The Government

Perspective

E-submission of Land Documents

Nova Scotia

in

September 2007

September 2007

E-submission of Land Documents in Nova Scotia: The Government Perspective

compiled by Mark Coffin, Registrar General of Land Titles

(e-mail coffincm@gov.ns.ca) and

Nancy Saunders, Director of Land and Property Programs (e-mail nsaunders@gov.ns.ca)

Province of Nova Scotia Service Nova Scotia and Municipal Relations

Corporate Registries Land Programs - Phone 1 (902) 424-5619

www.gov.ns.ca

E-submission of Land Documents in Nova Scotia: The Technology Perspective

compiled by Ellen French, Project Coordinator

Svjetlana Mijatovic, Project Coordinator CARIS

115 Waggoners Lane, Fredericton, NB E2B 2L4 Phone 1 (506) 458-8533 Fax: 1 (506) 459-3849

Email: info@caris.com www.caris.com

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E-submission of Land Documents in Nova Scotia:

The Government Perspective

The Context for Land Titles in Nova Scotia The Role of Land Tenure Systems Land has often been identified as Nova Scotia’s most valuable asset, an enduring asset of value to individuals, businesses and governments. It is, therefore, easy to understand why land information and a strong land tenure system which keeps track of ownership and interests in land are critical to a strong economy. A land registration or land tenure system, which provides certainty and security of ownership to landowners, has been identified by the United Nations as an “indispensable tool for a market economy to work properly.”2 The Nova Scotia Government has also identified the importance of its land asset. In the government’s guiding document, The Course Ahead 3, the protection of the integrity of Nova Scotia’s land ownership system is recognized as a core business function of government. The land tenure system affects all 934,405 Nova Scotia individuals, and all businesses and governments. It is an asset worth more than $55 billion. It benefits individual landowners, to be sure, but those benefits also accrue to the economy of Nova Scotia. A properly operating land information system facilitates the financing and sale of land and complements the system of property taxation, for the public good.

1 2010 - A Vision, 1995 New Zealand - Australia Cadastral Conference, Paper by Department of Survey and Land Information, New Zealand, 1995.

2 Meeting of Officials on Administration, United Nations Economic Commission For Europe, Committee on Human Settlements, February, 1996.

3The Course Ahead for the Fiscal Year 2000-01, Province of Nova Scotia, 2000.

All economic activity is based, either directly or indirectly, on the use of land. In particular, property rights in land represent a large proportion of the wealth of people throughout the world. 1

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The benefits of a land tenure system have been described as follows:

1. Guaranteed ownership and security of tenure; 2. The support of land and property taxation; 3. The provision of security for credit; 4. The development and monitoring of land markets; 5. The protection of government-owned lands; 6. The reduction of land disputes; 7. The facilitation of land reform and the implementation of land policies; 8. The improvement of urban planning and infrastructure development; 9. The support of environmental management; 10. The production of statistical data for efficient administration.4

Overview of Current System

The Registry Act system, used to record and protect the interests Nova Scotians have in real property, was first established in 1758. With very few changes except some electronic enhancements, this same system has been in operation across Nova Scotia for the past 250 years. The system is based on a British model of Registries of Deeds which records and stores information about real property in the province.

In this system, documents which give evidence to title are registered in a public registry office. Registration confers priority over unregistered or subsequently registered documents.5

The Registry of Deeds acts as a depository for documents which provide information on the ownership of, and interests in, land within Nova Scotia. The registries provide public access to documents such as deeds, mortgages, subdivision plans, wills, and judgments. More than 140,000 documents are registered each year, and the historic records, which must be accessible for public searching, number more than 19.5 million. These documents are registered and stored in 18 public registry offices located in each county across the province. Individuals, title searchers, lawyers, and surveyors undertake manual searches of the old system’s records in order to determine legal ownership of land parcels. The registries are maintained by 123 staff members who handle registry and mapping functions across the province. In a Registry of Deeds system, documents are indexed by the names of the

4 See Footnote 7.

5 The Land Registry System In Nova Scotia, The Land Registry Committee, Department of Attorney General for Nova Scotia, January 1990, p. 2.

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persons identified in the document. The system makes no investigation or guarantee of the validity, accuracy or effect of documents filed. To establish ownership under the old system, a manual search of all public records relating to the land is required and a historic title search must be done to establish a good root of title at least 40 years in the past. Until the land titles system was introduced, this search had to be repeated each time the property was sold or mortgaged. While most records affecting the ownership of land were recorded at the Registries of Deeds, others were located in a variety of other locations across government - for example, in Probate offices, at the Department of Environment or Natural Resources, or within the municipal governments’ records. This required title searchers and other system users to check multiple sources to find relevant information. Land Reform in the Canadian Context

For reasons tied to our development to nationhood, there is currently no uniformity in land tenure systems across Canada, however, land systems reform is being actively worked on in most Canadian jurisdictions. The common objective of these reforms is the implementation of the vision espoused in the Registry 2000 discussion paper:

A modernized land tenure system which: • guarantees basic ownership rights through a land titles regime; and • provides easy access to all public records relating to land parcels and facilitates electronic access to, and registration of, land related information. These reforms were supported by a national initiative of the Canadian Bar Association and the Federation of Law Societies of Canada, which has established a joint National Real Estate Project to promote, among other things, uniformity of real property statutes and practices in Canada and the continued integrity of public land registration systems in Canada.6 The implementation of this shared vision across Canada is in varying stages: some provinces have had land titles systems since they came into Canada and are working on changing from paper-based systems to electronic systems; some have been working on the conversion to land titles for a number of years; and others, like Nova Scotia, must still change their legislative framework. 6 The National Real Estate Project, Canadian Bar Association and Federation of Law Societies of Canada, 1999, http://www.cba.org/RealEstateProject.

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Modernization of Land Tenure Systems Across Canada

Province or Territory State of Land Tenure System

Territories (Nunuvut, Northwest Territories and the Yukon)

Land Titles

British Columbia Land Titles

Alberta Land Titles

Saskatchewan Land Titles

Manitoba Land Titles

Ontario In process of converting from Registry of Deeds to Land Titles

New Brunswick In process of converting from Registry of Deeds to Land Titles

Nova Scotia In process of converting from Registry of Deeds to Land Titles

Quebec Civil Code, Land Book & Cadastral Map (parcelized system)

P.E.I. Registry of Deeds

Newfoundland Registry of Deeds (but is implementing E-submission of documents)

The Western provinces were fortunate enough to have had land titles systems from the outset, or to have converted to land titles very early on. For them, modernization has taken the form of electronic access and data integration. British Columbia is well into the third phase of its electronic access conversion, having begun converting from paper more than 10 years ago. Lawyers in BC are able to register documents online. Saskatchewan has embarked on a very ambitious migration project which will see its land titles system move from a completely paper-based and manual system to a fully electronic environment. In both provinces, integration of geographic information with the land titles system is a priority but they were not as far advanced as Nova Scotia when the electronic reforms began. Alberta, too, has implemented electronic access via Alberta On Line. In Manitoba, the fourth original land titles province, subscribers are able to perform title searches online as well. The North West Territories, the Yukon Territory and Nunavut all have land titles systems. The Yukon is in the midst of creating an integrated land information management system which would see integrated parcel data available online. When historic Upper Canada was first established, interests in land were registered in a Registry of Deeds system although land titles systems were implemented in some of the counties closest to Manitoba. Now, Ontario is well into a project to convert all its more

