Conveyancing technology and requirements continue to update

The Commonwealth recently introduced onerous requirements  for lawyers and conveyancers  in relation to clients buying and  selling properties.

The Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws came into place on July 1. They impose significant identity requirements for clients in any buying or selling transaction, as well as a risk analysis of each party by the conveyancers as to whether they could be involved in money laundering and/or terrorism financing.

Our clients are buying into retirement villages or over-50s resorts (and often selling their homes to fund the purchase).

In our experience, they are not in the practice of channelling money to terrorists or acting as a front for Russian gangsters, but (somewhat excessively) all transactions must comply with the AML and CTF regime. It increases work for clients  and lawyers.

This is an added part of the electronic way conveyancing is done these days.

Those of us who have bought and  sold properties over the years would be familiar with the traditional way a settlement happened: all the parties, usually through solicitors and the banks, met in a room and handed around signed transfer and stamp duty documents, new mortgages, old mortgages releases and bank cheques to complete the settlement.

Once that occurred, the physical documents were sent off to the Titles Office for lodgement and registration, and the parties rushed off to the bank to deposit their cheques before the banks closed.

Not anymore. Transfers of real estate are now handled via an electronic platform known as Pexa. Until recently, electronic settlements were optional. Now, they  are compulsory.

The easiest way to imagine it is that instead of a physical meeting in an actual meeting room, all the parties meet electronically in a virtual environment.

All the parties join in to the Pexa workspace in advance of the agreed settlement date and time and input the requisite details: who is transferring to whom and who is being paid what. The transfer, release of mortgage and new mortgage are electronically shared with the Titles Office for registration. Payments are made into the nominated account as cleared funds. No more waiting three business days for a bank cheque to clear.

But what about cybercrime? Will the money end up in Nigeria? Our experience is that Pexa is incredibly security conscious. Getting registered to operate in Pexa is quite a laborious process of identity proof and independent confirmation.

Tens (perhaps hundreds)-of-millions of dollars go through the system daily. It is essential that the Pexa electronic environment is as secure as possible, and it is being constantly updated in relation to cyber threats.

The AML/CTF requirements make the process of buying and selling more time consuming and onerous, but it’s the law – so, everyone must comply.

 Sunshine Coast & Brisbane Elder Law specialises  in retirement village purchases, and the selling of homes to fund those purchases.  Call 1800 328 952 or visit sunshinecoastelderlaw.com.au or brisbaneelderlaw.com.au