The evolution of property settlements: emphasising due diligence in eConveyancing

Property settlements have evolved significantly from the days of face-to-face transactions, requiring meetings, phone calls, wet signatures, and witnesses. The advent of electronic settlements has streamlined the process, making it more efficient. However, the importance of due diligence in eConveyancing remains paramount. Here are some reasons why: 

A look back: traditional settlements

Historically, property settlements were laborious affairs. Parties involved had to coordinate meetings, exchange numerous phone calls, and complete paperwork that required wet signatures and witnesses. This manual process, while thorough, was time-consuming and prone to human error.

The shift to electronic settlements

The shift to electronic settlements has modernised the process, introducing efficiency and convenience. However, with these advancements come new challenges, particularly in maintaining security and ensuring due diligence. 

Cyber security

Many of us have encountered scams through suspicious emails or text messages. Real estate agents, banks, law firms, and conveyancing practices have increasingly become targets of sophisticated scams. In 2022 alone, Australians lost over $3.1 billion to scams nationwide. With the property industry largely online, scammers see it as an opportunity for instant income. The financial loss and emotional distress from such scams can be devastating. Therefore, it is crucial to take precautions to avoid becoming the next victim. 

Due diligence: identity verification

Verifying a client’s identity became mandatory with electronic settlements, ensuring the client is who they claim to be and reducing the risk of identity fraud.

SettleIT employs the Verification of Identity (VOI) solution, InfoTrackID, which uses innovative technology and integrates with government databases to authenticate clients’ identification. Identity documents are verified through the Australian Government Document Verification Service (DVS) to determine their validity. This solution is especially valuable in the wake of COVID-19, allowing VOIs to be completed easily from home or office.

Collective responsibility

In an ever-changing world where due diligence is declining and fraud is rising, scams are becoming increasingly sophisticated and harder to detect. It is our collective responsibility to ensure due diligence for buyers and sellers, maintaining the safety and integrity of the property industry. Implementing minor changes in our processes can make a significant difference and preserve a positive experience for all parties involved. 

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