What is e-Conveyancing?
E-Conveyancing is the process of settling a conveyancing transaction through an online electronic network. From 1 July 2019 all property settlements are now being done electronically online.
How does it work?
Lawyers, conveyancers and financial institutions enter a secure, online workspace (known as PEXA) where they can interact and transact together online.
Within that digital environment, information can automatically feed in from the original source and can populate all documentation while the system cross-checks that information.
Documents are created, signed and lodged within the online environment, and parties complete all necessary steps to settle the transaction within that online environment.
Is it safe?
The highly publicised case of the former Masterchef contestant who had $250,000 stolen after a hacker intercepted the settlement funds while completing the transaction through the online platform PEXA sent alarm bells ringing across Australia.
Fortunately, the Masterchef contestant was able to recover her funds as the bank had frozen the funds and the shortfall was repaid by PEXA.
As a result of this incident, PEXA have now introduced the residential seller guarantee which provides protection to sellers in the event of certain kinds of fraud and offers a claim of up to $2 million.
How will it benefit me?
E-Conveyancing will replace many of the paper and manual processes traditionally involved in property transactions, for example if you are the seller, the Transfer document is now signed electronically by your lawyer or conveyancer on your behalf so you will not need to make time to go into their office to sign the Transfer.
Helps reduce error
With e-Conveyancing, the system cross-checks the information that is populated onto the online platform. Any issues will prompt the solicitor/conveyancer and financial institution to rectify the problem before settlement can proceed. For example, the funds required for settlement are not balanced against the settlement statement. This reduces the risk of errors giving you added certainty that the settlement will be successful.
You get your money faster
If you are the seller, funds are paid instantly into your account on the day of settlement. The traditional process was to obtain a cheque from settlement and getting that cleared by the bank. With e-Conveyancing you have access to your funds on the same day.
With e-Conveyancing, documents are registered with the Land Registry instantly meaning that you become the owner on the day of settlement. Traditionally, documents were required to be lodged with the Land Registry after settlement and it would take 1-2 weeks for the transfer of ownership.