Verification of Identity

​​​Changes are happening to the conveyancing process. Please read this information together with the overview on the Reforms to Conveyancing Process​ webpage.

​​​​​​​​​​Subscribers who are Representatives​ – legal practitioners and licensed conveyancers – ​are required to verify the identity of a party to a conveyancing transaction they represent, and Subscribers who are financial institutions are required to verify the identity of the mortgagor.  By undertaking Verification of Identity (VOI), the risk of identity fraud and registration of fraudulent land transactions is greatly reduced. 

This requirement applies to both paper-based and electronic conveyancing processes by virtue of the Recorder’s Directions​ and Participation Rules​, respectively.  

The Recorder’s Directions and Participation Rules respectively, include a standard for performing VOI. The use of the VOI Standard is not mandatory. If the VOI Standard is properly carried out, the Subscriber will be deemed to have undertaken reasonable steps to verify the identity of the relevant party. If the VOI Standard is not used, the Subscriber must take reasonable steps to verify the identity of the relevant party. The VOI Standard can be found in the ​Recorder’s Directions​ - Schedule 1, and in the Participation Rules​ - Schedule 8.

Please note: Any capitalised term has the meaning given to it in the Recorder’s Directions, the Participation Rules, the Operating Requirements, or the Electronic Conveyancing National Law (ECNL) as applicable.

Frequently Asked Questions​​

The following information does not constitute legal advice, nor does it replace prudent conveyancing practice. Nothing written below overrides the Recorder’s Directions, Participation Rules, any other relevant legislation, or Registrar’s Prescribed Requirements.​

For more information on this topic,  including a comprehensive list of Frequently Asked Questions, please see the ARN​ECC Guidance Note on Verification of Identity​.

​​​What is Verification of Identity?​

Verification of identity is a process carried out to ensure that a Person exists and the Person is in fact who they claim to be. It includes ensuring that the Person the Subscriber is dealing with is the same person shown in any evidence obtained by the Subscriber as part of the reasonable steps taken to verify the identity of the Person (e.g. photographic identity documents such as a passport or drivers licence).

The Recorder’s Directions for paper-based conveyancing and Participation Rules for electronic conveyancing require a Subscriber to take reasonable steps to verify the identity of:

  • clients

  • mortgagors

  • persons to whom certificates of title are provided

  • Signers

  • Subscriber Administrators

  • users who are not Signers or Subscriber Administrators.

When is Verification of Identity required?​

The various circumstances when verification of identity is required to be undertaken are outlined below:

Clients and Client ​Agents

A Subscriber must identify each Client for which it has a Client Authorisation ​or their Client Agent. Where the Client or Client Agent:

  • ​is an Individual, the identity of that individual must be verified; or

  • is a company, the existence of the company must be confirmed and the identity of the Person or Persons signing the Client Authorisation Form for the company or witnessing the company seal for the signing of the Client Authorisation Form must be verified; or

  • has appointed an Individual as an attorney to sign for the Client, the identity of the attorney signing the Client Authorisation Form must be verified; or

  • has appointed a company as an attorney to sign for the Client, the existence of the company must be confirmed and the identity of the Person or Persons signing the Client Authorisation Form for the company or witnessing the company seal for the signing of the Client Authorisation Form must be verified; or

  • is an incorporated association, the existence of the incorporated association must be confirmed and the identity of the Person or Persons signing the Client Authorisation Form for the incorporated association must be verified.

For paper-based conveyancing, the Subscriber must take appropriate steps to ensure the person who is signing the Registry Instrument or other Document on behalf of the Client is the person they purport to be, and that they have the requisite authority to sign the Registry Instrument or other Document. The Subscriber need not formally verify the identity of the Person signing the Registry Instrument or other Document if they are signing on behalf of a Client - for example a Person signing for a company, or an attorney signing for a Client.​

Mortgagor

For a mortgage or an amendment or variation of mortgage, if a Subscriber is an incoming mortgagee (for example, a financial institution acting for itself), the Subscriber must verify the identity of the mortgagor. 

If a Subscriber is representing an incoming mortgagee (for example a law firm on the panel for a financial institution), it must verify the identity of the mortgagor, unless it is reasonably satisfied that the mortgagee has taken reasonable steps to verify the identity of the mortgagor.​

For a transfer of mortgage, the Subscriber must take reasonable steps to verify the identity of the mortgagor by ensuring that the transferee mortgagee has complied with the requirements under the Land Titles Legislation and any Prescribed Requirements of the Jurisdiction in which the land the subject of the Conveyancing Transaction is situated. This requirement in the Tasmanian Participation Rules only applies to Registry Instruments and other Documents lodged electronically, not to other arrangements such as equitable assignments.

Certificates of title

In paper-based conveyancing: 

A Subscriber must verify the identity of any Client or Client Agent before providing them a certificate of title.

