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The way in which Australians buy and sell property is set for a complete transformation, with real estate professionals cautioned that they have two years to get on board before it’s too late.
Claire Martin, a solicitor who specialises in property law at Kreisson, and the vendor in Australia’s first paperless property transaction, said the ‘new normal’ will deliver benefits to vendors, purchasers, real estate agents and all those involved in the conveyancing process, but cautioned that it will be easy for agents who are satisfied with the status quo to be left behind.
“I have no doubt that in a few short years we will be reminiscing about the countless hours we spent compiling the mountains of paperwork for paper-based transactions [with settlement taking place weeks later],” she said.
“The whole process is tedious and it’s really just a waste of time and paper. The professionals transacting in the conveyancing industry are at the forefront of the revolution and they have two choices: either be part of it or ignore it,” she said, speaking at an InfoTrack information session earlier this week.
“Practitioners will have to embrace the new technologies or be left behind.”
Mark Morgan, a partner at Colin Biggers & Paisley and a property lawyer with over 35 years’ experience, had a stark warning for those who think being “left behind” could be a long way off.
“I’ll start with a fairly blunt statement, and that’s this: if you’ve not converted to the e-contract system in two years, you might as well shut your property [business] down. And that’s a simple thing,” he said.
Ms Martin said the way the property market operates will be irreversibly changed, noting that the digitisation of property sales is the most significant revolution since the introduction of Torrens titles.
“Selling my investment property in Dee Why without touching a single piece of paper made history – and I can confidently predict this transaction will revolutionise the way we buy and sell property in Australia, making our businesses more efficient and more profitable,” she said.
“In the same way the ASX changed the way that we buy and sell shares, e-conveyancing will revolutionise the way we buy and sell property. I’m not suggesting that buying and selling shares is the same as buying property, but rather the methods used to transact in this sphere are fast changing and there will be simplified procedures that are faster, safer and more effective [than the current method].”
Ms Martin noted that the change in protocol will be particularly advantageous to real estate agents who deal with large numbers of property investors, as these buyers “may not have time to go to the open house inspections and just want to have a look at the contract and get their relevant inspections done”.
The changes will also open up opportunities for agents who can tap into international markets, Ms Martin said.
“If [people] can sign from anywhere in the world, it’s a huge advantage when over 50 per cent of property could be sold to overseas buyers,” she noted.
InfoTrack CEO John Ahern noted that real estate agents are essential to the electronic conveyancing process and that the digitisation of the real estate market will present opportunities for those who get on board early.
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