Did you know when property professionals talk about conveyancing and settlements, they now almost always mean e-Conveyancing and e-Settlements. The -e- has definitely revolutionised the property industry – but how? How does e-conveyancing actually WORK? Where is it up to now and where is it heading? There are plenty of questions, for what is a dynamic and fast changing part of the legal property process. Let's break it down together. 

B.P.E (Before the PEXA Era) 

Before PEXA, settlements were chaotic. Packets to settlement agents, crowded settlement rooms, stacks of unfiled and un-lodged paperwork, all contributing to a complex, inefficient and time-costly process. In 2008, an initiative of the Council of Australian Governments decided that a single national electronic conveyancing system be introduced by 2010. A platform would be created to enable all Australians to settle property transactions electronically.  All parties would be in a workspace, at settlement funds would transfer and documents register simultaneously, thus removing much of the uncertainty from the paper process.  The platform operators would be known as an Electronic Lodgement Network Operators, or “ELNO’s”. The initial ELNO was PEXA. 

So, Who is PEXA? 

PEXA formed in 2011, and by June 2013, the first e-Settlement transaction occurred in Victoria on the PEXA platform. Since then, PEXA has expanded to include a range of settlements and lodgements to land registry's, including mortgages, discharges and caveats.  PEXA is currently live in 5 states, with the ACT progressing next in its move to e-conveyancing. PEXA operates as an ELNO by a transactional platform. Subscribers - usually practitioners, log in and complete a full range of property transactions, as enabled in their corresponding state land registry.  

PEXA has changed the game - bringing down costs and time for  lodgements and transactions, and increasing flexibility. It is a technically complex platform, with a steep learning curve. Many firms will have their own internal “PEXA expert” with in-depth knowledge of PEXA functionality. According to PEXA, 80% of all Australian property transactions are now settled on the platform. While PEXA has been the key player for many years now, a change started back in 2018. This change is now sitting just out on the horizon.  

Enter: Sympli.  

Announced back in 2018 as a joint venture between ASX and legal tech group InfoTrack, Sympli is poised to operate as the second ELNO in Australia, in direct competition with PEXA. The commitment of various Land Registries to 100% eConveyancing made the presence of another ELNO viable. To facilitate this, corresponding legislative reform followed, including requirements for “interoperability” between ELNO’s - in other words, ELNO’s must be able to transact with one another so that parties to a transaction can choose which ELNO they wish to use.  Sympli have made much progress towards going live, and have support from all state governments. Last week, the Western Australian Land Registry announced its approval of Sympli. Sympli claim to bring healthy competition, reliability, security and value to the industry. 

Wait, Sympli vs. PEXA? Who do I choose then?  

Currently, Sympli is not fully operational but is due to be live late 2022. Once live, there will be a choice of ELNO. Practitioners will need to understand what each ELNO offers, which documents can be lodged on each platform, as well as the onboarding, training and costs for transactions. No doubt each practice will need to navigate these issues. Ultimately, it will likely become a matter of practitioner’s preference! What we do know is that each platform will have its own complexities, advantages and challenges, so if you plan on transacting directly through an ELNO regularly, it may be worth spending the time to understand each system and how it works for you and your practice.  

Are there any other options?  

While ELNO’s such as PEXA and Sympli have made enormous improvements to the efficiency and ease of transactions, for some practitioners, transacting directly with an ELNO might not be the best choice. Using an ELNO can be time-intensive, involve steep learning curves and requires ongoing training. Generally, they offer limited support for bulk-transactions, and can be difficult to navigate for infrequent users. Unless your practice is sufficiently supported and willing to invest the time and capital in ongoing training for multiple ELNO’s then direct transacting on an ELNO will most likely not be the best option. 

There is an alternative solution with LodgeX  – the choice whether to directly transact via an ELNO. 

LodgeX have built a new platform – it’s a simple, intuitive, clean and accessible alternative to transacting with an ELNO. Just upload your documents, provide basic details, and we manage the rest of the transaction & settlement. Imagine being able to upload 100’s of transactions in a day with ease, or only transact 3 times a year if that’s all you need. Best of all there is no need for ongoing training and learning many systems.  Removing the unnecessary steps means you can save time and money: leaving you free to focus on what matters to your practice.  

Find out more about LodgeX Lapp here.