E-Conveyancing - An update
With 12 months under our belts we can say that the shift to e-conveyancing has been a positive one. It has provided a simplified, safer and efficient process that has reduced many of the stresses clients experience when buying or selling property.
Unlike other states in Australia, the Queensland Government has yet to announce compulsory e- conveyancing. In an ideal world all transactions would be completed electronically however e-conveyancing can only be achieved if all parties agree and are registered for the process; that is the other side’s lawyers and the financial institutions.
E-conveyancing minimises the manual process and paperwork of traditional conveyancing and eliminates many of the risks involved such as human error (e.g. incorrectly signed documents) and delays (such as delivery errors or hold ups at the Land Titles Office).
Settlements are made entirely online reducing the need for physical documentation and face-to-face meetings as solicitors are able to electronically sign documents and cheques on behalf of clients and no longer need to travel to physically attend settlement or visit the financial institution to collect and process cheques.
In simple terms, all parties to a transaction (seller, outgoing bank, buyer and incoming bank) can log into a secure online location, the PEXA platform. All parties get the opportunity to check the details and sign off confirming they are in order. Once everything is agreed and the appointed settlement time occurs – then the Titles Office immediately processes the transfer into the buyer’s name and the banks simultaneously make and receive payment. There is no longer a need to wait for cheques to clear (which can be 3 days or more) and settlement money is deposited straight into the sellers account – usually within 30 minutes.
While the PEXA process is time saving and efficient it doesn’t negate the importance of contract advice and negotiation when buying and selling and we still highly recommend you contact our property team to ensure your interests are protected before entering into a contract..