E-Conveyancing is on the rise and soon it will replace the more traditional forms of conveyancing. While the concept may seem confusing, it actually simple and not so different from regular conveyancing. The main focus is that processes shall be completed electronically instead of manually. Here are some of the features of electronic conveyancing that are explained in detail.
Whist there will still be a need for telephone calls, communication between conveyancing solicitors, buyers and sellers, Land Registry and other parties involved in the conveyancing process will be possible by electronic means such as scanning and emails. Moreover, any exchange of documents will also be done through electronic means.
No completion/registration time gap:
On completion of the conveyancing transaction (once the keys are handed over) it is hoped that registration will be instantaneous, resulting in greater accuracy with the information on the land register up to date. During the conveyancing process there will be a system of validation of documents, which will ensure that, on completion, all the conveyancing documentation is in order and most of the conveyancing transactions will lead to immediate update of the register.
This will lead to greater benefits for everyone involved in the transaction, all of whom tend to suffer under the current system in which requisitions and uncertainty often show up months after completion with inherent risks to all. Complete removal of the gap depends on the speed at which the process is developed.
Conveyancing transparency and the “chain matrix”:
It is believed that only 30% of all of the 1 to 1. 5 million annual residential purchases are not part of a conveyancing chain. The proposed electronic conveyancing system will seek to make the remaining 70% of conveyancing transactions in a chain transparent through the development of a shared, but as yet undeveloped, portal called the “chain matrix”. This will give buyers, sellers, conveyancing solicitors and other parties instant access to the progress of each conveyancing chain transaction and will facilitate an easier, more coordinated exchange of contracts and completion. For clients, this means better communication, greater certainty and less stressful conveyancing as they are more involved with every step of the process.
Link between conveyancing solicitors and the Land Registry:
All parties involved in the conveyancing process will be connected electronically. Two way communications and information will exist at all times. Conveyancers will have the facility to observe the developing state of the register of the relevant property. At the same time, Land Registry will be able to cross check and validate the conveyancing transaction details as they are submitted.
High level security
The e-conveyancing system depends upon key players being confident that the system is sufficiently secure. Technology offers new ways of protecting the security and integrity of data and conveyancing transactions, which are expected to be more secure than the traditional paper system. The e-conveyancing system will have to adapt levels of security that match the needs of the clients.
Automatic, simultaneous payments
Instant Electronic Funds Transfer (EFT) will support a system of e-conveyancing by improving the financial aspects of conveyancing transactions at exchange and completion. It is a challenging but essential feature of the vision if the full benefit of an e-conveyancing system to be realised. It will enable the whole nexus of payments associated with a conveyancing transactions to be agreed in advance and then settled electronically and with immediate effect at the time when all the funding is confirmed as being available and the conveyancing transaction is complete.
There will be greater efficiency and time saving as travel time to settlements, arranging bank cheques and arranging execution of transfer documents is no longer required. Client authorities can also be provided for a certain period of time or as a batch authority for a particular development minimizing the amount of client authorizations required and therefore documents for the client to execute.