e-conveyancing an introduction
Because of the improved speed of broadband, the internet has evolved past being just a search engine. It is now possible to run a complicated
software program in real time. This is what the Land Registry
is hoping to achieve with its new e-conveyancing service - piloting in Autumn 2007.
Conveyancers using the service will find that the draft contract and transfer that they assemble online will be automatically checked and validated
against the register so that no errors can occur. Based on the current plans users of the system can expect to see the following once the system is
in place: -
The draft contract will be put together online, at the same time as the data is checked against the register and then sent electronically to
the conveyancers acting for the buyer for their approval.
Conveyancers will be expected to complete the "chain matrix" showing all the parties in the chain what stage the other parties have reached.
Once all the parties have signalled their readiness contracts will then be exchanged online. Conveyancers will be allocated
electronic signatures to replace signatures of clients on paper-based documents. This will allow conveyancers to electronically sign contracts on
behalf of clients. A preview of the register will be available online to show how it will look after completion.
There will be no need for a separate search to obtain registration priority since once contracts are exchanged a priority period will come
into force extending until completion.
The draft transfer and mortgage deed will be put together and agreed online and due to the introduction of electronic signatures signed by
the conveyancer.
Registration will take place at the same time as completion. It is likely that the whole funds transfer process will take place online
using the one system run by the land registry so that mortgages are discharged and released on the day of completion. Payment of
stamp duty land tax and
land registry fees will also be settled through the land
registry system simultaneously with completion.
The system will evolve with time as with most computerised systems currently do. The land registry system is ambitious and the full
benefits will not be seen for a good few years. The system is also likely to go through some significant changes as the system develops,
but e-conveyancing is inevitable. However the concept of entirely electronic conveyancing
is not totally practical from a conveyancers
point of view as there will still be a need to keep a paper based system.
It has been predicted that this new system will reduce delays in the whole process of buying
and selling houses. As well as this the anxiety that clients feel when they do not know what is happening in other parts of the chain will be lessened thanks to the chain matrix.
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