LINZ and the NZ Law Society's Property Law Section (PLS) have agreed on the date for introducing mandatory 100% e-lodgement for titles transactions – 23 February 2009.
This final milestone for 100% e-lodgement will mark the end of the 100% e-lodgement programme and the huge change it has brought for both conveyancing professionals and LINZ, says Sharon Cottrell, General Manager Customer Services.
"We've heard from you that you're ready and waiting for the functionality that's coming with Release 3.1," Sharon says. "While that's great, we want to keep delivering e-dealing functionality of the highest quality. That's why we've revised the date for delivering Release 3.1 until 29 September."
The revised Release 3.1 date has meant a revision of LINZ’s initial target for introducing mandatory e-lodgement in 2008.
"LINZ and the PLS agreed on the date of 23 February to ensure conveyancing professionals have the time to get comfortable with the new Release 3.1 functionality before 100% e-lodgement is mandatory," says Sharon.
LINZ also agreed with the PLS's advice that December and January are not suitable months for introducing mandatory e-lodgement. Sharon says, "I know both conveyancing professionals and LINZ are traditionally busy in December in the lead-up to Christmas, and many are on a well-deserved break in January."
So get ready for 100% e-lodgement. LINZ looks forward to celebrating the final milestone with you in February 2009.
Release 3.1 is fast approaching and invitations to the workshops and presentations will be send out mid-August – make sure you register early to secure a place.
As with previous releases, representatives from LINZ and the NZ Law Society's Property Law Section will travel the country during September and October to discuss how the new e-dealing functionality will affect your firm.
The presentations will give an overview of the new functionality, whilst the workshops will provide the opportunity to work through the new e-dealing Practice Tool.
Crucially, this is the last road show before 100% mandatory e-lodgement planned for 23 February 2009.
We recommend you register via your emailed invitation as soon as it arrives. As venues fill up fast, this will ensure that you and others in your firm are guaranteed a place at your preferred location.
We look forward to seeing you there.
Release 3.0 brought new e-dealing functionality including the ability to attach images to instruments.
Attaching images is straightforward, but there are a couple of simple errors than can happen during this process that can cost you both time and money. One of these is not checking that all the necessary attachments are complete, which can result in your e-dealing being requisitioned or being registered with a part missing.
Here's a simple checklist to ensure your images are correctly attached:
- When preparing your instrument you can verify the content and count the number of thumbnails that show on the left hand side of the Preview screen.
- When in your Workspace screen, click on the Instrument Number to display the Instrument View screen. You can then verify the content and count the thumbnails to make sure all pages are attached.
More information on attaching images can be found under Known issues for Release 3.0 on this website.
Compliance reviews
In November 2007, LINZ increased the number of compliance reviews to cover all law firms. This required the review of at least one conveyancing professional within each of the remaining 516 law firms by 30 June 2008. LINZ engaged additional resources over the six-month period and met this target.
The table1 below shows the breakdown of law firms as at November 2007.
| Law Firms |
Number |
Percentage |
| Audited |
820 |
61% |
| Not audited |
516 |
39% |
| Total firms* |
1336 |
100% |
Review findings
Trends emerging from the results of the last group of 516 completed compliance reviews are comparable to those from the first group audited.
Overall, conveyancing professionals are mainly awarded an 'unqualified' compliance certificate with only 3% placed in the 'qualified' compliance category.
The most common reasons for a conveyancing professional to receive a 'qualified' compliance review are:
- inadvertent and incorrect alteration to the register
- authority to act was obtained but not documented
- no authority to act was obtained
- documents not retained for the requisite period
- client identity not verified
- incorrectly certified that caveators consent obtained.
Delayed responses
Some conveyancing professionals are taking time to respond to the initial questionnaire and, in some cases, are not providing all the required material. LINZ continues to use extra time and resources to follow up with firms to obtain the full documentation required.
The table below compares recent response times and follow-up information with percentages shown in the November 2007 report:
| |
Responded within 10 days |
Additional information required |
| Jul 07 - Nov 07 |
76% (120) |
69% (83)
|
| Nov 07 - April 08 |
76% (296) |
63% (186) |
Compliance review is necessary, and will continue alongside the new e-dealing audit of law firms, as it sources relevant information for the Registrar-General of Land (RGL). This provides regulatory evidence to the RGL and assurance that the integrity of the land titles registration system is being maintained.
LINZ would appreciate the conveyancing profession's support of the compliance review process by improving the speed of response times.
Audit of law firms' e-dealing practices
The new e-dealing audit methodology was introduced to law firms in December 2007 and seven law firm audits were completed by the end of June 2008. Law firm audits are now routinely included in LINZ's annual audit planning.
Law firms this year have been selected according to the audit methodology criteria and include larger law firms and those using e-dealing extensively. The next two law firms to be visited will include a search agent service and one operating as a branch office.
The audit approach used while on site evaluates documentary systems and procedures, risk practices, key internal controls and quality assurance processes. The extent of the e-dealing systems and the effectiveness of controls are tested by interviewing staff, sampling work, observing e-dealing processes and assessing client files.
Good practices observed
Many examples of good practice have been observed in each law firm and managers have been receptive to suggestions to strengthen e-dealing systems and controls. Most law firms are using templates for consistency purposes, checklists for error control, and peer review for consolidating new systems and coaching staff.
Examples of good practice observed include:
- documented e-dealing policy
- procedures for certifying and signing e-dealing transactions
- staff roles defined and responsibilities well-known
- consistent e-dealing practices across a firm
- staff coaching and e-dealing training
- e-dealing file management systems.
Observations raised are discussed fully with the partner or manager at the closing meeting. This provides the opportunity for further information to be produced, assessed and reconciled with practice. Observations raised are intended to improve e-dealing practice and controls.
LINZ appreciates the willingness shown by all law offices to share e-dealing experiences, provide staff time to explain and discuss processes, and demonstrate a complete e-dealing transaction.
e-dealing watch points are continually being added to. You will find these and links to other e-dealing related articles on this website.
Fixed sum mortgages
Use of fixed sum mortgages has recently increased. These should remain as AutoReg instruments by the use of the existing fields. Some have complex interest payment provisions that practitioners do not think will fit in the field provided. Fields in the fixed sum option can take more than 200 characters, which means far more information can be inserted than just in the visible part of the field.
So, how do you see all the information if you cannot see it on that screen? Select the Preview button at the bottom left of the Prepare screen and you will see the complete information as it would appear on the final registered mortgage.
Clarity is also needed around attaching an image to a fixed sum mortgage. Some mortgage packages incorporate the A&I form in the mortgage form and this has created the impression that the complete document needs to be attached. This is neither correct nor advisable for the following reasons:
- by attaching an image, the dealing becomes Lodge and risks rejection or requisition
- by inserting the relevant information in the fixed sum mortgage template on screen and pre-validating, the mortgage will be AutoReg without the risk of rejection or requisition
- the A&I form is 'off the register' information and may contain confidential information that should not be on the public register, e.g. it is undesirable for a client's passport or driver's licence details to be publicly viewable.
In summary, practitioners should be able to include all information in the standard template fields for a fixed sum mortgage without using Add Text or Add Image options.
