Compliance reviews by the Registrar-General of Land have found cases where practitioners have inadvertently certified on behalf of multiple parties to instruments when they are not in fact authorised by all of the parties.
In these cases the Registrar-General of Land will issue qualified compliance certificates.
Incorrect certifications can easily be avoided by ensuring the instrument is set up correctly from the start, and by taking extra care at the certify and sign stage. Any certifications made on behalf of a party must be evidenced by a proper A&I form.
Sometimes multiple parties to an instrument may each choose to be represented by their own separate practitioner/conveyancing professional (CP), eg where there are:
- two or more transferors
- two or more mortgagees
- grantees of an easement appurtenant to two or more properties.
When setting up a multi party instrument, e-dealing has the functionality to allow each individual party involved to be represented by their own CP, and each CP can certify for the individual party he/she represents.
The following steps and screenshots illustrate how to nominate several CPs in a multi party instrument, and how each CP selects the client he/she has authority to certify for. In this scenario, we discuss a multi party mortgage instrument where two mortgagees, Martin Duck and Martha Duck, are separately represented by their own CPs, Julie and David respectively.
A. Setting up a multi party mortgage instrument
- Open the create dealing screen.
- Enter the instruments and titles affected.
- In the Instruments area, highlight the mortgage row.
- In the Parties column, select Multi (this updates the roles area).
Selecting Multi in the parties column of the mortgage instrument allows for separate representation for the mortgagor and mortgagee.
B. Enter multiple CPs for the mortgagee role
- Click on the Mortgagee's Representative Role.
- In the No. of CPs column, click on the default number of CPs (eg 1) and enter the new number of CPs acting for the mortgagees (eg 2).
- Press Tab. Landonline adds the appropriate additional rows for the selected instrument role.
- Enter or select the name of the Primary Contact and CP for each additional instrument role added.
This enables CPs Julie and David to select the individual party he/she is acting for and certify and sign on that individual's behalf.
- You must complete the names of all Primary Contacts and CPs for multiple rows added for an instrument role before you can save the e-dealing.
- The number of rows added depends on the number you enter in the No. of CPs field (eg if you entered 3 in this field, two new rows are added so that a total of three rows display).
- The first role listed for a multiple CP instrument role will always default to Responsible for Release and/or Responsible for Fees. You can change these if required.
- You cannot change the number of CPs for an instrument role after it has been certified and signed. Should you need to make this change, edit the instrument (which will remove the signatures) then return to the Create Dealing screen and change the number of CPs for the instrument role.
- You cannot remove the first row of a multiple instrument role. The button will only become active when you select a second or subsequent row for an instrument role with multiple CPs added.
- The number of CPs cannot be reduced by changing the value entered in the No. of CPs field (eg change 4 to 3).
C. Certify and sign for the party you are representing
Changing the number of CPs for the mortgagee role when setting up the mortgage instrument allows Julie to select and certify on behalf of the mortgagee she is representing, ie Martin Duck.
- Click Certify and Sign to open the signing screen.
- Review the mortgage details; if you are satisfied with the details continue to the Mortgagee Certifications section.
- Click Select Names.
- Check the box for the mortgagee you are acting for.
- Click Save & Close.
- Check the certifications box.
- Click Sign to continue the signing process.
D. Preview the instrument
Following signing, the CP should preview the instrument to ensure she has certified on behalf of the correct party.
- Click at the bottom of the prepare mortgage screen.The instrument view shows that Julie has certified and signed for the party she is representing.
- Notify David that the mortgage instrument is ready for him to certify and sign as mortgagee representative for Martha Duck.