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ISCOVER
Staff Reporter
The identity of a potential home buyer applying for a mortgage in Western Australia will now have to verified by a number of people, under new changes to the legislation.
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In August, Landgate introduced new identity verification rules in Western Australia. After extensive consultation with lenders, the MFAA and Gadens Lawyers, these new rules are set to come into effect from 2 January 2013.
Under the new rules, mortgagees will be responsible for verifying the identity of the mortgagor; and conveyancers and lawyers will be responsible for verifying the identity of vendors of land.
In order for this to occur, a visual ‘face-to-face’ assessment of the identity documents and the person to who they relate must take place.
Copies of identity documents, including certified copies, are not acceptable.
Speaking about the new rules, Gadens Lawyers said the verification procedure had the potential to “increase costs and disadvantage many mortgage lenders”.
In addition, Gadens Lawyers said the proposed rules simply duplicate work that is already being conducted.
According to a new statement from Gadens, the lawyers raised these concerns with Landgate, however, these have largely been dismissed.
“Landgate is keen to ensure that there is an appropriate link between the person identified and the person who actually signs the mortgage,” the statement from Gadens read.
