Key changes for the NSW property sector in navigating through the COVID-19 environment include the easing of real estate restrictions, new electronic lodgement processes, executing documents electronically and the witnessing of documents through audio-visual link. Real estate restrictions ease in NSW The NSW Government has announced a relaxing of restrictions on property inspections and on-site auctions. From this weekend (9-10 May 2020), traditional real estate practices will resume subject to compliance with the following guidelines: Maintain physical distancing of at least 1.5 metres Promote good hygiene on premises and at auctions with access to hand sanitiser Use digital platforms if possible to discourage physical contract Keep detailed contact records of people attending homes and auctions Ensure people with any symptoms of illness do not attend a property Manage the number of people entering small spaces Consider extended times for open house viewings and inspections Use outdoor venues for auctions wherever possible If auctions are held indoors, use large venues where physical distancing between household groups of one person per four square metres is possible. The easing of real estate restrictions is a response by the State Government to curb the nationwide fall of 22% in property listings between 22 March and 19 April and 60% fall in auctions held on the weekend ending 3 May 2020, comparable to the same period last year. The relaxing of restrictions is a sign of NSWs ongoing success in limiting the spread of COVID-19 and represents a necessary step to keep the property industry moving. New electronic lodgment processes The NSW Land Registry Services (LRS) has implemented measures to assist customers and lodging parties who are unable to attend the Queens Square Lodgment Office due to disruptions arising from the pandemic. From 11 May 2020, new lodgment processes will come into effect, enabling close to 100% electronic lodgment and submission of documents. COVID-19 Residual Lodgment – electronic lodgment of all documents through the PEXA workspace to be made available, including dealings previously not able to be lodged electronically COVID-19 Requisition Secure Upload Portal – electronic submission of documents to LRS in response to requisitions Virtual Lodgment Office – upload facility for all correspondence documents currently furnished at the NSW LRS Lodgment Office. Executing and witnessing documents Physical distancing restrictions caused by the pandemic have made it difficult to prepare, sign and witness paper land instruments. The LRS has announced regulatory changes to assist parties during this time. Changes to the Conveyancing Rules (effective from 27 April 2020) temporarily allow paper land dealings, plans and Section 88B instruments to be signed electronically in accordance with the Electronic Transactions Act 2000 (NSW). An electronic signature is taken to have met the requirements for a signature if it satisfies the requirements of: Identity – a method is used to identify the person and to indicate the person’s intention in respect of the information communication Reliability – the method used must be as reliable as appropriate for the purpose, and Consent – the parties must agree to the use of electronic signatures and to the method used. These documents may also be witnessed electronically through audio-visual link during the COVID-19 pandemic period in line with the Electronic Transactions Amendment (COVID-19 Witnessing of Documents) Regulation 2020 (NSW) (COVID-19 Witnessing Regulation) which commenced on 22 April 2020. A person witnessing the signing of a document by audio-visual link (the witness) must: See the person signing the document (the signatory) sign the document in real time Attest or otherwise confirm the signature was witnessed by the witness signing the document or a copy of the document Be reasonably satisfied the document the witness signs is the same document, or a true copy of the document signed by the signatory Endorse the document, or the copy of the document, with a statement: Specifying the method used to witness the signature of the signatory, and That the document was witnessed in accordance with the COVID-19 Witnessing Regulation. Importantly, these temporary changes do not alter any existing requirements for execution and certification, verification of identity or establishing the right to deal. The above content is commentary rather than legal advice and was prepared on the basis of applicable legislation, government programs and initiatives that were in place as of the date of publication. Given the ongoing evolution of both the COVID-19 pandemic and frequent consequential changes to the various laws and programs within all Australian states and territories, readers should seek legal advice on the current situation as applicable to their specific circumstances before taking any action in relation to the above.
