Did you know that Australia is leading the new way in how land and property is bought and sold? And no, we are not talking about online classified sites like REA and Domain. What we are talking about is the fact that more and more property and land title transfers are being processed online in digital settlement rooms.
Australia’s very own PEXA is the world’s first online title exchange platform. This system facilitates property title exchanges online, a much-needed alternative to the traditional paper-based model.
So this a good thing, right? But it sounds pretty simple, so why hasn’t it been around for years, like internet banking and everything else that we now do online?
Well, unfortunately not everyone thinks that this is a good thing. There has been a lot of recent criticism on the push to digital property titles and online title exchange from lawyers, conveyancing clerks, and the state law institutes.
Price and security have been raised as the core issues but many people in the industry put it down to be more simply a stubborn resistance to change by the old guard in the industry. Fortunately, for those of us that do embrace change for the betterment of processes and transparency, online title exchange and digital titles are here to stay. This is only positive news for both vendors and purchasers of property and land in Australia, and here is why.
Price: Yes the PEXA platform is actually more expensive (almost double) than the paper model, however comparing the two is really like comparing oranges and apples. This is because the system streamlines the overall conveyancing process greatly – settlement statements, adjustments and loan balance amounts are all completed in the online workspace, making the conveyancing job seamless. This greatly increases efficiencies, and many digital conveyancing firms are passing these cost savings onto the client, and being fully transparent about the pricing model.
Convenience: With all the relevant parties coming together online, the number of phone calls, emails, and letters cuts down dramatically. Finally, every party can see the progress of each side as settlement approaches. It is now possible to anticipate and rectify any issues before they eventuate. Put simply, this means stronger settlement performance reducing delays.
Paper: Over the last 10 years we have embraced digital in everything we do. So when buying and selling a house, why is it that we return to an outdated paper-based model? By moving to digital the vendor and purchaser sign one document, rather than 10. And the rest of the documentation is lodged on their behalf electronically through the PEXA system.
Security: Yes, online can be dangerous, but so too can the real world. Property titles get misplaced all the time, sometimes even by the bank, so next time you are looking for your TV remote, rest assured your property title is safe and sound online. Like our online banks and digital marketplaces, PEXA employs similar security measures to mitigate against hacking.
If you’re in the process of buying and selling a property, be sure to investigate a conveyancing firm that offers a digital settlement. Titlexchange are embracing this new technology with the objective of providing a service that is simple and affordable because the traditional conveyancing model is still very much the opposite. If you would like to speak to one of our lawyers, please call us on 1300 776 775.