Benefits and risks of e-conveyancing

Introduction

What are the benefits of e-conveyancing over paper-based conveyancing?

Electronic conveyancing (or e-conveyancing) benefits legal practitioners and the relevant parties in a number of ways, including the following:

• More efficient conveyancing transactions:
  • Legal practitioners do not need to attend a physical settlement or physically lodge documents at a revenue authority or land registry.
  • Legal practitioners do not need to phone the other parties (including mortgagees) to arrange a suitable date and time for settlement, as settlement is organised directly with the other parties via the Electronic Lodgement Network Operator (ELNO) workspace.
  • Legal practitioners spend less time chasing other parties as they can review the ELNO workspace to determine the status of other parties and what tasks they or the other parties need to complete before settlement.
  • Legal practitioners do not need to handle cheques, physically stamp transfer instruments or produce forms for lodgment at the relevant revenue authority or land registry. All of these matters, including payments, can be dealt with electronically in the ELNO workspace.
  • Settlement occurs automatically at the nominated date and time, which means that legal practitioners do not need to be logged into the ELNO workspace to observe settlement taking place (provided all of their tasks have been completed).
• Increased security:
  • An encrypted online platform with secure digital signatures limits incidents of identity theft, forged documents or fraudulent money transfers. All subscribers are also required to verify a client’s identity and right to deal and obtain a written authorisation from a client before carrying out an e-conveyancing transaction on behalf of a client.
• Less room for errors:
  • There is less room for human error. An ELNO workspace automatically generates documents for lodgment, eg a property transfer, and draws information from existing online information, eg title information, so that the subscriber does not have to input the information. This avoids incorrect information being inserted, leading to possible registration delays after settlement. Also, an ELNO workspace does not allow settlement to proceed if there are discrepancies (eg the settlement figures do not balance) or if certain tasks have not been completed (eg the stamp duty has not been assessed).
  • The title can be verified right up until the scheduled time for settlement.
  • Errors can be fixed right up until the scheduled time for settlement.