the quasi-government agency charged with commercialising the state's forests, said the figures were only indicative as it does not keep records on how the wood is used, but are based on "our industry knowledge".
Luke Chamberlain, of the Wilderness Society, said poor industry practice meant vast areas of forest were being logged for a small amount of sawlog.
He said plantation wood could supply most of the state's needs, other than the highest-quality sawlogs, which he argues should be logged selectively rather than the current practice of clear-felling large coupes of native forest.
"These figures prove that logging of our native forest is not driven by the need for sawlogs, but for woodchips," he said.
"Under the national competition policy and the rules under which VicForests was established, it must be commercially viable and obviously it isn't."
The Sunday Age reported in December that VicForests sold last year's harvest for $99 million but reported a $17,000 loss. Last year, pulp fetched about $10 a metric tonne, while high-quality sawlogs fetched more than $70.
Two of the three big mills that bought the timber — Australian Paper, a subsidiary of PaperlinX and Japanese-owned South East Fibre Exports — posted a combined profit of $87 million last financial year, the Australian Securities Exchange and Australian Securities and Investments Commission filings show.
The privately held Midway did not release its profit.
David Pollard, chief executive of VicForests, said the "proportional and total sawlog level was lower than previous years because of bushfires and subsequent low sawlog-producing fire-salvage operation".
"The amount of pulp log produced in any year is about twice the amount of sawlogs."
Mr Chamberlain said this could not be independently verified as the volume of differing types of wood is not provided in VicForests' annual report or on its website.
Mr Pollard said paper manufacture from pulp was "one of the highest value-adding industries in Australia" and that the pulp industry helps to keep the price of sawlog timber lower.
The Age - 20/1/08
Peter Weekes
Sunday, December 16, 2007
Banks - the Blob
A spokesperson for BankWest estimated 80% of the issues between lawyers dealing with Financial Institutions is colloquially caused by
Where faxes with important messages and copy documents just disappear, vamoosh, never to be seen again, to re-appear another day perhaps, where do they go?, maybe .........
BankWest recognises the long term goal is the Electronic Mortgage and Loan Documentation and to achieve this the Blob has to go.
I just thought I might share this with you.
- fax heaven or hell
- the Blob
- the Black Hole
Where faxes with important messages and copy documents just disappear, vamoosh, never to be seen again, to re-appear another day perhaps, where do they go?, maybe .........
BankWest recognises the long term goal is the Electronic Mortgage and Loan Documentation and to achieve this the Blob has to go.
I just thought I might share this with you.
Saturday, December 15, 2007
Slow take-up hobbles electronic conveyancing
The Victorian government has hatched a plan to entice users to its troubled electronic conveyancing (EC) project by offering a $500 rebate on conveyancing fees, but there are a few catches.
To qualify, the buyer and seller will in effect be compelled to use the same firm of solicitors and have just two choices of finance, and one would-be user has been asked to come back in a few months.
After seven years of development at a cost of $30 million, Victoria’s EC system – which allows property transfers to be conducted on the internet – will soon enter its second month of operations.
But so far the sole subscribers consist of a suburban law firm, Rennick & Gaynor, and two finance providers; Bendigo Bank and mecu credit union. The state government-owned developer VicUrban is also a subscriber. This means that to use the new system and to qualify for the rebate, the buyer and seller will need to retain lawyers Rennick and will need to have any mortgages arranged through Bendigo or Mecu.
Meanwhile, the state government is harvesting higher fees for paper transactions, which were jacked up in November by an average $30 a conveyance to make EC comparatively cheaper, and EC has been putting off customers.
Melbourne lawyer Brett Hayton, of Hayton Kosky, said his request to subscribe was met with a suggestion that he come back in February.
“It was fantastic that Victoria took steps to go forward with this project. I’m happy to become a user and to provide feedback, and I went to sign up – but you can’t.”
Mr Hayton said he was passed between three employees of Land Victoria over two weeks before being told to come back in February. In the meantime his clients are paying an estimated extra $30 to $50 in government fees for transactions using the old paper system.
“Electronic conveyancing has not lowered the costs of conveyancing. In fact it’s put them up,” he said.
A spokesman for Victorian Environment Minister Gavin Jennings said the incident was a misunderstanding, and lawyers and conveyancers have been able to subscribe since the November 16 launch. Ten have applied and 16 online transactions are in the pipeline.
The $500 rebate is Victoria’s latest bid to entice financial institutions to co-operate with the project. Their participation is essential as they write the bulk of mortgages.
But they have refused to sign on due to infighting between the other states over whether Victoria’s EC software can be turned into a national system. Eight months of meetings, a communiqué signed by state and territory land ministers and interventions by the federal attorneys-general have so far failed to resolve the impasse.
Members of the national steering committee will meet again in Melbourne today.
AFR | Matt Drummond | 14 Dec 2007
To qualify, the buyer and seller will in effect be compelled to use the same firm of solicitors and have just two choices of finance, and one would-be user has been asked to come back in a few months.
After seven years of development at a cost of $30 million, Victoria’s EC system – which allows property transfers to be conducted on the internet – will soon enter its second month of operations.
But so far the sole subscribers consist of a suburban law firm, Rennick & Gaynor, and two finance providers; Bendigo Bank and mecu credit union. The state government-owned developer VicUrban is also a subscriber. This means that to use the new system and to qualify for the rebate, the buyer and seller will need to retain lawyers Rennick and will need to have any mortgages arranged through Bendigo or Mecu.
Meanwhile, the state government is harvesting higher fees for paper transactions, which were jacked up in November by an average $30 a conveyance to make EC comparatively cheaper, and EC has been putting off customers.
Melbourne lawyer Brett Hayton, of Hayton Kosky, said his request to subscribe was met with a suggestion that he come back in February.
“It was fantastic that Victoria took steps to go forward with this project. I’m happy to become a user and to provide feedback, and I went to sign up – but you can’t.”
Mr Hayton said he was passed between three employees of Land Victoria over two weeks before being told to come back in February. In the meantime his clients are paying an estimated extra $30 to $50 in government fees for transactions using the old paper system.
“Electronic conveyancing has not lowered the costs of conveyancing. In fact it’s put them up,” he said.
A spokesman for Victorian Environment Minister Gavin Jennings said the incident was a misunderstanding, and lawyers and conveyancers have been able to subscribe since the November 16 launch. Ten have applied and 16 online transactions are in the pipeline.
The $500 rebate is Victoria’s latest bid to entice financial institutions to co-operate with the project. Their participation is essential as they write the bulk of mortgages.
But they have refused to sign on due to infighting between the other states over whether Victoria’s EC software can be turned into a national system. Eight months of meetings, a communiqué signed by state and territory land ministers and interventions by the federal attorneys-general have so far failed to resolve the impasse.
Members of the national steering committee will meet again in Melbourne today.
AFR | Matt Drummond | 14 Dec 2007
Friday, December 14, 2007
UK Land Registry focuses on electronic mortgages and transfers
UK has made the sensible decision to focus first on electronic registration of dealings (2008) before embracing the more complex electronic settlements and funds transfer (2009).
This is the press release lifted from a finance website
Key learning from Land Registry's Chain Matrix prototype and valuable feedback from customers on electronic funds transfer have influenced Land Registry's decision to focus resource on introducing electronic discharges, charges (mortgages) and transfers as the priorities in its e-conveyancing programme.
This will include refreshing the existing product range and enhancing its web services to better serve the needs of its customers.
Head of Land Registry's Business Transformation Programme, Alasdair Lewis, said: "We have always recognised that we would move incrementally towards our long-term vision of e-conveyancing. We have already done much in-depth work with customers, testing the market, and our first priority must now be to introduce electronic discharges, charges and transfers - thus fully automating our core business of registering land.
"We recognise that this is a significant task and that it will not happen overnight. Therefore, in 2008, we will focus on delivery of electronic charges and electronic discharges, and pave the way for electronic transfers in 2009. We have concluded that these must be our next key steps.
"From the outset, we have been committed to enhancing chain transparency and to enabling full e-conveyancing through the electronic transfer of funds. Our Chain Matrix prototype is testimony to this commitment and we have learned much from the exercise.
This is the press release lifted from a finance website
Key learning from Land Registry's Chain Matrix prototype and valuable feedback from customers on electronic funds transfer have influenced Land Registry's decision to focus resource on introducing electronic discharges, charges (mortgages) and transfers as the priorities in its e-conveyancing programme.
This will include refreshing the existing product range and enhancing its web services to better serve the needs of its customers.
Head of Land Registry's Business Transformation Programme, Alasdair Lewis, said: "We have always recognised that we would move incrementally towards our long-term vision of e-conveyancing. We have already done much in-depth work with customers, testing the market, and our first priority must now be to introduce electronic discharges, charges and transfers - thus fully automating our core business of registering land.
"We recognise that this is a significant task and that it will not happen overnight. Therefore, in 2008, we will focus on delivery of electronic charges and electronic discharges, and pave the way for electronic transfers in 2009. We have concluded that these must be our next key steps.
"From the outset, we have been committed to enhancing chain transparency and to enabling full e-conveyancing through the electronic transfer of funds. Our Chain Matrix prototype is testimony to this commitment and we have learned much from the exercise.
Thursday, December 13, 2007
The Great Stamp Duty Ripoff
VICTORIAN Treasurer John Lenders has promised to consider tax relief and housing affordability for the May budget after booming stamp duty, GST and payroll revenues plumped up the expected budget surplus by more than half a billion dollars.
State Treasury now believes the budget will be in surplus by $842 million this financial year — a hefty $518 million more than its budget prediction seven months ago.
Tax revenue is likely to jump to $12.56 billion, almost $1 billion more than the $11.59 billion predicted at budget time. Stamp duty collections are expected to leap to a record $3.55 billion in 2007-08, compared to $2.85 billion tipped in the budget, while payroll tax predictions have been revised from $3.60 billion to $3.75 billion.
Source the age
State Treasury now believes the budget will be in surplus by $842 million this financial year — a hefty $518 million more than its budget prediction seven months ago.
Tax revenue is likely to jump to $12.56 billion, almost $1 billion more than the $11.59 billion predicted at budget time. Stamp duty collections are expected to leap to a record $3.55 billion in 2007-08, compared to $2.85 billion tipped in the budget, while payroll tax predictions have been revised from $3.60 billion to $3.75 billion.
Source the age
Tuesday, December 11, 2007
Property vs Securities Trading
For electronic conveyancing, the focus and attention has been on government electronic conveyancing initiatives. The blame game for quite a while has been a politically driven one, vis a vis the parochial nature of one state vs another. You end up with a situation where lawyers (as a collective) and the banks as an industry can (quite wrongly in my view) point the finger at and blame the state governments. It is quite convenient.
Analytically, you need to look at the conveyancing cycle to get a better understanding of the business. Then you can apportion the blame.
First lets look at share trading. It has been electronic for close on 20 years. There are very similar parallels with the property and mortgage business. In share trading there are three distinct phases in a conducting a share trade
There is not one single distinct system that controls the industry. Ditto for futures trading and securities trading of bills and bonds.
These industries are turbo-charged. With the above, you ask yourself where is the paper?
Within Australia, where are the stand out changes in the property and mortgage industry? You have to look and segment the market and look at who is responsible for which part
1. the Contract.
This can be broken down into several parts
1.1 the market place which determines the price, and this is ruled by -
1.1.1 the electronic market place - web sites like realestate.com.au rule
1.1.2 estate agents still play a role like brokers do in some share trading but not at all times
In the future we will see properties traded online with a bid / offer auction system.
1.2 the legal side of the contract -
1.2.1 rules of vendor disclosure
1.2.2 the Contract of Offer and Acceptance
1.2.3 digital signatures
This is the space where companies like 247legal.com.au play a role. Where all the parts of the contract described in 1.2 can be conducted digitally, online in a collaborative fashion. We are close to finishing the development on incorporating (simple) digital signature technology into the system currently under development.
2. the Mortgage
This is the world ruled by Financial Institutions, mortgage brokers, credit agencies, valuers, mortgage insurers, lawyers and conveyancers. There are several steps in the mortgage chain which start at loan application and progress through approval, loan offer, security, settlement, registration, funding, securitisation, servicing and discharge. In the world of open and collaborative systems, the lending industry has made progress but this has been constrained to the mortgage broking industry. The truth is the banking systems are closed and introspective. They are inefficient and inelastic.
From the perspective of the interface with the government's electronic conveyancing systems the following rules
2.1 Loan Approval
2.2 Loan Contract
2.3 Security
2.4 Settlement
2.5 Registration
The government's electronic conveyancing proposal affects only 2.3, 2.4 and 2.5, but and the only but is, it must be national and it must be compulsory (or re-think the current approach of all parties must be party to the transaction)
Again, looking at the blame game, the government is not responsible for the earlier parts. The banks and the lawyers must devise and adopt open systems to deal with loan approval, loan contracts and security in innovative ways. And because governments have made a hash of developing national electronic settlement systems, private enterprise needs to step in and provide alternate solutions. We must stop blaming the government. Banks need to start adopting smart technology, smarter systems which allows lawyers and other suppliers to interact with their systems. They are doing this with mortgage brokers but I can attest that progress on any other front is non existent or at least not apparent.
3. Registration
Well not a lot needs to be said here that has not already been said. Governments have monopolies on this. National initiatives are imperative. Nirvana would be a single national property register.
Analytically, you need to look at the conveyancing cycle to get a better understanding of the business. Then you can apportion the blame.
First lets look at share trading. It has been electronic for close on 20 years. There are very similar parallels with the property and mortgage business. In share trading there are three distinct phases in a conducting a share trade
- the contract. share trading is all screen trading and the bid / offer systems is conducted by the ASX via SEATS - and can be accessed by brokers and the public alike.
- the financial settlement. this is conducted by CHESS (part of the ASX and stands for Clearing House Electronic Subregister System). Brokers operate client accounts and brokers settle the money side of things (T3 or T1) for transfer of client funds.
