E-conveyancing consultation report published

Introduction
This sizeable report, weighing in at a hefty 196 pages, indicates that despite the relatively enthusiastic response (over 80% of respondents said they could not suggest a better approach), widespread fears were expressed about the reliability and security of the new system - particularly that of digital signatures. Another significant concern amongst respondents was the possible impact on their existing IT systems. Many respondents stated that e-conveyancing must integrate with existing casework management systems, e-mail systems and word processing software.

Agency and electronic signatures
Many firms had reservations about signing documents on behalf of their clients and the possibility of fraud being committed. They expressed concern at the ability of the conveyancer to change documents while they were still in the system - up until the final exchange. The general opinion was that amended documents should be re-signed by the parties who signed the document originally, since such amendments would have the effect of 'breaking' the signature. They also suggested that any changes made to a signed document ought to be clearly highlighted.

Network access and security
Respondents expressed concern about network access, security and monitoring. They suggested that the Law Society should assist the Land Registry in a regulatory capacity. At the same time, they recommended that all the professional bodies develop co-operative agreements to co-ordinate the running of the system.

The chain matrix
Co-ordinating the chain matrix made respondents fear that client confidentiality may be compromised. However, from a purely practical point of view, the benefits would be extremely limited if one conveyancer in the chain was still using the paper based system. They then suggested that more and shorter chains, rather than fewer and longer chains would speed up the system. Nevertheless, the chains' transparency might allow all concerned parties to locate blockages and generally help with PR and uptake.

A phased approach
Most respondents thought that running dual systems - as required for a phased approach - would cause problems in their business and pass additional administrative costs onto their clients. This however was preferable to a 'big bang' approach. Most respondents were resigned to this course of action and they could see no other option, if the phased approach only existed for a finite period. At the end of that time, they would expect their patience to be rewarded with a tried and tested e-conveyancing system. Some were prepared to wait several years, others not.

Standardising documents
Many practitioners are already using a standard form of contract, at least in relation to contracts for the sale of residential property. Respondents also believed that a reference incorporating one of the sets of sale conditions (such as the Law Society's Conditions of Sale) could also be entered as standard. Given this degree of standardisation in residential contracts, this could be used as the basis for a standard electronic format. Such standardisation however should not come at the expense of the individual's right to enter into a contract of any form. It was also deemed unfeasible in commercial transactions.

Potential burdens
Some respondents felt that the system would impose additional burdens such as installing new systems, educating and training users and sorting out the application prior to completion. Others however objected to the fact that the certainty of title is afforded before the application is lodged with the Registry. They also pointed out the reduction in post-completion time spent on dealing with requisitions which were no longer deemed a priority by the parties concerned and are often difficult to settle.

Freezing the register
When dealing with transactions that have long, deferred or indefinite completion dates, methods of freezing and unfreezing the register were also discussed. One solution was to adopt a two-stage approach. Firstly, one could register the contract and either apply for non-freezing or just allow the automatic 30-day freeze to expire. Secondly, the attorney could apply for the register to be re-frozen or frozen just before completion. Extending the freezing period was also suggested. Protecting the buyer and the lender is paramount when unfreezing the register.

System availability
There was almost unanimous support for a permanent connection to the e-conveyancing system, particularly from the commercial conveyancing community. Cost however was seen as something that may well make the smaller firms think twice. Commercial practitioners in particular emphasised their need to be able to access the system from anywhere in the world. If the system became available 24/7, this would meet their needs. Regarding DIY conveyancing, the following quote is worthy not only for its pithiness but also as a tart rejoinder to those who maintain that conveyancing can be performed by non-conveyancers:
"Not even the best heart surgeon in the land is permitted to operate upon his own dog. That privilege is quite properly reserved for the veterinary surgeon. The advantages of electronic conveyancing should be sufficient to justify the exclusion of unregulated amateurs."

Electronic Funds Transfer (EFT) systems
Views on existing systems of Electronic Funds Transfer (EFT) systems of payments were also canvassed. Generally, respondents felt that such a system had to be:

• Fast
  
• Irrevocable
  
• Secure
  
• Reliable
  
• Available
  
• Accurate
  
• Compatible
  
• Efficient
  
• Flexible