Published on the 16/01/2018 | Written by Jonathan Cotton

Kiss the paperwork goodbye; buying a home – including signing documents- may soon be digital…

Government releases discussion paper looking at the benefits and pitfalls of digitising the home buying process.

The discussion paper, known as Removing barriers to electronic land contracts, looks to update the laws governing property acquisition and bring them in line with 21st century expectations.

“The laws dealing with property acquisition phase are still stuck in the age of paper and ink,” said Victor Dominello, minister for innovation. “Alongside being one of the most important life events for Australians, buying a home is also one of the most stressful experiences….But imagine if you could do everything from paying your deposit to settling your home from your smart phone, PC or tablet.”

“In our digital world, people should not have to rush to solicitors and bankers to sign paper documents. Instead, that time can be better spent reading through the important documents that upon execution, would mark one your most important life events.”

While digital signatures have become increasingly prevalent in commercial transactions, some institutions have been reluctant to abandon paper signing systems entirely. Similarly, current standards for deeds, mortgages and leases often require that certain formalities – such as witnessing – be met, preventing their their execution by electronic means.

The paper follows the Government’s reforms in electronic conveyancing which will see all standard property transactions in NSW being lodged electronically by July 2019. Currently much of the system for electronic conveyancing processes is in place, albeit limited to the finalising of property transfers.

“Technology has transformed businesses and consumer expectations. We must ensure that property transactions are fit-for-purpose in the digital age,” said Dominello.

“Technology can deliver greater time savings and efficiencies. But the paper also considers some of the complexities involved in electronic transactions such as vendor disclosures, signature requirements and the exchange of contracts.”

In the last financial year, approximately 786,500 property dealings were lodged at the NSW Land Registry, most in paper. In November 2018 about one-third of which were lodged electronically.

Issues for discussion include:

• Should the Sale of Land Regulation provide an alternative, electronic means of providing the prescribed documents? If so, should this be in a particular format?
• Should there be a witnessing requirement for requirement for electronically signed contracts? How might this be achieved in an electronic environment?
• Should legislation intervene to regulate the use of electronic contracts in conveyancing, or is this a matter best left for conveyancing practice to develop within the current framework?

The Discussion Paper is available for comment at www.registrargeneral.nsw.gov.au, with submissions closing 16 February 2018.