Verification of Identity (VOI) is a process used to confirm a person’s identity.
Lawyers and other parties involved in property transactions have an obligation to ensure that the person claiming authority to deal with land is legally permitted to do so. This includes confirming a person’s capacity to act as agent for a company or as an attorney.
The VOI process is particularly important in land and property dealings as it helps to reduce identity theft and land title fraud. Verification of Identity is mandatory for land transactions.
Lawyers and other parties must take ‘reasonable steps’ to verify the identity of their clients and their client’s agents.
Your Lawyer will need to formally verify your identity during a face to face interview or use other approved methods to confirm your identity and authority to enter into the proposed transaction.
When must I prove my identity?
NSW Land Registry Services is the central registration authority for real property dealings in New South Wales.
The Conveyancing Rules set out the methods used for VOI processes in electronic conveyancing transactions.
The VOI process must also be used for documents not required to be registered with NSW Land Registry Services.
How does VOI work?
Your lawyer and the lawyer acting for the other party must must be satisfied that they are dealing with the person claiming to be authorised to enter transactions regarding the property.
If you are a party to a property transaction, you will need to meet personally with your lawyer or other agency to provide documents and formally prove your identity.
You will be asked to produce original documents so that your identity can be compared, preferably with a document containing photo identification.
The documentation required for the VOI process is similar to the ‘100 points’ system commonly used for banking and other identification processes. The types of documents you need to produce are categorised and various categories and combinations of documents may be used to prove your identity.
If sufficient identification documents are not available, an Identifier Declaration may be used which enables another person to identify you.
Your lawyer must keep certified copies of verification of Identity documents relating to property transactions for seven years. Once the VOI process is carried out, you don’t have to undertake a further VOI process for a property transaction that occurs within two years after the initial VOI.
What if I can’t visit my lawyer?
If you are unable to attend a face to face interview with your lawyer, you can use an Identity Agent to confirm your identity. Australia Post, Infotrack and other reputable agents offer this service. The Identity Agent will complete the VOI process and provide an Identity Agent Certification.
What about companies and attorneys?
If a party involved in a conveyancing transaction is a corporate entity, a company search will confirm the existence of the company and establish who is authorised to sign on behalf of the company. The authorised signatories will then need to undergo the VOI process.
The VOI requirements extend to any person authorised to act on behalf of the client. Attorneys entering transactions on behalf of their principal must provide the document authorising such a transaction then complete the VOI process verifying their identity.
Takeaways
Identity theft leading to the registration of fraudulent documents and dealings over land can have devastating financial and other effects. Verification of Identity is an important safeguard against fraud.
Ensuring that all parties to a transaction undertake diligent VOI measures better protects them from becoming victims of property fraud
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