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than 4.5 million parcels to land titles. This mega-project is being carried out for the most part by a process called title automation. This means that parcels are converted by title workers, without the parcel owners being aware that their properties have been converted. Using this process, conversion is not triggered by a transaction such as sale of the property, rather, it is part of a systematic master conversion plan. Concurrent with the conversion program is an electronic access and filing initiative. Quebec’s land registration system is based on the Quebec Civil Code of 1994. It is not a land titles system, nor is it a Registry of Deeds system as we know it in English Canada. Under the Civil Code, a Land Book and parcel map operate side-by-side. The Land Book is used to publish rights in land, and the parcel map is used to depict the 3.7 million land parcels and coordinate all parcel-related information. Together, an integrated fabric for each parcel is maintained. A comprehensive renewal project has been underway in Quebec since 1994. Under that program, each parcel will be given a separate Property Identification Number, and each parcel is made “official.” The program is expected to take until 2011 to implement. Following this far-reaching reform, the property map will be composed of reliable, standardized data and will provide a complete, comprehensive picture of parcelization, updated on a daily basis.7 In the Maritimes, where until recently registry systems were the norm, all three provinces have recognized the benefits of moving to an electronic land titles environment. Joint efforts under the Council of Maritime Premiers to develop a shared Land Registration and Information Service have meant that all three Maritime provinces have been studying improvements to the Registry of Deeds system since the early 1970s. The lasting reminder of these efforts is an 18-year pilot project in Albert County, NB, where approximately 60 percent of the properties have been converted to land titles. In 2000, New Brunswick adopted amendments to its Land Titles Act which allowed the Province to restart the conversion from a Registry of Deeds system to land titles with electronic access. New Brunswick is converting its parcels from the old registry system on a transactional basis. Indeed, the draft Land Registration Act owes many of its concepts to the New Brunswick legislative model. Electronic access is provided through the PLANET system. PLANET is described by Service New Brunswick as “a comprehensive, integrated, online source of land registration, assessment, mapping and information services, allowing New Brunswickers to conduct land-based transactions quickly, efficiently, and with good information.” 8 7 Information is taken from A Model for the Year 2000, Daniel Roberge, The New Cadastre in Quebec,1998.

8Source: Service New Brunswick web page, http://www.gov.nb.ca/snb.

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Although Newfoundland is not planning to implement a land titles system, the province is in the process of converting its Registry of Deeds system to an electronic system, including electronic filing of documents. There is a palpable feeling of progress and excitement surrounding the improvements being made to land tenure systems in the Maritimes and elsewhere in Canada. With New Brunswick having adopted a vision similar to the Registry 2000 vision, and with Prince Edward Island not far behind, it is clear that conversion to land titles in an electronic environment was necessary in order to ensure competitiveness with Nova Scotia’s Maritime neighbours. It would be an economic disincentive to be the only Maritime Province without a system which would improve access to information, security of ownership, and transferring and financing of land.

The Reform of Nova Scotia’s Land Registry The Registry 2000 Vision

Maritimers have known for more than 30 years that the Registry of Deeds system of property registration was flawed and unsustainable in the long term. As far back as the early 1970s it was recognized that the existing means of identifying, registering, and cataloguing land details was obstructing the natural flow of economic and social development in all three Maritime Provinces9. In 1971, University of New Brunswick Professor H. K. Larsen noted:

...(T)he traditional land registry system did never provide fully adequate services in the first place, it always constituted a highly unsophisticated, incomplete collection, too often riddled with errors and omissions. In any event, there are strong indications that major bottlenecks will develop in the near future if the old system was to continue unchanged... (T)he land registration system will require very considerable staff and facility expansion and improvement in order to cope with (i) the increased tendency to register documents, and (ii) in order to meet the general increase in demand for services. Very considerable procedural and methodological changes will be required to bring the quality of registry services up to an acceptable level. In short, the old system is not considered a viable alternative (neither in terms of its scale or capacity, nor in terms of the standards and methods which it utilizes).10

9 Benefit-Cost Study of the Land Registration and Information (LRIS) Program, P.S. Ross & Partners, April 1977.

10 1971 Economic Study of The Atlantic Provinces Control Survey, Mapping, Land Titles and Data Bank Program Abridged Edition, Professor H. K. Larsen, September 1972.

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In response to these concerns, the Council of Maritime Premiers established the Land Registration and Information System (LRIS) in 1973. The LRIS program was to be implemented in four phases over a ten-year period. Phases I and II involved establishing a co-ordinate survey control network and preparation of urban and resource base maps. Phase III included preparation of property maps and implementation of an improved land tenure system. Phase IV was to be the creation of a Land Data Bank. Phases I, II and the property mapping portion of Phase III were completed in Nova Scotia prior to the adoption of a land titles system. In 1978, in an effort to complete Phase III of the LRIS program and implement a land tenure system in Nova Scotia, the province enacted land titles legislation (the 1978 Land Titles Act). That Act was never proclaimed, in part because stakeholders did not support the proposed changes at that time, and in part because of changes in the government environment. Recommendations for land tenure and records reform continued over the next two decades. In 1989, an intergovernmental Land Registry Committee, chaired by the Department of the Attorney General (as it was called then) considered how best to reform the land registry system in Nova Scotia. The committee’s report, The Land Registry System in Nova Scotia11, released in January 1990, again recommended a move to land titles and once again this recommendation was not implemented. This is not to say that the other changes recommended by the 1990 Land Registry Committee report were also ignored – in fact, the opposite is true. The majority of the other suggestions for improvement were implemented over the next 10 years. This ongoing effort to improve the administrative and technical environment has built a strong foundation for a modernized land tenure system. By the late1990s, many of the administrative and structural changes recommended in the 1990 report had been implemented, with the significant exception of the introduction of a land titles system for Nova Scotia. Although past studies and research all supported this legislative change, prior efforts to implement land titles failed primarily because systems users and key stakeholder groups such as lawyers did not support the change. In the mid 1990s, this reluctance began to diminish and interest in electronic improvements to the system increased. Users and stakeholders began to ask for changes to the system. In 1996, the Nova Scotia Department of Housing and Municipal Affairs and the Nova Scotia Barristers’ Society (NSBS) established a joint liaison committee to identify and resolve issues of mutual concern. The committee identified reform of real property legislation as a priority issue and began discussions about the need to modernize the real property system in Nova Scotia. Throughout 1997 and 1998, this liaison committee sponsored several workshops to identify the needs and concerns of real property system users. These workshops brought together many of the major users of the current system including lawyers, surveyors, title searchers, realtors, bankers, representatives of

11 See Footnote 10.

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municipalities and provincial government departments, educators, staff, and interested individuals. The findings of these workshops were summarized in a document entitled Business Area Analysis for the Registry 2000 Initiative, which was published in February 199812. The consensus of these workshops was that Nova Scotia’s antiquated real property system should be modernized and streamlined over the next several years. Key features to be included in any new system were:

• integrated access to all land related information; and • full electronic registration and access capabilities.

