Electronic Settlements – AKA The Future

We all know that technology is advancing in leaps and bounds - it’s often hard for even the most tech-savvy among us to keep up with the latest developments. Technology has crossed into all industries, including the real estate sector. Going digital makes a lot of sense in our industry - after all, there’s a lot of paperwork required for the buying and selling of property.

What Is e-Conveyancing?

Electronic conveyancing is a whole new way of quickly and effectively undertaking the settlement process of property by completing it online, without all the hassle of mailing and submitting manual paperwork. This is possible through an electronic platform created by Property Exchange Australia (PEXA), which is our country’s regulatory framework. As a result, settlement agents, banks and lawyers are all able to easily liaise and transact with one another online through the PEXA platform.

The Advantages Of E-Settlements

There are a host of benefits when using e-conveyancing, including:

• Speed. Registration of paperwork can often take more than a month when done manually. However, by using PEXA, it can be completed in a matter of hours. There is also faster access to cleared funds compared to traditional bank cheques
• Efficiency. Due to the precision of digital technology, there is far less likely to be mistakes made due to human error
• Communication. As everybody is part of the online process chain, it is far easier to become involved and monitor the progress of your settlement. PEXA offers additional free app services such as SettleMe, which allow you to track your settlement as it moves through the various stages to completion
• Affordability. By moving the settlement process to an electronic format, costs can be reduced.
• Security. By conducting e-settlements through the PEXA platform, there is less likelihood of security breaches, confidential documents being leaked or fraud due to the automatic security systems already in place on the PEXA platform

New Electronic Procedures

In 2017, the Government rolled out a timeline of when electronic lodgements would become mandatory. From August 2017, all commercial mortgages needed to start being lodged online, while in October, all eligible caveats and withdrawal of caveats were to be lodged electronically. In December 2017, any lodgements containing transfers, mortgages also needed to be lodged online. These electronic timelines were applicable for Western Australia, NSW, Victoria and South Australia.

The Future

From July 2019, NSW, Queensland and Victoria will be required to conduct all property transactions online. By this stage, Western Australia will already need to be compliant. This will allow for documents in paper form, such as Certificates of Title, to no longer be required. Apps and other software such as DocuSign will mean documents can be signed electronically, without parties needing to be in the same room. This is envisioned to eventually make paper contracts obsolete.

E-settlement and other related electronic software is a fantastic way to bring the real estate sector into line with the legal industry that we work so closely with, as many courts and legal practitioners already offering the electronic filing of court documents.