- registration. this is maintained by companies like Computershare, Perpetual, LINK on behalf of the public companies you and I invest in.
There is not one single distinct system that controls the industry. Ditto for futures trading and securities trading of bills and bonds.
These industries are turbo-charged. With the above, you ask yourself where is the paper?
Within Australia, where are the stand out changes in the property and mortgage industry? You have to look and segment the market and look at who is responsible for which part
1. the Contract.
This can be broken down into several parts
1.1 the market place which determines the price, and this is ruled by -
1.1.1 the electronic market place - web sites like realestate.com.au rule
1.1.2 estate agents still play a role like brokers do in some share trading but not at all times
In the future we will see properties traded online with a bid / offer auction system.
1.2 the legal side of the contract -
1.2.1 rules of vendor disclosure
1.2.2 the Contract of Offer and Acceptance
1.2.3 digital signatures
This is the space where companies like 247legal.com.au play a role. Where all the parts of the contract described in 1.2 can be conducted digitally, online in a collaborative fashion. We are close to finishing the development on incorporating (simple) digital signature technology into the system currently under development.
2. the Mortgage
This is the world ruled by Financial Institutions, mortgage brokers, credit agencies, valuers, mortgage insurers, lawyers and conveyancers. There are several steps in the mortgage chain which start at loan application and progress through approval, loan offer, security, settlement, registration, funding, securitisation, servicing and discharge. In the world of open and collaborative systems, the lending industry has made progress but this has been constrained to the mortgage broking industry. The truth is the banking systems are closed and introspective. They are inefficient and inelastic.
From the perspective of the interface with the government's electronic conveyancing systems the following rules
2.1 Loan Approval
2.2 Loan Contract
2.3 Security
2.4 Settlement
2.5 Registration
The government's electronic conveyancing proposal affects only 2.3, 2.4 and 2.5, but and the only but is, it must be national and it must be compulsory (or re-think the current approach of all parties must be party to the transaction)
Again, looking at the blame game, the government is not responsible for the earlier parts. The banks and the lawyers must devise and adopt open systems to deal with loan approval, loan contracts and security in innovative ways. And because governments have made a hash of developing national electronic settlement systems, private enterprise needs to step in and provide alternate solutions. We must stop blaming the government. Banks need to start adopting smart technology, smarter systems which allows lawyers and other suppliers to interact with their systems. They are doing this with mortgage brokers but I can attest that progress on any other front is non existent or at least not apparent.
3. Registration
Well not a lot needs to be said here that has not already been said. Governments have monopolies on this. National initiatives are imperative. Nirvana would be a single national property register.
Saturday, December 08, 2007
Signatures on Electronic Documents
Article by Alan Davidson 2004
Alan Davidson is a senior law lecturer with the TC Beirne School of Law at the University of Queensland. Email him at a.davidson@law.uq.edu.au or visit his website at www.uq.edu.au/davidson/
Reprint of his excellent article.
Placing your name at the end of an email or electronic document has a number of implications that we should all be aware of . . .
Typing your name at the end of a paper document has been held to be a signature. So, should typing your name at the end of an email be similarly regarded as a signature with all the corresponding legal ramifications?
We all know that the contents of an email can be as legally binding as the most structured language on the firm’s letter head. How ever, email is fast and cost efficient. To maintain a formal and structured approach, many firms have adopted the practice of creating formal replies in the usual way, but dispatching the entire file as an attachment to an email. The body of such an email may simply state, ‘Formal correspondence is attached’, while the ‘subject’ states the matter as usual. There are a number of advantages and pitfalls associated with such a practice.
The attachment
The attachment is typically a text file, perhaps using Microsoft Word or an equivalent. The firm’s letter head and design can be incorporated into the file. Two significant matters must be considered. First, the possibility of alteration and second the signature. Last month I considered a number of approaches to en sure documents attached to emails were authentic. This month I consider the status of a typed signature at the close of an email and on an attachment file.
Signatures
The status of a standard signature is often taken for granted. However, we all know that it is the intention behind the signature that is paramount. A signature may appear on a document, but the signor may not bound be cause he or she lacked the requisite underlying intention, raising defences such as duress, undue influence, nonest factum, unconscionability etc. Two signatures may appear side by side on a contract, but one may intend to be bound contractually while the other is a witness. The ‘signature’ may be an ‘X’ or some other mark indicating execution. Cases such as R v Moore; Ex Parte Myers (1884) 10 VLR 322 permit a printed name of a party to be sufficient. Higginbotham J stated that a “signature is only a mark” and may “be impressed upon the document by a stamp engraved with a facsimile of the ordinary signature of the person signing”. The term electronic signature does not mean a digitised signature nor a digital signature.
A digitised signature refers to graphic representation in digital form of a person’s hand writing signature. An electronic signature also includes any letters, characters, numbers or other symbols in digital form attached to or logically associated with an electronic record such as an email or attachment to an email. This could be as simple as typing your name at the end of an email. A digital signature is a specific type of secure electronic signature, sometimes referred to as a digital certificate. In R v Frolchenko (1998) QCA 43 Williams J in the Queensland Court of Appeal stated that such a electronic document could be authenticated by looking at other factors such as whether the name appears in type script at the end of the document. In the US case Doherty v Registry of Motor Vehicles (1998) Agnes J held that a police report made “by means of e-mail or some other electronic method” is regarded as signed, subjecting the reporting officer to possible perjury charges. In McGuren v Simpson [2004] NSWSC 35 (18 February 2004) the court quoted this passage from Cheshire and Fifoot’s ‘Law of Contract’ 7th edition: “The word ‘signature’ has been very loosely interpreted. A printed slip may suffice if it contains the name of the defendant. This relaxation of the statutory language is well established one hundred years ago and offers a striking in stance of the way in which legislation may be over laid by judicial precedent.” Statements to a similar effect are to be found in ‘The Laws of Australia’ 7.2 Contract ‘Vitiating Factors’ Chapter 2 Pt C Div 5 and in ‘Halsbury’s Laws of Australia’ 110 Contract ‘Formation of Con tract’ [110-1030].In McGuren v Simpson the document was a hardcopy print out of an electronic communication from the plain tiff. The court referred to Lockheed-Arabia v Owen [1993] 3 All ER 641 in which Mann LJ held that a photocopy constituted ‘writing’, adding “an ongoing statute ought to be read to accommodate technological change”. Similarly in Wilkens v Iowa Insurance Commissioner (1990) 457 NW 2d 1 (US), the court held that a requirement to maintain a written record of an insurance con tract was satisfied by the insurer storing written records on its computer system. The Law Commission for England and Wales in its paper entitled ‘Electronic Commerce: Formal requirements in Commercial Transactions – advice from the Law Commission’ ex pressed the same view. In deed the use of words by a party with out any other form of signature can be regarded alone as the writer’s signature. This has been described as the ‘authenticated signature fiction’ as discussed by the High Court in Pirie v Saunders (1961) 104 CLR 149. On this issue in ‘Halsbury’s Laws of Australia’ 110 Con tract at [110-1030], it is said: “Where the name of the party to be charged appears on the alleged note or memorandum, for example, be cause it has been typed in by the other party, the so-called ‘authenticated signature fiction’ will apply where the party to be charged expressly or impliedly acknowledges the writing as an authenticated expression of the contract so that the typed words will be deemed to be his or her signature.” In McGuren v Simpson the court commented that as McGuren’s name appeared in the email and she expressly acknowledged in the email an authenticated expression of a prior agreement, the email was “recognisable as a note of a concluded agreement”. The court concluded that both the signature alone and in conjunction with the writing could be regarded as a signature in law.
Legislation
Section 10 of the Commonwealth Electronic Transactions Act 1999 and section 14 of the Queensland ETA give legal effect to the electronic signature only after regard is given “to all the relevant circumstances when the (electronic signature) was used” and that “the method was as reliable as was appropriate for the purposes for which the information was communicated”. Unfortunately this formulation leaves open a number of possible arguments. Courts are yet to consider both the circumstances and the meaning of “as reliable appropriate”. Never the less the underlying intention of parliament is to ensure functional equivalence, by providing for validation of electronic signatures. One approach in practice can be to include a note in electronic documents that the electronic signature is intended to act as a signature as contemplated by the federal and state acts.
Practice
Various practices have developed to deal with the effect of the ‘signature’ typed at the end of an electronic message such as an email or attachment to an email. One practice is to including a detailed paragraph in the body of the message explaining the writer’s intention. Another practice is to place that paragraph at the end of the email with other disclaimers. Per haps the simplest and most direct approach is to place at the end of the electronic message words such as: • Signature appended pursuant to the federal and state Electronic Transactions Acts Such words would indicate the writer’s intention that the typed electronic signature was intended to operate as a signature as contemplated by the Electronic Transaction Acts
Alan Davidson is a senior law lecturer with the TC Beirne School of Law at the University of Queensland. Email him at a.davidson@law.uq.edu.au or visit his website at www.uq.edu.au/davidson/
Reprint of his excellent article.
Placing your name at the end of an email or electronic document has a number of implications that we should all be aware of . . .
Typing your name at the end of a paper document has been held to be a signature. So, should typing your name at the end of an email be similarly regarded as a signature with all the corresponding legal ramifications?
We all know that the contents of an email can be as legally binding as the most structured language on the firm’s letter head. How ever, email is fast and cost efficient. To maintain a formal and structured approach, many firms have adopted the practice of creating formal replies in the usual way, but dispatching the entire file as an attachment to an email. The body of such an email may simply state, ‘Formal correspondence is attached’, while the ‘subject’ states the matter as usual. There are a number of advantages and pitfalls associated with such a practice.
The attachment
The attachment is typically a text file, perhaps using Microsoft Word or an equivalent. The firm’s letter head and design can be incorporated into the file. Two significant matters must be considered. First, the possibility of alteration and second the signature. Last month I considered a number of approaches to en sure documents attached to emails were authentic. This month I consider the status of a typed signature at the close of an email and on an attachment file.
Signatures
The status of a standard signature is often taken for granted. However, we all know that it is the intention behind the signature that is paramount. A signature may appear on a document, but the signor may not bound be cause he or she lacked the requisite underlying intention, raising defences such as duress, undue influence, nonest factum, unconscionability etc. Two signatures may appear side by side on a contract, but one may intend to be bound contractually while the other is a witness. The ‘signature’ may be an ‘X’ or some other mark indicating execution. Cases such as R v Moore; Ex Parte Myers (1884) 10 VLR 322 permit a printed name of a party to be sufficient. Higginbotham J stated that a “signature is only a mark” and may “be impressed upon the document by a stamp engraved with a facsimile of the ordinary signature of the person signing”. The term electronic signature does not mean a digitised signature nor a digital signature.
A digitised signature refers to graphic representation in digital form of a person’s hand writing signature. An electronic signature also includes any letters, characters, numbers or other symbols in digital form attached to or logically associated with an electronic record such as an email or attachment to an email. This could be as simple as typing your name at the end of an email. A digital signature is a specific type of secure electronic signature, sometimes referred to as a digital certificate. In R v Frolchenko (1998) QCA 43 Williams J in the Queensland Court of Appeal stated that such a electronic document could be authenticated by looking at other factors such as whether the name appears in type script at the end of the document. In the US case Doherty v Registry of Motor Vehicles (1998) Agnes J held that a police report made “by means of e-mail or some other electronic method” is regarded as signed, subjecting the reporting officer to possible perjury charges. In McGuren v Simpson [2004] NSWSC 35 (18 February 2004) the court quoted this passage from Cheshire and Fifoot’s ‘Law of Contract’ 7th edition: “The word ‘signature’ has been very loosely interpreted. A printed slip may suffice if it contains the name of the defendant. This relaxation of the statutory language is well established one hundred years ago and offers a striking in stance of the way in which legislation may be over laid by judicial precedent.” Statements to a similar effect are to be found in ‘The Laws of Australia’ 7.2 Contract ‘Vitiating Factors’ Chapter 2 Pt C Div 5 and in ‘Halsbury’s Laws of Australia’ 110 Contract ‘Formation of Con tract’ [110-1030].In McGuren v Simpson the document was a hardcopy print out of an electronic communication from the plain tiff. The court referred to Lockheed-Arabia v Owen [1993] 3 All ER 641 in which Mann LJ held that a photocopy constituted ‘writing’, adding “an ongoing statute ought to be read to accommodate technological change”. Similarly in Wilkens v Iowa Insurance Commissioner (1990) 457 NW 2d 1 (US), the court held that a requirement to maintain a written record of an insurance con tract was satisfied by the insurer storing written records on its computer system. The Law Commission for England and Wales in its paper entitled ‘Electronic Commerce: Formal requirements in Commercial Transactions – advice from the Law Commission’ ex pressed the same view. In deed the use of words by a party with out any other form of signature can be regarded alone as the writer’s signature. This has been described as the ‘authenticated signature fiction’ as discussed by the High Court in Pirie v Saunders (1961) 104 CLR 149. On this issue in ‘Halsbury’s Laws of Australia’ 110 Con tract at [110-1030], it is said: “Where the name of the party to be charged appears on the alleged note or memorandum, for example, be cause it has been typed in by the other party, the so-called ‘authenticated signature fiction’ will apply where the party to be charged expressly or impliedly acknowledges the writing as an authenticated expression of the contract so that the typed words will be deemed to be his or her signature.” In McGuren v Simpson the court commented that as McGuren’s name appeared in the email and she expressly acknowledged in the email an authenticated expression of a prior agreement, the email was “recognisable as a note of a concluded agreement”. The court concluded that both the signature alone and in conjunction with the writing could be regarded as a signature in law.
Legislation
Section 10 of the Commonwealth Electronic Transactions Act 1999 and section 14 of the Queensland ETA give legal effect to the electronic signature only after regard is given “to all the relevant circumstances when the (electronic signature) was used” and that “the method was as reliable as was appropriate for the purposes for which the information was communicated”. Unfortunately this formulation leaves open a number of possible arguments. Courts are yet to consider both the circumstances and the meaning of “as reliable appropriate”. Never the less the underlying intention of parliament is to ensure functional equivalence, by providing for validation of electronic signatures. One approach in practice can be to include a note in electronic documents that the electronic signature is intended to act as a signature as contemplated by the federal and state acts.
