'Everything you need to know about the NSW eConveyancing mandate' Whitepaper
Are you wondering what the latest eConveyancing mandate in New South Wales will mean for your firm?
We have produced this whitepaper to help you with the transition to eConveyancing. As new regulations come into play, practitioners face different challenges, risks and responsibilities. It’s important to understand these changes to ensure you’re compliant and to make informed decisions when it comes to managing resources and technology in this competitive market.
We have produced this whitepaper to help you with the transition to eConveyancing. As new regulations come into play, practitioners face different challenges, risks and responsibilities. It’s important to understand these changes to ensure you’re compliant and to make informed decisions when it comes to managing resources and technology in this competitive market.
WHAT CHANGES COME INTO EFFECT 1 JULY 2019?
Over the past few years, the NSW Land Registry Services and Electronic Lodgment Network Operators (ELNOs) have been working together to allow electronic lodgment of dealings as part of the timeline for transitioning to eConveyancing.
1 July 2019 is the final date in the eConveyancing timeline and will mark the date by which all paper Certificates of Title are cancelled. As of this date, all mainstream conveyancing dealings must be lodged electronically, whether they are standalone or in combination including:
This means that typical property transactions involving a discharge, transfer and mortgage will need to be done electronically. If you’re acting on a sale or purchase of property on behalf of a client and you think the matter will settle after 1 July 2019, you must make sure you prepare your dealings for electronic lodgment.
1 July 2019 is the final date in the eConveyancing timeline and will mark the date by which all paper Certificates of Title are cancelled. As of this date, all mainstream conveyancing dealings must be lodged electronically, whether they are standalone or in combination including:
- Transfers
- Mortgages
- Discharges of mortgages
- Caveats
- Transmission applications
- Withdrawal of caveats
This means that typical property transactions involving a discharge, transfer and mortgage will need to be done electronically. If you’re acting on a sale or purchase of property on behalf of a client and you think the matter will settle after 1 July 2019, you must make sure you prepare your dealings for electronic lodgment.
CURRENT ELECTRONIC LODGMENT STATISTICS
As of April 2019, 84 per cent of all possible dealings in NSW were being lodged electronically according to the ORG. A list of dealings available electronically is outlined here.
Percentage of dealings lodged electronically in NSW:
As of April 2019, 84 per cent of all possible dealings in NSW were being lodged electronically according to the ORG.
Percentage of dealings lodged electronically in NSW:
- 87% of caveats
- 85% of mortgages
- 85% of discharges of mortgage
- 81% of transfers
- 66% of withdrawals of caveat
As of April 2019, 84 per cent of all possible dealings in NSW were being lodged electronically according to the ORG.
WHO CAN LODGE DEALINGS ELECTRONICALLY?
Only approved ‘Subscribers’ can lodge dealings electronically. A subscriber is a person or business authorised to complete eConveyancing transactions using an ELNO.
Every electronic lodgment has a ‘responsible subscriber’ who is liable for fees following lodgment and responsible for the resolution of requisitions.
- Principal subscribers - financial institutions and government bodies who represent themselves.
- Representative subscribers - solicitors and licensed conveyancers who represent other parties.
Every electronic lodgment has a ‘responsible subscriber’ who is liable for fees following lodgment and responsible for the resolution of requisitions.
WHAT ARE YOUR OPTIONS?
Currently the only ELNO operating in NSW is PEXA, however Sympli has commenced an Early Onboarding Program and is set to soft launch in June 2019.
If you’re not already lodging dealings electronically, you have two options:
1) Register with PEXA and train your staff on the system; or
2) Use a service like SettleIT (available through Smokeball via InfoTrack) and rely on experienced settlement agents to process your electronic dealings.
Both of these options are easily accessible via Smokeball’s intuitive software to help you transition to eConveyancing with ease and confidence. With a few simple clicks, you can easily create, launch and manage your PEXA workspaces directly through Smokeball with all your property matter information mapped directly to the workspace via integration. Or if you’d rather save time on the administrative side of eConveyancing, you have the option of booking an experienced SettleIT agent to process your settlement for you via Smokeball’s integration with InfoTrack.
If you’re not already lodging dealings electronically, you have two options:
1) Register with PEXA and train your staff on the system; or
2) Use a service like SettleIT (available through Smokeball via InfoTrack) and rely on experienced settlement agents to process your electronic dealings.
Both of these options are easily accessible via Smokeball’s intuitive software to help you transition to eConveyancing with ease and confidence. With a few simple clicks, you can easily create, launch and manage your PEXA workspaces directly through Smokeball with all your property matter information mapped directly to the workspace via integration. Or if you’d rather save time on the administrative side of eConveyancing, you have the option of booking an experienced SettleIT agent to process your settlement for you via Smokeball’s integration with InfoTrack.
ENSURING COMPLIANCE WITH ECONVEYANCING RULES
The LRS has been conducting random audits of practitioners on behalf of the ORG since September 2017, with around 15% of audits finding non-compliance. As of March 2019, almost 1000 audits of subscriber compliance had been carried out in NSW. As a part of this process, subscribers must provide evidence to support that they have complied with the NSW Participation Rules.
WHAT HAPPENS IF YOU’RE NON-COMPLIANT?
The LRS will refer you to the ORG, whose role is to review the assessment of compliance, determine whether further action is needed and advise you of the outcome.
HOW CAN YOU ENSURE YOU’RE COMPLIANT?
