Streamlining Conveyancing - A Computer Sold My House!

More and more correspondence in property transactions is being done by email and often with draft documents as attachments. Banks such as CBA, now enable solicitors to book settlements and provide cheque directions via an online settlement booking system. Notices of Sale can now be lodged electronically in the form of an eNOS.

But with the Land and Property Information's recent Consultation Feedback - Initial Report, the key question on practitioners lips is whether the proposed electronic conveyancing system will work. The proposed system is still in the initial consultation stage, so it is unclear exactly what the finished product will look like.

What the system is likely to involve is authorisation from clients for a solicitor to complete the relevant legal documents on their behalf. The documents would have a digital signature (rather than the traditional "wet signatures" on paper) provided by a certifying body and then would be lodged electronically through the system with the end result of a new Certificate of Title with the LPI. The current proposal is based on the principle of "tell-me-don't-show-me". What this will mean is that the due diligence steps of confirming accuracy and legitimacy of documents is pushed down from the LPI to the certifiers and subscribers. Documents will need to be certified as authentic before being registered. At the moment, whilst practitioners make certain confirmations, the LPI is responsible for ensuring the authenticity of the documents prior to registration. The benefit of a more streamlined authentication and certification process will be costs-savings and increased efficiency.

Some of the other key aspects of the proposed system are:

• Client Identification: The system will rely heavily on practitioners doing the appropriate checks to ensure that a client is who they say they are. This is an increasing problem in an age of identity theft and primarily electronic communication. 
• Responsibility of Solicitors/Third Parties: Solicitors and other parties will need to ensure that documents are correctly completed and all relevant requirements are satisfied. This is not much of a change from current practices. However, there is scope for abuse by unethical practitioners as solicitors will be given a significant amount of responsibility on behalf of clients to complete the relevant documents. 

There are obvious benefits to an electronic conveyancing system. But as they say, "the devil is in the detail". It will be important to understand the exact mechanics of such a system.  

Jonathan Marquet

Emil Ford & Co.