Practice
Various practices have developed to deal with the effect of the ‘signature’ typed at the end of an electronic message such as an email or attachment to an email. One practice is to including a detailed paragraph in the body of the message explaining the writer’s intention. Another practice is to place that paragraph at the end of the email with other disclaimers. Per haps the simplest and most direct approach is to place at the end of the electronic message words such as: • Signature appended pursuant to the federal and state Electronic Transactions Acts Such words would indicate the writer’s intention that the typed electronic signature was intended to operate as a signature as contemplated by the Electronic Transaction Acts
Sub-Prime Speculation
I have a hypothesis.
The ability for banks to service loans at the back end is inelastic. Support is predominately labour driven, not technically driven.
If the back end was technically driven, the banks back end would be elastic. If volume of business grows, relatively speaking they would only have to add one or two more staff.
Conclusion 1. Banks need to adopt more sophisticated technology driven solutions. They need to open up their systems, to give conveyancing representatives the ability to perform simple interactive tasks.
Examples:
Conclusion 2. Adopt and incorporate LIXI standards across the industry
Conclusion 3. Dont think government electronic systems are the panacea for the industry's problems
Xmas should be a time of joy. Not a time of senseless frustration
- This US sub-prime thing, real or unreal, is shifting Aussie borrowers back to the Big 4
- The service levels for back end settlements (of the Big 4) has never been worse. The Xmas rush is one thing, but the increased volume of business is stressing out the bank's ability to service the Loans.
The ability for banks to service loans at the back end is inelastic. Support is predominately labour driven, not technically driven.
If the back end was technically driven, the banks back end would be elastic. If volume of business grows, relatively speaking they would only have to add one or two more staff.
Conclusion 1. Banks need to adopt more sophisticated technology driven solutions. They need to open up their systems, to give conveyancing representatives the ability to perform simple interactive tasks.
Examples:
- view loan status
- book in settlement online (date, time, place)
- view available funds and provide cheque details
- vice verca, book in a discharge and be given amount to discharge loan
Conclusion 2. Adopt and incorporate LIXI standards across the industry
Conclusion 3. Dont think government electronic systems are the panacea for the industry's problems
Xmas should be a time of joy. Not a time of senseless frustration
Friday, December 07, 2007
Seven Tiers of Data Recovery
A fire broke out in the building that houses Land Victoria at 570 Bourke Street Melbourne taking out the sub-station and power and the land titles systems. We received the following message -
6 Nov 07 1.28pm "Please be advised that VIC Landata is currently unavailable".
I asked when the system will be up and running again and got this reply
"There has been a fire inside landata’s building, and consequently the whole building has lost power. Unfortunately there is no ETA. I recommend checking the ‘System Status’ screen for further updates. Otherwise, once the Landata message comes down, you will be able to process searches."
The update the following day
7 Nov 07 10.18am
"Please be aware that due to a fire in the office building that houses Landata yesterday they are currently experiencing major service disruptions.
We have been notified that VOTS connectivity has been restored meaning that titles are retrievable.
However, access to the imaging system remains down – so plans, instruments etc remain unavailable for the time being.
All Victorian Property Certificates will be delayed and whilst they can be ordered no orders will be processed until mid next week.
For Victorian Channel Partners we have also been advised that there is no over the counter service available.
We will keep you updated as soon as we know more."
What's the lesson in all this? There has been an unfortunate incident, the power has been taken out for over 12 hours and Land Victoria is out for 24 hours or so. And at the busiest time of the year, Victoria's land registration system is down. This is a major disruption and one that you would have thought avoidable.
I ran this past some technical guys who were astounded but not surprised. They were astounded because this breaches the basic protocol of disaster recovery systems put to the test. There is a good description in Wikipedia of the Seven Tiers of Disaster Recovery. After reading this entry I would have assumed that Land Victoria would have in place Tier 6: Zero or near-Zero data loss or Tier 7: Highly automated, business integrated solution for disaster recovery.
Definition: Tier 6 business continuity solutions maintain the highest levels of data currency. They are used by businesses with little or no tolerance for data loss and who need to restore data to applications rapidly. These solutions have no dependence on the applications or applications staffs to provide data consistency. Tier 6 solutions require some form of Disk Mirroring. There are various synchronous and asynchronous solutions available from the mainframe storage vendors. Each solution is somewhat different, offering different capabilities and providing different Recovery Point and Recovery Time objectives. Often some form of automated tape solution is also required. However, this can vary somewhat depending on the amount and type of data residing on tape.
In a nut shell Tier 6 assumes that your data is kept and mirrored in 2 geographically separate data centres. Data is being written and read to either or both data centres. The data is automatically synched. Each data centre is a mirror of the other. If one data centre goes offline, as it did at 570 Bourke Street, the service is unaffected as the load is then completely taken up at the other data centre.
A good analogy is if you are flying in a 747 and you lose the left engine, you can still fly and land on the right engine.
Google is a prime example of this to the extreme. It would be Tier 7(+). Google is rewriting the book on data centres.
Again I stress the above was an unfortunate incident with staff put at risk. It was shocking to hear people being treated for smoke inhalation or being trapped in lifts. But in a business environment I would have thought this is a case for a Tier 6 DRP (at a minimum). A Tier 6 solution equals 99.9% uptime with no loss of data or service. However, I am not in possession of the full facts or background or steps taken to get the system up and running with no loss of data. There are lessons in all of this.
6 Nov 07 1.28pm "Please be advised that VIC Landata is currently unavailable".
I asked when the system will be up and running again and got this reply
"There has been a fire inside landata’s building, and consequently the whole building has lost power. Unfortunately there is no ETA. I recommend checking the ‘System Status’ screen for further updates. Otherwise, once the Landata message comes down, you will be able to process searches."
The update the following day
7 Nov 07 10.18am
"Please be aware that due to a fire in the office building that houses Landata yesterday they are currently experiencing major service disruptions.
We have been notified that VOTS connectivity has been restored meaning that titles are retrievable.
However, access to the imaging system remains down – so plans, instruments etc remain unavailable for the time being.
All Victorian Property Certificates will be delayed and whilst they can be ordered no orders will be processed until mid next week.
For Victorian Channel Partners we have also been advised that there is no over the counter service available.
We will keep you updated as soon as we know more."
What's the lesson in all this? There has been an unfortunate incident, the power has been taken out for over 12 hours and Land Victoria is out for 24 hours or so. And at the busiest time of the year, Victoria's land registration system is down. This is a major disruption and one that you would have thought avoidable.
I ran this past some technical guys who were astounded but not surprised. They were astounded because this breaches the basic protocol of disaster recovery systems put to the test. There is a good description in Wikipedia of the Seven Tiers of Disaster Recovery. After reading this entry I would have assumed that Land Victoria would have in place Tier 6: Zero or near-Zero data loss or Tier 7: Highly automated, business integrated solution for disaster recovery.
Definition: Tier 6 business continuity solutions maintain the highest levels of data currency. They are used by businesses with little or no tolerance for data loss and who need to restore data to applications rapidly. These solutions have no dependence on the applications or applications staffs to provide data consistency. Tier 6 solutions require some form of Disk Mirroring. There are various synchronous and asynchronous solutions available from the mainframe storage vendors. Each solution is somewhat different, offering different capabilities and providing different Recovery Point and Recovery Time objectives. Often some form of automated tape solution is also required. However, this can vary somewhat depending on the amount and type of data residing on tape.
In a nut shell Tier 6 assumes that your data is kept and mirrored in 2 geographically separate data centres. Data is being written and read to either or both data centres. The data is automatically synched. Each data centre is a mirror of the other. If one data centre goes offline, as it did at 570 Bourke Street, the service is unaffected as the load is then completely taken up at the other data centre.
A good analogy is if you are flying in a 747 and you lose the left engine, you can still fly and land on the right engine.
Google is a prime example of this to the extreme. It would be Tier 7(+). Google is rewriting the book on data centres.
Again I stress the above was an unfortunate incident with staff put at risk. It was shocking to hear people being treated for smoke inhalation or being trapped in lifts. But in a business environment I would have thought this is a case for a Tier 6 DRP (at a minimum). A Tier 6 solution equals 99.9% uptime with no loss of data or service. However, I am not in possession of the full facts or background or steps taken to get the system up and running with no loss of data. There are lessons in all of this.
McClelland favours national e-conveyancing system
THE Rudd Government plans to become directly involved in helping to build the planned National Electronic Conveyancing System (NECS).
Newly appointed Attorney-General Robert McClelland told The Australian that he favoured a national e-conveyancing system and would accept an invitation to join the steering committee in charge of developing it.
The move would strengthen the hand of lawyers, bankers and state governments that favour a single national e-conveyancing system, as opposed to smaller state-based systems.
The NECS steering committee currently has representatives from all state governments, the Law Council of Australia, the Australian Bankers Association and the Australian Institute of Conveyancers.
Mr McClelland said he would ensure that the e-conveyancing issue was discussed at the standing committee of attorneys-general.
The Attorney-General's department had already provided him a briefing on the issues involved in e-conveyancing.
"Clearly, electronic conveyancing is inevitable. It is clearly the way of the future," he said. "There should be a national system. And it is obvious and desirable that this be achieved through a co-operative scheme - and I will be using every endeavour to achieve that."
Among those in favour of including the federal Government on the steering committee was NECS chairman Les Taylor, a former general counsel of the Commonwealth Bank.
Last month, state governments established a high-powered committee of officials to streamline work on a seamless national conveyancing system. This move was an initiative of the Victorian Minister responsible for e-conveyancing, Gavin Jennings. It was aimed at reassuring the banks and other private sector users of conveyancing that all the states worked towards the establishment of a national system.
The initiative, however, has not persuaded the major banks to end their boycott of Victoria's state-based e-conveyancing system. The boycott was imposed over what the banks saw as a lack of co-operation by the Victorian Government with moves aimed at establishing a national system.
Chris Merritt, Legal affairs editor | December 07, 2007 The Australian
Newly appointed Attorney-General Robert McClelland told The Australian that he favoured a national e-conveyancing system and would accept an invitation to join the steering committee in charge of developing it.
The move would strengthen the hand of lawyers, bankers and state governments that favour a single national e-conveyancing system, as opposed to smaller state-based systems.
The NECS steering committee currently has representatives from all state governments, the Law Council of Australia, the Australian Bankers Association and the Australian Institute of Conveyancers.
Mr McClelland said he would ensure that the e-conveyancing issue was discussed at the standing committee of attorneys-general.
The Attorney-General's department had already provided him a briefing on the issues involved in e-conveyancing.
"Clearly, electronic conveyancing is inevitable. It is clearly the way of the future," he said. "There should be a national system. And it is obvious and desirable that this be achieved through a co-operative scheme - and I will be using every endeavour to achieve that."
Among those in favour of including the federal Government on the steering committee was NECS chairman Les Taylor, a former general counsel of the Commonwealth Bank.
Last month, state governments established a high-powered committee of officials to streamline work on a seamless national conveyancing system. This move was an initiative of the Victorian Minister responsible for e-conveyancing, Gavin Jennings. It was aimed at reassuring the banks and other private sector users of conveyancing that all the states worked towards the establishment of a national system.
The initiative, however, has not persuaded the major banks to end their boycott of Victoria's state-based e-conveyancing system. The boycott was imposed over what the banks saw as a lack of co-operation by the Victorian Government with moves aimed at establishing a national system.
Chris Merritt, Legal affairs editor | December 07, 2007 The Australian
Thursday, December 06, 2007
Monty Python - "Cheese Shop"
The Players:
John Cleese - Mousebender;
Michael Palin - Wensleydale;
The Scene:
An Edwardian-style shop which carries the signs:
'Ye Olde Cheese Emporium';
Sir, I would like to lodge a caveat.
Sorry, fresh out of caveats
Application surviving proprietor?
No
Application Personal Representative?
No
Discharge of Mortgage
Aah, No
Mortgage?
No
Transfer, dare I ask?
............
That about sums up EC's long awaited 16 November 2007 open for business with Stage 2 financial settlements etc. I went knocking on their door the other day to sign up. It was monty pythonesque to a T. I was passed through several channels and finally put onto the person who could help with the signup. No go was the end game. Perhaps, just perhaps they might be in a position to accept subscribers next February. This is despite the justification of upping registration fees by 20 to 30% for over the counter dealings to encourage electronic uptake. My gripe is not with EC and their system, it is the blatant public rip off on jacking up fees by 30%.
From a pure conveyancing perspective, I was dead keen to give the system a road test by being involved with their trial. Even just to lodge a caveat. How can one really know whether the system that EC has built, using public funds, is any good? Given my personal experience in building online conveyancing systems, new systems will have flaws, there will be bugs but it is only through testing and use can you end up with a system that works. And one where users find the experience intuitive, dead simple and enjoyable. The user experience is what counts. Based on the demonstration disk EC has circulated, I am not confident the user experience is all that good. I did a short review in an earlier blog entry.
Gouda?
The reply
15 Feb 08. Since this blog entry, EC is open for business and you can now register your interest, sign up, undertake training and hopefully start transacting. BH
John Cleese - Mousebender;
Michael Palin - Wensleydale;
The Scene:
An Edwardian-style shop which carries the signs:
'Ye Olde Cheese Emporium';
Sir, I would like to lodge a caveat.
Sorry, fresh out of caveats
Application surviving proprietor?
No
Application Personal Representative?
No
Discharge of Mortgage
Aah, No
Mortgage?
No
Transfer, dare I ask?
............
