All types of property purchases involve the transfer of ownership from the previous owner to the new owner – a process known as settlement. With electronic settlement growing in popularity in recent years, here’s what’s important to know about your choices, and how you can handle any settlement issues that may arise.
1. Electronic conveyancing can make life easier.
Electronic property settlement can have a number of benefits for you as a buyer. It can help to ensure your property settlement occurs as scheduled; it can eliminate the need to drop off bank cheques to your solicitor; and it can mean that documents registering your property ownership will be lodged faster. It also has benefits for the vendor, as funds clear faster than with a bank cheque.
2. Electronic settlement is becoming mandatory across Australia.
While there has been a choice of a manual or electronic settlement process for some time, E-settlements have now become mandatory in most states. E-settlement provides a secure and streamlined way for conveyancers, solicitors and banks to settle matters, so it makes sense that these transactions are now largely taking place in an electronic space.
3. There could be discrepancies at settlement.
While electronic settlement can help to minimise manual errors of settlement, errors can still occur. Real estate transactions can involve a multitude of tasks, and experienced conveyancers, solicitors and other parties can still make mistakes. Some examples might be where council rates are incorrectly calculated, or where the defective registration of a document affects the buyer’s interest or rights to the property.
Did you know?
Title insurance can provide cover for a number of property ownership risks, and this can extend to issues such as the defective registration of a document, or to unknown and outstanding rates, charges or land tax payable for the property due to an error by a local authority. By having title insurance in place, you may be able to access financial cover and services if these issues occur following settlement.
4. Security is stronger than ever (but peace of mind is invaluable).
Electronic settlement platforms, like PEXA, have rigorous security measures in place for the security of its users. That being said, in a world where property titles are largely electronic and can’t be physically held, many people like having additional protection from potential fraud and errors. Title insurance can provide cover for these instances and a number of other property ownership risks.
First Title Insurance requires one simple premium payment that provides you with cover for the entire time you own your property. You can get a quick quote now to see the premium for your property, or request cover if you have your property details at hand.