How does Electronic Conveyancing really work ?
Electronic conveyancing becomes mandatory in New South Wales from 1 July, 2019. This will cover most mainstream conveyancing transactions. From this date all paper Certificates of Titles will be cancelled, meaning the settlement process will be 100% electronic.
The electronic process allows from document preparation through to the financial settlement. No paper documents nor cheques are required to be drawn. This is a huge time saver and for many a money saver as well.
SL Conveyancing have been using the electronic settlement platform since 2016 and have found it to be a reliable and time efficient system. Electronic conveyancing really is the way of the future.
There are benefits to both sellers and buyers with electronic conveyancing.
For Sellers, there is no more waiting for bank cheques to clear before they had access to their funds. For Buyers it means they become the legal registered owner of the property on the same day as they pay for it. No more waiting for paper documents to be lodged at the Titles Office and waiting for someone to process the registration, which can, on occasion, take weeks to finalise. Particularly when you are purchasing property in remote areas and have to rely on the postal system to ensure your documents arrive safely before they are even lodged.
Readers may have seen the media coverage regarding a transaction that took place on the PEXA with fraudsters stealing settlement funds. This fraud came about from the interception of the conveyancer’s email. This is hacking. A very real 21st century problem that does require many stringent security measures to be in place to ensure the safety of clients’ funds. In this instance the alterations were made to the bank account details contained within that email. Whilst the PEXA platform cannot be blamed itself, it was definitely a severe wake up call for all involved in the conveyancing industry to be vigilant against cyber attack in the electronic world.
As electronic conveyancing settlements are becoming mandatory, in order to further strengthen the system, PEXA have implemented a strict security requirement for their registered users. This includes a 2 factor authentication system and improved their data management and security system.
If you have any concerns of questions regarding the future of electronic conveyancing, please don’t hesitate to give us a call or drop us a message.
We are here to guide you through the process.