That about sums up EC's long awaited 16 November 2007 open for business with Stage 2 financial settlements etc. I went knocking on their door the other day to sign up. It was monty pythonesque to a T. I was passed through several channels and finally put onto the person who could help with the signup. No go was the end game. Perhaps, just perhaps they might be in a position to accept subscribers next February. This is despite the justification of upping registration fees by 20 to 30% for over the counter dealings to encourage electronic uptake. My gripe is not with EC and their system, it is the blatant public rip off on jacking up fees by 30%.
From a pure conveyancing perspective, I was dead keen to give the system a road test by being involved with their trial. Even just to lodge a caveat. How can one really know whether the system that EC has built, using public funds, is any good? Given my personal experience in building online conveyancing systems, new systems will have flaws, there will be bugs but it is only through testing and use can you end up with a system that works. And one where users find the experience intuitive, dead simple and enjoyable. The user experience is what counts. Based on the demonstration disk EC has circulated, I am not confident the user experience is all that good. I did a short review in an earlier blog entry.
Gouda?
The reply
15 Feb 08. Since this blog entry, EC is open for business and you can now register your interest, sign up, undertake training and hopefully start transacting. BH
Sunday, December 02, 2007
Electronic Transactions (Victoria) Bill ~ a reflection
This is the speech given by the Hon. Gavin W. JENNINGS on 10 May 2000 in support of passing the Electronic Transactions (Victoria) Bill, now an Act. Today (in 2007) Gavin Jennings is now the Minister for Environment and Climate Change, Minister for Innovation and is a representative in the Upper House / Legislative Council. Most importantly his portfolio oversees the introduction of Electronic Conveyancing in Victoria.
It has been reported by EC Jim Walker, General Manager, Electronic Conveyancing Project, the Victorian Minister for Environment and Climate Change, Gavin Jennings MLC, and the New South Wales Minister for Lands, Tony Kelly MLC, have issued a joint communiqué affirming a number principles for the development of a national electronic conveyancing system.
The text of the speech given by G W Jennings back in 10 May 2000 --
Hon. Gavin W. JENNINGS (Melbourne) -- Mr Katsambanis has given a hypnotic presentation that raised a huge range of issues. It is incumbent on the government to consider those issues in its consideration of the legislation and any other legal remedies it may seek to pursue. Mr Katsambanis said a revolution was taking place in electronic commerce and the use of the Internet. The resultant growth of knowledge and information that is available in the world of cyberspace, as he describes it, led him in his analysis to almost believe cyberspace is the real world and the physical world is the world outside cyberspace.
That is an interesting insight and probably demonstrates the depth of his concern and attention to the important technological advancement of the transmission of information electronically.
However, there needs to be an appropriate balance between the physical world and the legislative environment we create and this important technological and social development. The electronic transmission of information relates not only to commercial transactions but also to the social life and cultural development of many communities around the globe.
It is appropriate for the government to provide the legislative framework in which those transactions can take place, particularly if they relate to the world of commerce and as they may relate to potential litigation about the abuse of that information.
I refer to the current advertising campaign of IBM about the tyranny of distance and the nature of economies such as Australia that rely on commodity prices and export markets. The scene is in the Midwest of the United States of America where two farmers are side by side in their vans. In Australia they would be called utes but in America they are somewhat larger vehicles. One says to the other, 'Hey, Earl, have you thought of using the Internet to sell your feedstock?', The answer is, 'We're not selling books; we sell feedstock to everybody in the district'. The reply is, 'Earl, have you ever left the district?'. That is a measure of the nature of economic activity, be it Midwest America or remote parts of Australia.
That 30-second vignette clearly demonstrates the commercial world we have known in the past as the world that has changed and will change forever. I agree with the central thesis of Mr Katsambanis's argument that the world is changing and will continue to change at an ever-evolving rate.
In his second-reading speech the Minister for State and Regional Development outlined the changing economic activity that is currently taking place on the Internet and through e-commerce arrangements. Currently it is estimated to be $300 billion next year and is expected to increase three or four-fold within the next three years. That is a significant development. The role of the state government in the global phenomenon is to think of the appropriate levels of responsibility of state administration. This is where I divert from the opposition, which tried to confuse the role.
We must amalgamate the various roles the state government may play in this important issue. It goes to the foundation of a legal framework that acknowledges the validity of the transaction and considers electronic communication to be of equal standing to written material in certain circumstances. It defines the limits of how that may apply to electronic administrative practices and commercial transactions and limits the scope of the application, in particular to wills and other documentation that operate within other aspects of the Victorian statutes that require private transmission anomalies.
The opposition rightly points to the fact that the legislation builds on commonwealth legislation enacted last year and international conventions that were determined by the United Nations Committee on International Trade Law in 1996. The Victorian legislative model is consistent with the approach of developing consultation with all jurisdictions throughout the country. It was agreed to by the standing committee of Australian attorneys-general and was designed to enable a degree of flexibility for emerging technological advancement.
The bill has been drafted in a way that does not favour any particular type of technology. It allows an opportunity for emerging technologies to be included within its scope. The Victorian government drafted the bill in such a way to enable it to deal with a degree of flexibility about those emerging technologies and forms of transactions, some of which are able to be envisaged at this time and some may be beyond the imagination of members of the opposition such as Mr Katsambanis.
The important element that he and other honourable members in both houses identified was the importance of data protection. The opposition called for adequate mechanisms to provide for data protection and a degree of certainty. It said sanctions should apply to inappropriate use of electronic transmission or the impact on hacking.
The good news is: watch this space! Keep an eye on the cursor.
The government intends to address those important issues. The bill is a foundation that must be built upon to provide the legislative mechanisms to provide security and confidence to Victorians who wish to operate on the Internet for their commercial activities. The government recognises the need to provide protection and certainty. The government intends to underpin the growth in the software and hardware sectors and develop proper practices and processes that relate to those transactions. The bill provides a range of the measures that will assist Victorian industry to develop.
The government will consider what is the appropriate role for the state administration to play as a user of emerging technologies. An emphasis of the former government was its visionary approach to emerging technologies. I am a member of a party that spent some time criticising the then government for some of the failures of those emerging technologies.
However, it is worth erring on the side of caution when it comes to being part of a visionary approach to the use of emerging technologies. The government's concern will be to make proper assessments of the viability and demonstrable capacity of emerging technologies as we take them up.
As a member of the government I would be disappointed if the government did not play a role as a supporter and user of emerging technologies. The government faces a challenge in considering how it might play that role effectively while underpinning the development of software and other capacities within Victorian industry and the emerging services sector. Even without getting into the realm of backing winners or providing an inappropriate level of direct public subsidy to private enterprise, an appropriate balance needs to be struck. That is a challenge for the government in dealing with the issue.
Perhaps that is why the opposition has said that the public announcements the government has made about programs such as Connecting Victoria fall short, lack of vision and do not show a preparedness to underpin private sector activity. It is a difficult balance for any administration to strike and it is appropriate to get the concepts right before the government embarks upon that field of endeavour.
That is not to say that the government has not been prepared to fund a number of support programs. They have been supported and promoted by my parliamentary colleague the Minister for State and Regional Development and include Connecting Victoria and the Victorian E-Commerce Early Movers scheme. The Go for IT program will provide 125 traineeships in the Victorian public service to support the emergence in Victoria of a better skilled work force to deal with information technology issues.
A task force has been convened by my ministerial colleagues the Minister for State and Regional Development and the Minister for Post Compulsory Education, Training and Employment to consider Victoria's emerging skills requirements and the training opportunities that may be available to ensure that Victoria has a vibrant information, communication and technology sector in the state.
The Bracks government has successfully looked at making use of the Victorian government web site more efficient by creating Multi-server Express. Victorian citizens can access 92 services online with the touch of a single button. Prior to that initiative a search was required, which demanded some knowledge of the name of the service the Victorian citizen may have wanted to access. The clear design of the web site enables easier access to information for all Victorians.
A point of contention in debate has been the appropriateness of establishing Internet access at town halls versus libraries versus schools and other such locations. It would be disappointing if that issue were to divide the house. I have no doubt that our united position would be to try to achieve effective, efficient access for all Victorians at whatever is the most appropriate location. Regardless of locality and circumstances, Victorians should be able to effectively use the Internet for commercial and social activities and to augment and enhance our education system. Maximum coverage and easy access for all Victorians would ensure no opportunity is lost.
In no way, shape or form should the interface with the technical world -- that world enabling all sorts of human activity -- become an exercise for technonerds or those who pursue information technology in an esoteric fashion. Some use their knowledge in an intimidatory way to add to the insecurity of people who may wish to take up that technology. It is appropriate that people employing such intimidatory tactics feel the wrath of the government. The government has a role in demystifying technology, maximising its potential and facilitating ease of use. That is one of the underlying theoretical themes of the legislation.
Hon. R. M. Hallam -- It might include satellite phones!
Hon. G. W. JENNINGS -- The bill is without prejudice towards any form of technology. Technologies will come and go. One of the strengths of the bill is that it has been drafted in a flexible way to enable it to cover technologies not envisaged.
It is a theoretical framework establishing a baseline in an emerging field; ensuring equity before the law of electronic material transacted that in the past was not recognised as equal to physical documentation.
There has been no pretence that the legislation provides a framework to deal with data protection or sanctions. Such legislation will be required and, when put in place, will supplement the baseline established by the legislation before the house. Debate on the bill has allowed a dialogue between the government and the opposition, the latter expressing concern about the government's intention to address such issues. The message from the opposition that such legislation must be introduced has been heard, and that will be achieved. I commend the bill to the house.
It has been reported by EC Jim Walker, General Manager, Electronic Conveyancing Project, the Victorian Minister for Environment and Climate Change, Gavin Jennings MLC, and the New South Wales Minister for Lands, Tony Kelly MLC, have issued a joint communiqué affirming a number principles for the development of a national electronic conveyancing system.
The text of the speech given by G W Jennings back in 10 May 2000 --
Hon. Gavin W. JENNINGS (Melbourne) -- Mr Katsambanis has given a hypnotic presentation that raised a huge range of issues. It is incumbent on the government to consider those issues in its consideration of the legislation and any other legal remedies it may seek to pursue. Mr Katsambanis said a revolution was taking place in electronic commerce and the use of the Internet. The resultant growth of knowledge and information that is available in the world of cyberspace, as he describes it, led him in his analysis to almost believe cyberspace is the real world and the physical world is the world outside cyberspace.
That is an interesting insight and probably demonstrates the depth of his concern and attention to the important technological advancement of the transmission of information electronically.
However, there needs to be an appropriate balance between the physical world and the legislative environment we create and this important technological and social development. The electronic transmission of information relates not only to commercial transactions but also to the social life and cultural development of many communities around the globe.
It is appropriate for the government to provide the legislative framework in which those transactions can take place, particularly if they relate to the world of commerce and as they may relate to potential litigation about the abuse of that information.
I refer to the current advertising campaign of IBM about the tyranny of distance and the nature of economies such as Australia that rely on commodity prices and export markets. The scene is in the Midwest of the United States of America where two farmers are side by side in their vans. In Australia they would be called utes but in America they are somewhat larger vehicles. One says to the other, 'Hey, Earl, have you thought of using the Internet to sell your feedstock?', The answer is, 'We're not selling books; we sell feedstock to everybody in the district'. The reply is, 'Earl, have you ever left the district?'. That is a measure of the nature of economic activity, be it Midwest America or remote parts of Australia.
That 30-second vignette clearly demonstrates the commercial world we have known in the past as the world that has changed and will change forever. I agree with the central thesis of Mr Katsambanis's argument that the world is changing and will continue to change at an ever-evolving rate.
In his second-reading speech the Minister for State and Regional Development outlined the changing economic activity that is currently taking place on the Internet and through e-commerce arrangements. Currently it is estimated to be $300 billion next year and is expected to increase three or four-fold within the next three years. That is a significant development. The role of the state government in the global phenomenon is to think of the appropriate levels of responsibility of state administration. This is where I divert from the opposition, which tried to confuse the role.
We must amalgamate the various roles the state government may play in this important issue. It goes to the foundation of a legal framework that acknowledges the validity of the transaction and considers electronic communication to be of equal standing to written material in certain circumstances. It defines the limits of how that may apply to electronic administrative practices and commercial transactions and limits the scope of the application, in particular to wills and other documentation that operate within other aspects of the Victorian statutes that require private transmission anomalies.
The opposition rightly points to the fact that the legislation builds on commonwealth legislation enacted last year and international conventions that were determined by the United Nations Committee on International Trade Law in 1996. The Victorian legislative model is consistent with the approach of developing consultation with all jurisdictions throughout the country. It was agreed to by the standing committee of Australian attorneys-general and was designed to enable a degree of flexibility for emerging technological advancement.
The bill has been drafted in a way that does not favour any particular type of technology. It allows an opportunity for emerging technologies to be included within its scope. The Victorian government drafted the bill in such a way to enable it to deal with a degree of flexibility about those emerging technologies and forms of transactions, some of which are able to be envisaged at this time and some may be beyond the imagination of members of the opposition such as Mr Katsambanis.
The important element that he and other honourable members in both houses identified was the importance of data protection. The opposition called for adequate mechanisms to provide for data protection and a degree of certainty. It said sanctions should apply to inappropriate use of electronic transmission or the impact on hacking.
The good news is: watch this space! Keep an eye on the cursor.
The government intends to address those important issues. The bill is a foundation that must be built upon to provide the legislative mechanisms to provide security and confidence to Victorians who wish to operate on the Internet for their commercial activities. The government recognises the need to provide protection and certainty. The government intends to underpin the growth in the software and hardware sectors and develop proper practices and processes that relate to those transactions. The bill provides a range of the measures that will assist Victorian industry to develop.
The government will consider what is the appropriate role for the state administration to play as a user of emerging technologies. An emphasis of the former government was its visionary approach to emerging technologies. I am a member of a party that spent some time criticising the then government for some of the failures of those emerging technologies.
However, it is worth erring on the side of caution when it comes to being part of a visionary approach to the use of emerging technologies. The government's concern will be to make proper assessments of the viability and demonstrable capacity of emerging technologies as we take them up.
