e-Conveyancing Archives

The essential role of final title searches in property transactions

November 13, 2024

The essential role of final title searches in property transactions For property lawyers and conveyancers, the property settlement process is complex, requiring careful management to protect clients from potential legal and financial risks. A recent New South Wales Supreme Court case has underscored the critical need for conducting final title searches, which serve as a vital layer of security in transferring property ownership. In this case, the purchasers of a property in Blakehurst, a suburb in the St George area of Sydney, entered a contract to buy a home valued at $4,350,000. To complete the purchase, they obtained a mortgage loan from Westpac, which would be secured against the property following the settlement. However, a complication arose when a third party lodged a caveat against the property just before the final transfer. As a result, the New South Wales Land Registry Services (LRS) informed Westpac that the transfer of ownership and the associated mortgage could not be registered. This unexpected caveat highlights the importance of final title searches, especially close to settlement, to reveal any last-minute claims or encumbrances on a property’s title. Why final title searches are critical for smooth settlements Final title searches are an essential safeguard for

eConveyancing in Western Australia

October 18, 2024

eConveyancing in Western Australia Property settlements in Western Australia have gone through a major change over the years with electronic conveyancing being introduced. Standalone transfers in Western Australia were mandated back in December of 2018, however there are still exemptions for certain scenarios that require paper settlement/lodgment and are currently out of scope for eConveyancing in Western Australia. The list of available electronic documents that can be transacted electronically in Western Australia include: Caveat Withdrawal of Caveat Mortgage Discharge of Mortgage Transfer Survivorship Change of Name Benefits of eConveyancing in Western Australia eConveyancing simplifies and enhances the settlement process for all parties involved. The benefits include: Efficiency: electronic transactions eliminate the need for physical document handling and reduce administrative tasks, leading to faster settlements. Accuracy: automated processes minimise the risk of errors that can occur with manual data entry and paper handling. Transparency: real-time updates ensure that all parties are informed of the transaction’s progress, reducing uncertainty, and enhancing communication. Security: digital processes offer robust security measures to protect sensitive information, reducing the risk of fraud. Convenience: parties can manage and monitor the settlement process from anywhere, without the need to be physically present. Streamlined transfer duty process In Western

Preventing fraud: the essence of due diligence

June 24, 2024

Preventing fraud: the essence of due diligence Electronic conveyancing is a fast, accurate, and secure way to complete settlements, lodgments, and lodgment stages of a conveyancing transaction. However, it also provides criminals with new ways of perpetrating crime, such as identity fraud. To reduce the chance of fraud being perpetrated, ARNECC (Australian Registrars National Electronic Conveyancing Council) sets rules and ensures that participants, known as “Subscribers”, comply. The SettleIT team conducts due diligence to reduce the risk of identity fraud, the registration of fraudulent land transactions and to ensure that we are compliant with the ARNECC rules. Steps to the due diligence process Verification of identity SettleIT will thoroughly review identity documents provided by your client and ensure that the identification has been conducted using the standard verification identity procedure or the application of reasonable steps. SettleIT use remote verification of identity (VOI) services offered by InfoTrackID, an easy-to-use, online identity verification platform that compares the client’s Australian identity documents against official government records to verify the authenticity of the documents provided. The purpose of this is to ensure that the client is who they purport to be, and that the correct person is dealing with the land. Client Authorisation

Insights from the AIC NSW Kiama Education Day

May 20, 2024

Insights from the AIC NSW Kiama Education Day The Australian Institute of Conveyancers (AIC) NSW recently hosted an enlightening Kiama Education Day, bringing together industry experts to discuss critical topics in conveyancing and property law. The event covered a range of subjects from plan reading and the complexities of easements and covenants, to managing strata defects and understanding the nuances of planning law. Each speaker provided valuable insights into their respective fields, highlighting the importance of staying updated with the latest developments and legal requirements in the ever-evolving landscape of conveyancing in New South Wales. Read more about each speaker and their topic of discussion: Plan reading for conveyancers Bob Harrison, registered surveyor, covered the issues involving Surveyors having to identify or re-establish a parcel of land boundary using modern survey methodology. He spoke about the various sources of historical and current plan/diagram information available to Surveyors in combination with the current SixMaps system used by NSW Government. He also highlighted the risk for property purchasers in not engaging a surveyor to do an identification survey to confirm the boundaries of a property. There have been several instances where a property has been built in a position which encroaches onto

Understanding the implications of GST withholding legislation in property transactions

May 2, 2024

Understanding the implications of GST withholding legislation in property transactions A withholding legislation for GST was introduced on 1 July 2018. This legislation requires purchasers to withhold the GST amount of the purchase price and remit it to the Australian Taxation Office (ATO) upon settlement. The formation of the legislation was a consequence of numerous instances of ‘phoenixing’, where companies would abuse the remittance period between settlement and the lodgement of their next business activity statements by deregistering their companies and creating new ones to avoid their GST payment obligations. It is estimated that $1.8 billion in GST debt was accumulated before the legislative amendments. Companies claimed an estimated $1.2 billion in GST input credits from 2013-2017. The legislation is contained in section 14-250 of the Taxation Administration Act 1953 which specifies that GST must be withheld if you are the recipient of a taxable supply which is potential residential land or a new residential premises (excluding commercial premises or any substantial renovations made to a property). Purchasers who are not registered for GST or are not acquiring the land for a credible purpose (i.e. in the course of their business) remain exempt from this provision. To help the purchasers

