20th February 2023 saw Queensland commence their eConveyancing mandate rollout, solidifying the National commitment to a standardised eConveyancing process. While eConveyancing can offer many benefits, some practitioners may be concerned about security, reliability of the systems and additional pressures this may cause their firms from a resourcing perspective.
Overall, eConveyancing offers many benefits over traditional paper-based conveyancing, such as faster settlement times, reduced risk of errors, and increased transparency throughout the transaction process. However, as with any electronic system, there may be some potential risks to consider.
One of the main concerns with eConveyancing is the risk of cybercrime, such as identity theft, fraud, and hacking. While ELNOs, such a PEXA and Sympli, have implemented robust security measures to protect against these risks, there is still a small chance of cyber-attacks. Important to note, the most common threats to any business from cyber threats is the human element in the technological world. What this refers to are examples like absentmindedly sending trust account details, removing verification protocols due to time constraints of settlement and not utilising secure platforms in day-to-day practice. Luckily, there are steps that firms can implement to minimise risks to transact safely electronically. It is worth noting that traditional paper-based conveyancing can also be vulnerable to risks. So, it is important to ensure that careful thought into risk minimisation best practices is a consistent discussion in your firm.
Another potential concern is the reliability of the system. While eConveyancing is generally considered to be a reliable method for conducting property transactions, there may be occasional technical issues or downtime that can cause delays or other complications. Luckily, as the use of ELNOs become the most prevalent means of completing settlements and lodgments this is become less frequent of an issue. The most common cause of delay in electronic transactions is as it was in the manual world, parties not signing off in time or preparing for settlement at the last minute. In jurisdictions that were early adopters of an eConveyancing solution we are seeing that preparation and approval for settlements are occurring earlier, mitigating delays to some extent. However, Queensland has been known to prepare for settlement more closely to the intended settlement date, due to external factors caused by process, lenders and third parties. It is the hope that with this move to 100% eConveyancing being a common process, parties will prepare earlier for settlement to reduce unnecessary delays.
Lastly the consideration of the resourcing pressures that eConveyancing can add to your teams – with additional ARNECC requirements, a new system to monitor and maintain and that a lot of firms previous outsourced the actual manual settlement (such as attendance and exchanging of cheques). The good news on this front is that outsourcing of this process is still very much available to assist in post-contract signing for eConveyancing. SettleIT allows you to outsource the heavy administration; including managing the workspace, verification of identity, signing of the Client Authorisation Form, preparing adjustments and the transfer, attending to stamping, lodging the GST property forms with the ATO and liaising with parties in the ELNO.
Despite these concerns, the benefits of eConveyancing often outweigh the risks. The increased speed, efficiency, and transparency of the process can make property transactions much easier and more convenient for all parties involved. Overall, it is important to weigh the potential risks and benefits of eConveyancing and take appropriate steps to protect yourself and your assets. It is also recommended to work with trusted professionals who are experienced in eConveyancing to help ensure a smooth and secure transaction.
If you are wanting to discuss how best you can minimise these risks and implement an electronic solution that can partner with your firm, please reach out to the SettleIT team directly.
