ByLawyers News and Updates

Mortgages – inaccurate certification – QLD, NSW, SA, VIC, WA

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Case law update – mortgages – inaccurate certification by ELNO subscriber

In the recent case of Perebo Pty Ltd v Wayville Residential Investments Pty Ltd & Ors [2019] SASC 35, the South Australian Supreme Court considered the effect of an inaccurate certification made by the mortgagee’s solicitor upon lodgment of a mortgage. The mortgage was held to be enforceable despite the solicitor for the mortgagee inaccurately certifying that the mortgagee held a copy of the mortgage granted by the mortgagor.

The Registrar General in each state is entitled to rely upon the certification of a subscriber to an Electronic Lodgement Network Operator (ELNO) that a mortgagee holds a mortgage granted by the mortgagor in the same terms as the instrument that is lodged. However where there is inaccurate certification, the instrument registered pursuant to the certification is not necessarily invalidated merely by that fact. The instrument will of course be invalidated if it is fraudulent, or falls within one of the other exceptions to indefeasibility.

However, while the mortgage might not be invalid, by giving an inaccurate certification, the mortgagee, or the mortgagee’s representative such as a solicitor, may face disciplinary action from the applicable regulator, or the risk of being suspended or terminated as a subscriber to the ELNO.

The By Lawyers Mortgages commentaries have been updated to include a summary of this case and a link to the full decision.

Motor vehicle accidents – NSW

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The By Lawyers NSW Motor vehicle accidents publication has been reviewed by our author, experienced solicitor Kim Rickards, an accredited specialist in personal injury law.

This publication contains two separate guides, covering the two different statutory schemes for motor vehicle accidents which occurred before, or on and after, 1 December 2017.

Accidents prior to 1 December 2017

Claims arising from motor vehicle accidents which occurred prior to 1 December 2017 are governed by and made under the Motor Accidents Compensation Act 1999 (MACA).

Recent decisions which have considered MACA and the operation of the scheme have been added to this commentary. These include IAG Limited T/as NRMA Insurance v Khaled [2019] NSWSC 320  and IAG Limited t/as NRMA Insurance v Qianxia Lou [2019] NSWSC 382.

The main issue in these cases was whether an assessor had properly considered, under the SIRA guidelines, whether to issue a certificate under s 92(1)(b) of MACA that the matter was not suitable for assessment by the Claims Assessment and Resolution Service (CARS). The issue of such a certificate is required before the applicant can commence court proceedings for a claim.

Accidents on or after 1 December 2017

Claims arising from motor vehicle accidents which occurred on or after 1 December 2017 are governed by and made under the Motor Accident Injuries Act 2017.

Enhancements to this commentary have been made in a number of areas including Costs and Common law claims, including the very practical suggestion that the insurer be requested to concede that the threshold of 10% whole person impairment is overcome, so as to permit prompt commencement of a common law claim where fault exists on the part of another driver.

 

By Lawyers UK!

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By Lawyers is very proud to announce the successful launch of our Legal Guides and Precedents in the United Kingdom.

Practitioners in England and Wales are now able to access 20 comprehensive legal practice guides written by lawyers, for lawyers:

  • Practice management
  • Sale of land
  • Purchase of land
  • Mortgages
  • Commercial leases
  • Residential leases
  • Sale of business & franchise
  • Purchase of business & franchise
  • Partnerships
  • Joint ventures
  • Criminal law
  • Divorce
  • Financial settlement
  • Private children proceedings
  • Nuptial agreements
  • Domestic violence
  • Conducting a matter generally
  • Estates
  • Wills
  • Powers of attorney and advance decisions

The guides each include a detailed matter plan, practical commentary and over 1200 integrated precedents.

By Lawyers is excited to be taking our highly regarded Australian product to the world. We also wish to assure our Australian clients that it will be very much business as usual at home for our Australian editorial and publishing teams. Our Australian team will continue to ensure that our Australian publications expand and improve – and remain always up to date, of course.

