South Australia has introduced a Verification of Identity Policy as part of its preparations for electronic conveyancing.

The policy has being introduced for documents executed on or after 1 July 2013 with a 6 month transitional period. Full compliance is required by 1 January 2014.

The SA Registrar-General’s Notice to Lodging Parties and the Verification of Identity Policy requires mortgagees to take reasonable steps to verify the identity of each mortgagor at or before the mortgagor executes the mortgage unless the mortgagee has a face-to-face in-person interview with the mortgagor AND has verified the identity of that mortgagor in accordance with the policy in the previous 24 months.

Mortgagees will need to consider what changes are necessary to their systems, template documents, and procedures to prepare over the 6 month transitional period and be able to fully comply by 1 January 2014. Mortgagees without branch networks or that deal with customers in rural or remote areas will need to ensure appropriate arrangements are made with appropriate agents (such as Australia Post).