Get Ready: Mandatory eConveyancing from 20 February 2023

What transactions must (or must not) be conducted using eConveyancing?

From 20 February 2023, the Land Title Regulation 2022 will mandate the use of electronic conveyancing (eConveyancing) for a broad range of property transactions in Queensland.  While the shift to eConveyancing isn’t unexpected – New South Wales, Victoria, Western Australia and South Australia have already introduced similar mandates – it is important for practitioners and their clients to be prepared for this change to the industry.

What is eConveyancing?

Briefly, eConveyancing is the use of an electronic lodgement network operator (ELNO) to conduct a property transaction in a digital workspace.  There are currently two approved ELNOs in Queensland: Property Exchange Australia Ltd (PEXA), and Sympli Australia Pty Ltd.

Unlike traditional paper conveyances, there is no need for parties to sign hard-copy transfer documents, and settlement itself is completed without the need for physical attendance.  The use of electronic documents also enables real-time verification of titles information, which reduces the risk of both human error and last-minute alterations to title.  It also allows for certain critical processes, including the disbursement of funds or sequenced lodgement of documents, to be agreed upon and ‘locked in’ prior to settlement.  

Whether buying or selling, the use of eConveyancing platforms will involve an additional fee – this is charged by the ELNO, rather than the legal practitioners conducting the conveyance.  However, this fee should be considered in light of the administrative efficiencies and greater certainty afforded by eConveyancing. 

What transactions will be affected?

Under the 20 February 2023 mandate, most conventional property transactions will need to be conducted via eConveyancing.  This includes transfers of title, releases of mortgage, and registering or withdrawing priority notices.

While certain transactions have been excluded from the eConveyancing mandate, these are generally limited to unusual dealings that cannot be conducted via eConveyancing due to functionality constraints.  These exemptions include, but are not limited to:

• Transfers of an interest, such as a lease or mortgage;
• Transfers by a third party, including mortgagees exercising powers of sale or local government sales for overdue rates; and
• Transactions where a party is on title in two different capacities, e.g. as an individual and a personal representative.

These are only a handful of the exemptions that apply, and any transaction involving some unusual element – a self-represented party, dealings that require supporting evidence, transfers for only part of the land, etc. – will need to be carefully considered.

How will these changes impact the industry?

The introduction of mandatory eConveyancing has the potential to streamline numerous aspects of the conveyancing process, but practitioners must be aware of additional compliance obligations imposed by both the chief regulatory body, the Australian Registrars National Electronic Conveyancing Council, and the ELNO’s user security policy.  These compliance obligations include cybersecurity awareness training in the secure use of eConveyancing platforms, email, and other forms of electronic communication.  Existing issues of client authorisation and verification of identity will similarly become increasingly important amid the shift to a digital environment.

We will be publishing more information on cybersecurity in eConveyancing during the lead up to the 20 February 2023 deadline.  In the meantime, if you require more information on how conveyancing processes will change in light of the mandate, please email Alexander Durrant or Tim Fynes-Clinton, or call us now on (07) 3243 0000.