The Business Area Analysis provided more than 40 recommendations to improve the purchase and sale of real property and mortgage refinancing. One of the major recommendations of this report was a repetition of the call for migration to a land titles environment. This time the call was supported by the system stakeholders. With the release of the Business Area Analysis report, the liaison committee began to plan in earnest for the implementation of a registry reform project – Registry 2000. The committee prepared a Registry 2000 Strategy Paper13 which outlined the purpose of the project and a preliminary time line for implementation as well as next steps to be taken. This document was circulated to stakeholders in the winter of 1998 -1999 to help build momentum for the changes proposed by the Registry 2000 Project outline. On January 22, 1999, the governing council of the NSBS passed a resolution to endorse the vision for reform of the real property system as advanced in the Registry 2000 strategy paper, and to encourage the government to proceed with Phase One of the Registry 2000 project. The council further resolved that the Society would:

...take a leadership role and all necessary steps to encourage appropriate private sector participation and support for the initiative.14

The Association of Nova Scotia Land Surveyors also endorsed the vision for land registry reform. At the same time as the liaison committee was working to garner stakeholder support for the Registry 2000 initiative, a review of land titles legislation across Canada and elsewhere in the world was commissioned by the Department of Housing and Municipal Affairs. DHMA contracted with an experienced real property lawyer, Garth Gordon, QC, to provide an evaluation of legislative options. The Gordon Report,

12Business Area Analysis for the Registry 2000 Initiative, NovaLIS Technologies, February 1998.

13 Registry 2000: Moving Nova Scotia’s Real Property System into the Next Millennium, Department of Housing and Municipal Affairs and Nova Scotia Barristers’ Society Liaison Committee, November 1998.

14 Resolution in support of Registry 2000, Passed by Bar Council, Nova Scotia Barristers’ Society Council, January 22, 1999. See Appendix B for full text of this resolution.

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officially entitled Review of Land Titles Legislation15, was received in February 1999 and recommended implementation of a land titles system which would bring together all information related to a parcel of land in a unique electronically accessible register. This report was also widely circulated to stimulate discussion and invite input. After receiving positive feedback from stakeholders about both the Gordon Report and the Registry 2000 Strategy Paper, the Department of Housing and Municipal Affairs sought approval from the Priorities and Planning Secretariat to launch Phase One of the Registry 2000 initiative. In March 1999, Priorities and Planning gave approval for Phase One of the Registry 2000 project. Steps taken since then include:

• Establishment of a Legislative Review Committee; • Preparation of a discussion document in legislative form; • Creation of the Registry 2000 Project team; • Completion of an extensive consultation process; • Review of business processes; • Analysis of systems and property transaction costs; • Review of implementation options; and • Development of recommendations for government.

In May 1999, the Department of Housing and Municipal Affairs, working in partnership with the NSBS, established the Legislative Review Committee to undertake research and assess options for modernization of the land tenure system. The committee was created as a joint committee of the NSBS and the Department of Housing and Municipal Affairs and drew additional members from the Association of Nova Scotia Land Surveyors and the Departments of Justice and Natural Resources. Its mandate was to develop the legislative framework for a modernized system of registration of title to land in Nova Scotia and a discussion document for review and circulation to stakeholders. On January 13, 2000, the Discussion Paper on a Land Registration Act for Nova Scotia was publicly released for comment. The Legislative Review Committee recommended that Nova Scotia embrace land titles and an e-commerce approach to doing business – integrated access to land-related information and fully electronic E-submission and access. This would entail moving from the historic paper-based repository in which users undertake manual searches of records to determine legal ownership of land to a parcel-based land titles system in which the ownership, as registered, is guaranteed and access to records and registry information is provided electronically. This recommendation echoed similar calls for reform dating back to the establishment of the Land Registration and Information Service (LRIS) by the Council of Maritime

15 Review of Land Titles Legislation for the Nova Scotia Department of Housing and Municipal Affairs, Garth Gordon, QC, February 1999.

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Premiers in 1973 and the enactment of the Land Titles Act of 1978 (unproclaimed). Indeed, reform of Nova Scotia’s registry system into a land titles system was proposed as early as1904, when Nova Scotia’s first Land Titles Act was proclaimed. In 2001, the Nova Scotia Government committed to the Registry 2000 Vision, the implementation of a modernized land tenure system which:

• guarantees basic ownership rights through a land titles regime; • provides easy access to all public records relating to land parcels; and • facilitates electronic access to, and registration of, land related

information. Six years later, the Land Registration Act (LRA) is implemented, 25% of all of Nova Scotia’s land parcels are converted to land titles, over 60% of all land records held in 18 counties have been scanned or digitized and are accessible online, 30% of all documents are being E-submitted to the land registries and over 600 authorized lawyers are working in the modernized land registry. Halifax County and Pictou County Land Registration Offices (LRO) will be 100% electronically accessible by October 2007, with the remaining counties moving quickly to this concept over the next two to three years. Nova Scotia’s web-based subscription query service, Property Online, which provided access to basic property ownership and related information in 1998, has transformed into Nova Scotia’s E-Land Registry. The service which includes access to over 60% of Nova Scotia document records and a large set of related land records now includes the ability to E-submit land documents from anywhere to any county LRO. E-submission is a significant step in the evolution of the Nova Scotia modernized land registration system, with the ultimate goal of creating a seamless, comprehensive and efficient online registry of land information. This innovative new system was designed in close consultation with real property lawyers, land surveyors, legal support staff, the NSBS, and lenders. E-submission provisions enabled by the LRA

The Land Registration Act16 was crafted so as to permit and enable electronic submission of documents. The definition of “document” under the Act has a wide application:

3(1)(c) “document” means a writing, a plan, a map or any information in a form that can be converted into a writing, a plan or a map by a machine or a device, and includes information

16S.N.S. 2001, c. 6, as amended

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(i) on microfilm, (ii) in electronic, mechanical or magnetic storage, or

(iii) in electronic data signals.

The regulation-making authority under the LRA is split between the Governor in Council and the Minister of Service Nova Scotia and Municipal Relations (formerly the Department of Housing and Municipal Affairs). Fees and registration districts are set by Cabinet. The day-to-day operation of the system is handled via Minister’s regulations.17 The Minister’s authority extends to electronic document submission as follows:

94(j) prescribing the manner in which documents may be electronically registered or recorded18;

(k) prescribing the manner in which electronically registered or recorded documents may be verified, including the use of digital signatures of the parties or of the official completing the certificate of execution or any other certification authorized by this Act or any affidavit included in the instrument or authorized by this Act;

(l) requiring some or all documents in some or all registries to be submitted for registration or recording in electronic or other form;

(m) respecting any matter necessary to accommodate changes in technology. This gives flexibility on prescribing the form of electronic document submission in the current technological environment and into the future. Title is updated in Nova Scotia’s land titles system on the instructions and certification of lawyers who are authorized by the NSBS and the Department to register documents and certify title to the system. Ownership transfers require a Certificate of Legal Effect from a lawyer19. This certification was extended to the electronic submission of all documents and soon will be required for all paper submissions to the LRO as well. It should be noted that in Nova Scotia, electronic document submission is undertaken but the acceptability of the submissions is still vetted by staff. Lawyers do not alter title

17 Land Registration Act Sections 93 and 94.

18The Land Registration Act creates a system of document registration and recording, whereby ownership transfers are registered (guaranteed by the system) but all other interests are recorded (posted in the title register but the system makes no guarantee of the validity or effect of recorded interests such as mortgages and leases). References in this paper to registration of documents include registration and recording, depending on the type of document submitted.

