Our practitioners deserve more reward for their effort

CONVEYANCERS do arguably the most work and carry the most risk but get paid the least – even less than property stylists who get a multiple of what the conveyancer earns.

Conveyancers in NSW need to be properly remunerated for the vital role they play in property negotiations, says industry leader Chris Tyler.

“In a typical property transaction, conveyancers do arguably the most work, carry the most risk and get paid the least,” says Tyler, chief executive of AIC NSW.

“Even the property stylist would get a multiple of what the conveyancer earns. Conveyancers in NSW need to be paid for what their service is worth.”

“They are also concerned about banks not meeting PEXA transfer guidelines. And constant change in the industry.”

Tyler believes conveyancers in NSW have been unfair victims of the Revenue NSW foreign resident surcharge purchaser duty. “This poorly introduced revenue raising measure has directly resulted in an increase in professional indemnity insurance premiums to our members of 59 per cent”.

Meanwhile Tyler is critical of NSW Fair Trading as an inadequate regulator of licensed conveyancers and says there is also a lack of consideration given to conveyancers when reforms are being introduced.

OPPOSITE: Sydney, where conveyancers carry the workload and the risk.

BELOW: AIC NSW chief executive Chris Tyler.

With some factors making life easier for conveyancers in NSW – like practice management software, improved internet access enabling remote work, and the introduction of PEXA – Tyler says other elements are adversely impacting the 1800 conveyancers working in 550 businesses across the state.

“The main concern is they feel they are unpaid tax collectors for the government and Revenue NSW,” says Tyler.

And he expects tranche 2 of the AML/CTF (antimoney laundering and counterterrorism financing) legislation – to be introduced next year – will put more work on to conveyancers.

The burden of compliance is also affecting conveyancers’ time and earning capacity, says Tyler.

“They must undertake Revenue NSW audits and NSWLRS subscriber audits – to ensure the work they do for these agencies is correct,” he says. “And time completing the compliance activity is not reimbursed.”

Tyler says NSW is currently experiencing a shortage of experienced licensed conveyancers and the industry could do with some new recruits. He also reports seeing a small rise in mergers and acquisitions with small conveyancing businesses being sold to legal practices.

With indications the strong property market in NSW is softening in the second half of 2024, Tyler doesn’t expect the slowdown to impact on conveyancers in the short term.

“As most are small businesses, they can easily react to slowing business activity and use the time for updating processes and procedures, business development, etc,” he says.