Is now finally the time to embrace digital conveyancing?

Annie Button has written an article that assesses the answer to the question: Is now finally the time to embrace digital conveyancing?

Much of the world is moving its operations to digital, with an estimated 94% of businesses now using the cloud to assist with their operations. While many businesses are moving to an entirely paperless way of functioning, that notion hasn’t fully been welcomed in conveyancing.

However, upcoming changes put in place by the HM Land Registry will see further digitisation of the conveyancing process. So we’re asking whether it is time to fully embrace digital conveyancing or not.

The problem with non-digital conveyancing

They say if something isn’t broken you shouldn’t fix it but just because something works doesn’t mean it can’t function better. With continuous improvement techniques across various industries shown to improve efficiency, job satisfaction and reduce costs, it’s a no-brainer to consider such methods for conveyancing.

Conveyancing has been accused of being slow in the past, and it continues to have that reputation largely due to perceived ‘old fashioned’ methods. The complicated process isn’t made any easier with recurring delays and slow transaction times. Ultimately, the slower the process is, the more it holds things up and with delayed property searches causing sales to fall through, streamlining the process is in order.

Moving with the times

One of the main reasons to embrace digital conveyancing, or e-conveyancing, is because normal procedures are changing from paper-based to electronic. For instance, register applications (AP1) are going fully digital in late 2022, following changes by HM Land Registry. In fact, all register applications must be submitted using digital forms by November 2022, says HMRL.

So with paper forms becoming obsolete, now would appear to be a good time to switch to digital to allow you to iron out any kinks before it’s too late. Approximately 80% of the industry submits some type of paper form but things are slowly being overhauled. With the goal of reducing requisition rates by introducing digital-only AP1s, the property industry is moving with the times.

Quick and easy communication

Conveyancers have, in the past, received flack for their methods of communication with clients.

Baroness Hayter was quoted as saying:

“Home buying and legal exchange is a market with a problem. There is an asymmetry of information between lawyer and client. Lawyers know what they are talking about but buyers can feel vulnerable in this situation”.

Communication can be frustrating through the normal channels, with old fashioned mail being sent by post or courier taking up valuable time for all concerned. Emails are much faster and allow for better and more open channels of communication between parties. Thanks to the recent acceptance of witnessed digital signatures, this process is now speedier too.

Furthermore, online identity checking systems remove the need for meeting clients in person. These online systems also provide all of the relevant information at the beginning of the process, which is a great benefit.

It now means conveyancers and property professionals won’t be chasing information that was originally missed from a client further down the road. Speeding up the process by switching to digital means reducing hold ups for a piece of information that can, at times, be fairly trivial in nature.

Saving time through conveyancing software

Conveyancing software and case management solutions, such as InTouch, allow for the automation of the administrative process. With the ability to pre-populate data on forms, emails, conveyancing searches, completion statements, quotes and letters, time is saved and mistakes are eliminated.

The need for excessive documentation is also removed thanks to a simplified process that typically puts all of the information in one central location. There is no need to process transactions manually as the necessary legal documentation and funds transfers can be sent electronically. With no need for the time-consuming task of manual paperwork, law firms retrieve valuable time to spend their energy on better tasks.

Reducing your costs

Through digital conveyancing methods, solicitors and conveyancers will no longer have to spend on external costs such as settlement agents and venues, purchasing bank cheques or paying courier fees.

Of course, costs like these are typically passed onto clients but firms offering digital conveyancing have a competitive edge through reduced pricing and speedier service versus their rivals. With a typical turnaround time for conveyancing between 12 and 16 weeks, potential clients looking to sell or buy a home will turn to a firm that offers it in less time.

Timely notifications

Due to a reliance on communication between people, the conventional way of conveyancing is open for missed notifications across the board. It may be something as simple as a missed call, or an email on a work computer gets buried because someone isn’t in the office.

Digital conveyancing allows for information to be gained remotely. This means that from anywhere in the world a solicitor or conveyancer can access the files they need to do their job without having to visit a physical location. Notifications can be sent to the appropriate people when progress has been made to ensure a swift process throughout.

Data protection through cloud-based services

There is additional security associated with moving things to a digital platform. Cloud-based security is seen as essential for modern businesses as it allows for better data protection.

Typically, servers for cloud systems are stored in warehouses rather than on the premises of the business they pertain to. This makes it less likely for people to gain access to them, reducing chances of indemnity as documents are kept safely and securely through cloud storage.

Protection of data is important and it’s understandable, given the sensitivity of information made available during conveyancing, that firms would be hesitant to ‘go digital’.

However, antivirus and anti-malware expert, Norton, explains:

“The files stored on cloud servers are encrypted. This means that they are scrambled, which makes it far harder for cybercriminals to access”.

Is there a reason to avoid switching?

The pro column is certainly stacked high in favour of digital conveyancing but are there any reasons why firms should hold off on embracing digital conveyancing? A big reason to continue with manual documentation and processes is to do with integration.

To get to a fully digital conveyancing level in just one firm requires everyone they deal with throughout the process to welcome it. If they don’t, solicitors and conveyancers may find they have to do twice as much work, or certainly their admin support will. Documents for the records of various parties may have to be duplicated; once for digital and once again for physical.

Should your firm embrace digital conveyancing?

While not all processes have changed to digital yet, they are coming, and it might be better to start making a transition to figure out where any rough patches may be in going digital. The practicalities of digital conveyancing ought to save firms time and money while making them compliant with upcoming HMLR requirements.

Kindly shared by Annie Button

Main article photo courtesy of Pixabay