Venezuela: Information Technology Reaches Registries & Notaries

Faced with the expiry of the term of the Enabling Law, the National Executive issued the Decree-Law of Public Registry and Notarial System (LRPN)¹. We were asked to collaborate in the drafting of this Decree-Law, in order to incorporate the provisions necessary to facilitate the use of information technology in the Registry and Notarial System.

Marking a new era of advancement in our country, a series of provisions was drafted that, once implemented, will place us in the forefront of a completely electronic Registry and Notarial System. The system will be online and its internal and external processes will be automated and digital.

These provisions reflect the State’s commitment to taking the necessary steps for Venezuela to embark upon a proper modernization process and, with the enactment in February 2001 of the Decree-Law of Data Messages and Electronic Signatures, a new legal system has been implemented, incorporating the use of electronic media and technological tools as instruments for creating rights and obligations.

The text of the LRPN not only contains the provisions necessary to enable technological media and instruments to exercise the functions of Notaries and Registrars, but also was carefully worded to avoid confusion or possible interpretations contrary to the use of technology in relevant aspects.

We should stress that the precedent for the provisions contained in the LRPN relating to the development and use of information technologies, lies in Articles 3 and 6 of the Decree-Law of Data Messages and Electronic Signatures itself. The former Article states that "the State shall adopt the measures necessary to enable the public agencies to develop their functions, using the mechanisms described in this Decree-Law" and the latter states that "when the law requires compliance with solemnities or formalities for certain acts or legal procedures, these may be accomplished by utilizing the mechanisms described in this Decree-Law…" ²

Expressing the same ideas in the same order, Article 2 of the LRPN establishes as a general principle that "...To comply with registry and notary functions, and the formalities and solemnities of acts or legal procedures, the mechanisms and the electronic media established by law may be used." Clearly, the new special law thereby definitively establishes electronic media as mechanisms not only for automated processes, but also for the performance of the normal functions and activities of a registrar or notary.

There follow, in the same opening chapter of the general provisions, two important provisions concerning the concept of automation and technical implementation of the Registry and Notarial System. The first states that all physical support currently existing in the Registry and Notarial System is to be digitized and transferred to databases to be created for such purpose, while the second provides that Registrars and Notaries will be allowed to use electronic signatures as elements of identification, investing in them the same evidential value as a handwritten signature.

The LRPN expressly establishes that all registry and notarial processes may utilize electronic format from their very inception. This means that users of either agency may submit their documents for registration or authentication in the form of an electronic file, while not excluding the use of traditional hard copies. Accordingly, a document evidencing the acquisition or sale of real property or a vehicle; the incorporation of a company or the registration of minutes of shareholders meetings; the filing of a claim on a dishonored check, or the registration of a marital separation or estate division, may be submitted in electronic form. It also establishes the possibility of using automated systems to charge the respective fees.

The Decree-Law creates what it calls the National Database and the Regional Databases. The former will consolidate and backup information for all registry material relating to the registries of the country, notwithstanding any support available in other jurisdictions to protect such information, and will be situated in the Metropolitan District of Caracas. The Regional Databases will be charged with the consolidation and backup of information on all such registry matters as are determined by the National Department of Registries and Notaries. Each Registry must nonetheless maintain a system storing the data and information of its own special area.

As mentioned above, the process of registration or authentication may be effected electronically from outset, as may be notary testimony and court and administrative documentation entering the registry. This must be digitized and technologically processed, in order to facilitate electronic access to the relevant information.

In addition to the novel aspects developed in this article, we would also stress that the LRPN establishes a conceptual and structural change of the Registry and Notarial System, which will completely transform the basis of the current system. This, combined with the implementation of the technological elements, requires not only a progressive and organized implementation of all these aspects, but also a substantial economic investment.

We believe that the text of the Decree-Law deals with these aspects in an intelligent manner. We note that regulations will develop the implementation of the matters indicated herein, as well as the time limits for automating and restructuring the Registries and Notaries, following the following plans developed by the Commission appointed to such task:

1. A time limit of one hundred eighty (180) consecutive days from its date of publication in the Official Gazette is stipulated for the issuance of the regulations to develop the aspects concerning the receipt, identification and annotation of documents, digital imaging, tax payment verification, determination of class and amount of operations, and the automation of such processes.
2. A Commission is to be appointed within a period of thirty (30) days, to coordinate the process of reform and modernization of the Registries and Notaries.
3. The Ministry of the Interior and Justice shall determine by Resolution, the types of rRegistries to be subject to the process of reform and modernization, establishing the following order of priority: 1. Real Estate Registry. 2. Commercial Registry. 3. Civil Registry. Two-year periods are established to begin the reform for each type of rRegistry indicated, i.e., within a period of six (6) years, the system of changing all the Registries in question must be underway. The foregoing does not preclude the possibility that the simultaneous modernization of various types of registries could be ordered.
4. In the case of Notaries, the areas of the country to undergo reform and modernization will be determined within two (2) years.
5. The costs of the reform will be included in the ordinary and extraordinary budgets of the Ministry of Interior and Justice.

The ability to conduct legal procedures or businesses requiring compliance with various formalities or solemnities for their validity and effectiveness regarding third parties by using the mechanisms and mediums established in the Decree-Law on Data Messages and Electronic Signatures has long been the dream of framers of the law in question. In articles, seminars and interviews with the media we had demonstrated our conviction that this was our objective and indicated that it was a goal harmonious with the government plan.

This was the philosophy governing the framing of the provisions of Articles 3 and 6 of the Decree-Law on Data Messaging and Electronic Signatures, as well as the provisions contained throughout the Decree-Law, facilitating the use of electronic media for what are known as "public documents".

This dream, which seemed to lack credibility in the past, has now become reality with the provisions established in the LRPN. From a legal viewpoint, an immense step has been taken in our legal system. It now remains to implement this advance in actuality for our country.