e-Settlements & e-Conveyancing – What’s next??? 

By now most conveyancers are pretty used to the world of e-Conveyancing – after such monumental change, we’ve well and truly settled into the world of PEXA, feeling proficient in all its ins and outs, and hopefully feeling in control of our workloads. So, just as we have reached that comfort level, it seems that more change is about to happen. Are you ready for the next monumental change – Interoperability between ELNO’s, and the new player – Sympli. 

Interoperability is promising so much: competition, choice and more options but really what does it mean and how will it shake up the industry yet again? We took a deep dive to help you break it down together. 

B.P.E (Before the PEXA Era)  

Those of us who have been in the industry a while remember – before PEXA. Back then settlements were chaotic. They involved packets to settlement agents, crowded settlement rooms, stacks of unfiled and un-lodged paperwork, all of which contributed 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, and at that magic moment of 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?  

While we might use PEXA every day, we don’t always step back and think about who PEXA are. PEXA was formed in 2011. By June 2013, the first e-Settlement transaction occurred in Victoria on the PEXA platform. Launching in South Australia in June of 2016, PEXA has been the only ELNO operating in SA for over 5 years now. PEXA is currently live in 5 states, with the ACT progressing next in its move to e-conveyancing.  

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. 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 almost here.  

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. Currently operating in a pilot program, the first SA Sympli transaction took place back in late 2019. SA services later expanded to include transfers when approved back in May of 2020. Sympli currently has capability to process standalone caveats & withdrawals, mortgages & withdrawals, and financial settlement for transfers, mortgages & withdrawals. Sympli has made significant progress towards going live and has support from all state governments. Sympli claims to bring healthy competition, reliability, security and value to the industry. 

And what is “interoperability” then?  

Basically, Interoperability is the ability for competing ELNO’s to communicate with each other. The commitment of various Land Registries to 100% e-Conveyancing 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.   

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. Conveyancers 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. 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. 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.   

Can I avoid an ELNO completely? 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 conveyancers, transacting directly with an ELNO might not be the best choice. Using an ELNO can be time-intensive, involve steep learning curves and require 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. 

LodgeX transact for you and communicate 24/7 via their platform Lapp. Lapp is an intuitive, clean and accessible alternative to transacting with an ELNO. Just upload your documents, provide basic details, and the team here at LodgeX will 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 or waiting around for settlement success.  We remove the unnecessary steps and time wastage so that you free up your time to focus on what matters to your practice – your clients and your people.   

Find out more about LodgeX Lapp here.