Real estate transactions often involve a large volume of paperwork. Contracts alone can already have hundreds of pages and each contract needs to be provided in two copies. This often results in a high cost of printing, scanning, filing and archiving of documents.
Fortunately, paperwork today can be avoided by homebuyers and investors through electronic conveyancing. Thanks to digital technology, it’s now possible to complete certain real estate documents with less paper.
Electronic conveyancing refers to real estate conveyancing done through an electronic platform specifically provided by the Property Exchange Australia Limited (PEXA). In this type of transaction, the parties involved (homebuyers and investors or their representatives, practitioners or conveyancers and financiers) transact in an electronic workspace.
It should be noted, however, that electronic conveyancing only covers the preparation and execution of settlement and registration of property documents and not the entire conveyancing process.
A very important part of electronic conveyancing is the client authorisation. A client needs to issue a written authorisation first to allow a practitioner or conveyancer to use the electronic platform. A prescribed form is available for this purpose.
Through this client authorisation document, the client allows his conveyancer to sign documents on his or her behalf. Other tasks the client can authorise are the lodgment of documents covering the transfer for registration, the financial settlement of the conveyance and other tasks needed to complete the transaction.
A client’s signature, on the other hand, is done digitally through the use of a digital certificate. This certificate will have to be secured by a legal practitioner who should be appointed first by a subscriber administrator before he or she can sign electronic documents on behalf of his client.
Starting December this year, clients who opt for electronic conveyancing will no longer sign the Land Titles Office forms. The forms will instead be signed by the client’s conveyancer for faster processing of documents. The only document that a client will need to provide for the transaction is the client authorisation.
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By Wendy Chamberlain
Copyright 2018 | All Rights Reserved
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent or Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.