Friday, 4 December 2020
Hearsay 24-2020
Hearsay is the Law Society's fortnightly e-newsletter, sent out to all members. Reproduced here is the news section of Hearsay — other sections have been omitted.
Capacity Guidelines
The Capacity Guidelines and Toolkit are now available on our website. These documents are designed to equip lawyers with practical resources to assess a client's capacity and to then make adjustments so clients can give meaningful instructions. Read More +
Update on Strata reform
Members practicing in conveyancing, property law or strata-related matters should be aware that there have been a number of recent legislative changes relating to strata reform and associated conveyancing requirements. The Property Law Committee have produced a short outline of some of the changes. Read More +
Trust account update: Use of PEXA Source account (Power Money)
As previously reported to members, use of the PEXA Source Account by law firms who do not have their own trust account means they are dealing with trust money recognised as Power Money.
At the recent Council meeting held on 16 November 2020, the ACT Law Society Council invoked section 81 of the Legal Profession Regulation 2007 to provide an exemption from the need to lodge an external examiner's report for the trust year, if the only Power Money received was in relation to the PEXA system or any future electronic conveyancing platform.
Although the exemption will apply indefinitely unless revoked by Council, there will be an annual review to determine if the exemption remains appropriate.
A law firm without a trust account which uses the PEXA Source Account, must include wording in their annual statutory declaration provided to the Society after the end of the trust year, which clearly acknowledges that the only Power Money dealt with is that which is used in the PEXA platform (or any future electronic conveyancing platform). The Society will provide recommended wording for the statutory declaration closer to the end of the trust year, to assist firms who do not have a trust account.
Checking in to Settlements Office and Law Society office
As we move into reduced Covid-19 restrictions, all visitors to the Settlements Office and the Law Society offices are required to check in for contact-tracing purposes. We recommend visitors use the ACT Government's Check In CBR App as a contactless, secure and convenient way to sign in. QR codes will be displayed at entry points to the Law Society and the Settlements Office for ease of check-in. Read More +
Change in settlement agents for Westpac Business Bank
Westpac Banking Corporation has advised that from 30 November 2020 it will start to use First Mortgage Services (FMS) as the settlement agent for Business Lending paper-based property settlements. Settlements in progress will continue to be settled by the incumbent settlement agents.