19 The CLE certifies the content and appropriateness of title updates.

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directly in electronic or paper format. Documents are submitted with instructions from the lawyers but staff registers the documents. E-submission and the Land Registration Administration Regulations

As set out in the LRA, the Minister’s regulations20 flesh out the electronic submission requirements and logistics for authorized lawyers and lenders.21

Section 6 of the Land Registration Administration Regulations provides as follows: Electronic document submission

6 (1) To the extent permitted by Property Online, an authorized lawyer may submit a document electronically for registration or recording in a roll or register which has been established under the Act.

(2) To the extent permitted by Property Online, an authorized lender may

submit a mortgage or a release of mortgage electronically for recording, with respect to a parcel that has been registered under the Act.

(3) Except where the Act or the regulations state otherwise, a document

submitted electronically and in accordance with the Act and the regulations has the same effect for all purposes as a document that is submitted non-electronically and in accordance with the Act and the regulations.

(4) Subject to Property Online availability, a document may be submitted

electronically at any time in accordance with the regulations, but is processed during the hours the land registration office is open to the public.

(5) A document that is submitted electronically must be reviewed by the

registrar prior to registration or recording, and is subject to the registration and recording requirements of the Act and regulations.

20Land Registration Administration Regulations, N.S. Reg. 186/2007 (March 23, 2007, effective April 3, 2007)

21 An authorized lawyer is an insured NSBS member who has completed the Society’s Real Property Education program and who is subject to the Property Online user agreement and pre-authorized debit agreements with the Province. An authorized lender is a chartered bank, trust company, credit union or Provincial government lender that is subject to the Property Online user agreement and pre-authorized debit agreements with the Province.

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(6) Once it has been registered or recorded, a document submitted electronically is deemed to have been received and indexed by the registrar at the time of submission.

(7) Electronic submission of a document is effected by submitting electronically

(a) the form prescribed for that purpose in Section 4, with all required

fields completed; (b) a scanned copy of the duly executed affidavit of value, if required

under the Municipal Government Act; and

(c) a scanned copy of the duly executed original document in portable document format, no larger than 4 megabytes (MB).

(8) The authorized lawyer or authorized lender who submits a document

electronically is responsible for the creation, quality and completeness of the electronic image of the document.

(9) The authorized lawyer or authorized lender who submits a document

electronically is required to retain either an original or true copy of the executed document and make it available for review by the Registrar General upon request and, if an authorized lawyer, for audit by the Nova Scotia Barristers’ Society.

The Evolution of E-submission in Nova Scotia Design and Development

In 2003-2004, Service Nova Scotia and Municipal Relations worked with an implementation partner, Sierra Systems and system developer, CARIS, as well as the NSBS and the Nova Scotia Department of Finance, to design and develop the E-payment and E-submission modules used today22. While Nova Scotia was looking for an E-submission solution, New Brunswick was working with CARIS to develop an E-submission module as part of their core software. The needs of the two provinces were somewhat different as New Brunswick had adopted standard forms many years ago, while Nova Scotia did not have standard form documents. The two provinces had one key requirement in common: the need for software to easily integrate the electronic forms with a back end Oracle database. In addition, Nova Scotia required that the solution be easy to use by real property lawyers and work well with the existing provincial financial systems.

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Both PureEdge and Adobe were evaluated and in the end, PureEdge 6.2 (now IBM Workplace Forms) was chosen based on its ability to the meet requirements, the associated cost advantages, and the flexibility of the forms to enable use in other areas of government business. Nova Scotia was also looking for a module that would allow for enhancements and additional forms to be developed in-house while having the ability to connect to the core modules in the Land Information Network-Nova Scotia (LIN-NS). CARIS provided superb support in the enhancements to the core modules in LIN-NS and Property Online to align the internal and external applications to work with and communicate with the E-forms. E-forms to accommodate the submission of deeds, mortgages and releases were developed initially as these documents made up over 70% of the document volumes. Nova Scotia did not intend to have the signed document also submitted to the Land Registry. The E-form was intended to provide a mechanism for the authorized lawyer to state the legal effect of a document, and the registration of the form would result in the updating of the affected parcel register. Prior to the final design, the NSBS objected strongly to the E-form not containing a signed version of the document23. The design was changed and the E-forms and LIN-NS functionality were able to accommodate embedded attachments, a PDF of the signed document image.

In order to have electronic submission of documents, the electronic funds transfer was needed to accept payment for registration fees and deed transfer tax; Nova Scotia then developed a solution which provided service convenience for the client, administration efficiency for the department, and accuracy and audit ability.

Two approaches to electronic payment were considered: payment in advance of the

transaction and payment after the transaction is complete. Nova Scotia went with the latter and worked with the financial managers of law firms and the Nova Scotia Department of Finance to align the front and back end processes. The provincial Systems Applications and Products (SAP) system was enhanced to accommodate the E-payment process for Land Registry and lead the way in E-payment for the Nova Scotia Government. The NSBS amended its regulations to allow for a second trust account, which Nova Scotia’s SAP system would electronically debit by pre-authorization, for the registration and deed transfer tax fees. Law firms transfer the funds to cover each transaction from the main trust account to the second trust account for electronic transfer of funds purposes.

E-Payment was implemented in early 2005, first for payment of monthly fees for online access to the Land Registry, then later in the same year as part of the E-submission pilot

23 The NSBS objection related to the fact that under the LRA, recorded interests are not guaranteed by the Province and “freedom of drafting” was enshrined by not having standard form documents, thus making perusal of the entire interest vital to the Society and many of its members.

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to accommodate the electronic payment of document registration fees and deed transfer tax.

The electronic funds process is a common method for bill payment; as consumers are familiar with the process, conversion to this method of payment was without significant controversy. E-payment is the predominant method of payment used24 for the monthly fee for online access to title records. Over a period of nine months, 1,000 clients were migrated to the pre-authorized debit E-payment method. A pilot which involved 11 law firms submitting to the Halifax County LRO was run for one year before province-wide implementation of E-submission. The use of E-submission functionality was voluntary and within six months, the percentage of E-submitted documents increased from less than one per cent to 30%. Lawyers have had to submit an electronic application to convert title to the new system since 2003, so all authorized lawyers working in the system were familiar with the electronic submission process already. Increased functionality in the E-forms and the ability to submit an additional 30 document types using the three existing forms sparked a small increase in use of the forms over the past year.

In April 2007, the functionality for E-submission of judgments as well as traditional Registry of Deeds documents was added. Throughout the pilot period, prior to provincial implementation and in preparation for any significant E-submission enhancements, training was provided by the province for lawyers and legal assistants. A series of online tutorials was developed by the government to provide easy self-help for lawyers and their assistants and to assist in the training of staff in large law firms. The NSBS also partnered with the digital printing initiative, Print on Demand (PODi), to provide much needed information on how to set up a law firm for electronic file storage and E-submission to lawyers across the province. PODi is a not-for-profit market education and development consortium sponsored by leading vendors and service providers in the digital printing market. PODi fosters the growth of the digital printing industry through market and standards development activities. Much of the reluctance to use the E-submission functionality proved to be the lack of familiarity with the hardware set-up for scanners, document storage, and related changes in office workflow required in order to make the E-submission process as efficient as possible.

