e-Conveyancing Archives - Page 2 of 5

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

Why conveyancing should be a key offering of your law firm

April 12, 2023

Why conveyancing should be a key offering of your law firm With the move to a national eConveyancing mandate, and subsequent changes in processes, general law firms are considering whether they should continue servicing clients in the property space. This is largely due to the hurdles of learning new e-settlement systems, implementing new processes and a lack of access to useful training, so it is understandable why many firms are considering referring this work to a qualified conveyancer. However, general law firms that practice conveyancing not only offer several key benefits to their clients, but this can also act as a means to acquire additional work in other areas of law and provide a full-service offering throughout a client’s lifetime. Conveyancing unlocks doors to clients Conveyancing has often been viewed as the bread and butter of a firm; a stock standard service offering. However, when considering the bigger picture of client interaction, conveyancing should be considered a much more lucrative business generation opportunity. Imagine your average couple; the most common reason they will first interact with a lawyer or conveyancer is when they purchase their first home. Ongoing from this, they might need to write a will, which will

Historic Reforms for NSW E-conveyancing

May 20, 2022

Historic reforms for NSW eConveyancing On Thursday May 12 2022, the NSW Parliament passed the Electronic Conveyancing (Adoption of National Law) Amendment Bill 2022. The historic reform has been welcomed and championed by InfoTrack within Australia. How are property transactions currently undertaken? Investing in property is often one of the biggest financial decisions a person will make in their lifetime. Currently, when a consumer is ready to buy, sell or mortgage a property they are only able to subscribe to the one Electronic Lodgment Network Operator (ELNO) to complete the transaction. This is because ELNOs are unable to exchange information, or ‘talk’ to each other, to complete a transaction. How does this reformed legislation change this? The important reforms outlined in the amended bill require ELNOs to interoperate, meaning a greater level of cooperation will be necessary amongst operators. Interoperability means that every user gains the right to choose their ELNO for every settlement. What does this announcement mean for all parties involved? These significant changes pave the way for national interoperability, meaning better competition and choice for practitioners. For all of those involved in property settlements, the buyer, the seller, and/or their conveyancers, and lawyers, this will accelerate the process

Movement on the Queensland eConveyancing mandate

April 21, 2022

Movement on the Queensland eConveyancing mandate In March 2022, The Queensland Department of Resources announced a six week consultation period on the proposed regulation to mandate electronic conveyancing in the state by early 2023. The proposed transition will see all property conveyancing matters completed via an Electronic Lodgment Network Operator (ELNO). It is the next step to delivering a consistent and aligned experience for all the parties involved in property transactions. History of eConveyancing The prospect of electronic conveyancing first came into play in Australia in 2005, when a National Electronic Conveyancing System Committee (NECS) was established. In 2011, Australia’s first ELNO was formed, allowing the electronic lodgement of mortgages, discharges and caveats. This paved the way for eConveyancing to be introduced in Queensland in 2013; a move which has been slowly but surely embraced. According to the Department of Resources, it is claimed that over 70% of Queensland property transactions are currently undertaken through an ELNO. If implemented, this mandate will bring Queensland in line with other states, such as New South Wales, Victoria, South Australia, and Western Australia where electronic conveyancing is mandated. Benefits of eConveyancing Compared to manual, paper-based methods, eConveyancing delivers dramatic administrative efficiencies. Some of the main

New Queensland settlement law reform plays catch up

December 22, 2021

New Queensland settlement law reform plays catch up SettleIT General Manager, Daniel Petrucci, says “the announced reforms to Queensland property law are a welcome relief for home buyers but finally plays catch up with most other Australian states”. The reform, set to come into effect in January 2022, has been introduced to stop home buyers becoming penniless if settlement delays arise by giving Queensland buyers an extra five business days to complete settlement. “Purchasing a home is already a highly stressful activity for home buyers. When layered with a critical deadline that can result in the complete loss of a deposit, it adds to the anxiety and pressure for all involved.” Currently in Queensland, the date of settlement is a critical deadline. If a property settlement cannot be met in time, the contract can be terminated immediately. Once the contract is terminated, the vendor is legally entitled to receive the purchaser’s deposit. Reasons for not settling on time can come down to circumstances such as human error or bank delays. “The reforms will offer a grace period if settlement cannot be met,” Petrucci continues. Petrucci leads SettleIT, a solution built for lawyers and conveyancers to outsource matters when they need support and assurance with settling on time. Petrucci explains, “The SettleIT team are no strangers to managing matters which experience delays. We aim to make settlement as easy as possible for not only our clients, but the home buyer. Queensland’s latest move to add

Debunking the complexities of caveats

December 16, 2021

Debunking the complexities of caveats This is the third part of the SettleIT education series supporting practitioners to navigate the e-settlements and e-conveyancing landscape.  See part one and part two. This article does not constitute legal advice. It is for general information purposes only.   Caveats continue to be a complex topic in the conveyancing world, and while they are not always a necessity, failure to lodge a caveat can result in the loss of finances.  SettleIT licensed conveyancer, David Johansson, breaks down each caveat type, when they can be used and what is required. What is a caveat? A ‘caveat’ in Latin means ‘beware’, and in terms of an Australian property, a caveat on Title serves as a warning that someone, other than the current registered proprietor, is making a claim or has an ongoing interest against the property affected. There are several reasons why a caveat is lodged against a property including court orders, contracts, mortgages and bad debts. For lawyers and conveyancers processing NSW property matters, to enable a caveat to pass scrutiny and be successfully lodged at the Land Registry Services (LRS) New South Wales, the person lodging the caveat needs to be able to prove that they have, what is termed as, a caveatable interest. A caveat may be lodged by any person, including the Registered Proprietor, who claims an estate or interest in Torrens Title Land. Caveats are generally used in conveyancing transactions to protect a person’s interest in a particular property. There are three new “specialised templates” for lodging standard forms of caveat including:

Three levels of Certificate of Title (CT) usage in Australia

November 15, 2021

Three levels of Certificate of Title (CT) usage in Australia With the recent removal of Certificates of Title (CT) in New South Wales, and a consultation period taking place in Victoria, it is a timely reminder to take note of where each State and Territory currently stands with CTs. Across Australia, the States and Territories have adopted three approaches, effectively creating three different levels of CT usage. Level 1: Paper CT Issued: Tasmania Tasmania currently does not have electronic conveyancing and as such, it is the only state which still completely uses paper titles. They are required at settlement and issued upon registration. The primary benefit of this level of CT usage is to assist in verifying the identity of the registered proprietor, which infers a right to deal by having ownership of the Title. Level 2: CT Used: Victoria, Northern Territory and Western Australia Victoria currently has both paper and electronic CTs. Most transactions are required to settle through an ELNO, and therefore, remaining paper CTs need to be converted to an electronic CT and the paper CT is then destroyed. Once the electronic CT is on Title, the register will indicate who is control of the CT. Victoria

Build your confidence around caveats

October 13, 2021

Build your confidence around caveats Digital transformation in the conveyancing space is reaching its highest peak and 11 October 2021, marked a pivotal date in New South Wales (NSW) as the NSW Land Registry Services (LRS) transitioned to 100% e-conveyancing. The transition comprised of four significant changes: Certificates of Title (CT) were abolished; The right to deal (CoRD) framework is no longer required; 3 streamlined caveats were introduced: – Purchaser’s Caveat – Registered Proprietors Caveat – NSW Trustee & Guardian Caveat 4. All land dealings going forward are to be lodged electronically with no further grace periods provided on manual over the counter lodgments. This is referred to as ‘100% eConveyancing’. This means, from 11 October 2021, CTs are no longer be being produced and are no longer required to lodge a dealing or plan for registration. Similarly, Authorised Deposit-Taking Institutions, such as banks, are no longer to be issued with CoRD, which is the electronic equivalent of a CT. The abolition of CT’s is a key legislative change to allow for 100% eConveyancing. Hear from industry experts here on why these changes were implemented and industry requirements going forward. These electronic requirements coincide with the introduction of three streamlined caveats in May 2021, by the NSW LRS, including a Purchaser’s Caveat, Registered Proprietor’s Caveat and NSW Trustee and Guardian Caveat. The purpose of introducing these standardised residual caveats was to make it easier for clients to lodge caveats for common scenarios, eliminate requisitions by implementing business rules, reduce ELNO incidents, provide a better customer experience and ensure customer protection is

Electronic conveyancing is becoming the norm, nation-wide

October 5, 2021

Electronic conveyancing is becoming the norm, nation-wide Electronic conveyancing is quickly becoming standard practice across the nation, and mandates are coming into place to cement their future in legal practice. In May 2020, the Australia Capital Territory (ACT) Government passed legislation to introduce online settlements to the territory, and by the end of 2021 we can expect to see the first round of digital settlements processed through PEXA. The ACT is following in the footsteps of New South Wales (NSW), Victoria (VIC), South Australia (SA) and Western Australia (WA), where all settlement matters are mandated to be completed electronically. October 11, 2021 was named as the cessation date for NSW to process all dealings with interests in land electronically, regardless of the date that they were signed. The move brings the property industry one step closer to achieving the National Cabinet’s vision of a nationally consistent electronic conveyancing solution. The uptake of electronic conveyancing has so far proven positive, and a recent survey conducted by InfoTrack confirmed the legal and conveyancing industry’s willingness to embrace e-settlements. Of those surveyed, 93% said they conducted e-settlements. Even in states such as Queensland, where no mandates are in place, 85% said they still conducted e-settlements. You can view the full findings of the survey here. However, for some, the introduction of this new process was overwhelming. The need to learn new ways of doing things was further aggravated by negative initial experiences with the Electronic Lodgment Network Operators (ELNOs). As a result, many practitioners concluded that

How to add a layer of legitimacy to your identity verification process to reduce identity fraud

October 1, 2021

How to add a layer of legitimacy to your identity verification process to reduce identity fraud This is the second part of the SettleIT education series supporting practitioners to navigate the e-settlements and e-conveyancing landscape. See part one here. This article does not constitute legal advice. It is for general information purposes only.  There is the notion that introducing technology into sensitive areas such as identity verification is problematic, however it is much the opposite. With identity theft on the rise, security and legitimacy are of utmost importance to organisations, and by implementing trustworthy solutions, costly identity errors can be avoided. With the rise in identity fraud so too comes a rise in sophisticated ID verification tools. New methods of verification, such as video and fingerprinting, paired with high-quality facial scanning technology means more assuredness in confirming the question, “Is my client who they say they are?” Here are three cases which could have been completely avoided, or reduced any deemed negligence when identifying a client, had a technology solution been engaged. Case 1: Do you trust yourself? Michelangelo Alfredo Mascarello & Anor v Registrar-General of New South Wales [2018] NSWSC 284 The case: Two individuals impersonated property owners with stolen identification documents and instructed a lawyer to register a mortgage over their properties.

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