From 1 November 2011 new requirements come into force in relation to witnessing documents. Witnesses to documents will need to confirm the identity of a person that has asked for their signature to be witnessed on an LPI dealing, application or caveat.

The new witnessing requirements will generally apply to retirement village documentation where residents are registered interest holders. This will apply to registered leases, surrenders of leases and notices of death and any other document that an operator may lodge with the LPI from time to time.

Section 117 of the Real Property Act 1900 requires all dealings, caveats and applications to be signed in the presence of an "eligible witness", who also signs the document.

An eligible witness must be someone who:

  • is over 18 years of age; and
  • is not a party to the transaction; and
  • has known the person who is signing the dealing as a party to the transaction for at least a year; or
  • has taken reasonable steps to confirm the identity of that person.

If the witness has not known the person signing the document for at least 12 months, the witness must:

  1. sight one original of a primary photographic identification document in respect of the person signing the dealing; or
  2. sight one original of a primary non-photographic identification document in respect of the other person plusone original of a secondary identification document in respect of the other person.

The details of what constitute a primary photographic identification document and a primary non-photographic identification document are identified in the LPI Circular which you can view here.

Operators will need to ensure that every person complies with this requirement when executing village contracts or any registrable document. To ensure that this requirement is satisfied, operators may consider imposing a requirement that witnesses complete a witness certification document.

Gadens can assist operators to review their internal processes to ensure that all dealings lodged with the LPI have been witnessed in accordance with the new requirements and draft a witness certification document to accompany your dealings.

For more information, please contact:

Sydney



Arthur Koumoukelis

t (02) 9931 4873

e akoumoukelis@nsw.gadens.com.au

Jessica Smythe

t (02) 9931 4949

e jsmythe@nsw.gadens.com.au

Melbourne



Andrew Denehy

t (03) 9612 8217

e adenehy@vic.gadens.com.au

Doug Scobie

t (03) 9252 7760

e dscobie@vic.gadens.com.au

This report does not comprise legal advice and neither Gadens Lawyers nor the authors accept any responsibility for it.