Currently, over 95% (164,300) of all documents are able to be E-submitted to Nova Scotia’s 18 LROs, while only 30% (49,300) of documents are being E-submitted voluntarily. The rate of voluntary E-submission is impressive compared to other areas in 24 Some non-profit organizations and federal government departments are not able to use pre-authorized debit, so a very small percentage of Property Online users are still submitting cheques for monthly usage of the system.

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Canada and around the world, but this rate does not optimize the investment made to date nor the operational savings for government and law firms that would be realized by a much higher use of the system. Recently, when asked why they were not using E-submission, law firms small and large stated several reasons, such as, “It is too busy to change our process, we don’t like the idea of maintaining a separate trust account and we don’t know what hardware/technology we have to acquire.” Generally the feeling is that until they are given a gentle nudge, many law firms will just continue with the paper process.

E-submission and E-Payment: the Process

The authorized lawyer prepares the E-form, which specifies the legal effect of the deed or mortgage release of the mortgage, for instance. Any data which exists in the parcel register and that is required on the E-form is pulled from the live database to eliminate any duplication of keying. Law firm staff scans the original signed document and creates a PDF file which is attached to the E-form upon submission. The digitally signed and encrypted form and attached PDF of the document are submitted to the LRO for the county where the land is located. After review of the E-form and supporting attached document by LRO staff, the form and document are accepted and registered. All relevant database fields are updated automatically upon registration, based on the data provided on the form by the lawyer. At the point of final registration or recording of the document, funds for the registration fees and deed transfer tax are debited via electronic funds transfer from the law firm’s separate trust account and credited to the provincial finance department’s account. The Department of Finance transfers the Deed Transfer Tax collected by the LRO on behalf of the municipalities to the municipalities’ accounts biweekly.

Overall, other than requesting a few minor enhancements to the existing functionality, the lawyers and legal assistants using E-submission of land documents in Nova Scotia find it very efficient and easy. The Role of Lenders

Nova Scotia has been working with lenders across Canada to prepare them for the implementation of E-submission. Lenders will be authorized to submit releases, mortgages, and related documents such as amendments, assignments, renewals and postponements. As with authorized lawyers, lenders will be required to sign an agreement with the Minister of Service Nova Scotia and Municipal Relations and will be able to have a maximum of 10 employees authorized to submit releases and related documents electronically to the Land Registry.

September 2007 18

Whereas lawyers’ liability for errors is enshrined in the LRA25, it is the lenders’ user agreement with the Province that establishes their responsibility for errors. Nova Scotia has recently finalized the Authorized Lender Agreement and will be communicating to lenders in the fall of 2007 regarding the process to begin E-submitting mortgage related documents. One of the issues that the Nova Scotia government and the NSBS are hoping will be addressed by lenders being able to E-submit their documents is the time lag between mortgages being released and the release being recorded. Some banks in Canada are stating that this time lag will be reduced to 30 days if they are able to use E-submission. Today, mortgage releases are being filed in some cases many months and even years later. Tardiness of mortgage release recording creates a number of problems such as preventing efficient dealings with the land parcel, increasing the risk of real estate fraud, and compromising the clarity of title intended with the system.

Section 63 of the LRA allows the registered owner to challenge the recorded interest and have the Registrar release the interest if uncontested, but this process takes 60 days and creates further delays at closings.

Once electronic submission of documents by lenders is implemented, and if Nova Scotia does not see a marked improvement in the time period between the payout and release, the Land Registration Act may be amended to allow a notice of release to be filed by the lawyer once the payout proof has been received, which will effectively release the security interest.

The Positive Impact on Clients and Government Client Benefits

The E-submission process offers several benefits to the law firm or practising lawyer but the most significant benefit reported is the absolute control of the document from the time of initial submission to the final registration. During the first step of the submission process, the lawyer can see and track the document process online. As well, the need for

25 See subsection 37(11). A qualified solicitor is liable to the Registrar General with respect to any negligent error or omission in an opinion furnished pursuant to this Section if the Registrar General has, within 10 years after the opinion was furnished to the Registrar General, been required to pay compensation pursuant to this Act as a result of the negligent error or omission. Also subsection 18(7): The solicitor who signed the certificate of legal effect is liable to the Registrar General with respect to any negligent error or omission in the certificate of legal effect if the Registrar General has been required to pay compensation pursuant to this Act as a result of the negligent error or omission in the certificate within 10 years after the date of the certificate.

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a courier or runner to pick up and deliver paper documents to the LRO is eliminated. The submission and registration process is faster and easier as data entered into the E-forms is also populated in other areas, such as the Deed Transfer Affidavit, to eliminate duplicate keying and reduce the chance of errors. Additional error checking and business rules are built into the E-forms to further reduce error.

The percentage of rejection of E-forms and related documents is significantly less than paper submissions. If there is a rejection, the law firm is notified immediately through an e-notice and can re-submit with the correction right away. Law firms anywhere can submit to any county in Nova Scotia without concern for time lags created by the traditional process that meant they had to courier and wait for the registration of paper documents. The days of lawyers working within one county have been gone for a while, but E-submission moves Nova Scotia very quickly to essentially one registration district; lawyers in any county can submit documents to any county within the same amount of time. Lawyers using E-submission no longer have to be concerned with the gap that is created between the final online subsearch at their office and the time it takes for the document to arrive at the county LRO. With E-submission, the subsearch is done online and then within seconds, the document is submitted and is safely in the queue with no chance of a competing interest being ahead of it.

The reduction in time to process E-submitted documents at the LRO, as opposed to paper, results in a much faster process so the lawyer is able to close a file much more quickly. Finally, the entire E-submission process facilitates and encourages a streamlined and easier approach to document and file management within a law firm. Privacy, security and real estate fraud issues are currently on the forefront with the NSBS and the Nova Scotia Government. There is also a focus on setting standards for safe and secure electronic document storage for law firms.

LRO Operational Benefits

Efficiencies and time savings created for both the front and back counter processes at the LRO result in a much better turnaround for document registration processes. The elimination of paper and acceptance of electronic payment cuts several processes within the LRO and creates capacity to focus on more pressing priorities. Handling and tracking paper documents, scanning and image quality control, indexing and generation of receipts, financial reconciliation of funds and mail back of documents are eliminated at the LRO. The same benefits that law firms enjoy with respect to the error checking and elimination of duplicate keying also saves the LRO staff time as each rejection of a document creates three added steps for staff.

One of the most significant benefits is the ability to share work loads across regions. The Nova Scotia government has committed to delivering its programs and services in all regions, including maintaining service centers in each of 18 counties. Some of the 18 county LROs staff one to two people in order to keep an office open but the volume of work coming into those offices sometimes does not justify the human resources allocated to the center. E-submission functionality allows staff from any county to process

September 2007 20

documents submitted to any other county, enabling consistent work load and turnaround standards. Existing human resources capacity can be applied to other areas of priority within the management of the land registry, such as improvements to quality assurance and the ongoing modernization of the land programs, or allow options for integrated program delivery in remote service centers.

Program Benefits

The E-submission of land documents to the LROs moves the Land and Property Programs agenda forward on many fronts. A key benefit is the reduction in risk of real estate fraud. The decrease in paper submission reduces the risk of real estate fraud as the program authority has much more control over who is submitting the documents. With the paper submission process, the client number is checked by LRO staff to ensure it matches an authorized submitter, but fraudulently created or tampered forms and documents could go unnoticed at the front counter of an LRO.

