What is this hype about electronic conveyancing? What is wrong with the manual paperwork that has been practised over the years?
Well, if you are not aware, e-conveyancing is going to be mandatory from December, this year. All the settlement services in WAare educating themselves with the new concept to provide seamless services to their clients. Now, why the Australian Government took this decision and what was wrong with the previous methods of conveyancing via the paper-based system, has stirred a lot of debate. The main reasons for this change of medium can be attributed to faster transactions, greater certainty, ease of settlement and the peace of mind experienced by both parties. There will be fewer chances of errors and delays in transactions if all the settlements are done electronically. And, that is why Landgate mandated electronic conveyancing in Western Australia from 1st December 2017.
What is Electronic Conveyancing?
E-Conveyancing enables lawyers, settlement agents and financial institutions to lodge documents, manage all transactions and complete financial settlements electronically. PEXA or Property Exchange Australia Ltd. is an online platform that helps both parties settle their transactions and financial statements electronically while buying or selling a property.
June 2014 marked the implementation of release 1 in Western Australia by PEXA, that made mortgages and discharges of a mortgage eligible for electronic lodgement. In May 2015, Release 2 was implemented that enabled caveats and their withdrawals to be lodged electronically via PEXA. And, in the next month, transfers were allowed to be lodged electronically. Thus, by June 2015, all settlement agents, financial institutions and law practitioners were permitted to lodge caveats, withdrawals of caveats, mortgage, discharges of mortgage and transfers electronically through the efficient platform of PEXA.
Hence, paperless conveyancing was formally introduced.
Now, you may ask the most relevant question of all – What is the benefit of all these? How can electronic conveyancing better the process for both parties? Come, let us shed some light on that.
The Advantages of Electronic Conveyancing and PEXA
The pros of e-conveyancing can be analysed from two different perspectives The Buyer and the Seller. First of all, let us know what are the perks of settling property matters via PEXA from the buyer’s viewpoint:
➤ Timely Settlements – PEXA’s authentic automated documents check will ensure on time settlements and timely acquisition of the property. There will be no chances of manual errors that may delay your settlement.
➤ Eliminating the need for bank cheques – Financial transactions will occur online, thus, no cheques will be required. You can save that time to settle other matters.
➤ Peace of Mind – It will give the buyer a certain peace of mind as registration of documents will be lodged instantly unlike the manual process that may take days or weeks to complete.
Now, let us turn to the Sellers:
➤ Lesser Chances of Errors – The Manual process involves chances of errors that turns out to be risky. On the contrary, the electronic medium has an automated system that checks the documents before lodging them, thus eliminating errors, if any.
➤ Faster Transactions – You do not have to wait for days or weeks for the clearance of cheques. Online settlement of funds will give you greater satisfaction.
➤ No Need to Sign Transfer Documents Manually – You do not have to be physically present in order to sign the documents. With the help of PEXA, it is completed online through digital signatures.
Electronic conveyancing is all set to take off throughout Western Australia and its time you educate yourself in the same. If you are planning to buy or sell a property soon, make sure you opt for a PEXA-registered settlement agency in WA for easy and error-free conveyancing. So much for e-conveyancing and its inherent benefits! Have a great day!