TLDR (too long; didn’t read):

• E-conveyancing is the process of using an electronic platform to conduct property settlements, providing a secure and efficient solution to conveyancing transactions.

• Use of e-conveyancing is mandated in five of the eight states and territories in Australia, with a mandate yet to be issued for Northern Territory, Tasmania and Australian Capital Territory.

• Obtaining a client authorisation form and undertaking VOI are essential prerequisites to commencing a e-conveyancing transaction.

• E-conveyancing leads to increased efficiency and workflow, less costs for clients and greater transparency

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What is E-Conveyancing?

Electronic conveyancing (e-conveyancing) is the process of using an electronic platform to conduct property settlements and provides a streamlined, secure and efficient solution to undertaking conveyancing transactions.  

This includes replacing the traditional paper-based means of conveyancing involving the physical exchange of land registry instruments and bank cheques.

The conveyancing process in most states across Australia now involves the electronic creation, verification, lodgement and registration of land registry instruments and disbursement of funds to necessary parties.

The online platform in which e-conveyancing transactions are facilitated and occur on, is called Electronic Lodgement Network (ELN). Companies which operate the ELN, are referred to as Electronic Lodgment Network Operators or “ELNOs”.

E-conveyancing provides a welcome solution to safeguarding the integrity, security and efficiency of conveyancing transactions, therefore, replacing paper-based processes with fit-for-purpose digital solutions is essential.

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Elements of an E-Conveyancing Transaction

The Electronic Conveyancing National Law (ECNL) governs the requirements of electronic conveyancing in Australia, with each individual State and Territory, implementing its own legislation based the requirements prescribed in the ECNL.

The core concepts and pre-requisites underpinning an e-conveyancing transaction are obtaining client authorisation and verification of identity (VOI).

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Client Authorisation

As the client to a conveyancing transaction cannot directly utilise or access the ELNO themselves, they need to provide authorisation for their conveyancer or solicitor to do so on their behalf.

The provision and obtaining of a Client Authorisation form is crucial as a preliminary step to commencing a transaction and ensures the client consents to the lodgement of documents, signing of documents and financial settlement of their transaction, on their behalf.  

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Verification of Identity

The process of VOI is a fundamental step in an e-conveyancing transaction and involves the conveyancer or solicitor citing their client’s identification documents and certifying that the person in the identification documents and the person they are identifying, are one and the same.  

This process is essential in the prevention of fraud and negligent land transactions and maintaining the integrity of e-conveyancing.

For more information on identity verification, Lextech’s VOI article is available here  

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Benefits of E-Conveyancing

• Conveyancing transactions are settled faster and more efficiently, meaning that conveyancers have more time on their hands. Paper transactions can take upwards of weeks or months to complete, while e-conveyancing introduces turnaround times of 24 to 48 hours;
• Decreased transaction costs for clients, as are they no longer required to pay for settlement agent fees, bank cheque fees or courier costs; and
• Increased transparency and notifications for stakeholders, as ELNOs have the functionality to provide real-time notifications of when settlement has occurred or is imminent.

Future of E-Conveyancing

The future for e-conveyancing looks to be promising, as Tasmania and Northern Territory move towards mandating electronic conveyancing and the industry adapts to a new digital normal.

The introduction of new ELNOs into the market is becoming a reality, proving competition is welcome.  

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Disclaimer: This article is intended for informational purposes only and should not be interpreted as legal or financial advice. Lextech strongly recommends seeking professional advice to ensure that any actions taken are tailored to your specific business needs and circumstances. Lextech shall not be held liable for the accuracy or completeness of the information provided herein, particularly when accessed at a later date, as the content reflects the state of knowledge at the time of publication.

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