A Subscriber must verify the identity of any existing mortgagor, former mortgagor or their agent​ before providing them a certificate of title, unless the Subscriber is reasonably satisfied that the mortgagee it represents has taken reasonable steps to verify the identity of each mortgagor, former mortgagor or their agent. 

​Where a certificate of title is provided to a Person not listed above, general obligations relating to the protection of a Client's interests still apply, for instance, the Subscriber must ensure the Person to whom the certificate of title is provided is the correct Person and has authority to receive the certificate. ​

​Signers

In paper-based conveyancing: 

  • A Subscriber must verify the identity of each Person who is to Sign Documents on its behalf prior to the signing of any Documents by that Person.

In electronic conveyancing: 

  • A Subscriber must verify the identity of each Person who is to Digitally Sign Documents on its behalf prior to a Digital Certificate being allocated to that Person.

Subscriber Administrators

In electronic conveyancing: 

  • The Subscriber must verify the identity of each Person who it appoints as a Subscriber Administrator, prior to their appointment as a Subscriber Administrator.

Users

In electronic conveyancing: 

  • ​The Subscriber must verify the identity of each User that is not a Signer or Subscriber Administrator before the User is given access to the Electronic Lodgment Network.

How should Verification of Identity be undertaken?​​

In all of the circumstances outlined above in the section 'When is Verification of Identity required', a Subscriber is required to take reasonable steps to verify the identity of the Person.

​​Where a Subscriber is an organisation, any duly authorised Person can undertake the verification of identity.

“Reasonable steps” is a commonly used legal concept. When applied to Subscribers and mortgagees, it means the taking of such steps as an ordinarily prudent Subscriber or mortgagee would have taken in the circumstances and in the ordinary course of his or her business. Whether reasonable steps were taken will be a question of fact depending on the circumstances of the individual case. Ultimately, this would be determined by a Court on an objective basis. 

The Subscriber decides what steps to take to verify the Person’s identity. What constitutes reasonable steps may be influenced by various factors that when taken into account contribute to a Subscriber being able to reasonably have confidence in the Person’s identity. Examples of these factors might include the length of time a Subscriber has known the Person or whether they have represented the Person on previous occasions. 

Where a mortgagee represented by a Subscriber undertakes the verification of identity and therefore determines what steps to take to verify the mortgagor’s identity, the Subscriber must be reasonably satisfied that the mortgagee took reasonable steps. It is for a Subscriber to assess how it can be reasonably satisfied in the circumstances. 

A standard for undertaking verification of identity is set out in the Recorder’s Directions and Participation Rules. This Verification of Identity Standard is not mandatory. However, if this Verification of Identity Standard is properly carried out by one of the prescribed categories of people, the Subscriber will be deemed to have taken reasonable steps to verify identity. The Verification of Identity Standard is one set of reasonable steps but there are other reasonable steps that can be taken to verify identity.

Subscribers are required to retain evidence supporting the verification of identity in order to demonstrate that reasonable steps were taken.

May I appoint someone to undertake Verification of Identity on my behalf?​​

Yes. A Subscriber can use an agent to undertake verification of identity on its behalf. If the Subscriber appoints an agent to undertake verification of identity, the Subscriber should direct the agent how to conduct the verification of identity.

If the Subscriber appoints the agent as an Identity Agent, the Subscriber must direct the Identity Agent to apply the Verification of Identity Standard and the Subscriber must receive from any Identity Agent: copies of the Documents produced to verify the identity of the Person Being Identified and/or any Identity Declarant signed, dated and endorsed as a true copy of the original by the Identity Agent; and an Identity Agent Certification.​

For more information on the appointment of an Identity Agent refer to Section 5.7 of the ARN​ECC Guidance Note on Verification of Identity​. 

If the agent is not appointed as an Identity Agent, the Subscriber may direct the agent to undertake verification of identity in some other way that constitutes taking reasonable steps. If the Subscriber appoints an agent who is not an Identity Agent, the Subscriber cannot rely on the deeming provision in Recorder’s Directions 5.6. or Participation Rule 6.5.6.

A Subscriber should obtain from their agent supporting documentation so the Subscriber can make the required verification of identity certification. A Subscriber who intends to rely on verification of identity undertaken by an agent on its behalf should take steps to confirm that the agent has conducted the verification of identity in accordance with the Subscriber’s directions, and with an appropriate level of care and attention. The Subscriber should consider the supporting documentation provided to the Subscriber and, if it contains discrepancies or inconsistencies, the Subscriber should make further enquiries.

​How do I verify the identity of my Client or Client Agent who is overseas?​

You need to decide what steps to take to verify the Person’s identity having regard to the available services and options under the circumstances.

One option may be to utilise the services of an Australian Embassy, High Commission or Consulate (as set out in the Appendix), coupled with further steps in order for the Subscriber or mortgagee (represented by a Subscriber) to be reasonably confident in the Person’s identity.

