Defined as the ability of computer systems, software and/or data to be accessed and cooperatively exchanged, interoperability in an e-conveyancing context is to enable two or more electronic lodgement network operators (ELNO) to communicate with one another via the sharing of an agreed data set, thereby allowing freedom of choice between electronic network operators. Currently, both parties to a conveyancing transaction must use the same ELNO to go ahead with the transaction.

“In order to facilitate competition between providers, it’s important that customers can switch between providers easily,” the ACCC noted.

“Interoperability will help enable switching to be as ‘frictionless’ as possible which will drive efficiencies in the market as end users are able to identify and move to the best service.”

From a lawyer’s perspective, interoperability yields similar benefits to that experienced by the e-conveyancing industry, in that it increases competition between ELNOs and provides lawyers with a choice of providers. It also forces ELNOs to listen to their customers, incorporate their feedback and continuously improve their services, and consequently puts the power back in the hands of practitioners. 

Commenting on the trend last year, the Law Council of Australia said: “With the progress of other entities seeking approval to operate as an ELNO, the issue of interoperability is now critical.

“While the importance of interoperability is generally acknowledged, the Law Council is concerned at the lack of visible progress towards an interoperability framework.”

One of the big challenges, the LCA noted, is that ARNECC (Australian Registrars National Electronic Conveyancing Council) has decided to delegate a decision about whether to investigate interoperability to the IGA Review.

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The Law Council of Australia additionally believes ARNECC’s position on interoperability is unworkable, noting that “a lack of interoperability has the potential to negate the efficiencies of electronic conveyancing and to create unacceptable administrative costs for practitioners, financial institutions and clients”.

“Failure to deal with the issue of interoperability has the potential to derail the substantial progress that has been made to date in the implementation of electronic conveyancing.

“While the Law Council is aware of the substantial obstacles to achieving interoperability, the reality is that these obstacles must be overcome before any other ELNOs commence operations.

“If ARNECC is not minded to address interoperability issues as a matter of urgency, the Law Council will consider advocating to governments, through the Council of Australian Governments, to address these issues before the system becomes too unworkable and is rejected by practitioners, financial institutions and clients.”