Failure to take reasonable steps to verify the identity of a mortgagor in an electronic conveyancing process may result in the mortgage being deregistered.This is the approach being taken by the South Australian Registrar General for electronic conveyancing, and, according to Gadens Lawyers' partner Jon Denovan, is a precursor to the national electronic conveyancing system that will roll out over the next couple of years.National Electronic Conveyancing Development's electronic property exchange, PEXA, will go live in stages over the next couple of years. The system will handle most forms of transfer and discharge.Under South Australian rules, which will take effect on January 1 next year, mortgagees will be required to identify each mortgagor at or before the signing of a mortgage. They must take reasonable steps to verify the identity of mortgagors.Denovan said: "Lenders will need to develop policies and procedures for the identification of mortgagors."Verification of identity will be required for mortgages, transfers and transmission applications.Safe harbour procedures include face-to-face interviews, where so-called Category One documents are produced. These documents include an Australian passport (or a foreign passport with an Australia resident visa stamp) and an Australian driver's licence. Preference should be given to Category One documents. Category Two documentation includes an Australian passport (or foreign passport with an Australian resident visa stamp) and a birth certificate or citizenship card, as well as a Medicare card, Centrelink card or Department of Veterans' Affairs card.