There has never been a better time to implement electronic conveyancing as the world shifts towards digitalisation. Electronic conveyancing is the digital completion of conveyancing transactions, including, transferring property ownership from seller to buyer. E-conveyancing is set to streamline the conveyancing process for not only buyers and sellers, but also lawyers, conveyancers and financial institutions.

Conveyancing is generally known as a stressful and complicated process for all parties involved partially due to the multitude of lengthy documents required.

With the new Real Property Amendment Bill of 2021, buyers and sellers will have the transparency they have always dreamed of, as well as faster processing, without as many complications. Errors can also be corrected up until the last moment, reducing chances of a late settlement which nobody wants to deal with when buying or selling property.

Real Property Amendment Bill 2021

The Real Property Amendment (Certificate of Title) Bill 2021 passed through NSW Parliament allowing for the cancellation of paper certificates of title (CTs) in NSW. There are two significant changes from the 11th of October, 2021:

·         The cancellation of CTs

·         The control of the right to deal (CoRD) framework

·         All land dealings must be lodged electronically

The Land Registry Service has stated that:

“The mandate of the final batch of residual documents is planned also to occur on the 1st of October, meaning that all dealings must come via an Electronic Lodgement Network Operator (ELNO) after this date”.

To conduct an e-Conveyancing transaction, buyers and sellers must use the service of a lawyer or conveyancer who is registered with an Electronic Lodgement Network Operator (ELNO).

The Impact On Landowners

There are three aspects for landowners to acknowledge:

1. People who pay off mortgage will not receive a CT

2. Cash buyer will not receive a CT

3. When a plan of subdivision is registered, and new parcels of land created, CTs will no longer be issued

Landowners who have a paper CT will not need to make any changes as it will no longer be a legal document after the 11th of October, 2021.

However, the Land Registry suggest those who have paper CT and plan to deal with their land in the next six months should hold onto it. In this case, the CT may be needed to satisfy requisitions or other administrative noticed that were issued before 11 October 2021.

Also, the Land Registry advises those landowners who have someone else holding or storing their CT to retrieve it back. This is crucial as there will be no longer be a remedy to retrieve a CT since it will no longer be a legal document.

Overall, it is great to hear that NSW is transitioning with the rest of the world to become more eco-friendly through digitalisation. We will keep you updated on any further developments within this industry towards digitalisation. Contact our property law team today for all of your conveyancing needs on 1300 599 999.

*Disclaimer：This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice before taking any course of action.*