Question
of the week Question of the week

Curious. Interesting. Informative.

15 May 2020

Please identify yourself

Sale, Purchase, Mortgage, Lease
New South Wales

Asked

Sale of real property - COVID-19, overseas vendor, verification of identity and power of attorney

We act for two vendors. One lives overseas and has not granted a power of attorney to anyone to act on their behalf in the sale or otherwise. How do we get the overseas vendor to sign the contract and comply with PEXA and ID requirements? Do we need to have them attend an Australian embassy and get a witnessing certificate completed? Is there an easier way? Is it better to draft a power of attorney appointing one of the other vendors to act on their behalf in relation to the sale?

Answered

Thank you for the question.

Whilst the Verification of Identity Standard requires a face-to-face in-person interview, compliance with the standard is not mandatory and the obligation is simply to take ‘reasonable steps’. Additionally, where a client is overseas, the Australian Registrars' National Electronic Conveyancing Council (ARNECC) Rules require a subscriber to decide what steps to take to verify the person’s identity having regard to the available services and options in the circumstances.

In the current circumstances of COVID-19, the use of audio-visual technology for verification of identity and executing documents is acceptable. A video meeting could constitute reasonable steps. Otherwise, if you decide reasonable steps require verification of identity at the Australian embassy or consulate, then the Client Authorisation form can be witnessed at the same time.

The contract can be in electronic form and executed electronically, as can the Client Authorisation form.

If proceeding via a general power of attorney, the witness does not need to be a prescribed witness and it can be signed remotely. The power of attorney must then be registered with NSW Land Registry Services in the General Register of Deeds.

Regards

Mentor