Understand the rules and the main risks. ORG has created a checklist to help subscribers meet obligations. They have also released results of audits showing the primary factors of non compliance:
For more information on the eConveyancing compliance regime you can visit the ORG page.
- 71.4% are for incorrect Client Authorisations
- 14.3% for incorrect Verification of Identity and
- 14.3% for incorrect Verification of Right to Deal.
For more information on the eConveyancing compliance regime you can visit the ORG page.
WHAT’S NEXT?
With Sympli commencing operation in NSW shortly, interoperability between ELNOs is a key issue for the NSW Government who has made a commitment to having the right set of consumer and competition safeguards and controls in the eConveyancing environment.
Practitioners should have a choice between ELNOs and the government is investigating potential models of interoperability with the assistance of industry representatives, including the Law Society, Australian Institute of Conveyancers, PEXA, Sympli, financial institutions and other key stakeholders. Dr Rob Nicholls, the independent chair of these working groups is scheduled to deliver a report in mid-July 2019.
Practitioners should have a choice between ELNOs and the government is investigating potential models of interoperability with the assistance of industry representatives, including the Law Society, Australian Institute of Conveyancers, PEXA, Sympli, financial institutions and other key stakeholders. Dr Rob Nicholls, the independent chair of these working groups is scheduled to deliver a report in mid-July 2019.
5 WAYS TO MAKE THE TRANSITION TO ECONVEYANCING EASIER FOR YOUR FIRM
1) Reach out to your tech providers
We’re here to help you during this transition and we want to make it as easy as possible for you. Let us show you the tools that are available to you and the tips and tricks you can use to save time, manage your risk and simplify your processes.
2) Familiarise yourself with the rules
Review and understand the Conveyancing Rules and the Participation Rules published by the NSW Registrar General. Keep up to date with the latest news by visiting the ORG eConveyancing News page. Attend industry seminars and workshops for a chance to discuss these changes with your peers and industry bodies.
3) Avoid the most common errors
Based on the LRS compliance audit findings, we know that the most common compliance issues are the Client Authorisation Form, Verification of Identity and Verification of Right to Deal. Educate yourself about these issues by reviewing the ORG Common Subscriber Compliance Errors and using resources like the How to Prepare a Client Authorisation Form video. Use the ORG’s checklist as a reminder to avoid the most common errors.
4) Make sure your systems are integrated
The push to digital is meant to drive efficiency, accessibility and ease. It should not be creating more work for you. A key part to ensuring you’re reaping the efficiencies of the digital is integration. You should be able to complete your entire conveyance seamlessly online with the right systems in place. Smokeball’s integration with InfoTrack & PEXA enables you to complete a paperless conveyance from the moment you open your file, with the data entered at the beginning flowing throughout the transaction to ensure greater accuracy and minimal re-keying.
5) Automate the administrative tasks
Now that all mainstream dealings must be lodged electronically, it is a great time to assess your current conveyancing processes and see if there are any other tasks that you can move online and automate. Are you still compiling your contracts manually or photocopying documents for VOI? Most parts of the conveyancing process can now be automated to save you time and increase accuracy. Take a look at how you’re doing things and pinpoint any processes that could be improved upon.
We’re here to help you during this transition and we want to make it as easy as possible for you. Let us show you the tools that are available to you and the tips and tricks you can use to save time, manage your risk and simplify your processes.
2) Familiarise yourself with the rules
Review and understand the Conveyancing Rules and the Participation Rules published by the NSW Registrar General. Keep up to date with the latest news by visiting the ORG eConveyancing News page. Attend industry seminars and workshops for a chance to discuss these changes with your peers and industry bodies.
3) Avoid the most common errors
Based on the LRS compliance audit findings, we know that the most common compliance issues are the Client Authorisation Form, Verification of Identity and Verification of Right to Deal. Educate yourself about these issues by reviewing the ORG Common Subscriber Compliance Errors and using resources like the How to Prepare a Client Authorisation Form video. Use the ORG’s checklist as a reminder to avoid the most common errors.
4) Make sure your systems are integrated
The push to digital is meant to drive efficiency, accessibility and ease. It should not be creating more work for you. A key part to ensuring you’re reaping the efficiencies of the digital is integration. You should be able to complete your entire conveyance seamlessly online with the right systems in place. Smokeball’s integration with InfoTrack & PEXA enables you to complete a paperless conveyance from the moment you open your file, with the data entered at the beginning flowing throughout the transaction to ensure greater accuracy and minimal re-keying.
5) Automate the administrative tasks
Now that all mainstream dealings must be lodged electronically, it is a great time to assess your current conveyancing processes and see if there are any other tasks that you can move online and automate. Are you still compiling your contracts manually or photocopying documents for VOI? Most parts of the conveyancing process can now be automated to save you time and increase accuracy. Take a look at how you’re doing things and pinpoint any processes that could be improved upon.
HOW CAN SMOKEBALL HELP?
When you use Smokeball Legal and Conveyancing software you have:
- Access to PEXA with one click of a button and can create your workspace almost instantly to save up to 30 minutes per workspace
- Integration with Microsoft Office and InfoTrack searching
- live data syncing via the cloud so documents are automatically updated and easily accessed from any location
- An easy-to-use app that lets you access your matters from wherever you are using your phone or tablet
- Dedicated support from industry experts and a comprehensive Support Hub for additional training resource
Your Next Steps!
If you have any questions about Smokeball Legal and Conveyancing software, or would like to see how it could work for your business, you can call us on 1300 33 55 53 or book your obligation free software demonstration.