The ease of use and reduction in errors offered by E-forms reduces exposure to compensation claims. As described in “Operational Benefits,” above, huge savings in document processing time creates human resource capacity which can be applied to support quality assurance and ongoing improvement of the land programs, thus further reducing the government’s exposure to compensation claims. E-forms provide an increased level of security over that which is used for the land titles conversion application, the Application for Registration, because the E-forms are tamper-proof and any attempted alteration will invalidate the form. Across Canada and around the world, end-to-end processes including lawyer-to-lawyer and to the lender are being completed 100% electronically. The implementation of E-submission moves Nova Scotia closer to this full end-to-end process. Of course, the increased reliance on technology for both the government and clients using the Land Registry has resulted in the need for increased investment in IT Service Continuity. Nova Scotia has been focusing the business continuity efforts over the past several years on the IT infrastructure, application and data server backup, quick recovery and 100% redundancy. Reverting back to paper in the event of a system failure is not a logical solution for many of the registration processes as the entire system relies on the currency of electronic indices in order to safely submit land documents and completed real estate transactions. However, if there is an isolated interruption in power, IT or building infrastructure in one or more sites, E-submission prevents any interruption in service as these documents can be processed from any other site anywhere in the province at a moment’s notice.

September 2007 21

The Future of E-Submission in Nova Scotia The Current Situation and Expected Increase in E-Submission

Today in Nova Scotia, 30% (49,300) of all documents are voluntarily E-submitted and 30% of Nova Scotia law firms are using E-submission (66 of 224). This includes a total of 168 authorized lawyers out of 613 authorized lawyers practicing in the province26. The law firms using the E-submission process are roughly a 50/50 urban/rural split and 50/50 small and large firms. Eighty percent of the total volume of documents being E-submitted is being submitted by 25 lawyers.

Nova Scotia is investigating the implementation of mandatory E-submission and is considering a November 2007 to February 2008 staged roll out. Since the implementation of the pilot in 2005 and province-wide availability of the E-submission process in 2006, lawyers have been told that E-submission would be mandatory at some point. The Nova Scotia Government committed to a mature system that had the desired functionality in place and was accepted and preferred by law firms over paper submission. The government had also committed to allow at least a four-month ramp-up time for law firms and to implement in the slower months of the year.

Mandatory E-submission means all authorized lawyers must E-submit where the functionality exists. Approximately six per cent of all documents cannot be E-submitted today. These are more complicated and rare scenarios which are not supported by the E-forms or require multiple documents to be submitted together where one of the batch cannot be E-submitted. In time, some of these may be accommodated in the system but it is expected that there will always be a few paper documents being submitted to Nova Scotia’s land registry or, at best, the paper cover form and document submitted as a PDF of a scanned image.

The only other exception is where the law firm does not have access to high speed internet. Currently there are 10 authorized lawyers operating in remote rural areas using dial-up. Those using dial-up will experience extremely poor performance creating and submitting the E-forms and documents.

E-submission as a Fraud Prevention Mechanism

Fraud is not as prevalent as what people are led to believe by the media. A few cases in Canada have had very detrimental results for the property owner. In Nova Scotia, the compensation claim fund comes into play differently than in Ontario. In Nova Scotia pay-out is the first resort and not the last resort.

26 There are 613 lawyers who are authorized, but many more lawyers in Nova Scotia who may practice real property law on a much smaller scale and who may do some transactions in the traditional registry system but who do not work in the new land titles system.

September 2007 22

Fraud has been committed by use of forged transfers or when a third party transfers property, gets a fake release and then goes to a bank to get a new mortgage.

A person committing fraud does not have to be in Nova Scotia or Canada. Anyone around the world who has access to the internet can access Property Online using a username and password. A number of controls have been put in place in Nova Scotia to reduce the risk of fraud, privacy, and security issues within Nova Scotia. Authorized Users are a defined group who must meet certain criteria with certain privileges. Authorized lawyers can submit Parcel Descriptions and Applications for Registration; Nova Scotia Land Surveyors can submit parcel Descriptions. Only authorized lawyers and authorized lenders will be able to E-submit documents. Authorized lawyers are permitted to submit all documents that the system allows, while authorized lenders can submit only mortgage and mortgage related documents. The biggest exposure to fraud is in paper document submission. E-submission eliminates this exposure.

Moving to Authentication PKI

Nova Scotia is in the process of an initial investigation of public key infrastructures (PKI) solutions; the cost, implications for the existing infrastructure, software, interfaces and support requirements. The Internet and the move to electronic transactions have raised numerous concerns around the confidentiality of transactions. There is a need to identity and verify the sender and recipient and to prevent tampering with and falsification of transactions. The solution to these concerns is a public key infrastructure. Digital signature certificates offer:

• technical and legal guarantees; • confidentiality of the electronic transaction; and • the sender's identity.

With the increasing move across the country to full electronic transactions involving lawyers and lenders, including electronic fund transfer between all parties, Nova Scotia must keep up with these changes. The PKI infrastructure guarantees its members and other clients absolute security and confidentiality in their electronic transactions and communications. One of the main responsibilities of a PKI service provider is the issuance of certificates containing previously verified information confirming the identity of the key and certificate holder. It also distributes and manages keys and certificates to users whose identity have been adequately verified. A certification authority is one of the main components of a public key infrastructure and is a trusted third party responsible for issuing digital certificates and managing them. In Nova Scotia, as in Quebec, the logical candidate to be the trusted third party is the barristers’ society. Digital certificates are electronic files that contain the user’s public key and specific identifying information. The certification authority certifies that the

September 2007 23

person who has been issued a digital certificate is indeed who he or she claims to be. PKI service providers issue and manage the certificates. With this type of system, governing bodies can manage the process without managing the infrastructure or investing in the infrastructure. Once a solution is found, many areas of government and private business in Nova Scotia will potentially benefit.

E-Submission: The Next Three Years

Service Nova Scotia and Municipal Relations will continue to work closely with the NSBS and CARIS to enhance and improve Nova Scotia’s E-Submission system and related processes. Five additional E-forms will be developed over the next two years; this year, standard form documents will be investigated for some of the transactions, such as deeds and mortgage releases, to avoid the continued need to submit a PDF of the signed document image. In the very near future there will be a decision on an authentication solution, the move to electronic submission of subdivision plans, and an increased use of Geographic Information Systems to depict and illustrate land interests. The Nova Scotia government will continue to support its commitment to a modernized land tenure system which guarantees basic ownership rights through a land titles regime, provides easy access to all public records relating to land parcels, and facilitates electronic access to, and registration of, land related information.

