\nThe days of a physical title for a property are finished. Since late last year, sellers and buyers or their representatives meet on line and transact by electronically signing document. No physical meeting happens anymore. The Banks will now electronically sign the Mortgage documents on behalf of Borrowers. So what about ID fraud? Garth Brown<\/b>, from\u00a0Brown & Brown Conveyancers, joins us to explain how it works.
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Kevin<\/b>:\u00a0 When it comes to buying and selling properties, we get used to the delays around settlement time or get very nervous as we head up toward settlement because of the possible delays with making the transaction happen. This sometimes can revolve around titles, but the days of physical titles may well and truly be finished. Joining me to explain a little bit more about this is Garth Brown from Brown & Brown Conveyancers.
\nGarth, thanks once again for your time.
\nGarth<\/b>:\u00a0 Thanks Kevin.
\nKevin<\/b>:\u00a0 Titles \u2013 these are going to be done digitally from now one, are they?
\nGarth<\/b>:\u00a0 Yes. What has happened recently, since October last year, the actual physical titles will be done away with as the new electronic settlements come on board, which has started in New South Wales and is presently being rolled out to Victoria and to the rest of the country by the end of this year.
\nThe physical titles were mainly brought about to prevent fraud, but interestingly, it has actually created more fraud. This is one of the reasons why an actual physical title will be done away with and you\u2019ll actually be registered on a computer register. There won\u2019t be any physical title any more.
\nKevin<\/b>:\u00a0 When we talk about physical title, you\u2019re talking about a title deed \u2013 a document \u2013 that\u2019s being done away with.
\nGarth<\/b>:\u00a0 It\u2019s that cardboard physical title, yes.
\nKevin<\/b>:\u00a0 Some people still like to have those to say, \u201cThis is the title; I now own this,\u201d but we\u2019re in the digital age, having to get used to letting go of such documents, aren\u2019t we?
\nGarth<\/b>:\u00a0 Yes, definitely. Settlements are moving very fast toward going to an Internet space, where monies will be transferred and interacting with banks and other conveyancing firms. Everything will be done that way rather than turning up with physical documents. This is where delays can happen, because a document is missing from another party so the settlement can\u2019t go ahead.
\nAll of these procedures, even two weeks out from settlement, are all run through to make sure that the correct title references are located, the banks are all invited to come to that space two weeks in advance, and the funds that are required and where they have to be transferred to. this is all now available through PEXA. It\u2019s a wonderful tool, because the delays in settlement will be very minimal now.
\nKevin<\/b>:\u00a0 You mentioned PEXA. That is actually what the platform is called. One thing that worries me, Garth, we talk about a lack of fraud, but we\u2019re hearing about so much online fraud now. How are we going to make sure this is not going to get even worse?
\nGarth<\/b>:\u00a0 That\u2019s a good point. One of the pivotal points that PEXA was able to overcome is that all vendors and purchasers will now be identified through a 100-point checklist. Basically, they\u2019re going to the Australia Post, having their photo taken and all the other supporting documentation to verify as to who they are. There is also another provider where they\u2019ll actually go to the house and do the identity checks, as well. That is another way that can be done.
\nFraud prevention is a big thing in this new system, PEXA. This is one way that PEXA is overcoming this, because if that identification is not in place and verified by the government and then stored electronically through the PEXA system, then the transaction will not go ahead.
\nKevin<\/b>:\u00a0 As you mentioned about going to the post office, having photos taken and 100 points of identification, are there any other things that we, as consumers, will notice as we move further into PEXA?
\nGarth<\/b>:\u00a0 Yes. You\u2019ll notice that when it comes to signing mortgage documents, the bank will now be signing those mortgage documents. There won\u2019t be this delay where documents are sent out to the client, they\u2019re finally signed and then they\u2019re sent back into the bank ,and the bank is trying to find them.
\nThat is all being done away with. The bank will be signing the mortgage documents on your behalf, and they\u2019ll be electronically liaising with your conveyancer and with the other parties of settlement. These delays will be gone.
\nKevin<\/b>:\u00a0 Is it likely we\u2019ll see shorter settlements on some properties?
\nGarth<\/b>:\u00a0 That\u2019s a good question you raise. It could become shorter, definitely with these hurdles starting to be removed that can stop a settlement. That could likely be a possibility for the future.
\nKevin<\/b>:\u00a0 I guess only time will tell. Garth, I want to thank you for bringing this to our attention and once again, being our expert on the ground with this one. I appreciate your time. Garth Brown from Brown & Brown Conveyancers.
\nThank you for your time, Garth.
\nGarth<\/b>:\u00a0 Thanks Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"
The days of a physical title for a property are finished. Since late last year, sellers and buyers or their representatives meet on line and transact by electronically signing document. No physical meeting happens anymore. The Banks will now electronically sign the Mortgage documents…<\/p>\n","protected":false},"author":176692471,"featured_media":4389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-4388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"\n