As a member of the government I would be disappointed if the government did not play a role as a supporter and user of emerging technologies. The government faces a challenge in considering how it might play that role effectively while underpinning the development of software and other capacities within Victorian industry and the emerging services sector. Even without getting into the realm of backing winners or providing an inappropriate level of direct public subsidy to private enterprise, an appropriate balance needs to be struck. That is a challenge for the government in dealing with the issue.
Perhaps that is why the opposition has said that the public announcements the government has made about programs such as Connecting Victoria fall short, lack of vision and do not show a preparedness to underpin private sector activity. It is a difficult balance for any administration to strike and it is appropriate to get the concepts right before the government embarks upon that field of endeavour.
That is not to say that the government has not been prepared to fund a number of support programs. They have been supported and promoted by my parliamentary colleague the Minister for State and Regional Development and include Connecting Victoria and the Victorian E-Commerce Early Movers scheme. The Go for IT program will provide 125 traineeships in the Victorian public service to support the emergence in Victoria of a better skilled work force to deal with information technology issues.
A task force has been convened by my ministerial colleagues the Minister for State and Regional Development and the Minister for Post Compulsory Education, Training and Employment to consider Victoria's emerging skills requirements and the training opportunities that may be available to ensure that Victoria has a vibrant information, communication and technology sector in the state.
The Bracks government has successfully looked at making use of the Victorian government web site more efficient by creating Multi-server Express. Victorian citizens can access 92 services online with the touch of a single button. Prior to that initiative a search was required, which demanded some knowledge of the name of the service the Victorian citizen may have wanted to access. The clear design of the web site enables easier access to information for all Victorians.
A point of contention in debate has been the appropriateness of establishing Internet access at town halls versus libraries versus schools and other such locations. It would be disappointing if that issue were to divide the house. I have no doubt that our united position would be to try to achieve effective, efficient access for all Victorians at whatever is the most appropriate location. Regardless of locality and circumstances, Victorians should be able to effectively use the Internet for commercial and social activities and to augment and enhance our education system. Maximum coverage and easy access for all Victorians would ensure no opportunity is lost.
In no way, shape or form should the interface with the technical world -- that world enabling all sorts of human activity -- become an exercise for technonerds or those who pursue information technology in an esoteric fashion. Some use their knowledge in an intimidatory way to add to the insecurity of people who may wish to take up that technology. It is appropriate that people employing such intimidatory tactics feel the wrath of the government. The government has a role in demystifying technology, maximising its potential and facilitating ease of use. That is one of the underlying theoretical themes of the legislation.
Hon. R. M. Hallam -- It might include satellite phones!
Hon. G. W. JENNINGS -- The bill is without prejudice towards any form of technology. Technologies will come and go. One of the strengths of the bill is that it has been drafted in a flexible way to enable it to cover technologies not envisaged.
It is a theoretical framework establishing a baseline in an emerging field; ensuring equity before the law of electronic material transacted that in the past was not recognised as equal to physical documentation.
There has been no pretence that the legislation provides a framework to deal with data protection or sanctions. Such legislation will be required and, when put in place, will supplement the baseline established by the legislation before the house. Debate on the bill has allowed a dialogue between the government and the opposition, the latter expressing concern about the government's intention to address such issues. The message from the opposition that such legislation must be introduced has been heard, and that will be achieved. I commend the bill to the house.
Sunday, November 25, 2007
Outrage as house auctioned twice
Properties sold at auction in Melbourne may not go to the winning bidder after a real estate agent on Saturday sold a Burwood East home for more money after the hammer fell.
The auction exposed a legal grey area, sparked outrage among the crowd - and drew the promise of a probe by the Real Estate Institute of Victoria.
Hao Chen thought he had bought the home at 10 Aruma Court (pictured) after the auctioneer brought down his hammer and declared the property sold. But moments later - in front of a large and dismayed crowd - the auctioneer's boss allowed a late bid of $1000 more.
"(The auctioneer's) hand hit the piece of paper, the property was sold," said Martin Bona, a local resident at the auction.
Waverley City First National auctioneer David Makris said he had closed the auction before accepting the new bid at the behest of his boss, First National managing director Thomas Som.
Buyer's advocate Chris Koren, of Morrell & Koren, said the practice, while rare, undermined the integrity of the auction process.
"For want of a little bit more money, this will cause a lot of criticism in the industry and about the industry," Mr Koren said.
A distressed Mr Chen told The Sunday Age he had been treated unfairly.
"They told us because contract had not yet been signed the vendor would sell to whoever would give them the highest (amount). I wouldn't negotiate. It's not a money issue, this is bullshit," Mr Chen said. The property eventually sold for $3000 above Mr Chen's bid.
Robert Larocca, a spokesman for the Real Estate Institute of Victoria, said convention holds that a property is sold at the fall of the hammer, although legally the sale only occurs with the signing of a contract.
"It's a bit of a grey area," Mr Larocca said. "The (State Government) is currently reviewing auction law with a view to changing the law so a legal contract comes at the fall of the hammer."
Mr Som said that while the outcome was regrettable, the agency was obliged to look after the best interests of its client.
"We're not happy with the way it happened, we were not looking for this to happen," he said. "But again we are working to get the best price for our vendor."
Mr Chen said he intended to lodge a complaint with the REIV. Mr Larocca said the institute would be happy to investigate after a formal complaint was lodged.
When is it sold?
Consumer Affairs Victoria says that when the auctioneer has reached what seems the final bid, he or she will announce, "Going once, twice, three times . . . SOLD!"
"There are no further offers accepted after this point," it says, but there is no legally binding contract until the buyer and seller have signed the contract of sale
Author: Chris Vedelago
Date: November 21, 2007
The Age Domain
Responses of outrage and incredulation to the story
1. Consumers' wrath
I was incensed to read about the real estate company that auctioned a Burwood East house twice and in the process denied Mr Chen securing the property with his winning bid.
If I was in Mr Chen's shoes I would attend all future auctions of that scurrilous company, outbid the field and, as the crowd dispersed, simple back out of the deal.
"I've changed my mind - taa all the same" should suffice. Let them feel the wrath of the consumer.
David Hodgson, Sunbury
2. Put First National Last
What disgusting behaviour on the part of First National. It is a sad state when we need to rely on laws for people to behave with decency and act in good faith.
When we attend an auction, we all know the rules and the expectations of everyone else there. "Going once, going twice, sold" .... congratulations to the buyer and seller, the end. To accept a higher bid afterwards, even if the law permits it, is plainly cheating.
I would encourage all fair-minded people to boycott First National.
Sean Fremder, Caulfield
Letters to The Age
15 Dec 07 - REIV news
REIV: "I am pleased to inform you that the Minister for Consumer Affairs has formally advised the Institute that the government will amend the Sale of Land Regulations 2005 to prohibit late bids at public auctions. This follows sustained lobbying by the REIV on this issue. The prohibition will apply to all auctions, not just residential.
The Regulations will be amended early in the new year. It is anticipated the amendments will prohibit late bids both on sales and pass-ins and provide a substantial penalty for auctioneers who fail to comply.
The impending change clearly indicates the government and regulators consider the taking of late bids is completely unacceptable behaviour."
The auction exposed a legal grey area, sparked outrage among the crowd - and drew the promise of a probe by the Real Estate Institute of Victoria.
Hao Chen thought he had bought the home at 10 Aruma Court (pictured) after the auctioneer brought down his hammer and declared the property sold. But moments later - in front of a large and dismayed crowd - the auctioneer's boss allowed a late bid of $1000 more.
"(The auctioneer's) hand hit the piece of paper, the property was sold," said Martin Bona, a local resident at the auction.
Waverley City First National auctioneer David Makris said he had closed the auction before accepting the new bid at the behest of his boss, First National managing director Thomas Som.
Buyer's advocate Chris Koren, of Morrell & Koren, said the practice, while rare, undermined the integrity of the auction process.
"For want of a little bit more money, this will cause a lot of criticism in the industry and about the industry," Mr Koren said.
A distressed Mr Chen told The Sunday Age he had been treated unfairly.
"They told us because contract had not yet been signed the vendor would sell to whoever would give them the highest (amount). I wouldn't negotiate. It's not a money issue, this is bullshit," Mr Chen said. The property eventually sold for $3000 above Mr Chen's bid.
Robert Larocca, a spokesman for the Real Estate Institute of Victoria, said convention holds that a property is sold at the fall of the hammer, although legally the sale only occurs with the signing of a contract.
"It's a bit of a grey area," Mr Larocca said. "The (State Government) is currently reviewing auction law with a view to changing the law so a legal contract comes at the fall of the hammer."
Mr Som said that while the outcome was regrettable, the agency was obliged to look after the best interests of its client.
"We're not happy with the way it happened, we were not looking for this to happen," he said. "But again we are working to get the best price for our vendor."
Mr Chen said he intended to lodge a complaint with the REIV. Mr Larocca said the institute would be happy to investigate after a formal complaint was lodged.
When is it sold?
Consumer Affairs Victoria says that when the auctioneer has reached what seems the final bid, he or she will announce, "Going once, twice, three times . . . SOLD!"
"There are no further offers accepted after this point," it says, but there is no legally binding contract until the buyer and seller have signed the contract of sale
Author: Chris Vedelago
Date: November 21, 2007
The Age Domain
Responses of outrage and incredulation to the story
1. Consumers' wrath
I was incensed to read about the real estate company that auctioned a Burwood East house twice and in the process denied Mr Chen securing the property with his winning bid.
If I was in Mr Chen's shoes I would attend all future auctions of that scurrilous company, outbid the field and, as the crowd dispersed, simple back out of the deal.
"I've changed my mind - taa all the same" should suffice. Let them feel the wrath of the consumer.
David Hodgson, Sunbury
2. Put First National Last
What disgusting behaviour on the part of First National. It is a sad state when we need to rely on laws for people to behave with decency and act in good faith.
When we attend an auction, we all know the rules and the expectations of everyone else there. "Going once, going twice, sold" .... congratulations to the buyer and seller, the end. To accept a higher bid afterwards, even if the law permits it, is plainly cheating.
I would encourage all fair-minded people to boycott First National.
Sean Fremder, Caulfield
Letters to The Age
15 Dec 07 - REIV news
REIV: "I am pleased to inform you that the Minister for Consumer Affairs has formally advised the Institute that the government will amend the Sale of Land Regulations 2005 to prohibit late bids at public auctions. This follows sustained lobbying by the REIV on this issue. The prohibition will apply to all auctions, not just residential.
The Regulations will be amended early in the new year. It is anticipated the amendments will prohibit late bids both on sales and pass-ins and provide a substantial penalty for auctioneers who fail to comply.
The impending change clearly indicates the government and regulators consider the taking of late bids is completely unacceptable behaviour."
Friday, November 23, 2007
Electric Shock
VICTORIANS who buy and sell property have no reason to celebrate last Friday's launch of the state's electronic conveyancing system. Its biggest impact has been an increase in the cost of paper-based conveyancing. And because the banks are not using the new system, most property transactions are still paper-based.
The Law Institute has complained about the price rise and so have the Master Builders. But the Government persists with portraying its new system as some sort of step forward.
The Government has not even been able to persuade the LIV to recommend that its members use the new system.
The problem keeping most solicitors out of the system is the belief that it might expose them to a degree of risk that is not present with paper-based transactions. Doubts have emerged about who would be liable if, for some reason, an electronic conveyancing transaction were affected by fraud.
And that is where Ellie Comerford might have a solution. Comerford runs a company called First Title that insures title to land. Up to a point, she agrees with the LIV. She says there is a risk of fraud in electronic conveyancing but she argues that the risk is no greater than the risk that already exists with paper-based transactions.
To prove her point, she says First Title has sold 200,000 land title insurance policies and has paid out on several claims.
In order to address the LIV's concerns, she says a neat solution would be to simply insure each transaction under the new electronic system.
But let's not get ahead of ourselves. Even if all Victoria's solicitors sign up with the new electronic system, it is going nowhere without the banks.
Chris Merritt | November 23, 2007 | The Australian
The Law Institute has complained about the price rise and so have the Master Builders. But the Government persists with portraying its new system as some sort of step forward.
The Government has not even been able to persuade the LIV to recommend that its members use the new system.
The problem keeping most solicitors out of the system is the belief that it might expose them to a degree of risk that is not present with paper-based transactions. Doubts have emerged about who would be liable if, for some reason, an electronic conveyancing transaction were affected by fraud.
And that is where Ellie Comerford might have a solution. Comerford runs a company called First Title that insures title to land. Up to a point, she agrees with the LIV. She says there is a risk of fraud in electronic conveyancing but she argues that the risk is no greater than the risk that already exists with paper-based transactions.
To prove her point, she says First Title has sold 200,000 land title insurance policies and has paid out on several claims.
In order to address the LIV's concerns, she says a neat solution would be to simply insure each transaction under the new electronic system.
But let's not get ahead of ourselves. Even if all Victoria's solicitors sign up with the new electronic system, it is going nowhere without the banks.
Chris Merritt | November 23, 2007 | The Australian
Full roll-out of HIPs announced
The UK Government today announced the roll-out of Home Information Packs (HIPs) to all properties marketed for sale in England and Wales from 14 December 2007, whatever their size.
Communities and Local Government issued a press release and Ministerial Statement on the full roll-out of HIPs and supporting activity to ensure continued smooth implementation
GREEN RATINGS TO BENEFIT ALL HOME BUYERS
First time homebuyers will see their upfront costs drop and all home buyers will, for the first time, receive A-G green ratings for their properties which will help cut fuel bills and carbon emissions, with the roll out of Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) announced today.
Buyers whose homes score poor energy ratings of F or G (currently around one-fifth of all homes) will receive an offer of a discount or free help with energy efficiency measures from the Green Homes Service which will be established, helping to save hundreds of pounds off fuel bills, as announced by the Prime Minister this week.
