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The new ‘regulator operator model' for the NSW land title system
Sydney Business Chamber
CEO Leadership Roundtable Lunch
Jeremy Cox
NSW Registrar General
13 February 2018
The new regulator operator model is the next step in a constantly improving land title system
1
22 February
First Crown Land recorded
(James Ruse)
1 January
Torrens introduced
Computerised
Torrens Title System
A world first
eConveyancingreform
July
Office of the
Registrar General
established
September
LPI Bill through
Parliament
February
eConveyancing
timeframes
announced
August
Standalone
mortgages and
refinancing goes
digital
July
Private concession
commenced
The NSW Government introduced the regulator operator model to drive an efficient, digital and customer focused land title system
2
NSW Treasury selected Australian Registry Investments (ARI) to operate NSW’s land title system for 35 years
3*A ‘concession’ is when a private business pays the government to operate a public asset for a specific period of time.
Funds managed by
Hastings Fund Management
First State Super
30%
70%
Paid $2.6 billion to operate LPI—and receive
its revenue—under a 35 year concession*.
ARI does not own the registry or the data
that goes with it.
These remain the property of the NSW
Government.
The Office of the Registrar General is a regulator, advisor and litigator, working to ensure the integrity of NSW’s land title system
4
The Office of the Registrar General’s regulatory focus will be on making sure the operator delivers ongoing improvements to customers
5
Regulator objectives
a Maintain integrity, security performance and availability of registers, core
services and systems
a Ensure registers are accurate and up to date
a Maintain confidence with customers and NSW public
a Promote improvements, innovation and increased efficiency using greater
expertise and investment in technology
a Minimise errors and frauds
a Protect current competition in down stream services
And we have new powers that don’t exist in other Australian states, and in most overseas jurisdictions, to manage these risks
6
Registrar General Minister
Reserve powers Step in
Administrative review Termination
Civil penalty tied to KPIs Handback
We have targeted controls to manage risks related to a private monopoly provider of a core service
7
Some other controls in response to issues raised by
stakeholders
Prices CPI cap
Privacy Commonwealth and state legislation
Fraud and errors TAF remains. No change in risk profile
Security ISO standards (270002), audits and testing
Our controls give the State the right tools to detect and assess issues and risks before they materialise
8
Reporting Reviews Risk management Security testing Quality
assurance
Incident
management
Annual review of
performance
Report to RG on risk
controls
Vulnerability
scans &
penetration tests
Standard data
feeds
Business
continuity and
business plans
Major review (3 to
5 years)
Access to staff,
locations,
procedures
Security
standards ISO
Tools to measure
performance
Technology
roadmap
Ad hoc reviews &
spot checks
Risk register and
report to RG
Monitoring,
scanning &
assurance tools
in systems
Auditable record of
performance
A primary driver for the Government seeking a private operator was to bring new investment, innovation and technology
9
“People expect to manage their lives around technology. They want greater access, fewer errors, more transparency. The Government wants this reform to make NSW’s land title system meet a rapidly changing world. To make things better for business and better for the consumer”.
10
The operator has started the process of upgrading the technology that supports the registry
11
A more secure, efficient,
customer focused
system
1. Upgrade of
the registry’s
core systems
2. Investment
in new,
innovative
‘non-core’
services
a Fewer errors and fraud
a Registry available 24/7
a Records more easily accessible to customers online
a New innovative services
With eConveyancing, we are midpoint along the timeline for moving mainstream documents digital
12
The benefits for solicitors and conveyancers are substantial
13
Independent analysis on benefits for lawyers & conveyancers
• Up to 75 per cent time savings per transaction
• Eliminates almost all risks associated with human error
• No longer need to attend settlement
• Don’t have to spend time on hold when contacting other parties
• Interests are registered instantaneously on settlement
• Settlement day is more certain
• Funds from the proceeds of a sale are available much sooner.
“The other day I settled a transaction from Hawaii”
14
Industry is starting to embrace eConveyancing
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Mortgage Transfer Caveat Discharge of Mortgage Withdrawal of Caveat Total Total
Total electronic lodgments
The Government is considering how to make the full conveyancing process digital
15
Pre-Settlement
• Discharge authority
• Requisitions on title
• Transfer documents
• Settlement adjustment
• Mortgage discharge
• Booking settlement
Settlement
•Settlement funds
•Attending settlement
Post-Settlement
•Sending orders to the real estate agent
•Title transfer registered
eConveyancing
Activities up to exchanging contracts is still paper heavy. Looking at ways to remove barriers in ‘pre-exchange’ stage: contract preparation, negotiations, and exchange.
Pre-Exchange
Diagram is based on a standard conveyance acting for a vendor.
Digitalising old land title registry documents dating back several centuries will make it easier to search the registry
16
Apr-18
Jun-18
Aug-18
Dec-18
Dec-18
Mar-19
Dec-18
Dec-18
April-18
209
349
210
195
315
0 50 100 150 200 250 300 350 400
Deposited deed receipt books
Primary application search sketches
Primary application misc searches
Conditional purchase
Powers of attorney & trusts registers
Deed receipts, primary application sketches and searches, conditional purchase and powers of attorney
1000
1483
166,508
5527
0 20000 40000 60000 80000 100000 120000 140000 160000 180000
Boundary determinations
Primary application search books
Early deposited plans
General register of deeds
Primary applications, deposited plans and general register of deeds
Target
We will support the take-up of digital survey plans to make registering plans in NSW a faster, more accurate process
17
“Around 70% of plans lodged with LRS have an error”
The Government is considering options to further strengthen protections for off-the-plan purchasers.
18
0
2
4
6
8
10
12
14
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Big increase in off-the-plan sales relative to total residential sales
%
In summary, we are supporting the Government’s objective to digitise land transactions in NSW
19
ARI commences
2017-2019Implement
eConveyancing
reforms
LPI’s
recordsAll digitised
New
innovativeValue added
products
85% of property
transactions
electronically
Update ITSSystems for NSW
Work with
surveying industry
to move to digital
format
Thank you and questions
20
a Visit the ORG website
www.registrargeneral.nsw.gov.au
a Email ORG
a Subscribe to ORG emails