Further steps may include: 

  • making enquiries with the Client or Client Agent or third parties
  • where the identity Documents are Australian using electronic verification services
  • where it is a foreign identity Document checking the Document looks the same as on the respective country’s government website
  • where the identity Document is in another language having the identity Document translated by an authorised translator
  • where the verification is unable to be conducted face-to-face due to remoteness conducting the verification by electronic means with further steps to satisfy yourself of the Person’s identity.

​When providing a certificate of title, am I required to undertake Verification of Identity?

​​​In paper-based conveyancing, where the Recorder's Directions apply, clause 5.1.(c) states a Subscriber must verify the identity of any Client or Client Agent before providing them a certificate of title and that a Subscriber must verify the identity of any mortgagor, former mortgagor or their agent, before providing them a certificate of title, unless the Subscriber is reasonably satisfied that the mortgagee it represents has taken reasonable steps to verify the identity of each mortgagor, former mortgagor or their agent. 

The Recorder's Directions are binding Directions relating to the preparation and lodgment for registration of applications, dealings, and instruments for the purposes of the Land Titles Act 1980. Clause 5.1.(c) applies if the certificate of title is being provided to a Client, Client Agent, mortgagor, former mortgagor or their agent for those purposes. Where a certificate of title is provided to a Person not listed, or for another purpose (other than preparation and lodgment of a Registry Instrument or other Document), clause 5.1.(c) does not apply. 

Where clause 5.1.(c) does not apply, and a certificate of title is provided to a Person not listed above, for purposes other than the preparation and lodgment for registration of Registry Instruments and other Documents, general obligations relating to the management of a Client's personal property, including ensuring the Person who it is being provided to is the correct Person with the correct authority, still apply. 

Some common examples include:

1. A certificate of title is held by a law firm or conveyancing practice on behalf of a Client, the Client requests the certificate of title 

The Recorder's Directions relate to the preparation and lodgment for registration of Registry Instruments and other Documents. No Conveyancing Transaction has immediately occurred or is to occur where the law firm / conveyancing practice is a Subscriber, therefore clause 5.1.(c) does not apply. The Subscriber would not be required to undertake Verification of Identity of their Client, however, general obligations relating to the management of a Client's personal property, including ensuring the Person who it is to be provided to is the correct Person with the correct authority, still apply.

2. A certificate of title, in preparation of a Conveyancing Transaction, is given to another Subscriber for lodgment with the Land Titles Office

As clause 5.1.(c) only applies to Clients, Client Agents and existing, former mortgagors or their agent, clause 5.1.(c) does not apply. As a Client Agent is defined as "a Person authorised to act as the Client's agent but does not include the Subscriber acting solely as the Client's Representative", in this scenario, a Subscriber to a Conveyancing Transaction is not required to undertake Verification of Identity on other Subscribers to a Conveyancing Transaction when providing them a certificate of title for the purposes of proceeding with a Conveyancing Transaction. 

However, general obligations relating to the management of a Client's personal property, including ensuring the Person who it is to be provided to is the correct Person with the correct authority, still apply.

3. After registration a certificate of title is provided to the Subscriber who is to provide it to their Client (or Client Agent)

Where, after registration, a Subscriber provides a certificate of title to a Client (or Client Agent), the Subscriber is required to undertake Verification of Identity of the Client (or Client Agent) as part of the lodgment for registration process. This is to ensure that the Client (or Client Agent) is in fact the Person they are purporting to be. In practice, the Client may have already been identified in the process of preparing the Registry Instruments or other Documents for lodgment. Where a Client has authorised a separate Person as their Client Agent to receive the certificate of title, the Subscriber is required to verify the identity of the Client Agent to ensure they are the Person who has been authorised by the Client to receive the certificate of title. ​

My Client or Client Agent has one name on his/her passport and an anglicised or abbreviated version of that name on his/her driver’s license. What should I do?​

It is possible that Documents issued by different government departments may have differing versions of a name.

You must take reasonable steps to ensure the Person required to be identified is one and the same Person referenced in the differing Documents. Examples which may be appropriate in some circumstances are:

  • sighting other types of Documents or letters issued by an employer, government agency or educational institution and showing the Person’s name and other details;

  • seeking confirmation from relevant organisations of the information given by the Person and whether they are aware that the Person is also known by another name; and

  • asking the Person questions about the reasons for the differing names, recording their answers and recording whether and on what basis you considered those answers to be satisfactory. 

​I​ have known some of my Clients for over 30 years and have previously used their legal names in legal Documents. Why should I verify their identity just because I have not seen them in the last two years?​​

If the Verification of Identity Standard is not applied, the Subscriber must determine what actions it considers would, in the circumstances, constitute the taking of reasonable steps to verify the Client or Client Agent’s identity. A situation where you have known the Client or Client Agent for over 30 years may be one where you decide that the requirement to take reasonable steps to identify the Client or Client Agent is satisfied by the years of interaction with that Client or Client Agent. ​

Contact

Land Titles Office

Level 1, 134 Macquarie Street ,
Hobart, TAS, 7000.