Australia: eConveyancing for property settlements is nearly here in NSW!

by Rachael Thurn

When a property transaction settlement takes place In NSW, your solicitor must meet with your bank, the other side's solicitor and their bank at a specific time where paperwork and bank cheque will be passed between those attending. In a move to update this outdated practice the Law Society, banks and Government bodies have developed a system which will soon be available to all practitioners, nationwide, to make the transaction more efficient and relevant in today's modern world.

A system of eConveyancing is currently being trialled that comprises an electronic settlements room where documents are uploaded by the solicitors and funds are electronically transferred by the banks. Documents can be checked prior to settlement to ensure they are correct, which will save on any delays, and doing away with cheques means vendors will have access to the proceeds of sale immediately.

For some this move away from physical Certificates of Title and the transfer of money may seem daunting, however stringent requirements will be implemented by the overseeing body PEXA and, in the case of Kenny Spring, within our own firm as well to ensure the security of the transaction. Proper identification and verification of the parties to the transaction will be closely inspected and documented, in addition to the close examination of the lodged documents by at least two people at various stages of the transaction.

For those who would still prefer the current approach, eConveyancing is optional and will not be imposed on any vendor or purchaser. It also requires both parties to agree to proceed with the transaction electronically.

At Kenny Spring Solicitors we are ensuring that we are ready for the launch of eConveyancing in the New Year so that our clients have the option to utilise these new and improved practices and their transactions will be as efficient as possible.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.