What exactly is electronic conveyancing and what are its benefits?
Conveyancing is the process through which a property is legally transferred from one person to another. In Australia, the owner of the property is required to be registered as the rightful owner of the property with the relevant state government land department. The reason for doing this is usually very simple. Being the registered owner usually means you legally own the property and no one can try and take it away from you. This simply means that no one else is entitled to claiming the ownership of your property at all.
The process of one becoming the “registered” owner is usually quite complicated and one will spend a lot of time trying to get this process through. This is why it is advisable to hire a property conveyancer or a solicitor to handle this issue for you. Their main role is ensuring that this transfer of ownership goes smoothly and effectively. With the availability of the national eConveyancing scheme, the consumer has been saved a lot of hustle and bustle.
We are all aware that real estate transactions often involve a lot of paperwork. Contracts alone will end up taking hundreds of pages and each contract needs to be provided in two copies. This in itself leads to one spending huge chunks of money from scanning, printing, filing hassle and archiving these documents.
The good thing is that these days homeowners and investors can avoid all this tiresome paperwork through electronic conveyancing. All we can do is be grateful for the digital technology that has made this possible. Currently, it is possible to complete certain real estate documents with less paperwork.
Electronic conveyancing simply describes the process used by people in the real estate which is done on an electronic platform made available by (PEXA) which is an acronym meaning property exchange Australia Limited (PEXA). In this sort of a transaction where all the stakeholders are involved intensively and they include the homebuyers, investors or the person representing them, the financiers and conveyancers who all transact in an electronic workplace.
It is worth noting that this electronic conveyancing basically covers the entire preparation process, the process of execution part and finally the property registration and that’s just about it.
What is the process involved in electronic conveyancing?
There is a very important part of the electronic conveyancing process and that is the client authorization. A client is required to specifically bring forth a written authorization which will, in turn, allow the conveyancer or the practitioner to effectively use the platform electronically. There is another form that is prescribed that is usually available to serve this purpose.
Through this awesome client authorization document, the clients empower the conveyancer to handle any signatories required on their behalf. Some additional tasks the client can also authorize are the lodgment of documents covering the transfer for legislation, the financial settlement of the conveyance and other activities required to be completed for the transaction to go through effectively.
Something worth noting is the client’s signature, is usually done digitally through the use of something known as a digital certificate. This certificate usually is required to be a practitioner who has all the legal requirements and ought to be appointed by the subscriber administrator right before he or she can be in a position to sign the electronic documents on behalf of his client.
This means that those clients who use the electronic conveyancing will be freed from the hassle of signing Land Titles office forms. These forms will rather be signed by the client’s conveyancer which will make the processing of documents quick and effective. However, there is a document that the client will be required to provide for the transaction to go through and that is the client authorization.
What a single electronic conveyancing system means.
This is a big one. A single national electronic conveyancing system will be able to allow electronic settlement of property transactions, an online payment which is inclusive of tax and duty charges, and electronic lodgment of instruments with land registry easily and effectively.
This national system ideally means that whether you purchase a property in Brisbane, Sydney, Melbourne or any other part of Australia. You will only be required to use online systems to lodge and exchange all the required documents which will include contracts and certificates which you will need to purchase your new home.
Under the current system, every territory or state has its own distinct property conveyancing system which has its unique procedures and processes. It ensures the tiresome paperwork that was being used before is eliminated ensuring that no time is wasted and the hustle is reduced significantly.
The major benefit of electronic conveyancing systems is that it saves people money. The national eConveyancing systems normally mean one will be able to save a huge chunk of money by spending less than what you could have using the other manual method. You will also save the transaction cost and the conveyancing fees will be way lower and affordable. Transaction costs such as bank cheques will also be low and affordable.
This move has been initiated by officials from the national conveyancing office whose aims were to develop a system that was to solve all the issues that were affecting the real estate sector. This is because almost every Australian is involved in property transactions be it commercial or residential at one point in their lives. With the national electronic conveyancing system (NECS) in place, financial institutions, conveyancers, mortgage processors, legal practitioners and many other players involved in the process of conveyancing will be able to have easy access to the NECS online which has an electronic workspace provided for each property transaction.
Solicitors and real estate investors are finding their work very easy through the electronic conveyancing system. Modernity and technology have become an everyday part of Australia’s onward move towards development. The electronic conveyancing system has greatly favored the real estate sector and its market has continued to blossom year after year. Australians trust the electronic conveyancing system as it does not disappoint. It makes a complicated situation look easy. People can exchange property ownership without going through any difficulties.Read More