There is quite a revolution occurring in the legal profession that is leading to the creation of new standards for verifying identity.
The revolution is occurring in the conveyancing area but could have ramifications well beyond that area.
Property Exchange Australia Limited (PEXA) – is an electronic conveyancing lodgement network operator supported by the “Big 4” banks and the governments of Queensland, NSW,Victoria and Western Australia. PEXA is already operating in NSW.
PEXA allows lawyers and conveyancers to electronically lodge land registry documents and complete financial settlement. Financial settlement is completed through a secure online process involving the transfer of funds from source accounts via the Reserve Bank Australia to destination accounts. According to PEXA promotional
material, it is an opportunity to perform property transactions in a faster, safer and more efficient way.
A specific concern about the introduction of electronic conveyancing has been the potential exposure to identity fraud schemes.Verifying identity has always been a critical part of protecting property transactions, whether on paper or online.
The PEXA regime is introducing a new online verification of identity standard (VOI standard) that is replacing the traditional “100 point” system of identification.The VOI standard improves identity verification by requiring the production of original and valid identity documents from one of 5 categories and having a visual face-to-face comparison of the photograph on the identity document with the producer of the document.
Under PEXA, lawyers and conveyancers as well as the
buyers and sellers will need VOI identification. According to PEXA, this means that there will be more secure evidence of ownership and right to deal and, critically, that the person transacting with the property is the person named in the register of land as the registered proprietor.
The new VOI standard has wide application – the PEXA platform enables users to lodge land registry documents in the areas of mortgage, discharge of mortgage, withdrawal of caveat, settlement notice, nomination, and consent; conduct refinances; lodge caveats; participate in property transfers; and support refinance and other transactions.
Clearly many people will soon be reliant on the new PEXA VOI standard to verify who they are John Clarke is the Solicitor Director of Clarke Law with a local network of offices in Narooma, Bermagui.