Lawyers Weekly today shared insights on competition in e-conveyancing. As NSW became the third state to mandate electronic conveyancing, from July 1st there is a need to introduce more competition with Electronic Lodgement Network Operators (ELNOs).
Currently a monopoly market structure exists, making the shift towards digital conveyancing troubling for practitioners, financial institutions and property transactors.
The key to the shift towards paperless property transactions is less about re-regulation of conveyancing by the state but providing a choice to lawyers and conveyancers as to which settlement platform they choose.
Competition is going to bring better outcomes for practitioners and their clients. Competition is going to drive innovation in the e-conveyancing market, drive better security and drive better prices for consumers.
As the July 1st mandate loomed for NSW practitioners, NSW Registrar General, Jeremy Cox, said e-conveyancing brings many benefits for solicitors and lawyers including:
- eliminating the risk of human error,
- time savings of around 25 percent,
- not having to physically attend settlement and faster availability of sale proceeds.
Unsurprisingly, Cox says e-conveyancing is important because it allows conveyancers to make a better proposition for clients.
“The status quo always comes to an end and there many reasons why change has to happen, it’s how we deal with change that really matters.”
“We have a great opportunity to set this reform up for success.”
Cox commented that increased market competition should be encouraged so people can lodge their dealings with an ELNO of their choice. He said it’s also important future ELNOs are held accountable for their activities through a robust regulatory framework, preventing risks such as competing with conveyancers directly.