Embracing change: ARNECC interoperability mandate for 2025

February 29, 2024

Embracing change: ARNECC interoperability mandate for 2025 The commitment to evolving property conveyancing in Australia has seen a huge shift in the way the industry operates. In recent years, the mandates brought to the industry have sparked substantial progress, ushering a transition from manual processes to streamlined electronic workflows. At the forefront of this evolution are the voices of practitioners themselves. They have not only asked for change but necessitated it. This blog explores how the industry is leading the charge in responding to the needs and demands of its practitioners, driving forward progress and innovation in the pursuit of greater efficiency and effectiveness. Recently, the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) made a significant announcement, setting forth a mandate for full interoperability among electronic lodgment network operators (ELNOs) in New South Wales and Queensland by December 31, 2025. Interoperability empowers key stakeholders, including conveyancers, lawyers, and financial institutions, to have autonomy in the decision-making process. By seamlessly engaging with a platform of their choice, practitioners gain the ability to shape their experience, ensuring that the platform works for them rather than imposing rigid structures upon them. This directive from ARNECC marks the dawn of a new era, one

The importance of ethical conduct in conveyancing: best practices for conveyancers

November 8, 2023

The importance of ethical conduct in conveyancing: best practices for conveyancers In the realm of conveyancing, where transactions involving real estate are conducted, the importance of ethical conduct cannot be overstated. Conveyancers play a pivotal role in ensuring the smooth transfer of property ownership, and their ethical behaviour is not just a legal obligation but a cornerstone of trust, professionalism, and ultimately, client satisfaction. In this article, we will delve into the significance of ethical conduct in conveyancing, how it ties into quality customer service, and provide best practices that every conveyancer should uphold. Adherence to the industry code of conduct Each state division of the Australian Institute of Conveyancers (AIC) has their own Code of Conduct governing the behaviour of conveyancers. Common topics are present throughout the various codes, including: Client confidentiality, Professional responsibilities, Fairness and social responsibility, and Fees commissions and charges. Ethical conduct requires strict adherence to these codes, which outline the professional standards and responsibilities expected of conveyancers. Familiarise yourself with your local code and ensure continued compliance. Also, inform your clients about the industry’s Code of Conduct and how you are committed to upholding these standards. This transparency can reassure clients that they are working

Navigating complex property transactions: challenges and solutions for conveyancers

October 5, 2023

Navigating complex property transactions: challenges and solutions for conveyancers Property transactions can be intricate endeavours, especially when dealing with complex property transactions. Conveyancers, the professionals responsible for ensuring the smooth transfer of property ownership, play a crucial role in navigating these complexities. Together, we will delve into the challenges faced by conveyancers in complex property transactions and explore effective solutions to overcome them. Challenges faced by conveyancers Legal and regulatory complexity: Property transactions involve a web of legalities and regulations that can vary by location and property type. Navigating these complexities while ensuring compliance with local laws and regulations is a significant challenge. Title issues: Ensuring that the property’s title is clear and free of encumbrances is essential. However, complex transactions can reveal hidden title issues, such as easements, liens, or disputes, which require careful resolution. Multiple parties and agreements: In some cases, property transactions involve multiple parties, including buyers, sellers, agents, lenders, and attorneys. Coordinating communication and agreement among all parties can be challenging, leading to potential misunderstandings and delays. Financial considerations: Complex property transactions often involve substantial financial considerations, such as tax implications, mortgage requirements, and valuation discrepancies. Ensuring accurate financial transactions can be intricate and time-consuming. Due diligence: Thorough due diligence

Bespoke, efficient platforms: transforming your property matters

October 5, 2023

Bespoke, efficient platforms: transforming your property matters In the dynamic world of property matters, efficiency is the name of the game. Whether you are part of a law firm or a conveyancing firm, the need to process more matters, save time, and enhance overall business efficiency is an ongoing task. If your firm is looking to streamline property transaction operations, SettleIT can help. SettleIT is a bespoke, efficient platform designed to transform the way you handle property settlements and lodgments. It can help you save time, process more matters, and supercharge your business efficiency. The robust nature of the bespoke platform No two law firms, conveyancing firms or property transactions are the same. That’s why you need to use solutions that are flexible to your business needs. SettleIT’s strength lies in its bespoke platform, that has been crafted to meet the unique needs of property professionals. This platform isn’t a one-size-fits-all solution; it’s a tool that is customisable, adaptive, and streamlined. Stay connected from anywhere In today’s fast-paced world, being tethered to a desk isn’t always practical. SettleIT’s mobile-responsive platform ensures that you can access critical information even when you’re on the go. With SettleIT for mobile, you can: Track orders to

Who said the property settlement process would never change?

August 28, 2023

Electronic settlements – the vital steps Property settlement day is one of the most exciting days in a lot of people’s lives. Clients have been through the process of purchasing a property, exchanging contracts, and perhaps sitting through a 5 day “cooling off” period and are now awaiting the final piece of the puzzle to fall into place. To avoid the disappointment of a delayed or cancelled settlement, many important “lead up” preparations are done with a conclusion date in mind. These include booking removalists, updating insurance, electricity and water changeovers, keys dropped at agents and usually a final property inspection. If settlement is delayed for even one day later, there can be many cost and logistics implications. Ultimately it is in the best interest of all parties for a settlement to proceed on the scheduled day, at the correct time. Outlined below are some of the steps involved in achieving this goal. By careful preparation and processing, a settlement agent can eliminate many possible roadblocks and all but ensure that settlement occurs on the arranged day at the proposed time. Timely supply of documentation and information from the client is a major contributor to a successful timeline. Settlement preparation

Your seamless settlement and lodgment solution