First Transactions between E-Conveyancing Service Providers

Australian ministers have celebrated the inaugural transaction between conveyancing service providers, signalling a pivotal step towards heightened competition and full network compatibility by 2025’s end. Queensland bore witness to two refinancing transactions, totaling almost $1 million, conducted between Commonwealth Bank and NAB over two consecutive days. PEXA, currently responsible for 90% of land registry transactions, managed the lodgement and financial settlement on Monday, while the challenger firm Sympli took over on Tuesday. This development represents a major stride in breaking the eConveyancing market’s monopoly, promising consumers more affordable and innovative services, according to Federal Assistant Minister for Competition Andrew Leigh.

New South Wales Minister for Customer Service and Digital Government Jihad Dib expressed his satisfaction with completing the first-day transactions. Legislation passed in New South Wales grants ARNECC the authority to enforce interoperability among electronic lodgement network operators. PEXA, processing around 3.7 million property transactions annually, generated over $280 million in revenue during the previous fiscal year. The achievement of ‘day one’ transactions aligns with the Australian Registrars National Electronic Conveyancing Council’s timeline for continued work on interoperability between PEXA and Sympli systems.

Following this milestone, work on interoperability is progressing steadily, with the rollout of capabilities to the market set to begin in July 2025, commencing in NSW and Queensland. The NSW Independent Pricing and Regulatory Tribunal (IPART) foresees interoperability as a catalyst for increased competition in the Conveyancing sector, promoting innovation, technological advancements, and cost reduction. PEXA and Sympli’s expenses have raised questions, as they significantly surpass IPART’s estimate of $7.7 million for efficient electronic lodgement network development. Factors such as evolving requirements, protocols, and additional functionality may have contributed to these higher costs.

During a parliamentary inquiry into fostering economic dynamism, competition, and business formation, PEXA proposed a review of ARNECC’s interoperability timeline after completing the ‘day one’ transactions. Meanwhile, Sympli advocates stricter enforcement of ARNECC’s interoperability timeline to ensure a 2025 rollout.

Source: InnovationAus