Electronic conveyancing (E-conveyancing) is a national framework that enables practitioners to lodge and deal with land title registry documents through an electronic platform.

Conveyancing across Australia generally remained manual and paper-based despite automation in industry systems and within land registries until in 2008, when the Council of Australian Governments agreed that there should be a new electronic conveyancing system operating across Australia.

The goals of the e-conveyancing system are to:

• promote efficiency and uniformity in conveyancing throughout Australia using a common legal framework that enables electronic lodgment and processing under existing Torrens title legislation; and

• preserve the fundamental principle of indefeasibility of title.

The national e-conveyancing system does not amend the substantive land title law and all other aspects of conveyancing remain unaffected (eg exchange of contracts). Rather, the system introduces a national framework enabling documents in electronic form to be lodged and dealt with under the land titles legislation of each jurisdiction in the same way. The national electronic conveyancing system is not mandatory.

E-conveyancing allows dealings with land, including transfers, to be conducted using the electronic platform, Property Exchange Australia (PEXA). E-conveyancing allows users, referred to as "subscribers", to lodge and deal with land titles registry documents under the land titles legislation of each jurisdiction in the same manner.

E-conveyancing is conducted using PEXA. PEXA is an electronic conveyancing platform, comparable to the sharemarket's electronic settlement system, CHESS. PEXA provides a space for:

• financiers;

• land registries;

• solicitors; and

• conveyancers,

to work within and:

• lodge;

• stamp; and

• settle land transactions.

E-conveyancing is regulated by separate legislation in each state and territory which implements the Electronic Conveyancing National Law (ECNL).

See What is e-conveyancing and how does it work?

In order to conduct a transaction electronically, practitioners will need to register with PEXA. Practitioners must:

• financiers;

• land registries;

• solicitors; and

• conveyancers,

A solicitor holding a current unrestricted practicing certificate will be deemed to satisfy the character requirements.

When registering with PEXA, practitioners will be required to sign a PEXA Participation Agreement. Practitioners who wish to electronically sign documents in PEXA will be able to order a Digital Certificate.

In order to register with PEXA and obtain a Digital Certificate, practitioners are required to verify their identity. This requires a face-to-face meeting with either:

• PEXA;

• a PEXA sponsor; or

• one of PEXA's verification of identity agents (one of which is Australia Post).

See What do practitioners need to do in order to use PEXA in the first instance?

The standard contracts for sale of land in all jurisdictions were not originally prepared with e-conveyancing in mind. As a result, the standard contracts need to be reviewed and revised. In 2014, New South Wales amended their standard contract adding a new clause specifically for e-conveyancing. While other jurisdictions, such as Victoria, have drafted special conditions.

Queensland's standard form contract Real Estate Institute of Queensland (REIQ) — Contract for houses and residential land, 14th edition) now includes standard terms dealing with e-conveyancing, allowing conveyances to occur through PEXA in Queensland.

See E-conveyancing and the contract for sale of land.

Before a transaction may be conducted electronically the client must provide authorisation in the specified form as set out in Sch 4 of the Model Participation Rules. Practitioners must also verify their clients’ identity in accordance with PEXA's verification of identity standards. Alternatively, clients may attend a face-to-face meeting with one of PEXA's sponsors or agents to have their identity verified.

Where the client either does not provide authorisation or does not have their identity verified in accordance with PEXA's requirements, the conveyance must be undertaken on paper.

Once the client's authorisation has been given and their identity verified, the subscriber will need to create a new workspace or accept an invitation to join the workspace for the matter from another party. In order to create a new workspace, the subscriber will need to provide the following information:

• the jurisdiction in which the property is located;

• the subscriber's role in the transaction (eg proprietor on title (vendor), or incoming proprietor (purchaser));

• land titles information;

• matter number;

• workgroup information; and

• settlement date and time.

If you create a new workspace, you will need to invite other transaction participants to join the workspace.

Once all documents are lodged and parties are ready for settlement, the subscribers will be required to digitally sign the settlement statement in PEXA and ensure that all required monies are in the source account at the time of settlement. Settlement will then occur automatically and monies will be transferred to the destination accounts.

See How to conduct a transaction electronically.

There are many benefits and potential issues for legal practitioners arising from e-conveyancing.

• the elimination of the need to attend physical settlement;

• the need to handle cheques; and

• dealings will be registered almost immediately after settlement.

Subscribers can face substantial risks in the sense that:

• an electronic signature cannot be repudiated unless it was not created by the subscriber; and

• electronic signatures are binding on subscriber personally.

This can make it difficult for practitioners to obtain professional indemnity insurance to cover e-conveyancing.

See What are the potential legal issues that may result from e-conveyancing?

PEXA and the Law Societies have prepared a number of FAQ documents which answer many queries practitioners have raised.

See Other issues.

See Glossary of e-conveyancing terms.