For more information on By Lawyers in England and Wales visit bylawyers.co.uk
By Lawyers UK launch

By Lawyers UK launch 2 April 2019. From left: John Espley, Angus Dawson, Christina Grzasko, Bobbi Young, Craig Delaney, Julie Hulyer, Guy Dawson, Danni Larney, Maria Parker and Claudia Francois.

Workers Compensation guide – NSW

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The By Lawyers Workers Compensation guide has received an extensive author review. The matter plan has been amended in accordance with the commentary updates. This reflects recent amendments to the Workers Compensation Act 1987. New precedents have also been added.

The following are excerpts from the updated commentary in our NSW Workers Compensation guide:

Interaction with the Motor Accident Injuries Act 2017

For clients who have suffered injuries which require significant ongoing treatment into the future, or who have an established entitlement to payment of ongoing weekly income benefits, the value of ongoing and future benefits must be considered and explained to the client so that instructions to finalise the MAIA claim and therefore finalise all future workers compensation benefits are given on a fully informed basis. The advice given and the instructions received must be fully recorded in a file note and the client required to sign a written authority to settle on that basis.

There is a precedent Authority to settle available on the matter plan.

Entitlement to weekly benefits

The extent of any entitlement to weekly benefits is assessed with regard to the capacity of the injured worker to undertake some form of employment and is reviewed by a twenty-eight-day cycle. This entitlement to weekly benefits cannot be regarded as fixed and final until retirement age even where the worker has suffered a serious injury.

An injured worker is required to provide to the insurer a Certificate of Capacity from the treating doctor. This certificate is required to contain the opinion of the doctor about work capacity even where work which is stated to be within the capacity of the injured worker is not available.

The insurer is not required to accept the treating doctor’s opinion and may adopt the opinion of its own doctor.

The insurer is required to make a Work Capacity Decision based upon available, proper information.

Precedent letters to the client’s treating and specialist doctors, requesting the doctor’s opinion about work capacity, are available on the matter plan.

Costs disclosure – Increase of legal rates during a matter

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Increase of legal rates during a matter

All By Lawyers Costs Agreements and Client Service Agreements have been updated to include a clause notifying a client that legal rates may increase during the course of a matter requiring a revision of the costs estimate provided. This clause provides for 30 days written notice of any proposed changes to legal rates. While such a clause is not required by Legal Profession legislation concerning costs disclosure requirements, providing such notice on initial costs disclosure is considered best practice.

All of our Guides contain Costs Agreements (Client Service Agreements for QLD Guides) within the folder ‘A. Getting the mater underway’. All of our agreements are compliant with the relevant Legal Profession legislation and are reviewed and updated regularly to ensure compliance.

Leases – Exercising option to renew

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Leases – Exercising option to renew

The commentary within all By Lawyers Leases Publications and 1001 Conveyancing Answers Reference manuals have been updated to include reference to the New South Wales Supreme Court decision in Kegran Pty Ltd v Warrik Pty Ltd [2018] NSWSC 1357.

The court ordered the specific performance of an option to renew, after the lessor challenged the exercise of the option on the basis that the notice was not properly served by the lessee.

Notice of renewal was given by the lessee to the lessor by way of email, although the option to renew clause in the lease did not identify email as a valid method of service.

The court held that the language of the notice provisions was ‘facultative and not mandatory’, and that the lessee has validly exercised the option to renew by the email. The court stated that the notice provisions were not to be strictly applied to the exclusion of all other methods of service.

The decision in this case highlights that whether a lessee has validly exercised an option for renewal can depend on the interpretation of the terms of the lease when read as a whole.

Conveyancing – updated letters – QLD, NSW, VIC, SA, WA

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A number of the precedent letters in the By Lawyers guides for Conveyancing – Sale and Purchase have been updated to cater for developments in electronic conveyancing.

The content covered in these amendments include additional options for signing the transfer, payment of duty and registration of the transfer.

These updates occurred partly as a result of feedback received from our users. We always value and respond to feedback from practitioners using our content. We especially love to hear from property lawyers and conveyancers as to how we can make it a little easier for them to deal with the pace of change in electronic conveyancing.

