Conveyancing is undergoing massive change (again)

A Brief History of Conveyancing

Prior to the current system of title known as the Torrens system title was conveyed by adding a further transaction to the chain of totle back to the original crown grant.

The issue with that system was that if there was a "break" in the chain the all the subsequent transactions failed and the title was owned by the person just prior to the break. Sometimes the break was not discovered for several years and several transactions later. The system could provide surprising results

Australia invented and adopted a system of title buy registration called the Torrens System. The basic tenant of the Torrens system is that the Registry is always right. Anyone can perform a register search (for a fee) a look at the detail of a title. Other instruments can be registered on title such as mortgages and convents. Other instruments are recorded on title such as caveats and agreements with Councils, known a s 173 Agreements

Ownership is changed on the registry by lodging a transfer annd supporting documentation at Land Use Victoria. Conveyancing is the process of changing ownership of property.

Electronic Conveyancing

The has been a desire to convert the conveyancing process from paper based to electronic. In Victoria the responsible department Land Use Victoria has set out its timetable stating that all transactions will be electronic by 1 August 2019. Currently there is only one company that provides the infrastructure required to settle electronically, called PEXA.

To convey electronically your conveyancer has to subscribe to PEXA. A subscriber must be a lawyer or licensed conveyancer.

There are big difference in convey electronically and conveying in a paper based system.

The main differences are:

1. The subscriber must identify their client using a mandated procedure called Verification of Identity ("VOI")
2. The subscriber signs the transfer and other documents on behalf of the client.
3. In electronic settlement funds are disbursed to bank accounts as cleared funds typically in less than an hour.

What Does It All Mean

For simple uncomplicated transactions if possible they should be done electronically. Whilst there is an extra fee associated with electronic conveyancing the saving of time and stress make that fee worth it. With electronic conveyancing all the hard work is done before settlement.

The most common area for a conveyance to fall over is funds at settlement. In a paper based system funds are exchanged by bank cheque. If the bank cheques are wrong settlement cannot occur until cheques are redrawn.

In electronic conveyancing all the finds are accounted for prior to settlement and all parties will have signed off as those funds being correct. Once an electronic conveyance is "ready" it is very rare to fail.

AND?

You will find a spread of prices for conveyancing from as low as $450.00 and as high as $2,000.00. Conveyancing can be done by lawyers or licensed conveyancers.

You should verify your practitioner is a lawyer on the Legal Services Board and Commission ("LSBC") website  or a licensed conveyancer on the Consumer Affairs Public register of licensed conveyancers.

You should determine whether your practitioner is contactable during business hours by telephone and email. Ideally you will meet with your practitioner face to face for VOI and other matters that may arise. 

There are some practitioners that are part time and there may times, sometimes days that they are not available.

Some practitioners do not answer or respond to telephone calls or email. Some practitioners do not have a street address. These are all things you should consider before choosing a practitioner.

  In regard to price you should consider what is being left out if the price is low. Does the practitioner review or prepare the contract as part of the fee, Will the practitioner be obtaining their own certificates or relying in the certificate of other parties.

Lastly does the practitioner have the ability and support to deal with a conveyance that is going wrong.

Once you have worked through those issues then you should discuss price.