e-conveyancing – the way of the future

For the past 150 years when completing a property settlement it has been necessary for
lawyers and banks to meet up to check and swap documents and bank cheques.
The party that ended up with the documents then had to lodge them at the Land
Registry and notify government authorities about the transaction.
Many of our readers would have been involved in a settlement where they were selling
one property and buying another and the settlements had to occur simultaneously or
where multiple simultaneous settlements had to be finalised before you were able to get
the keys to your new home.
There are a lot of things that can go wrong with a manual process involving the physical
signing and handling of documents.
The commencement of a new e-conveyancing system will change this and bring the
whole conveyancing process into the 21st century filling it with much needed speed,
efficiency and accuracy.
What is e-conveyancing?
e-Conveyancing provides an electronic online business environment for completing
property transactions including electronic lodgement with Land Registries and the
electronic settlement of payment of funds.
This process is facilitated via a secure online environment to:
 Lodge the Land Title documents needed to register changes in property
ownership and interests;
 Allow the various parties involved in the transaction to view and complete the
documents online to conclude the property exchange or transaction; and
 Allow for the electronic settlement of all financial transactions at a nominated date
including settlement monies, duties, taxes and any other disbursements.
The Benefits:
 Tangible time and cost efficiencies
 No requirement for physical documentation at settlement;
 No requirement to physically attend settlements
 Use of technology to reduce human error and settlement failure
 Aims to replace legacy paper-based approach.
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This is a huge shift in the industry, similar to how share trading in the late 90s went from
paper share certificates to online, revolutionising the stock broking industry and share
trading generally.
Who provides the secure online environment?
An online property exchange known as PEXA has been established nationally to provide
a standardised platform for the completion of online property transaction.
The PEXA platform has been rolled out gradually since December 2013 under an
initiative lead by the Government backed National Electronic Conveyancing
Development Limited.
The platform – developed by Accenture and hosted by Telstra – uses elements of
electronic conveyancing systems developed in individual States.
PEXA removes the need to physically attend settlement. Basically, Land Registries,
Financial Institutions and lawyers can access the platform and transact together online,
performing lodgement right through to settlement from the comfort of their desk.
Through PEXA, the following transactions can be completed (subject to conditions):
 Mortgage
 Discharge Mortgage
 Caveat
 Withdrawal of Caveat
 Transfer Title
 Nomination
 Withdrawal of Nomination
 Consent
 Notice of Acquisition
 Notice of Sale
How does it work?
Lawyers open an online workspace where the Land Registry documents and settlement
schedule are created and information is shared with all parties to the transaction.
Once preparation is complete and the settlement date and time is reached, PEXA will
 Lodge documents with the Land Registry;
 Exchange loan funds and pay stamp duty and other third party beneficiaries;
 Remove the need for bank cheques and the wait that goes with them; and
 Remove the need to physically attend settlement.
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How does this improve the current system?
It dramatically improves the current situation where lawyers representing the buyer and
seller as well as the incoming and outgoing Bank are required to meet up and exchange
printed documents and bank cheques before a property is able to settle.
Simple errors like a misspelt or missing names, names that don’t match across
documents or wrong cheque details can cause the settlement to fail.
Using PEXA the information is pre-populated in the system and verified against the land
registry system, so it reduces error and gives certainty that the purchase will settle.
Full transfer functionality including online lodgement and financial settlement is now
available to NSW property lawyers and conveyancers.
If you would like to know more about e-conveyancing or would like help with your
property matter contact us on 02 9191 9293 or email mail@rnlegal.org.