In the digital age, most of us use computers to manage our files and documents digitally. The same effect applies to conveyancing in Australia with a move to a ‘virtual settlement room’. Conveyancing practices will need to know what has changed, its benefits, and transitions plans.
In this article, we will explain the basics of e-conveyancing and what it will mean for conveyancing practices.
E-conveyancing refers to conveyancing transactions performed electronically. This is managed through a digital platform known as Property Exchange Australia (PEXA).
Transitioning to e-conveyancing
The NSW government released a transition timeline for conveyancing practices. This was part of the NSW government’s plan to commit to digital innovation. The timeline aims to convert all conveyancing transactions to an electronic workspace by late 2019.
The Council of Australian Governments (COAG) aims to introduce a national e-conveyancing system. Consequently, all Australian states will introduce mandatory transitions to electronic conveyancing. It will provide a more efficient and secure way of settling conveyancing transactions.
Benefits of e-conveyancing
Transitioning to e-conveyancing will provide many benefits for conveyancing practices. Some benefits of electronic conveyancing for all parties include:
- Less stress – reduced risk of manual errors, fraud and delayed settlement
- More efficient and convenient
- Client friendly
- Reduced costs
- Less risk and better transparency
- Better file management
The virtual settlement room
It is important to note that e-conveyancing does not cover the entire conveyancing transaction. It essentially works like a virtual settlement room. This involves transitioning preparation, execution and registration processes to electronic forms.
Consequently, processes such as financing and contract exchange occur outside PEXA.
In essence, electronic conveyancing provides a digital environment for document processing. This system can feed in information, populate documentation and cross-check information.
Concepts of e-conveyancing
Initial client authorisation – in the form prescribed under Schedule 4 of the MPR.
Verification of identity – reasonable steps should be taken to identify the client.
Digital signature – documents digitally signed using a digital certificate.
Electronic certificate of title (eCT)– a certificate of title will now be digital
If you are a buyer or seller concerned about changes in e-conveyancing, consider speaking to a conveyancing lawyer.