Please don’t hesitate to contact us at askus@bylawyers.com.au if you have any feedback for us.

Victims Rights and Support Act – amendments – NSW

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The By Lawyers Victims Rights and Support NSW publication has been updated to reflect the recent amendments to the Victims Rights and Support Act 2013 and the Victims Rights and Support Regulation 2013, by the Victims Rights and Support Amendment (Statutory Review) Act 2018.

Notable changes include:

  • an increase in the initial limit of approved counselling services for family victims from 20 to 22 hours; and
  • an increase in the maximum amount payable as financial assistance to family victims for funeral expenses from $8,000 to $9,500.

The Commentary and Retainer Instructions in the By Lawyers guide have been updated accordingly.

ARNECC Model Participation Rules Version 5

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The ARNECC Model Participation Rules Version 5 for e-conveyancing are in effect from 25 February 2019 in NSW, VIC, QLD, WA and SA.

Client Authorisation Forms

There are now two separate types of Client Authorisation Forms:

  • Client Authorisation Representative– authorises a solicitor or conveyancer to act for the client in a conveyancing transaction;
  • Client Authorisation Attorney– authorises a person acting under a power of attorney to act for the donor in a conveyancing transaction, the donor being the person giving the power.

The Client Authorisation Attorney form only applies to Subscribers signing as Attorneys and not any other Subscriber who may happen to be an Attorney e.g. a conveyancer or lawyer generally acting as their Client’s Attorney. A Representative Subscriber (conveyancers and lawyers) should continue to use the Client Authorisation – Representative form.

See rules 5.6 and 6.3 for requirements.

A new Guidance Note is currently being drafted by ARNECC that will provide further information regarding this new provision.

Practitioners must ensure they use the correct Client Authorisation Form for each conveyancing transaction.

These forms are available on all By Lawyers Conveyancing matter plans within Folder ‘A. Getting the matter underway > Verification of identity folder’.

Verification of Identity in mortgage transactions

Responsibilities for verifying the identity of mortgagors have been updated. Practitioners acting for a mortgagee, must take reasonable steps to verify the identity of mortgagors in accordance with r 6.5.1(b), even where the mortgagor is represented.

Additional identity documents

Australian Evidence of Immigration Status ‘ImmiCard’ and Australian Migration Status ‘ImmiCards’ are now acceptable types of identity documents and have been added to the table in Schedule 8 of the Model Participation Rules.

All relevant By Lawyers publications have been updated to reflect the ARNECC Model Participation Rules Version 5, including the detailed Verification of Identity commentary located in all conveyancing and property matter plans under Folder ‘A. Getting the matter underway’.

Personal Property Securities Act and leases

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Personal Property Securities Act and leases

All By Lawyers Lease Publications have been updated to include new commentary on the implications of the Personal Property Securities Act  2009 (PPSA) for landlords and tenants when entering into a new lease and on assignment. The Retainer instructions and To do list precedents have also been updated to ensure that these important considerations are not overlooked.

Leases often encompass personal property, such as fit-out owned by the landlord made available under the lease, or plant and equipment owned by the tenant left in the premises on abandonment.

In such situations, the PPSA can operate to deprive the true owner of their rights if not recorded on the Personal Property Securities Register (PPSR). For example, unless a landlord registers a security interest on the PPSR in relation to their personal property which is in the possession of a tenant, they may not be adequately protected against claims on the property by third parties including the tenant’s financier.

At the time of entering into a new lease or on assignment, a landlord should consider whether registration of a security interest is required in relation to any personal property. Consideration should also be given to the inclusion of a PPSA clause in the lease to allow the landlord to enforce security interests in personal property. Any such clause must be reasonable, should be confined only to the relevant personal property concerning the lease and should not affect the tenant’s ability to obtain finance or provide security to their financier.

For further information on Personal Property Securities Act and leases , see the By Lawyers Lease publications and the By Lawyers dedicated Personal Property Securities publication.

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