In brief - E-Conveyancing commencing in April 2013
In November 2012, the Electronic Conveyancing National Law passed in New South Wales. The significance of this change to the property industry should not be underestimated.
The new law forms the basis of a national scheme for electronic property conveyancing. Other states are either to adopt the national law or enact corresponding legislation. Similar laws are now imminent in Victoria and Queensland.
All participants in property transactions will be able to transact online
The new law means that eventually, land registries, financial institutions and practitioners will be able to transact together, online, legally, in the finance, purchase and sale of property.
This is a fundamental first step that will transform the future of property transactions, including conveyancing and financing.
PEXA e-conveyancing platform to be launched
National Electronic Conveyancing Development Limited (NECDL) has announced that it will launch an electronic conveyancing platform - Property Exchange Australia (PEXA) - in April 2013.
PEXA will adopt technology which is comparable to the sharemarket's electronic settlement system, CHESS. It will act as an interface between lenders, state land registries, solicitors and conveyancers.
Schedule for implementation of PEXA
E-conveyancing scheme likely to be implemented on time
Currently NECDL is the first entity that has signed operating agreements with NSW and Victoria land registries to operate this new electronic conveyancing system, providing an interface between the land registries and the users of the system for an initial period of 10 years.
NECDL is owned by the states of NSW, Victoria, Western Australia and Queensland and by financial institutions like Macquarie and the big four banks (Westpac, NAB, ANZ and CBA).
This ownership structure, the passing of the NSW law and the progress made by NECDL all augur well for the implementation of PEXA according to schedule, initiating a new era of e-conveyancing.
As experienced across the Tasman Sea by the users of Landonline - New Zealand's mandatory online registration system - electronic systems are quicker and simpler to use. They will become an integral part of the conveyancing and financing environment.
This article has been published by Colin Biggers & Paisley for information and education purposes only and is a general summary of the topic(s) presented. This article is not specific legal or financial advice. Please seek your own legal or financial advice for any questions you may have. All information contained in this article is subject to change. Colin Biggers & Paisley cannot be held responsible for any liability whatsoever, or for any loss howsoever arising from any reliance upon the contents of this article.