Why do I need to perform a verifcation of identity when I’m buying and selling property
Why and what is a verification of identity? Two perfectly fair questions to ask. Lets look at the why
Well, the short answer is the property industry has been making headway to move the real estate sector into the digital age. By now you may know that property settlements no longer occur with the physical exchanging of documents and money. This has been petering out since 2017, with the majority of residential settlements now occuring on PEXA.
Since 2013 legislation came in making way for a proposed new system which is now in full force and forever improving. By installing this new requirement it led the way for the progress of the next stages of development to move to paperless within the industry. The idea behind the verification was to help reduce fraud in the property industry by ensuring all parties to a transaction are who they claim to be. This principle is for both the seller and the buyer. This ensures the seller does officially owner the property and dilutes the risk of errors being made with incorrect names for purchases.
The other reasoning to set up verification of identity was to phase out individuals needing to physically sign registrable documents. This has meant Conveyancers now facilitate the signing on your behalf with your authorisation.
Now you know the why lets look at what is a verification of identity for property transactions.
Get your original documents ready because there are numerous different papers you can produce to have your identity verified. Not only are there multiple documents you need but conveyancing may also achieve this task in multiple manners. They may conduct this themselves or use an agent on their behalf.
Some of the providers we use include:
ZIP ID
AUSTRALIA POST
Whichever method we guide you on to achieve the verification of identity the result is the same. It will require you to establish that you are one and the same person as in the documentation. You will need to
Produce the highest level of documentation
Have your photo taken
Sign the ID form and client authorisation form in front of the verifying person
The verifying person will check your signatures, check your facial structure ensure the documents produced are authentic and originals. Many steps are now taken to ensure you are who you say you are. This information is then required to be stored for a minimum of two years and should you transact again with property allows a conveyancer to not have to check your ID again. This is remains valid for that time frame from signing.
Please note if you are not an Australian Citizen or Permanent Resident a different form of documents will be required so please contact us immediately to discuss.
As mentioned you will need to provide the highest category of documentation possible. Should your name also differ on one of the documents for example by marriage you will need to provide original supporting evidence ie marriage certifcate.
Cat 1 – Passport + Drivers Licence or Photo ID Card
Cat 2 – Passport + Full Birth Certificate + Medicare Card
Cat 3 – Drivers License or Photo ID Card + Full Birth Certificate + Medicare Card
In the event you are not able to provide Category 1 to 3 please contact us and we will advise of lesser known alternatives to some of the classes.