Sixty per cent of the market is already covered by HIPs. The Government has announced the rollout of HIPs and EPCs to the rest of the market from December 14 this year, as the criteria set out for roll out on 11 June have now been met.
House hunters will get detailed information about the energy efficiency of their home with a green rating of A-G, similar to consumer friendly fridge ratings, in an EPC.
The final stage of the roll out follows careful analysis of how HIPs and EPCs have been working in order to maintain their smooth introduction into the housing market.
The extension of HIPs to all properties will particularly benefit first time buyers through a reduction in their upfront costs by not having to pay for a pack, helping them in getting a foot on the housing ladder.
The packs are already beginning to bring benefits to consumers with average property search costs starting to fall with the new competition from HIPs – 85 local authorities have already reduced their charges by £30 on average.
Housing Minister Yvette Cooper said:
“HIPs and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too. All home buyers will be able to benefit from energy efficiency advice, with those receiving low green ratings of ‘F’ and ‘G’ especially targeted for support and grants to make improvements to cut their costs and carbon emissions.”
Early monitoring of the scheme shows the roll out has gone smoothly.
* HIPs are taking on average 7 to 10 days to prepare
* The majority of property, and drainage and water searches, are being delivered promptly within 5 days
* EPCs are being prepared on average within 2 to 4 days
* The average cost of a pack is £300 to £350 – costs which apart from the new information included in the EPC are already part of the home buying and selling process.
The Government has also today published an independent report by Europe Economics on the impact of HIPs on the market. Their report finds no evidence of any impact on transactions or prices, although there is a predicted short term impact on new listings as sellers change the timings of their listings. The report concludes that the impact on listings is short lived and the impact on the market is marginal compared to the wider factors.
The Government also asked Europe Economics and Peter Williams of the National Housing and Planning Advice Unit (NHPAU) to consider whether changing housing market conditions meant we should change the approach to completing the roll out. They concluded that there are strong arguments for rolling out as planned, and further delay could cause greater market difficulties and uncertainties.
The implementation of HIPs so far and the work of the Stakeholder Panel have also highlighted further improvements needed to benefit consumers.
Early monitoring of HIPs has highlighted stakeholder concerns that for some consumers leasehold documents are proving hard to obtain quickly and, in some cases, disproportionate charges are being requested. In the majority of cases we would expect leasehold documents to be readily and easily available as part of HIPs. However, given the higher number of leasehold properties amongst one and two bedroom homes, to ensure a continued smooth roll out we will phase the introduction of leasehold information.
The Government will temporarily amend the HIP regulations so the lease document itself must be included, but other leasehold information will be introduced as a requirement in six months’ time.
The Government will also set out other consumer-first measures and will:
* ask Ted Beardsall, Deputy Chief Executive of the Land Registry — and member of our Home Buying and Selling Stakeholder Panel — to advise on what else could be done to improve the provision of leasehold information and the search process.
* publish guidance on access and charging in December for local authorities and personal searchers with the aim of speeding up searches and delivering a fairer deal for consumers.
* extend the temporary first day marketing provisions for an additional 6 months to allow for full flexibility — from 1 January to 1 June, to ensure continued smooth implementation of HIPs.
The introduction of HIPs is part of a wider programme of reforms to home buying and selling including e-conveyancing and better redress, which aims to provide consumers with a clearer, more transparent and effective service, with better value for money, benefiting all potential homebuyers and helping in tackling climate change.
Our early monitoring shows that implementation has gone relatively smoothly with HIPs taking on average 7-10 days to prepare; the majority of property and drainage and water searches being delivered within 5 days; Energy Performance Certificates (EPCs) taking on average 2-4 days to prepare; average property search costs falling, and thousands of people benefiting from the 200,000 EPCs which have been generated since the summer.
Communities and Local Government issued a press release and Ministerial Statement on the full roll-out of HIPs and supporting activity to ensure continued smooth implementation
GREEN RATINGS TO BENEFIT ALL HOME BUYERS
First time homebuyers will see their upfront costs drop and all home buyers will, for the first time, receive A-G green ratings for their properties which will help cut fuel bills and carbon emissions, with the roll out of Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) announced today.
Buyers whose homes score poor energy ratings of F or G (currently around one-fifth of all homes) will receive an offer of a discount or free help with energy efficiency measures from the Green Homes Service which will be established, helping to save hundreds of pounds off fuel bills, as announced by the Prime Minister this week.
Sixty per cent of the market is already covered by HIPs. The Government has announced the rollout of HIPs and EPCs to the rest of the market from December 14 this year, as the criteria set out for roll out on 11 June have now been met.
House hunters will get detailed information about the energy efficiency of their home with a green rating of A-G, similar to consumer friendly fridge ratings, in an EPC.
The final stage of the roll out follows careful analysis of how HIPs and EPCs have been working in order to maintain their smooth introduction into the housing market.
The extension of HIPs to all properties will particularly benefit first time buyers through a reduction in their upfront costs by not having to pay for a pack, helping them in getting a foot on the housing ladder.
The packs are already beginning to bring benefits to consumers with average property search costs starting to fall with the new competition from HIPs – 85 local authorities have already reduced their charges by £30 on average.
Housing Minister Yvette Cooper said:
“HIPs and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too. All home buyers will be able to benefit from energy efficiency advice, with those receiving low green ratings of ‘F’ and ‘G’ especially targeted for support and grants to make improvements to cut their costs and carbon emissions.”
Early monitoring of the scheme shows the roll out has gone smoothly.
* HIPs are taking on average 7 to 10 days to prepare
* The majority of property, and drainage and water searches, are being delivered promptly within 5 days
* EPCs are being prepared on average within 2 to 4 days
* The average cost of a pack is £300 to £350 – costs which apart from the new information included in the EPC are already part of the home buying and selling process.
The Government has also today published an independent report by Europe Economics on the impact of HIPs on the market. Their report finds no evidence of any impact on transactions or prices, although there is a predicted short term impact on new listings as sellers change the timings of their listings. The report concludes that the impact on listings is short lived and the impact on the market is marginal compared to the wider factors.
The Government also asked Europe Economics and Peter Williams of the National Housing and Planning Advice Unit (NHPAU) to consider whether changing housing market conditions meant we should change the approach to completing the roll out. They concluded that there are strong arguments for rolling out as planned, and further delay could cause greater market difficulties and uncertainties.
The implementation of HIPs so far and the work of the Stakeholder Panel have also highlighted further improvements needed to benefit consumers.
Early monitoring of HIPs has highlighted stakeholder concerns that for some consumers leasehold documents are proving hard to obtain quickly and, in some cases, disproportionate charges are being requested. In the majority of cases we would expect leasehold documents to be readily and easily available as part of HIPs. However, given the higher number of leasehold properties amongst one and two bedroom homes, to ensure a continued smooth roll out we will phase the introduction of leasehold information.
The Government will temporarily amend the HIP regulations so the lease document itself must be included, but other leasehold information will be introduced as a requirement in six months’ time.
The Government will also set out other consumer-first measures and will:
* ask Ted Beardsall, Deputy Chief Executive of the Land Registry — and member of our Home Buying and Selling Stakeholder Panel — to advise on what else could be done to improve the provision of leasehold information and the search process.
* publish guidance on access and charging in December for local authorities and personal searchers with the aim of speeding up searches and delivering a fairer deal for consumers.
* extend the temporary first day marketing provisions for an additional 6 months to allow for full flexibility — from 1 January to 1 June, to ensure continued smooth implementation of HIPs.
The introduction of HIPs is part of a wider programme of reforms to home buying and selling including e-conveyancing and better redress, which aims to provide consumers with a clearer, more transparent and effective service, with better value for money, benefiting all potential homebuyers and helping in tackling climate change.
Our early monitoring shows that implementation has gone relatively smoothly with HIPs taking on average 7-10 days to prepare; the majority of property and drainage and water searches being delivered within 5 days; Energy Performance Certificates (EPCs) taking on average 2-4 days to prepare; average property search costs falling, and thousands of people benefiting from the 200,000 EPCs which have been generated since the summer.
Tuesday, November 20, 2007
Body Corporate - Out, Owners Corporation - In
From 1 January 2008, there are changes big and small for body corporates in Victoria.
Obviously there will be many other changes, but the above will be reflected in the conveyancing process.
The upside for consumers, is the much needed transparancy when buying a flat, unit or apartment. Currently or before, it was a dogs breakfast regime in terms of disclosure of body corporate information.
The downside for the consumer is the increased costs ($55 vs $150) and double this if both parties indepedently obtain a copy of the s151 Certificate.
The other downside is the vendor cannot provide a vendor disclosure statement in a hurry. The Owners Corporation Manager can keep you waiting for up to 2 weeks being the mandated time they must produce the certificate. Take into account time lost for ordering and postage, it could be 3 weeks. The government should look at reducing the turnaround time to 5 business days.
Agents beware. If a vendor engages you to sell his flat or apartment, instructions to prepare sales documentation must be done then and there. Lawyers can no longer turn out vendor statements with minimum supporting documentation as has been done in the past. The practice of vendors waiting for a firm offer from a buyer before instructing a lawyer is now fraught with the danger of losing the buyer altogether. Ipso facto, you can potentially be giving the buyer a 17 day cooling off period, being the sum of the 3 day cooling off and 14 days waiting for a section 151 owners corporation certificate.
Its one step forward and two steps back.
Section 151 Owners Corporations Act 2006
Division 3-Owners Corporation Certificate
151. Owners corporation certificate
(1) Any person may apply to the owners corporation for an owners corporation certificate.
(2) The application must be in writing and must be accompanied by the prescribed fee.
Note: The Electronic Transactions (Victoria) Act 2000 - enables this application to be made electronically.
(3) The owners corporation must issue an owners corporation certificate within 10 business days after it receives an application and fee under this section.
(4) An owners corporation certificate must
(a) contain the prescribed information relating to the owners corporation and a lot which must include the prescribed information relating to
(i) fees payable in respect of the lot;
(ii) fees and charges that are imposed or proposed to be imposed on the lot;
(iii) fees and other money owing in respect of the lot;
(iv) insurance;
(v) repairs and maintenance;
(vi) the funds held by the owners corporation;
(vii) liabilities and contingent liabilities of the owners corporation including any liabilities or contingent liabilities arising from legal proceedings;
(viii) contracts, leases, licences and agreements affecting the common property;
(ix) services provided to lot owners and occupiers and the public;
(x) notices and orders served on the owners corporation;
(xi) legal proceedings to which the owners corporation is a party;
(xii) the manager;
(xiii) any appointment of an administrator; and
(b) be accompanied by
(i) a copy of the rules, or, if the rules have been amended the consolidated rules of the owners corporation as recorded on the Register; and
(ii) a statement in the prescribed form providing advice and information to prospective purchasers and lot owners; and
(iii) a copy of all resolutions made at the last annual general meeting of the owners corporation; and
(iv) any other documents of a prescribed kind; and
(v) a statement advising that further information on prescribed matters can be obtained by inspection of the owners corporation register.
PART 15—AMENDMENT OF SALE OF LAND ACT 1962
219. Section 32 certificate
(1) Section 32(2)(h) of the Sale of Land Act 1962 is repealed.
(2) After section 32(3) of the Sale of Land Act 1962 insert—
"(3A) If the land is affected by an owners corporation within the meaning of the Owners Corporations Act 2006, the vendor must attach to the statement required by subsection
(1)(a) and to the contract—
(a) a copy of the current owners corporation certificate issued in respect of the land under the Owners Corporations Act 2006; and
(b) a copy of the documents required to accompany the owners corporation certificate under section 151(4)(b) of the Owners Corporations Act 2006.".
146. Availability of records
(1) The owners corporation, on request by a lot owner, a mortgagee of a lot, a purchaser of a lot or the representative of a lot owner or mortgagee or purchaser of a lot, must make the records of the owners corporation required to be kept under this
Division available to that person for inspection at any reasonable time, free of charge.
(2) The owners corporation may at the request of a person entitled to inspect the records and on payment of a reasonable fee provide a copy of any record of the owners corporation.
2-lot subdivisions
s.7 deals with 2 lot subdivisions and make certain exemptions for compliance under the Act. The anomoly is that even tho' you dont have to have insurance, you dont have to keep records &c. but when selling you must still provide a S.151 Certificate. Go figure.
- Body Corporates will be renamed Owners Corporation.
- Every Section 32 Vendors Statement must contain a Section 151 Owners Corporation Certificate, being the old Form 3. It will not just be an option. It is mandatory. It will be a combination of the old Form 3 and the Minutes of the last Annual General Meeting.
- The Section 151 Owners Corporation Certificate will cost $150, up from $55
Obviously there will be many other changes, but the above will be reflected in the conveyancing process.
The upside for consumers, is the much needed transparancy when buying a flat, unit or apartment. Currently or before, it was a dogs breakfast regime in terms of disclosure of body corporate information.
The downside for the consumer is the increased costs ($55 vs $150) and double this if both parties indepedently obtain a copy of the s151 Certificate.
The other downside is the vendor cannot provide a vendor disclosure statement in a hurry. The Owners Corporation Manager can keep you waiting for up to 2 weeks being the mandated time they must produce the certificate. Take into account time lost for ordering and postage, it could be 3 weeks. The government should look at reducing the turnaround time to 5 business days.
Agents beware. If a vendor engages you to sell his flat or apartment, instructions to prepare sales documentation must be done then and there. Lawyers can no longer turn out vendor statements with minimum supporting documentation as has been done in the past. The practice of vendors waiting for a firm offer from a buyer before instructing a lawyer is now fraught with the danger of losing the buyer altogether. Ipso facto, you can potentially be giving the buyer a 17 day cooling off period, being the sum of the 3 day cooling off and 14 days waiting for a section 151 owners corporation certificate.
Its one step forward and two steps back.
Section 151 Owners Corporations Act 2006
Division 3-Owners Corporation Certificate
151. Owners corporation certificate
(1) Any person may apply to the owners corporation for an owners corporation certificate.
(2) The application must be in writing and must be accompanied by the prescribed fee.
