Buying a Property

Is Electronic Conveyancing Really Safe Today?

9 May 2022 by Chad Diaz

If you're getting ready to close on your first home, you may be aware that things have moved on in the conveyancing world, and it's now possible to complete settlement digitally instead. Yet as there is so much at stake and significant funds may be changing hands, how can you know if this is perfectly safe? In other words, what will the system administrators do to verify the various party identities and keep everything above board?

Introducing PEXA

Across Australia, electronic conveyancing is now handled by an entity known as Property Exchange Australia or PEXA. This is a private company and is essentially a fintech start-up owned by several different institutions but has been recognised by federal or state legislators.

Digital Transactions

PEXA has developed a platform that allows property settlement to take place in an entirely digital workspace. Instructions flow back and forth, allowing financial settlements to move from one party to another at precisely the right time.

Party Identification

Clearly, it is crucial to ensure that all parties to the transaction are who they say they are and to ensure that this is handled properly, PEXA conducts a strict verification of identity process. This also allows your conveyancer or lawyer to verify identity so all parties are happy before anything proceeds.

Verification of Identity

The relevant parties need to produce original documentation as proof of their identity. Without doing so, the individual would not be able to join PEXA and take part in any transactions. Documentation will typically include an Australian passport or foreign passport with proof of immigration status. In addition, a driver's license or photocard is classified as a "category one" document, together with a change of name or marriage certificate, if this is applicable. A birth certificate, Medicare or Department of Veterans Affairs card may be requested in some circumstances.

Identification Process

The process involved in verifying identity may be slightly different depending on your jurisdiction. However, it is always necessary to confirm the information by attending a face-to-face meeting and producing original documents at that time. Lawyers and conveyancers are allowed to verify the identity of the clients themselves, but they can also use a special agent if need be. If the party happens to be overseas, they will need to verify at their nearest Consular Office instead.

Additional Information

So, as you can see, there are strict measures in place to protect all parties prior to e-Conveyancing. If you have any further questions about the process, you can always ask your conveyancer for their advice. Research conveyancing services for more information.

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