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, which has always formed part of good practice, became mandatory for land transactions on 1 August 2016.

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?

Land and Property Information (LPI) is the central registration authority for real property (land) dealings in New South Wales.

The Real Property Act 1900 (NSW) allows the Registrar-General to make rules (Conveyancing Rules) regarding the verification and identity of particular classes of persons involved in conveyancing transactions.

The Conveyancing Rules set out the framework required for VOI processes (which are the methods used by electronic conveyancing procedures).

A Conveyancing Transaction is a transaction between one or more parties involving the creation, transfer or disposal of an interest in land such as a conveyance, mortgage, charge or lease over property.

The registration, recording or removal of an interest or notation in the titles register (e.g. the registration of a plan of subdivision, an easement, or a caveat) are also Conveyancing Transactions and will be subject to VOI processes.

The VOI process must also be used for documents that do not require registration at LPI (such as a contract for sale and purchase of land and an agreement for a lease).

How does VOI work?

Your lawyer must be satisfied that he/she is dealing with the person claiming to be authorised to enter transactions regarding the property. The lawyer acting for the other party must also confirm their client’s identity..

If you are a party to a property transaction such as the sale or purchase of land or borrowing money secured by a mortgage, you will need to meet personally with your lawyer or other agency to provide documents and formally prove your identity.

During the VOI process 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 present ‘100 points’ system commonly used for banking and other identification processes. Various categories and combinations of documents may be used to prove your identity. These include an Australian or foreign passport, driver licence or photo card, Medicare, Department of Veterans’ Affairs or Centrelink card, and birth or citizenship certificate. Other types of documents may be used for those who are not Australian citizens or residents.

The types of documents you need to produce are categorised. For example, documents such as an Australian passport and driver’s licence are higher category documents and are the preferred VOI source.

If sufficient identification documents are not available, an Identifier Declaration may be used which enables another person to identify you. Your lawyer can advise you on this process.

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. This is practical if you are travelling or do not reside close to your lawyer’s office.

Australia Post 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.

What now?

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.

By ensuring that all parties to a transaction undertake diligent VOI measures, they are better protected against property fraud

If you or someone you know wants more information about VOI or help or advice, contact us.