The Internet has significantly changed the manner in which people carry out their transactions and the real estate industry has experienced this change as well. Many real estate transactions are now carried out online through secure and monitored platforms. Electronic conveyancing is one such transaction and it has risen in popularity over the years. It has a number of distinct advantages that makes real estate transactions easier.
What is electronic conveyancing?
Electronic conveyancing is a transaction carried over the Internet through a digital medium instead of traditional paper medium. The participants in the transaction carry out the agreement by signing digital documents with electronic signatures. The platform for this transaction is provided and supervised by Property Exchange Australia Limited (PEXA). The participants, representatives, and their financiers interact and communicate through this platform.
Electronic conveyancing doesn’t cover all aspects of conveyancing but it’s getting there. In its current form, the platform is a settlement room where all initial transactions leading to the final agreement signing is carried out. This platform is regulated by Electronic Conveyancing National Law (ECNL) to protect the interests of the participants and ensure all transactions are legal.
What are the characteristics or advantages of electronic conveyancing?
E-conveyancing makes the entire transaction easier and more convenient for participants. It’s also a secure platform so you can trust it for high-value transactions. Here are some of the characteristics and advantages of this system:
- Contracts can be issued electronically – The contracts in the transaction can be issued electronically with all the negotiated clauses and provisions in them. Participants can negotiate the clauses over this platform and alter the contracts according to their requirements before signing the agreement.
- Contracts can now be signed electronically – You don’t need to print out the agreement and sign it physically. Electronic signatures are valid and legal so it can be used as proof in court if needed.
- Settlement can occur electronically without paper signing – As the signatures are legally valid, there’s no need for paper documentation. The settlement can happen without any need for signing physical documents.
- Vendors receive money faster – As there is no exchange of paper documents between the buyer and seller, the money also changes hands faster. Once you’ve reached an agreement, the money can be transferred legally via the platform immediately and vendors don’t have to wait for weeks to complete the entire transaction.
- Purchasers don’t need to provide bank cheques for settlement – The money is transferred electronically so there’s no need for bank cheques or physical transactions. This also saves time and is very convenient as vendors don’t need to spend time depositing the check at the bank, waiting until it’s cleared, and then getting access to the funds.
Most industries have started to replace their paper documentation with digital agreements. Eventually, title paper certificates will be phased out and the industry will largely use this type of digital documentation in their transactions. The platform is quite secure and every day new technologies are introduced in the market to make electronic conveyancing more convenient and far safer too.
If you want to know more about electronic conveyancing, don’t hesitate to get in touch with our Conveyancing Services Sydney team at The Conveyancing Shop today. You can call us at 02 9686 3366 or contact us through this form.