Australia’s emerging electronic conveyancing network has recorded a new milestone after another state made its first online property transfer.
PEXA, the government agency that is overseeing the roll-out of a national system, said Victoria has now joined NSW in moving conveyancing from paper to the internet.
The landmark transaction was completed in late February by conveyancing firms Sargeants Port Phillip and Jim's Property Conveyancing. NSW processed its first online transfer in late November.
PEXA said more than 700 firms across Australia have either joined or are in the process of joining PEXA, with Queensland and Western Australia the next states to come on board.
Chief executive Marcus Price told Residential Property Manager's sister title, The Adviser, that e-conveyancing was the biggest change to the property industry since the land title system was introduced 120 years ago.
Mr Price said he expected all of Australia’s leading lenders to be registered with PEXA by the end of the year.
“We’ve already got 12 institutions, including the four major banks,” he said.
“We’ve got 80 per cent of the market by transaction volume already. We expect that number to be 96 per cent by the end of this year.”
Mr Price said at least 95 per cent of all property transactions will be processed using PEXA by 2020.
“There will still be some exotic transactions that are better done with paper, but for the vast bulk of people PEXA will be the standard,” he said.
“People will expect and demand to have that money within a minute, and they’ll get it because PEXA will deliver it.”
Mr Price said the change to PEXA is going to be more significant “in retrospect than in was in prospect”.
“I don’t think everyone understands the implications of the electronic title and electronic mortgage,” he said. “We do see refinancing being much faster than it is today and much easier to do.”