Thank you for the opportunity to speak to you at this Registrars - PDF document

Thank you for the opportunity to speak to you at this Registrars information session. I am aware that many of you are at different stages of understanding and experience in electronic conveyancing. During this session I would like to take you on the e ‐ conveyancing journey to date, talk to you about our current initiatives to increase take ‐ up, including the requirement to lodge documents electronically and give you an insight into our future plans and initiatives to complete the transition to full paperless conveyancing. This will assist you in understanding how you can participate. I will not be going to into details on how to transact electronically but I will touch on where you can go to get this support later in the presentation. “When you have finished changing – you’re finished”. These words are from Benjamin Franklin and they are still as relevant today as the day he said them. While change is a constant in our lives, it is the pace of that change, especially as it relates to technology, that is our biggest challenge. How do we adapt and adopt to ensure we remain relevant to our markets and capitalise on a potential competitive advantage within our businesses? My presentation will cover • Digital disruption and brief summary of the journey to date • Some comments on current activities underway to increase the take up of electronic conveyancing • An insight into our future plans and initiatives to complete the transition to full paperless conveyancing

• affects every industry and market • new business models in old markets • creates new markets and services. Disruption is certainly not something that is new. We live in a digital world where every aspect of our lives and business is now online or going online. It has created many opportunities to do things differently, to do business better. This digital transformation has disrupted every industry and market globally. Traditional business and service models are being overturned or challenged to adopt, adapt or reform. Innovation and advancements in technology have been the drivers for the achievement of commercial efficiencies in western society for centuries. I often speak about the plight of the hand loom weaver almost 200 years ago when a series of inventions lead to the automated production of large quantities of cloth, during this time the trade unions were fighting industrialisation and many people lost their lives in the great riots.

This highlights that disruption and its opportunities are definitely not new. All the companies on this slide have challenged the traditional entrenched mindsets or have adapted and embraced disruption to their advantage. The likes of NetFlix, Presto, Uber, Air BNB, Apple and others have all leveraged new technologies to create new markets, meeting needs of customers that at the start the customers never knew they had. Citizens, consumers and customers have embraced this disruption and in turn their expectations for service, convenience and delivery has changed. The challenge for us, is how to embrace the disruption for the benefit of our customers, stakeholders and for Landgate, and Western Australian tax payers.

• e-conveyancing is changing the industry • registry functions are attractive investments • emerging technology, business and delivery models • changing community/industry expectations. Electronic conveyancing is the biggest digital disruption that is changing all aspects of the property industry including land registries. It has the potential to change the entire way we buy and sell real property right through the value chain. Land registry functions are attractive investments for the private sector and a potential revenue generator for Governments. Both the New South Wales and South Australian Governments are now in the process of privatising their Land Registries. Technology will continue to drive new opportunities for business and delivery models across the property industry sector. There will be new business opportunities, new ways to operate that will offer many benefits to the community and those transacting. Customers want transactions that are online, transparent and centred around their needs. The online experience needs to be simple, clear, secure and efficient.

So what is Landgate doing in response to the pressures and disruption? We have embarked on a significant journey of transformation. We are seeing the digital disruption from e ‐ conveyancing as a business challenge and an opportunity to embrace new technologies to deliver a land transaction system that better meets the needs and expectations of Western Australians. We have a vision for our land registry services, that is shown on this slide. “Landgate, as an authoritative Land Registry service provider that is customer centric, serving interests of the State and its citizens, will, in the context of a digital national seamless economy, evolve to cater for an electronic market place for property transactions in a digital age”

There are a couple of aspects of that vision that I would like to emphasise. The first is the focus on customer and the extension of that notion to the state and its citizens. The second is the focus on the digital economy, in particular the desire to cater for an electronic market place across all land registry services.

Torrens Real-time National processing harmonisation Simplification Responsibility Underpinning our vision are 5 key principles that are informing our decision making. Those principles are: • Torrens – we are committed to maintaining the Torrens Principles of Certainty of Title, Guarantee by the State and compensation by the State for loss. The integrity and certainty of the titles register must be uncompromisable. • National Harmonisation – we are committed to working in partnership with other Australian Land Registries to harmonise our policies, processes and systems to the extent possible. • Responsibility – we are committed to strengthening our relationship with industry to ensure the WA titles register maintains the highest integrity and relevance in a digital economy.

• Simplification – we are committed to making administration of the land titles register as simple as possible. We are embracing Albert Einstein's philosophy that “everything should be as simple as it can be – but no simpler’ • Real Time Processing – we are committed to move to a place where the WA titles register has maximum value in the digital economy as is it being maintained in real time. We are seeking to reduce red tape and bureaucracy as well as leverage the benefits of automation through digital technology solutions.

COAG agreement Inter-government National Seamless agreement Economy First e-conveyancing Electronic Conveyancing transaction National Law DM, M implemented in WA Functionality extended Landgate Registry C, WC, T System (NLR) E-lodgement of all E-lodgement of stand-alone eligible documents mortgage & discharge of mortgage Landgate has been working in partnership with industry for many years on e ‐ conveyancing and a great deal has already been achieved. However, there is still a lot more to be done. Who would have thought it was all the way back in 2008 that the Council of Australian Governments COAG reached agreement for a new, single national electronic system for real property transactions as part of a seamless national economy. In 2012 the Inter ‐ governmental agreement signed by all States and Territories In 2014 Electronic Conveyancing National Law was implemented in WA and the first e ‐ conveyancing transactions in WA for mortgages and discharge of mortgages were conducted. By 2015 functionality was extended to cater for caveats, withdrawal of caveats, and transfers. And last year, I introduced Requirements to lodge stand ‐ alone residential mortgage and discharge of mortgage documents electronically.

As a business Landgate has invested and continues to invest heavily in replacing aging land registry systems with new systems that embrace the digital age and facilitates the national electronic conveyancing approach. Our New Land Registry system and Landgate’s approach to its business has received award recognition at the highest level including: • 22nd in the Australian Financial Review’s ‘Most Innovative Companies’ program in 2016. • winning the 2016 Premier’s award in the ‘Developing the economy’ category • acknowledgement in the 2016 WAITTA awards (WA Information Technology and Telecommunications Alliance).

WA propensity to transact Note: Includes all transaction types and all subscribers, financial institutions and practitioners registered in the jurisdiction. Source : PEXA Feb 2017 This slide is compelling from my perspective. With electronic conveyancing going live in WA across all the top five documents types in 2015, this chart shows what is happening in the transaction space right now. As at the end of February, over 600 businesses were registered to transact in WA This includes all of the Financial Institutions operating here. The chart shows the percentage of subscribers transacting by volume. Note the large number of businesses that have completed no transactions – 61% You can see from this slide there are some very active early adopters and it is my understanding that more would join in but when it comes to multi ‐ party transactions, the

other members of the industry are holding them back. This is because of the network effect which I will talk more about in a few moments. If your business is not one of the 600 on this slide, then you need to start taking action to come on ‐ board now.