The changing landscape of conveyancing

BMT team — Mon, 01 Jul 2019 01:32:44 +0000

The conveyancing landscape is rapidly evolving to keep up with our digitally driven world. With advancements in technology, the conveyancing process can now be done online. This is known as e-conveyancing. What is e-conveyancing? Conveyancing refers to the process of transferring ownership of a property and has traditionally been complex and time consuming. Also known as electronic settlement, e-conveyancing is now paving the way for a more refined, streamlined property transaction process. It reduces the manual paperwork involved in property exchange by allowing multiple parties to transact together on a digital platform, generally provided by Property Exchange Australia (PEXA). Using this platform, financial institutions, lawyers and conveyancers can all access relevant records and legal documentation required to settle a property transaction. Supported by the property industry, e-conveyancing was spearheaded by the government to bring the multifaceted process of conveyancing into a digital environment. E-conveyancing legislation In 2012, e-conveyancing legislation was introduced in the form of the Electronic Conveyancing National Law 2012. This legislation mandates the transitioning from conveyancing to electronic settlement in Australia and is implemented by separate legislation in each state and territory. In 2018, it became compulsory in most states (excluding Australian Capital Territory, Northern Territory and Tasmania) to electronically lodge all caveats and standalone transfers, along with mortgages, refinances and discharges of mortgage. New South Wales and Victoria have transitioned to 100 per cent electronic conveyancing and will phase out paper certificates of title by July 2019. How to settle online Settlements conducted through digital platforms remove the requirement for hard copy documents. This means financial institutions, lawyers and conveyancers don’t need to be physically present at settlement. To start the e-conveyancing process, one of the parties will create an electronic workspace on a platform like PEXA. Once this space is created other parties are invited to join. Formed in 2010 by the Council of Australian Governments, PEXA is an online property exchange network that assists members to lodge documents with Land Registries and complete financial settlements electronically. Services like PEXA reduce the preparation and attendance previously required at settlement and limit post-settlement tasks such as payments and notification requirements. Using these services, conveyancers and solicitors can conduct title searches, lodge documents and transfer funds. What are the benefits? The main benefit of e-conveyancing is its convenience. Electronic settlement can be performed regardless of location, meaning documentation can be easily accessed by relevant parties. This accessibility allows for better transparency between the seller and buyer by keeping them updated on any transaction developments. Notifications also inform financial institutions, conveyancers and solicitors of what needs to be lodged and can help to speed up the settlement. While there are many benefits to electronic settlement, it’s important to be aware of the difficulties involved. The main challenge is making sure all relevant parties understand how to use electronic settlement platforms. Given e-conveyancing is relatively new, training may need to be implemented to ensure all parties have the appropriate skills. E-conveyancing also assumes that individuals have access to the internet. For more information and advice on conveyancing, read ‘Choosing a Conveyancer or Solicitor for your investment property’.

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Choosing a Conveyancer or Solicitor for your investment property

BMT team — Mon, 26 Nov 2018 04:25:19 +0000

Conveyancing is the legal term for transferring ownership of a property. Whether you’re buying or selling a property this is completed by either a Conveyancer or a Solicitor. These experts handle all the legal aspects of buying or selling a property for you. Good ones will keep you updated regularly and support you in what can sometimes be a stressful process. The first question you might be asked when you put in an offer on a property is the name and contact details of your preferred Solicitor or licensed Conveyancer. A typical conveyancing transaction generally consists of three stages: pre-contract pre-completion post-completion In this article we will answer: What do Solicitors and licensed Conveyancers do? Is this why there is a difference in their fees? When should I hire a Conveyancer or Solicitor? How do I make sure I choose someone suitable? Questions to help you choose a prospective Conveyancer or Solicitor What do Solicitors and licensed Conveyancers do? Conveyancers have detailed knowledge in one area of law; property law. Solicitors have detailed knowledge about property law, but they also have a broader knowledge of the law in general. This means that a Solicitor can advise their client not only on all aspects of a conveyance, but also on issues that might relate to the conveyance such as the tax implications of a property transaction, or how the sale of a house might impact their client’s divorce proceedings. This difference in knowledge and experience is what commonly creates a price difference between Conveyancers and Solicitors. Is this why there is a difference in their fees? The main reason people hire a Conveyancer over a Solicitor is because they are often the cheaper option. Conveyancers can usually be hired for around $500-$600 plus disbursements, whereas a Solicitor may charge $1,000-$1,100 plus disbursements. Disbursements are generally outgoings and incidentals to cover certain processes that the Conveyancer/Solicitor will have paid for on your behalf and may include various searches related to title, land tax, planning, council and water rates. Hiring a Conveyancer may be more suitable when the property value is low, the budget is tight or the transaction simple and straightforward. Don’t forget that Conveyancers often have to take on a lot of clients in order to offer a lower price and make a profit. So, you may not get the same level of service that you would from a Solicitor. When should I hire a Conveyancer or Solicitor? Whether you choose to hire a Conveyancer or a Solicitor, it’s important to hire them at the outset of your transaction. If you’re selling your property, you need to hire someone when you’ve decided to sell as it can take some time to draft the Contract of Sale and prepare the Vendor’s Statement. If you’re buying a property, hiring someone before you sign any paperwork is always preferable. Before bidding or making an offer to buy a house it’s advisable that your Conveyancer or Solicitor reviews the Contract of Sale so they can point out any intricacies about the property and negotiate on your behalf for contract terms that would be favourable to you. How do I make sure I choose someone suitable? Just as you would interview prospective Real Estate Agents, you should sit down and talk to multiple Conveyancers and Solicitors before selecting one to oversee your settlement process. A good place to start is by asking your friends and family if they can recommend a good Conveyancer or Solicitor. If nothing comes from this, do some online research and ask for recommendations from your Real Estate Agent, Accountant and Lawyer. Give them a call and ask a few questions to find one that meets your needs. Some Conveyancers and Solicitors specialise in different types of real estate, which should help narrow your search. Questions to help you choose a prospective Conveyancer or Solicitor: Are you a member of the Australian Institute of Conveyancers? What types of property do you specialise in? How much will their fees and charges cost? What will I have to pay at settlement? What government fees and charges will I need to pay? How will you communicate with me and how often? How long will everything take on settlement day? (This is important if you are arranging movers and other parties) Remember, your Conveyancer or Solicitor plays an important role in the purchase of your property, so be sure to choose someone you feel comfortable with and remember, cheapest isn’t necessarily best. Read more articles about choosing experts to help you on your property investment journey: 9 experts you should have on your investment team How do I choose a Real Estate Agent? Why choose a depreciation expert?

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The changing landscape of conveyancing

Choosing a Conveyancer or Solicitor for your investment property