As we slowly but gradually move to an online era, which is becoming paperless, there is now a process to make conveyancing electronic as well. In fact, the conundrum surrounding electronic conveyancing finally comes to an end as it is being mandated from December 1st. If you are still not sure about electronic conveyancing, here is an article explaining the same. Keep reading to learn more about electronic conveyancing.
What is Electronic Conveyancing?
Conveyancing is defined as the law which deals with the preparation of all documents for the transfer of property from one owner to another. This is the process that includes all documents related to a property until the ultimate settlement and confirmation of the financial transaction. Buying and selling of all residential units including houses, commercial properties, deceased estate, land subdivision and change of title are all considered to be a form of conveyancing. Conducting these transactions online is termed as electronic conveyancing. From lodging to paying, everything is conducted online, the name has been aptly provided.
How Does Electronic Conveyancing Work?
PEXA or Property Exchange Australia (PEXA) has been operating as the electronic platform which serves as a virtual room for all the settlements to take place. This indicates that the conveyancer doesn’t have to physically attend settlement with paper documents, but can conduct and further settle the entire transaction online. The details available in PEXA are verified against all information in the land registry system, prior to settlement, thus eliminating human errors such as incorrect signing of documents, misspelt name, incorrect address and mismatched bank cheques to point out a few.
The Electronic Lodgement Network Operator (ELNO) process the digital documents and facilitate the transfer of funds. The ELNO is connected with the major Australian banks, thus ensuring faster transfer of funds for the sellers. Like mentioned, a conveyancer doesn’t need to be physically present for the transfer to take place. A mutual date with the buyer and seller can be fixed and used to complete the process. This is highly flexible, making things easier for all.
The registry instruments are lodged at Landgate , which eliminates all delays by addressing errors in the applications made. This entire process takes place before the settlement is finalized, thus saving a lot of time. Since the entire process takes place electronically, it is faster, easier and has fewer risks.
What Are the Benefits of Electronic Conveyancing?
The benefits of electronic conveyancing can be summarized as follows:
The risk of identity fraud is minimal due to the high-security measures taken The entire process is completed within a day The number of faults and errors reduces significantly Not only financial settlements but caveats, discharges, withdrawals of caveats, land transfers and mortgages can also be processed The funds get transferred immediately No bank cheques are required and Real-time lodgement and settlement.
What is the date for Electronic Conveyancing being mandated?
Electronic conveyancing is being mandated from December 1st 2018 in Western Australia.
Things to Remember
The paper-based settlement process has been a long and tiring one that has been in use in the country for more than a century. However, from 1st December 2018, all new stand-alone transfers, mortgage, discharges, caveats, and withdrawal of caveats will have to be lodged electronically. Contracts that have been signed prior to December 1st can still be lodged at Landgate using paper lodgement. But paper lodgement may not be accepted for eligible transactions registered after December 1st 2018.
So, if you are buying or selling a property, you should request electronic conveyancing process. You can avail the services from the top conveyancers to ensure a smooth and seamless transaction.