The Technology

Perspective

E-submission of Land Documents

Nova Scotia

in

September 2007

September 2007 25

E-submission of Land Documents in Nova Scotia:

The Technology Perspective History of CARIS Land Information Systems

The demand for improved access to land information has increased dramatically in recent years. Land agencies around the world are recognizing the need for a modern cadastral and registry system capable of integrating computer systems, streamlining land records business functions, improving access to information by citizens, and reducing administrative costs. CARIS, a privately held Canadian company with its head office in Fredericton, New Brunswick, Canada, has been carrying out Land Information System consulting, system implementation and software development projects for 28 years. This work has resulted in solutions that include stand-alone applications, incorporation of third-party products, distributed database design and implementation, and internet applications with large numbers of on-line users. The company has grown to include offices in the Netherlands, the United States, Australia, and the United Kingdom. CARIS began developing cadastral-based solutions in 1983. In the early 1990s, focus began to change from data capture to data delivery. In 1996 CARIS introduced the Real Property Information Internet Service. In 1999, CARIS introduced its Land Information Network (LIN), an information system supporting Land Registry and Land Titles. The overall result of this experience and technology is that CARIS is able to provide an integrated Cadastre/Land Registry/Land Titles solution that is open, adaptable, and transparent. CARIS recognizes that implementing a new technology is often a significant undertaking. There are many factors involved that must be addressed in order to ensure a smooth implementation. Leveraging the combined resources of experienced implementation consultants, sound project management methodology and CARIS’ network of business partners, it is CARIS’ goal to ensure that there is a seamless transition from existing implementations to a modern integrated cadastral and registry information system. CARIS works with clients to ensure that the solution matches the business practices. CARIS LIN was designed to be open and adaptable by recognizing clients’ needs and investments.

September 2007 26

Working with Service Nova Scotia over the past seven years, CARIS has developed a strong, long-term relationship and continues to support Service Nova Scotia in its goals for a fully modernized and comprehensive land registration system. Nova Scotia’s Property Online and New Brunswick’s PLANET applications are both highly specialized and customized applications of CARIS LIN.

Overview of CARIS LIN

CARIS LIN is the answer to the complexities of managing land ownership. It is an integrated information services application that replaces the traditional paper-based system with a system that uses the latest internet technologies. CARIS LIN can meet all data collection and distribution needs regarding land information. As a complete solution, CARIS LIN is the best option available to agencies looking to modernize their real property registries. This proven technology was developed in close cooperation with a number of government agencies under a rigorous schedule intent on satisfying their agenda towards a complete, world class Land Management Business solution. CARIS LIN provides a solution that dramatically increases the efficiencies involved in the recording, storage, and dissemination of land ownership information. This is accomplished by streamlining and automating the workflows and business rules involved in the processing of land records. Moreover, the increased efficiencies reduce the time involved in processing a document from what is traditionally weeks to near real time.

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The external access mechanisms built into the system provide a value-added service so that land registry staff, customers, and corporate entities can retrieve this real time registry information through the Intranet and Internet. In contrast with client-server land information systems, CARIS LIN provides real-time access to data using cost-effective, leading edge internet/intranet-based technologies. CARIS LIN uses an advanced ORACLE database to provide a central repository of textual land attribute data. This allows for fast and reliable maintenance of textual land attribute information such as ownership information, assessment information, land use, charges against the land, and financing. CARIS LIN has also been designed to be compatible with other CARIS software. CARIS LIN can be easily linked to both a Geographic Information System (GIS) for digital mapping and a land registration system. The GIS provides for the maintenance and updating of digital mapping data while the land registration system provides for the maintenance and updating of land registration data. The information contained in these databases will be automatically updated from each other, making them more accurate and reliable than in the past. And because all of this information will be integrated, finding important information will be easier and faster. The real property information suite of products will provide the complete package for your property registration needs. General System Overview

The core components of CARIS LIN have a variety of functions. However, its primary function is as a complete software solution for managing information related to formalizing property rights and for automating the business processes involved in the transfer of those rights.

As a secondary function, CARIS LIN provides a means for the collection, storage, and retrieval of a variety of other land information associated with the same units of land affected by those formalized rights. This information typically includes (but is not limited to): property assessment information, taxation authority, descriptive properties of the land unit, further land owner information, and relationships associated with other units of land. The system is centrally housed, distributed through an organization’s intranet, and comes complete with full administrative controls via an easy to use web interface. CARIS LIN components include technological characteristics, clients/users, attributes, data entry capabilities, maintenance capabilities, query capabilities, report capabilities, customization options, security measures, and links to other compatible CARIS software. All of these components come together to give a complete and sophisticated land information system.

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CARIS LIN Modules

CARIS LIN has been structured as a series of modules. This allows clients to utilize a phased-in approach during implementation to realize results in practical time frames. With an open architecture system structure, add-on modules can be acquired and customized to reflect the property laws and customs of the jurisdiction, whether it is a deed-based registry or parcel-based land system. It allows the client to acquire technology that meets an immediate need or budget. Clients will see results quickly, and will not have to wait for years to realize benefits from the new land information system.

Registration Index Land registration is a process of officially recording rights to land through deeds or as titles on properties. It means that there is an official record (land registry) of rights to land or of deeds concerning changes in the legal situation of defined units of land. Within the context of CARIS solutions, CARIS LIN supports deeds-based registries and land titles, as well as the migration from deeds to titles.

Registry of Deeds: • Names-based registry • Queries of documents based on names • Registration of traditional instruments (documents and plans) • Electronic submission capability

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Land Titles Registry: • Land Titles System • Parcel-based queries • Electronic submission capability

Land Management

• Uniquely identifies and manages individual parcels of land • Supports spatial referencing against land parcels • A collection of forms that allows the user to maintain attributes tied to a parcel

User Administration

• Based on a client/user setup • Application security is handled in a matrix that is simple to maintain by the

system administrator • Clients have the ability to maintain their own users

Internet Browser

• Provides access to Digital Property Mapping • Allows real-time access to property attribute information • Online searching of Grantor/Grantee index • Meets industry standards for Internet mapping (OGC Compliant)

Electronic Submission of Documents

• Allows traditional documents, such as deeds and mortgages, to be electronically submitted over the internet as well as other jurisdiction specific documents

• E-submission of parcel descriptions and applications for registration Land Gazette

• This module provides a gateway to, or notice of, other land information, which may impact the use of the land. Other government or municipal departments, such as the Department of Environment, typically provide this information

• It is a repository of permanent and temporary land-related notices and associated information

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Parcel Description

• Associates a parcel ID with a textual description • Contains/tracks the current and historical versions of a parcel description • One of the fundamental components of a parcel-based registration system • Online submission capability

Archiving Module

• Automatic archiving of reports, log files, and journal tables • Tracks the storage of physical archived media • Frees up essential memory and disk space • Manages all files via back-end processes and cleans up the Oracle database to

reflect the archived items

Document and Plan Imaging Repository

• Allows scanned images to be viewed by the public over the internet • Supports multiple image formats • Provides image format conversion routines • Integrated quality control procedures

Security Module

• Provides security administration to CARIS LIN modules • Integrated security matrix provides access control • Flexible, allows system administrators to maintain the roles and privileges of

users Financial Front Counter

• The Financial Front Counter module supports the “store front” operations of a registry office as it relates to the fees charged for services and products

• The information relating to documents processed and other transactions is passed to the Financial Module, which will in turn calculate the fees due along with any applicable taxes

• Any additional registry services (search, photocopy fees, etc.) can be added to the customer total. The financial module will record the various payment methods and generate the appropriate General Ledger entries

• The Financial Module has been designed to be interfaced with a back-end accounting package such as SAP and JD Edwards

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Electronic Submission Process Flow

The Electronic Submission module allows authorized Property Online users to create and submit electronic forms for registration with the Land Registration Office. Transfers, mortgages and releases or discharges of mortgages are able to be e-submitted. These three forms eliminate the majority of paper documents, approximately 75%, filed in provincial registry offices. E-submission of judgments as well as Traditional Registry of Deeds documents is also available.

