If you are involved in a real estate transaction, you may need to appoint a conveyancer or legal practitioner to represent you. This can be done by signing a client authorisation form (CAF) that gives the conveyancer or legal practitioner the authority or power needed to represent you in your transaction. In this article, we will discuss everything you need to know about client authorisation forms and their significance in real estate transactions.
What is a Client Authorisation Form?
A client authorisation form is a legal document that allows a conveyancer or lawyer to act as their client’s agent and sign documents on their behalf, such as a Transfer of Land. The CAF must be witnessed, which is best done during your Verification of Identity (VOI) appointment.
When is a Client Authorisation Form Necessary?
The authorisation is required when a conveyancing practitioner represents a client in a transaction. It can give practitioner permission to:
- Perform a single instrument
- Execute a group of instruments
- Appoint a permanent authority that will not be rescinded
For caveats and priority notices, a client authorisation is not required.
Important Dates to Remember during the Conveyancing Process
There are various important dates to remember during the conveyancing process, including:
- The contract date: when all parties have signed and agreed to the contract’s provisions.
- The “de-stressing” interval: the three-day time following the buyer’s signature of the contract, during which the buyer can terminate the deal without relying on a contract term.
- The deadline for the financial approval date: when a buyer must notify the seller that financing has been approved.
- The deadline for a buyer to notify the seller of their satisfaction or dissatisfaction with the building and pest inspections: the building and pest inspection date.
- The settlement date: when the transaction is expected to be settled.
While both parties may agree to alter these dates, it is not always practicable after the contract has been signed.
Exceptions
Client approval is not necessary for instruments relating to the title application by possession to land, land division, and amalgamation of titles under the Community Titles Act 1996 and Strata Titles Act 1988.
What is the Significance of Client Authorisations?
Client Authorisations are an essential aspect of the e-conveyancing process, and they were created to assist practitioners in protecting the register’s integrity. Because the Client Authorisation protects firms from liability for unlawful transactions on the register, having a correctly completed Client Authorisation for each file is critical. If a properly completed Client Authorisation is not held, there may be claims and other consequences under a firm’s professional liability insurance, and the register may withdraw a firm’s capacity to deal electronically in some situations.
Signing and Authorising the Legal Representative on your Behalf
By signing this section, you authorise the legal representative to act on your behalf. It also gives them the authority to sign paperwork on your behalf, file documents with the Land Registry, authorise cash settlements, and do anything necessary to finalize the deal.
Details and Representative Signing
This is where Your Property Australia will sign to certify that they accept the authorisation and have gone to reasonable steps to get it signed.
Conditions of Client Authorisation
The Client Authorisation comes with some additional conditions. They include an explanation of your rights and definitions for the phrases used in the document.
Filling Out the Form
The details of the authorisation are clearly stated on the client authorisation form. The client and the conveyancing practitioner must sign it (or their agent). The practitioner signs the form to declare that they have taken reasonable steps to verify their client’s identification and authority to engage in the transaction described in the authorisation.
In an ideal world, the client’s identity and permission are verified when signing the authorisation. The completed client authorisation form should be kept as proof of authority for the transaction and remain on the file following settlement.
In conclusion
A client authorisation form is a crucial document that plays a vital role in real estate transactions. It protects firms from liability for unlawful transactions on the register and ensures the integrity of the register. By understanding the importance of client authorisations, you can ensure that your real estate transaction runs smoothly and that all parties involved are protected. If you have any questions or concerns about client authorisations, feel free to contact Mr Conveyancer for expert advice and guidance.