Digital property settlement is one of Australia’s most innovative success stories. As the first country globally to digitise its property exchange process, we’ve been able to deliver Australians a fast, safe and more efficient property settlement experience.
From a standing start, today more than 70% of all land transactions are completed electronically. PEXA is proud to be helping more than 20,000 families a week settle safely on their homes, in partnership with our members.
The fact that we’re beginning to see new ELNOs emerge within our industry is a strong reflection of the progress that’s been made nationally in transitioning to a digital environment.
The essence of competition is to promote positive consumer outcomes, particularly regarding price, innovation and service. This is completely aligned with our values at PEXA and we’re fully supportive of any market structure that encourages this.
Government and industry stakeholders are currently evaluating next steps in relation to proposed reforms that would require ELNOs to make their systems interoperate with one another in an attempt to promote further competition in the ELNO market.
Below you’ll find some FAQs regarding potential future interoperability within our industry.
Interoperability is an umbrella term for various proposed technical solutions that would link ELNOs’ systems, enabling the preparation and settlement of transactions across multiple platforms.
Proponents of interoperability advocate that it would enable competition by allowing Subscribers (conveyancers, lawyers, or financial institutions) of one ELNO to complete transactions with Subscribers of another ELNO, without having to subscribe to both.
PEXA supports competition and will support any reforms that foster a competitive dynamic between ELNOs so long as it doesn’t introduce additional risk, cost or complexity for our members and their clients.
Having collaborated with industry for a decade to make e-Conveyancing a reality, we know that our members want to build upon the greater security, efficiency and resilience that digital property settlements enable, and which Australian consumers have come to expect.
We must also ensure that e-Conveyancing continues to have national application, nurtures competition beyond entrenching a duopoly and provides the flexibility for ELNOs to continue innovating and delivering value back to the Australian community.
PEXA is actively participating in industry forums to help inform these discussions and we continue to advocate for a national solution – and an outcome that is best for you.
If it is determined that interoperability is the right solution, without disadvantaging industry members or consumers, PEXA will fully support it.
In a Ministerial direction published in September 2020, all states and territories indicated support in principle of a roadmap to introduce interoperability by the end of 2021.
There is still significant regulatory and technical progress to be made before interoperability can be introduced, with more work required to develop the technical models under consideration, the frameworks required to manage any increased risk and associated liability issues that will be introduced and the regulatory amendments that will enable reform.
PEXA will continue to advocate for an outcome that is in the best interests of our members and Australian consumers and will keep members up to date with the latest developments.