This functionality facilitates the legal processes involved with the transfer of interests of real property as it offers an additional service to the external legal authorities involved in real property transactions by allowing the submission of real property related documents from anywhere on the internet. The following diagram illustrates the high-level system process flow for all E-submission components. Acronyms: POL - Property Online EFT - Electronic Funds Transfer PDF - Portable Document Format PIH - Parcel Interest Holder SRI - Statement of Registered and Recorded Interests LR - Land Registration

1. E - submission Work Area

2. Create a New E - form

4. Validate E-form and

Display Errors

11. Notification Reports Screen

7a. Auto - Index the E - form

(i.e. document)

6. On - screen Notice of Receipt

8. Review PIH Changes in

Maintain LR Docs

9. Send Notification of

Rejection

10. Send SRI (approval notice)

Register

Reject

12. E 12. E - - Payment Payment Process Process

3. Modify a Draft e - Form

7c. Generate PDF of E - form

Start Start POL Main Menu

5. Review E-form & EFT Amt, add Password & Sign

Submit

7b. Send E -sub Notification of

Receipt

September 2007 32

E-submission Worksheet/Area

The Electronic Submission worksheet/area is used by authorized users to create and submit new electronic land registration forms. It displays forms that are in process and allows the user to modify these forms until they are successfully submitted. The worksheet lists the document name, document type, and creation date. One can also link to Land Titles and Registry of Deeds Notification from this screen. The worksheet can also be set up to show documents by the stage they’re in, if the process involves more than one stage, e.g. in process, indexed, or registered.

CARIS LIN has the flexibility of interfacing to external E-submission forms. In the case of Nova Scotia, the data design included E-submission tables that reside in a database schema separate from the existing schema. Parcel registration data captured on Pure Edge XML e-forms will be saved to the E-submission schema in the database. SNSMR staff will review the parcel register changes requested by the submitter and choose to approve or reject the changes. Only on approval of the E-submission (i.e. registration) will data in the E-submission schema be copied to the corresponding database parcel register tables.

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Security and Account Generation

System administrators are able to establish accounts for staff and clients based on a predetermined level of system functionality, as well as on content of data accessed by end-users. CARIS LIN allows the system administrator to create and maintain user accounts, maintain user and registry office staff profiles, view and maintain client usage, control passwords and request reports on subscriber activity. Centralizing the set-up and maintenance of client accounts to one resource minimizes inconsistencies. CARIS LIN administration is based on a role/privilege model. A role is typically associated with a function such as doing a query, updating a record, e-submitting, etc. Depending on the roles assigned to each user, administrators can control functionality and data access for their staff and clients. The principals used by CARIS to support security and accounts are based on:

• Defining business processes that are identified as a series of tasks, such as indexing a document or electronically submitting a document. Authorized user groups have access to information as required for and defined by their business needs.

• Establishing roles that define user privileges, similar to a job description. The

person receiving the privilege must have the legal capacity to receive it. One of the most important security items in an electronic system is who has access to information and who is submitting documents. For example, a lawyer has the legal capacity to authorize submission of an electronic document.

Client information is stored in a centralized location including contact information and the preferred method of payment, either by monthly invoices or electronic payment. The client’s financial accounting contact can be specified in order to receive invoice notices and reports. Account information linking to an external financial application is also stored.

In addition, permanent log files are kept, recording all searches and changes to the database which gives the administrator a means to monitor system usage and make adjustments to the system if necessary.

Billing and E-Payment Functionality

E-payment functionality in CARIS LIN supports the E-submission of land registration documents. CARIS LIN provides a detailed user transaction/accounting functionality that tracks system usage by maintaining logs. Client transactions can be associated to a number of cost models allowing registry and cadastral offices to achieve a sustainable business environment based on the services they provide. Registration costs, search fees, costs associated with electronically submitted documents, and retrieval of electronic documents may be part of the cost model.

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CARIS LIN maintains a detailed data model to allow for flexibility and easy integration of new charging items. The system can create invoices or interface with external accounting systems like JD Edwards or SAP programs to support the electronic funds transfer activity that accompanies the E-submission of documents. The E-submission invoice process runs daily and generates E-submission financial transactions (invoices) for all E-submissions registered during the day. A single invoice is created for all registered E-submissions for a user for that day, regardless of county. For example, if a user has E-submissions registered in three counties that day, only one invoice is generated. If a client has three users with registered E-submissions that day, three separate invoices will be generated – one for each user. The E-submission invoice notifications will be e-mailed to the financial accounting contact for the client.

The Financial Front Counter module can be incorporated to track the collection of cash, checks and credit cards at the registry counter. In addition to taking payments associated with registering documents and/or plans, the ability to manage sales of items such as maps, photocopies, and plots can be configured. It should be noted that the Front Counter Module is not tied physically to a till or cash drawer, but does provide reconciliation functionality to allow staff to tally the cash drawer totals daily. E-submission pre-authorized payment notices can be viewed online by the financial accounting user. Every business process within CARIS LIN can have a cost associated with it. Costs can be adjusted in order to reflect discounts or special conditions for selected users and corporate clients. Electronic Document Statistics and Financial Reports

Statistical and financial reports can be generated based on user supplied filter criteria. Staff can filter on activity by county and/or by subscriber/user for a particular start and end date. Several reports can be generated to summarize the number of electronic documents submitted and the related fees. For example, the E-submission Daily Invoice Summary Report is a report summarizing the E-submission invoices that are automatically created and sent to clients. The report is automatically generated and e-mailed to a specified internal user.

Support of Scanned Records

The Image Repository Module supports the capture, quality assurance, warehousing and access to scanned records. The Image Repository houses and manages scanned versions of the original documents that have been electronically submitted.

The CARIS LIN Image Repository provides the diverse entities within a registry office, and associated departments, with a common data warehouse for their current and future imaging needs. The Image Repository processes provide a solution for the capture, quality control checks, archiving to various media formats, physical lifetime storage, and

September 2007 35

maintenance of all images. Scanning and electronic storage of these documents allows registry offices to secure access to these documents as well as reduce their physical storage needs within the registry office.

User Interface

The CARIS LIN graphical user interface is clear and intuitive, so training costs are negligible and users can begin to use the system with minimal start-up time. It has a customized look and feel based on adaptable headers and toolbars, allowing clients to provide an interface that reflects the jurisdiction’s business environment and corporate branding.

Conclusion

All too often, people get swept up in the technology and forget that effective Land Information Systems need to focus on its regional placement, the jurisdictional needs of the client, the staff using the system, legacy and current business processes and the end-users they are supporting.

CARIS has built CARIS LIN to facilitate the sharing and accessibility of information and to support land registration operations allowing for ease of use and efficiency. Our solution provides the staff at Service Nova Scotia and Service New Brunswick registry offices with access to reliable, current and accurate information. With the move from paper submission of all documents to electronic submission, CARIS, with its open, flexible internet and database-driven technologies, is proud to be a part of Nova Scotia’s new E-land Registry with integrated access to all land-related information and with full electronic registration and access capabilities.