I’m looking at selling my property soon and my solicitor has advised that they can handle the property conveyancing electronically. Is this how most property transactions are handled now and how does it work?
Like most industries, property conveyancing has evolved in recent times to become more efficient by utilising technology, with a key change being the introduction of electronic conveyancing in 2010.
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Property Exchange Australia (PEXA) is Australia’s online property exchange network, and was formed under the direction of the Council of Australian Governments to simplify and digitise the property exchange process.
Property purchases and sales were typically done manually in the past, with face to face meetings of solicitors and bankers and the exchange of old-fashioned cheques, resulting in delays in up to one third of all settlements.
Under the PEXA system, these parties lodge documents and complete financial settlements electronically in real time, thereby reducing the risk of errors and delays and giving greater certainty that property transactions will be processed on time.
The electronic system also means that there are no face to face meetings required between solicitors and bankers, and there is no need for bank cheques as all funds are transferred electronically via Australia’s central bank, the Reserve Bank of Australia.
While electronic conveyancing is currently live in five Australian states, that doesn’t mean that it’s supported by all conveyancers, solicitors and banks.
Unfortunately some of these parties have been slow to adopt the new system, so it might pay to ask your solicitor or conveyancer first if you want to ensure that your transaction will be processed as efficiently as possible.
As accountants and financial advisers, we have seen the costly flow on effects of delayed property settlements, and would recommend that electronic conveyancing be considered for your next property transaction.
If you have any questions in relation to electronic conveyancing please contact your solicitor, conveyancer or adviser.
If you would like more information on this topic or have a question please e-mail me at Albury@crowehorwath.com.au.
Any information in this article has been prepared without taking into account your personal circumstances. You should seek professional advice before acting on any material. While reasonable care is taken in the preparation of this information to the extent allowed by legislation, Crowe Horwath (Aust) Pty Ltd ABN 84 006 466 351, accepts no liability whatsoever for reliance on it.
