On Thursday May 12 2022, the NSW Parliament passed the Electronic Conveyancing (Adoption of National Law) Amendment Bill 2022.
The historic reform has been welcomed and championed by InfoTrack within Australia.
How are property transactions currently undertaken?
Investing in property is often one of the biggest financial decisions a person will make in their lifetime. Currently, when a consumer is ready to buy, sell or mortgage a property they are only able to subscribe to the one Electronic Lodgment Network Operator (ELNO) to complete the transaction. This is because ELNOs are unable to exchange information, or ‘talk’ to each other, to complete a transaction.
How does this reformed legislation change this?
The important reforms outlined in the amended bill require ELNOs to interoperate, meaning a greater level of cooperation will be necessary amongst operators. Interoperability means that every user gains the right to choose their ELNO for every settlement.
What does this announcement mean for all parties involved?
These significant changes pave the way for national interoperability, meaning better competition and choice for practitioners. For all of those involved in property settlements, the buyer, the seller, and/or their conveyancers, and lawyers, this will accelerate the process and yield greater efficiencies.
Why is competition important?
A monopoly within the market reduces the freedom of choice for all parties involved. Competition within this space is integral as it drives innovation and encourages efficiency in transactions, benefits that will be felt by all parties involved.
InfoTrack welcomes the competitive gains that this historic reform offers to lawyers and conveyancers through the ability to transact efficiently and securely with the ELNO(s) of their choosing.
If you are unsure about the process of working between ELNO’s, InfoTrack’s settlement solution SettleIT can help.
