NSW inquiry to investigate e-conveyancing practices
Outages, pricing and competition will form part of a probe into NSW e-conveyancing practice. The inquiry comes after the governing body’s delay in an interoperability rollout.
COMPETITION reforms in e-conveyancing will come under the spotlight as an NSW parliamentary inquiry gets underway on Wednesday, November 5.
The nine-member inquiry chaired by independent MP Taylor Martin has received more than 20 submissions from key stakeholders in response to the reforms.
The inquiry will investigate the impacts of recent outages on property settlements, including on home buyers and small businesses. It will also consider current pricing and opportunities to drive competition.
The public hearing at state parliament will also examine NSW’s pledge to deliver interoperability to the market by December 2025, and transparency in the progress of ongoing reform.
The probe comes after the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) last year paused plans for a national interoperability rollout. It also coincides with a federal Senate inquiry examining competition in e-conveyancing.
As part of its brief, the inquiry will look at the relationship between the banks and “monopoly” network, Property Exchange Australia (PEXA), as well as recommendations made by the NSW Productivity and Equality Commission’s June 2024 eConveyancing Market Study.
It will also examine the Registrar General’s enforcement powers to force electronic lodgment network operators to comply with the reforms.
Some of the key stakeholders who have made submissions include the Australian Institute of Conveyancers NSW, the Law Council of Australia, Australian Banking Association and Property Exchange Australia (PEXA), Sympli Australia, Infotrack, Australian Registrars’ National Electronic Conveyancing Council and the NSW government.
Committee Chair Mr Martin said views were sought from stakeholders on how competition could be enhanced so the system could be more efficient for the people of NSW.
“Buying and selling a home is one of the most significant transactions most NSW residents will make in their lives, and we want to ensure that they are able to do that smoothly, efficiently and cost-effectively,” he said.
PEXA has an effective market monopoly in NSW, as almost all e-conveyancing transactions use its exchange process.
Earlier this year, PEXA said there were 92 service disruptions within the e-conveyancing ecosystem in 2024, with the company accepting responsibility for 10 of the outages.
The Select Committee on Competition Reforms in Electronic Conveyancing, which is conducting the parliamentary inquiry, is made up of three government members, three Opposition members and three crossbench members.
