The Queensland Registrar of Titles has announced that it has revised the existing practice guidelines to align the basis of verification of identification of mortgagors in paper transactions with the obligations for financial institutions and other subscribers who undertake land tilting transactions electronically under the Queensland Participation Rules determined under the Electronic Conveyancing National Law (Queensland).
The revised practice guidelines also implement the recent recommendation of the Queensland Organised Crime Commission of Inquiry that the Land Title Practice Manual include a requirement for visual (face-to-face) verification of identity before a mortgagee or mortgage transferee is deemed to have taken ‘reasonable steps’ under sections 11A and 11B of the Land Title Act 1994.
The revised practice guidelines will take effect from 1 March 2016.
The revised guidelines will not apply to mortgagees who, before 1 March 2016, have followed the previous practice guidelines whether the relevant mortgage is lodged before or after 1 March 2016.
Sections 11A of the Land Title Act 1994 and 288A of the Land Act 1994 place an onus on mortgagees to confirm the identity of mortgagors prior to lodging any mortgage for registration by taking ‘reasonable steps’ to ensure that the person who is the mortgagor under the instrument is identical with the person who is, or who is about to become, the registered owner of the lot or holder of the interest being mortgaged.
Similar provisions apply to transfers of mortgages under sections 11B of the Land Title Act 1994 and 288B of the Land Act 1994.
Under sections 11A(3) and 11B(3) of the Land Title Act 1994 and sections 288A(3) and 288B(3) of the Land Act 1994 a mortgagee or mortgage transferee takes reasonable steps if they comply with practices included in the Land Title Practice Manual for the verification of identification of mortgagors.