Note: The Electronic Transactions (Victoria) Act 2000 - enables this application to be made electronically.
(3) The owners corporation must issue an owners corporation certificate within 10 business days after it receives an application and fee under this section.
(4) An owners corporation certificate must
(a) contain the prescribed information relating to the owners corporation and a lot which must include the prescribed information relating to
(i) fees payable in respect of the lot;
(ii) fees and charges that are imposed or proposed to be imposed on the lot;
(iii) fees and other money owing in respect of the lot;
(iv) insurance;
(v) repairs and maintenance;
(vi) the funds held by the owners corporation;
(vii) liabilities and contingent liabilities of the owners corporation including any liabilities or contingent liabilities arising from legal proceedings;
(viii) contracts, leases, licences and agreements affecting the common property;
(ix) services provided to lot owners and occupiers and the public;
(x) notices and orders served on the owners corporation;
(xi) legal proceedings to which the owners corporation is a party;
(xii) the manager;
(xiii) any appointment of an administrator; and
(b) be accompanied by
(i) a copy of the rules, or, if the rules have been amended the consolidated rules of the owners corporation as recorded on the Register; and
(ii) a statement in the prescribed form providing advice and information to prospective purchasers and lot owners; and
(iii) a copy of all resolutions made at the last annual general meeting of the owners corporation; and
(iv) any other documents of a prescribed kind; and
(v) a statement advising that further information on prescribed matters can be obtained by inspection of the owners corporation register.
PART 15—AMENDMENT OF SALE OF LAND ACT 1962
219. Section 32 certificate
(1) Section 32(2)(h) of the Sale of Land Act 1962 is repealed.
(2) After section 32(3) of the Sale of Land Act 1962 insert—
"(3A) If the land is affected by an owners corporation within the meaning of the Owners Corporations Act 2006, the vendor must attach to the statement required by subsection
(1)(a) and to the contract—
(a) a copy of the current owners corporation certificate issued in respect of the land under the Owners Corporations Act 2006; and
(b) a copy of the documents required to accompany the owners corporation certificate under section 151(4)(b) of the Owners Corporations Act 2006.".
146. Availability of records
(1) The owners corporation, on request by a lot owner, a mortgagee of a lot, a purchaser of a lot or the representative of a lot owner or mortgagee or purchaser of a lot, must make the records of the owners corporation required to be kept under this
Division available to that person for inspection at any reasonable time, free of charge.
(2) The owners corporation may at the request of a person entitled to inspect the records and on payment of a reasonable fee provide a copy of any record of the owners corporation.
2-lot subdivisions
s.7 deals with 2 lot subdivisions and make certain exemptions for compliance under the Act. The anomoly is that even tho' you dont have to have insurance, you dont have to keep records &c. but when selling you must still provide a S.151 Certificate. Go figure.
Monday, November 19, 2007
Go Phil, It may just be your last hoorah
IT is too early to know for sure, but it is beginning to look as if Philip Ruddock might have done it again.
If the states have finally decided to take a statesmanlike approach to electronic conveyancing, it might well be due to the veiled threat of some bullying from the commonwealth.
Ruddock never threatened to take over e-conveyancing if the states were unable to agree on a real national system. He didn't have to.
Merely mentioning e-conveyancing in the same breath as defamation reform - implemented under threat of a commonwealth takeover - was enough to get his message across.
The states, particularly NSW and Victoria, have been working hard to reach agreement. So it might be selling them short to give Ruddock all the credit.
But on their performance to date, the states need to be judged by their actions on e-conveyancing - not their words.
Before Ruddock entered this debate it had been characterised by parochialism and a refusal to give the private-sector users of conveyancing what they wanted.
State ministers and their top bureaucrats now appear to be focused on a national approach.
The apparent change is reflected in a draft statement that has been endorsed by Victoria, NSW and South Australia. The key change is that heads of government departments - the most senior state bureaucrats - will now be taking a direct interest in e-conveyancing and will be regularly talking to each other.
But there is a big unknown. Lawyers, conveyancers and bankers are not part of this high-powered group. Their involvement is through the organisation known as National Electronic Conveyancing System (NECS), which also has representatives of the state governments.
NECS is the organisation that is responsible for building the national e-conveyancing system. If the new committee of department heads works with NECS, the initiative might ensure that petty squabbles by junior bureaucrats - or even outside contractors - are stamped on before they cause problems.
But if the new committee attempts to sideline NECS it will mean that the state governments are, in reality, sidelining business. At the first sign of such a course, solicitors and non-lawyer conveyancers - as well as the banks - would be justified in making a fuss.
The only direct private-sector involvement in the establishment of a national e-conveyancing system is through NECS. Without the NECS process, there is a risk that e-conveyancing could become the plaything of public servants, who, with the greatest respect, have no idea about what business wants or needs.
The private sector, and not state governments, is the main player in e-conveyancing, and the draft statement from the states shows positive signs of recognising that fact.
The most positive aspect of that draft statement is that it uses the word "seamless" twice to describe the nature of the national e-conveyancing system that should be built.
The most negative aspect of the statement is the single use of the phrase "nationally consistent" to describe the same system.
"Consistent" is another way of describing a federation of state-based systems - not a single, seamless system.
It could be a mere glitch, but it means the private users of conveyancing still need to keep a very close eye on the states.
The next step is real action by the states towards developing a true, seamless system - as demanded by all of the private users of conveyancing.
PREJUDICE: Chris Merritt | November 16, 2007
The Australian
If the states have finally decided to take a statesmanlike approach to electronic conveyancing, it might well be due to the veiled threat of some bullying from the commonwealth.
Ruddock never threatened to take over e-conveyancing if the states were unable to agree on a real national system. He didn't have to.
Merely mentioning e-conveyancing in the same breath as defamation reform - implemented under threat of a commonwealth takeover - was enough to get his message across.
The states, particularly NSW and Victoria, have been working hard to reach agreement. So it might be selling them short to give Ruddock all the credit.
But on their performance to date, the states need to be judged by their actions on e-conveyancing - not their words.
Before Ruddock entered this debate it had been characterised by parochialism and a refusal to give the private-sector users of conveyancing what they wanted.
State ministers and their top bureaucrats now appear to be focused on a national approach.
The apparent change is reflected in a draft statement that has been endorsed by Victoria, NSW and South Australia. The key change is that heads of government departments - the most senior state bureaucrats - will now be taking a direct interest in e-conveyancing and will be regularly talking to each other.
But there is a big unknown. Lawyers, conveyancers and bankers are not part of this high-powered group. Their involvement is through the organisation known as National Electronic Conveyancing System (NECS), which also has representatives of the state governments.
NECS is the organisation that is responsible for building the national e-conveyancing system. If the new committee of department heads works with NECS, the initiative might ensure that petty squabbles by junior bureaucrats - or even outside contractors - are stamped on before they cause problems.
But if the new committee attempts to sideline NECS it will mean that the state governments are, in reality, sidelining business. At the first sign of such a course, solicitors and non-lawyer conveyancers - as well as the banks - would be justified in making a fuss.
The only direct private-sector involvement in the establishment of a national e-conveyancing system is through NECS. Without the NECS process, there is a risk that e-conveyancing could become the plaything of public servants, who, with the greatest respect, have no idea about what business wants or needs.
The private sector, and not state governments, is the main player in e-conveyancing, and the draft statement from the states shows positive signs of recognising that fact.
The most positive aspect of that draft statement is that it uses the word "seamless" twice to describe the nature of the national e-conveyancing system that should be built.
The most negative aspect of the statement is the single use of the phrase "nationally consistent" to describe the same system.
"Consistent" is another way of describing a federation of state-based systems - not a single, seamless system.
It could be a mere glitch, but it means the private users of conveyancing still need to keep a very close eye on the states.
The next step is real action by the states towards developing a true, seamless system - as demanded by all of the private users of conveyancing.
PREJUDICE: Chris Merritt | November 16, 2007
The Australian
Friday, November 16, 2007
Electronic system closer
THE states are about to establish a high-powered committee of government officials aimed at streamlining work towards a seamless national system of electronic conveyancing.
The committee, made up of the heads of government departments, is the centrepiece of an agreement between the states on the way forward for electronic conveyancing.
The governments of NSW, Victoria and South Australia have endorsed a draft statement outlining principles that will govern the development of "a seamless national electronic conveyancing system".
Other states are considering endorsing the statement of principles.
The draft statement is intended to send a clear signal to lawyers, banks and non-lawyer conveyancers that the states have united to develop a system that meets the needs of the private sector and government agencies. Private sector users of conveyancing will not be part of the new committee but will be consulted.
Lawyers, the Australian Bankers Association and conveyancers remain part of another organisation, the National Electronic Conveyancing System, which has been charged by the states with building a national e-conveyancing system.
A Victorian government spokeswoman said the new group was not intended to replace any existing organisation.
The push for a national agreement between the states was an initiative of the Victorian minister responsible for electronic conveyancing, Environment Minister Gavin Jennings. He has been working closely with his NSW counterpart, Lands Minister Tony Kelly. The initiative, which could be made public as early as today, has come to light soon after last week's warning to the states from federal Attorney-General Philip Ruddock, who has urged the states to settle their differences over the establishment of e-conveyancing.
The initiative coincides with today's launch of the next stage of Victoria's e-conveyancing system, known as ECV. Big banks are boycotting ECV due to lack of progress on developing a national system.
Chris Merritt | November 16, 2007
The Australian
The committee, made up of the heads of government departments, is the centrepiece of an agreement between the states on the way forward for electronic conveyancing.
The governments of NSW, Victoria and South Australia have endorsed a draft statement outlining principles that will govern the development of "a seamless national electronic conveyancing system".
Other states are considering endorsing the statement of principles.
The draft statement is intended to send a clear signal to lawyers, banks and non-lawyer conveyancers that the states have united to develop a system that meets the needs of the private sector and government agencies. Private sector users of conveyancing will not be part of the new committee but will be consulted.
Lawyers, the Australian Bankers Association and conveyancers remain part of another organisation, the National Electronic Conveyancing System, which has been charged by the states with building a national e-conveyancing system.
A Victorian government spokeswoman said the new group was not intended to replace any existing organisation.
The push for a national agreement between the states was an initiative of the Victorian minister responsible for electronic conveyancing, Environment Minister Gavin Jennings. He has been working closely with his NSW counterpart, Lands Minister Tony Kelly. The initiative, which could be made public as early as today, has come to light soon after last week's warning to the states from federal Attorney-General Philip Ruddock, who has urged the states to settle their differences over the establishment of e-conveyancing.
The initiative coincides with today's launch of the next stage of Victoria's e-conveyancing system, known as ECV. Big banks are boycotting ECV due to lack of progress on developing a national system.
Chris Merritt | November 16, 2007
The Australian
Monday, November 12, 2007
Snazzy online property advertisements
IF you’re shopping for a new home, it’s easy to take a virtual stroll through the ranch house at 640 Hobart Avenue, San Mateo, Calif., asking price $1,049,000. The house has its own Web site, complete with a soundtrack (www.640hobart.com). Click on it and a real estate agent welcomes you in the voiceover, as crisp digital photographs of the sunny rooms flow past on the screen, with each photo neatly dovetailed to the narration.
A house in San Mateo, Calif., was sold within a week after its own Web site was posted, using the VizzVox service to create a smoothly narrated tour.
The commercial may make you want to move in instantly. But, too bad, that house is sold. Joanne Norris, an agent at Alain Pinel Realtors in Burlingame, Calif., who created and narrated the commercial, found a buyer within a week of advertising it that way. She sold another house, too, within a few days of posting a Web commercial, despite an overall slowdown in the local housing market.
To make the commercials, Mrs. Norris used a new Web-based service, VizzVox (www.vizzvox.com). For $149 a year, VizzVox offers a package that includes domain name registration for the property, hosting of the commercial on the Web site for a year, and the use of the Web-based software that lets real estate agents create the presentation.
“It’s an affordable way to make and distribute commercials,” said Robert W. Beth, co-founder and chief executive of VizzVox. “We think this is an opportunity for individuals to create ads and level the playing field with big companies.”
Real estate agents who use the service upload digital photographs and video clips to the VizzVox site, turn on a microphone and talk about the selling points of the home and the neighborhood. After they describe each visual, software smoothly stitches together the images and narrative. The program has a remix feature, so that agents can create variations on each commercial, including views of dog parks for one prospective buyer, and local schools for another. The presentations can be made and viewed both on Macs and PCs, preferably with broadband connections. Traffic is driven to the site with signs, ads and real estate listings.
Drew Neisser, chief executive of Renegade Marketing in Manhattan, who is in the business of inventive online marketing and Web site development himself, was intrigued with the service. “It’s extremely cost effective,” he said. He looked at two VizzVox commercials and liked them: “They told a lovely story about each home — I was ready at the end to call my wife and tell her we were moving to San Mateo.”
The service may provide an attractive alternative to more complicated and expensive approaches used to sell homes, like high-definition video or 360-degree panoramic photos. Creating a high-quality video is fairly expensive. Mike Raspatello, director of marketing at Richter Studios in Chicago, which does videos for real estate brokers, said the cost for a three-minute high-definition video of a single home typically ran $6,000 to $15,000.
Mr. Neisser says the VizzVox commercials “are a convenient way to get a quick and reasonably accurate tour.” But however attractive some of the commercials may be, he said, he doesn’t think do-it-yourself programs like VizzVox are a threat to more traditional marketing services.
“The problem with a technology like this is that you are putting semiprofessional tools in the hands of an amateur,” he said. “One of the reasons folks like us are still in business is that we are professional storytellers. I can’t imagine that your average real estate agent has the quality of voice and ability to draft a narrative that is compelling and interesting.”
To meet that challenge, VizzVox offers professional production assistance. For example, real estate agents can provide images and notes on a property, and VizzVox will produce a script and a voiceover artist to read it for $120.
