Like many other industries across Australia and indeed the world, the field of conveyancing is also (albeit slowly) converting to an online platform.
What is electronic conveyancing?
Electronic conveyancing is a concept in which the processes of a conveyance including settlement and exchange are completed solely through an electronic platform. In recent years, Property Exchange Australia Limited (PEXA) has been developed and implemented across the state to facilitate a “virtual” settlement room, and now allows conveyancers and practitioners to elect to participate in conveying a property through an electronic format.
When it comes to an electronic conveyance as opposed to the ordinary conveyance, there may be several issues that suddenly spring to mind that may not sit comfortably with those who may be selling or buying a property and are unsure about the processes involved. Therefore to counteract this there are several new concepts which are mandated by law, which must be followed, including some of the following:
Digital Signature – The ability to sign a contract of sale without physically putting pen to paper, offered by companies like DocuSign.
Identity Verification – This can now be undertaken electronically, using various third parties applications (IDfy, IDme, or ZipID) or service providers like Australia Post. This is an important step which is vital in the electronic conveyancing process, as the practitioner or conveyancer may never meet the purchaser or seller of the property;
Electronic Certificate of Title (eCT) – This involves a practitioner electing to settle with an electronic CT, instead of the traditional hard copy Titles which are being phased out.
Electronic Conveyancing is a step in the right direction moving forward in either selling or purchasing a property. Although like many online platforms, conveying a property electronically does have its risks, many benefits are immediately gained such as the reduction in time instructing staff or agents to attend settlement, the risks associated with using cheques, and most importantly the distribution of the proceeds of sale immediately after settlement.
What transactions can be undertaken on PEXA?
The following transactions are able to be performed on PEXA:
- New mortgages and discharges of mortgages;
- Caveats and withdrawal of caveats;
- Settlement notices;
- Priority notices;
- Financial settlements.
If you would like further information regarding electronic conveyancing and how it works, contact the conveyancing department of Rockliffs Lawyers.