E-conveyancing hits the property industry
One thing will be missing at Crown Group’s launch of its Infinity apartment project in Sydney’s Green Square on Saturday – 400-page contracts.
The use of “electronic” contracts at the weekend heralds the start of the property industry’s transformation into a paperless electronic environment.
The result gives those involved in the conveyancing process – lawyers, mortgage brokers, real estate agents and, most importantly, the vendor and buyer – access to a digital network that provides real-time document sharing and verification.
Law firm Gadens is handling the electronic property contract exchange for Crown Group.
“Three hundred thousand pieces of paper will be saved. Younger purchasers who prefer everything online and offshore parties will find it easier,” Gadens partner Stephen Healy said.
On Saturday, Crown Group and the buyer will check and sign contracts on iPads. The contract will be sent to the buyer’s lawyer.
Once the contract is firmed up after the five-day cooling-off period, it will feed into PEXA, the bank and government supported e-conveyancing system for final settlement, or the buyer could undertake a traditional hand-to-hand exchange of documents.
Lawyers Colin Biggers & Paisley are also providing electronic exchanges for Sekisui House’s auction of 31 land lots at The Hermitage, in Gledswood Hills in Sydney’s south-west in September.
It is also facilitating e-contracts for developer Payce Consolidated for its land release and off-the-plan apartment sales in the next two months.
Colin Biggers & Paisley’s electronic contract is formed using DocuSign technology, which ensures that the contract is secure and cannot be changed without detection. Anyone globally can sign the contract instantly on any device.
“For us, this is a coup. We’ve always embraced new technology and made significant investment in it because we’re determined to be the best …The speed of the system is astounding. Courier companies and photocopying centres will be fuming,” property partner Mark Morgan said.
Like Gadens, Colin Biggers & Paisley also subscribe to PEXA, which enables the final settlements online. Other players in the industry include SAI Global, which partnered with Rundl, and Sydney-based paradocs, which prepares the contract for sale and can conduct an online exchange.
The current archaic conveyancing sector involves about 500,000 properties a year and fees of possibly $1.2 billion. E-contracts and the PEXA settlement system will fulfil the long-term goal of the government and the industry to make it more efficient.