In additional to real estate programs, VizzVox also sells a general service for $149 a year that lets individuals create presentations, store them on a company server and display them by way of a link. Parents, for example, might use the service to create a narrative celebrating the birth of a child. Artists might show off their portfolios, and business owners might create commercials about their products. Links to the presentations can be placed anywhere on the Web, pasted into a MySpace page, for instance, or at the end of e-mail messages.
Another VizzVox service lets individuals create up to 10 presentations free at its site, but their creations will be shown with ads: after the slide show, for instance, there may be an ad asking viewers to shop at an online retailer.
NYT
By ANNE EISENBERG
Published: November 11, 2007
A house in San Mateo, Calif., was sold within a week after its own Web site was posted, using the VizzVox service to create a smoothly narrated tour.
The commercial may make you want to move in instantly. But, too bad, that house is sold. Joanne Norris, an agent at Alain Pinel Realtors in Burlingame, Calif., who created and narrated the commercial, found a buyer within a week of advertising it that way. She sold another house, too, within a few days of posting a Web commercial, despite an overall slowdown in the local housing market.
To make the commercials, Mrs. Norris used a new Web-based service, VizzVox (www.vizzvox.com). For $149 a year, VizzVox offers a package that includes domain name registration for the property, hosting of the commercial on the Web site for a year, and the use of the Web-based software that lets real estate agents create the presentation.
“It’s an affordable way to make and distribute commercials,” said Robert W. Beth, co-founder and chief executive of VizzVox. “We think this is an opportunity for individuals to create ads and level the playing field with big companies.”
Real estate agents who use the service upload digital photographs and video clips to the VizzVox site, turn on a microphone and talk about the selling points of the home and the neighborhood. After they describe each visual, software smoothly stitches together the images and narrative. The program has a remix feature, so that agents can create variations on each commercial, including views of dog parks for one prospective buyer, and local schools for another. The presentations can be made and viewed both on Macs and PCs, preferably with broadband connections. Traffic is driven to the site with signs, ads and real estate listings.
Drew Neisser, chief executive of Renegade Marketing in Manhattan, who is in the business of inventive online marketing and Web site development himself, was intrigued with the service. “It’s extremely cost effective,” he said. He looked at two VizzVox commercials and liked them: “They told a lovely story about each home — I was ready at the end to call my wife and tell her we were moving to San Mateo.”
The service may provide an attractive alternative to more complicated and expensive approaches used to sell homes, like high-definition video or 360-degree panoramic photos. Creating a high-quality video is fairly expensive. Mike Raspatello, director of marketing at Richter Studios in Chicago, which does videos for real estate brokers, said the cost for a three-minute high-definition video of a single home typically ran $6,000 to $15,000.
Mr. Neisser says the VizzVox commercials “are a convenient way to get a quick and reasonably accurate tour.” But however attractive some of the commercials may be, he said, he doesn’t think do-it-yourself programs like VizzVox are a threat to more traditional marketing services.
“The problem with a technology like this is that you are putting semiprofessional tools in the hands of an amateur,” he said. “One of the reasons folks like us are still in business is that we are professional storytellers. I can’t imagine that your average real estate agent has the quality of voice and ability to draft a narrative that is compelling and interesting.”
To meet that challenge, VizzVox offers professional production assistance. For example, real estate agents can provide images and notes on a property, and VizzVox will produce a script and a voiceover artist to read it for $120.
In additional to real estate programs, VizzVox also sells a general service for $149 a year that lets individuals create presentations, store them on a company server and display them by way of a link. Parents, for example, might use the service to create a narrative celebrating the birth of a child. Artists might show off their portfolios, and business owners might create commercials about their products. Links to the presentations can be placed anywhere on the Web, pasted into a MySpace page, for instance, or at the end of e-mail messages.
Another VizzVox service lets individuals create up to 10 presentations free at its site, but their creations will be shown with ads: after the slide show, for instance, there may be an ad asking viewers to shop at an online retailer.
NYT
By ANNE EISENBERG
Published: November 11, 2007
Saturday, November 10, 2007
ECV - Almost Live: Demo
November 16, 2007 is D Day for EC's vaunted Release 2.0
If you want a preview, EC released a demonstration CD. Here's a sample of the Vendor module from the disk. Here's a sample of the Purchase Model.
EC's launch as the industry knows has been waylaid by the withdrawal of the Big 4 and no sign off yet by the Lawyers LPLC.
Anyhow, we now have the benefit of having a peek under the bonnet as EC have released a demonstration disk giving us a video of a sample file.
First thoughts. The vid gives you the feel you are filling out a e-tax form, which didn't make me feel too good about this release. The visual interface looks like it needs a makeover. BUt then again this is just a demo vid.
The digital signing part looks great. The double authentication gives me confidence that it wont be easy for an outsider to hack.
The bit that I bet will make many of us feel a bit queasy is entering in all the bank account details for disbursement of cheques (whoops, I mean funds). No cheques here. We are going to have to obtain bank account details, enter them, check and re-check them. I know this is the future, but. I dont like the responsibility. Can we cut and past bank account details that clients supply us? I dont know but can we store commonly used bank account details, like our office or trust account?
Have a look at the demo I have posted and leave a comment on what you think.
Electronic Conveyancing Demonstration 07.11.07
You want a copy of the disk. Perhaps email ec at landexchange.vic.gov.au
Or ring them on 03 8636 2625
If you want a preview, EC released a demonstration CD. Here's a sample of the Vendor module from the disk. Here's a sample of the Purchase Model.
EC's launch as the industry knows has been waylaid by the withdrawal of the Big 4 and no sign off yet by the Lawyers LPLC.
Anyhow, we now have the benefit of having a peek under the bonnet as EC have released a demonstration disk giving us a video of a sample file.
First thoughts. The vid gives you the feel you are filling out a e-tax form, which didn't make me feel too good about this release. The visual interface looks like it needs a makeover. BUt then again this is just a demo vid.
The digital signing part looks great. The double authentication gives me confidence that it wont be easy for an outsider to hack.
The bit that I bet will make many of us feel a bit queasy is entering in all the bank account details for disbursement of cheques (whoops, I mean funds). No cheques here. We are going to have to obtain bank account details, enter them, check and re-check them. I know this is the future, but. I dont like the responsibility. Can we cut and past bank account details that clients supply us? I dont know but can we store commonly used bank account details, like our office or trust account?
Have a look at the demo I have posted and leave a comment on what you think.
Electronic Conveyancing Demonstration 07.11.07
You want a copy of the disk. Perhaps email ec at landexchange.vic.gov.au
Or ring them on 03 8636 2625
Friday, November 09, 2007
Attorney-General, Philip Ruddock,
Ruddock was all about building a brave new tomorrow, such as the "harmonisation" of our laws. In particular, he said, he was passionate about harmonising the various statutes dealing with personal property security, electronic conveyancing, evidence, statutory declarations and powers of attorney.
Importantly, he had a "vision" about reducing red tape. Wow. It can't get much more exciting than that, surely.
Extract from debate between Ruddock and shadow Labor Senator Joe Ludwig.
Richard Ackland - SMH
November 9, 2007
Importantly, he had a "vision" about reducing red tape. Wow. It can't get much more exciting than that, surely.
Extract from debate between Ruddock and shadow Labor Senator Joe Ludwig.
Richard Ackland - SMH
November 9, 2007
Thursday, November 08, 2007
Digital Signatures in Electronic Conveyancing
Electronic Conveyancing in NSW
Please Note
The information in this newsletter is correct at time of publication but may change as the project develops. It reflects current thinking to generate discussion and feedback and is not a substitute for publication of Circulars announcing policy changes.
Digital Signatures in Electronic Conveyancing
Digital signature certificates are an essential requirement of electronic conveyancing. They replace manual signatures used on paper instruments to identify the person taking responsibility for the correctness of the information contained in an electronic instrument.
What are digital signatures?
A digital signature certificate is an electronic fingerprint that identifies the person to whom it was issued. It is an electronic record that identifies the person by name and other details as well as the organisation vouching for the person’s identity. When applied to an electronic instrument, the signature certificate tells the Land Registry who certified and signed the instrument.
Why are they necessary?
Digital signatures are necessary in electronic conveyancing to replace the traditional manual signatures on paper instruments identifying the person taking responsibility for the correctness of the instrument’s information. They allow the authenticity of the signature to be independently verified electronically as valid and belonging to the person named by it, and therefore for the entire instrument to be examined electronically.
How do you get one?
Digital signature certificates are purchased from private sector suppliers. To get one it is necessary first to have your identity independently verified in a similar manner to that necessary before opening a new bank account. After satisfying the identity verification requirement and paying the required fee, the signature certificate is delivered over the Internet or by mail. Signature certificates generally need to be renewed every two years.
Who can issue one?
Digital signature certificates suitable for electronic conveyancing can only be issued by a supplier accredited under the Commonwealth Government’s Gatekeeper program. This ensures the supplier’s security arrangements and procedures are sound and reliable. Details of the Gatekeeper program are available at http://www.agimo.gov.au/infrastructure/gatekeeper.
What do they cost?
Digital signature certificates from a Gatekeeper-accredited supplier cost between $100 and $200 each for a two-year validity period depending upon the type of certificate required. Current GST-inclusive pricing from one supplier is available at
http://www.verisign.com.au/gatekeeper/pricing.shtml
How will they be used?
Digital signature certificates will be used in signing instruments, information reports and settlement statements in NECS. When the instrument, report or statement has been certified by confirming each of the required certifications presented by the system, the signing procedure will be made available. To sign, a person registered with NECS as a Certifier must enter their digital signature certificate password (different from their NECS user-id password and not known to NECS). When the password is verified correct, the NECS system verifies the signature certificate with the Gatekeeper-accredited supplier who issued it to ensure it is valid and unrevoked, then adds the certificate to the instrument, report or statement as the verified identity of the person who certified and signed it. The signature certificate then becomes and inseparable part of the instrument, report or statement. Any organisation, such as a Land Registry or Revenue Office, receiving a certified and signed instrument or report can independently verify the included signature certificate with the supplier who issued it.
What should be done to keep them secure?
Digital signature certificates can be stored on the fixed hard-drive of computers or on removable storage devices such as a smartcard or USB memory stick. The person to whom the signature certificate is issued is responsible for its security. If a certificate stored on a shared computer is used by someone else to fraudulently certify and sign an instrument, report or statement, the responsibility for that certification and signing rests with the person to whom the certificate was issued.
For security reasons, storage of signature certificates on removable devices, such as a smartcard or USB memory stick, which can be kept under the responsible person’s control at all times is preferred and highly recommended. It is possible professional conduct regulations associated with electronic conveyancing may oblige legal practitioners and licensed conveyancers to store their signature certificates on such devices.
Please Note
The information in this newsletter is correct at time of publication but may change as the project develops. It reflects current thinking to generate discussion and feedback and is not a substitute for publication of Circulars announcing policy changes.
Digital Signatures in Electronic Conveyancing
Digital signature certificates are an essential requirement of electronic conveyancing. They replace manual signatures used on paper instruments to identify the person taking responsibility for the correctness of the information contained in an electronic instrument.
What are digital signatures?
A digital signature certificate is an electronic fingerprint that identifies the person to whom it was issued. It is an electronic record that identifies the person by name and other details as well as the organisation vouching for the person’s identity. When applied to an electronic instrument, the signature certificate tells the Land Registry who certified and signed the instrument.
Why are they necessary?
Digital signatures are necessary in electronic conveyancing to replace the traditional manual signatures on paper instruments identifying the person taking responsibility for the correctness of the instrument’s information. They allow the authenticity of the signature to be independently verified electronically as valid and belonging to the person named by it, and therefore for the entire instrument to be examined electronically.
How do you get one?
Digital signature certificates are purchased from private sector suppliers. To get one it is necessary first to have your identity independently verified in a similar manner to that necessary before opening a new bank account. After satisfying the identity verification requirement and paying the required fee, the signature certificate is delivered over the Internet or by mail. Signature certificates generally need to be renewed every two years.
Who can issue one?
Digital signature certificates suitable for electronic conveyancing can only be issued by a supplier accredited under the Commonwealth Government’s Gatekeeper program. This ensures the supplier’s security arrangements and procedures are sound and reliable. Details of the Gatekeeper program are available at http://www.agimo.gov.au/infrastructure/gatekeeper.
What do they cost?
Digital signature certificates from a Gatekeeper-accredited supplier cost between $100 and $200 each for a two-year validity period depending upon the type of certificate required. Current GST-inclusive pricing from one supplier is available at
http://www.verisign.com.au/gatekeeper/pricing.shtml
How will they be used?
Digital signature certificates will be used in signing instruments, information reports and settlement statements in NECS. When the instrument, report or statement has been certified by confirming each of the required certifications presented by the system, the signing procedure will be made available. To sign, a person registered with NECS as a Certifier must enter their digital signature certificate password (different from their NECS user-id password and not known to NECS). When the password is verified correct, the NECS system verifies the signature certificate with the Gatekeeper-accredited supplier who issued it to ensure it is valid and unrevoked, then adds the certificate to the instrument, report or statement as the verified identity of the person who certified and signed it. The signature certificate then becomes and inseparable part of the instrument, report or statement. Any organisation, such as a Land Registry or Revenue Office, receiving a certified and signed instrument or report can independently verify the included signature certificate with the supplier who issued it.
What should be done to keep them secure?
Digital signature certificates can be stored on the fixed hard-drive of computers or on removable storage devices such as a smartcard or USB memory stick. The person to whom the signature certificate is issued is responsible for its security. If a certificate stored on a shared computer is used by someone else to fraudulently certify and sign an instrument, report or statement, the responsibility for that certification and signing rests with the person to whom the certificate was issued.
For security reasons, storage of signature certificates on removable devices, such as a smartcard or USB memory stick, which can be kept under the responsible person’s control at all times is preferred and highly recommended. It is possible professional conduct regulations associated with electronic conveyancing may oblige legal practitioners and licensed conveyancers to store their signature certificates on such devices.
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