Why Victorian conveyancers’ race to the bottom hurts everyone

CONVEYANCERS must compete with firms offering unrealistic bottom-of-the-barrel pricing, plus increased financial burdens and compliance responsibility. A lack of mandated CPD requirements means inconsistent educational standards.

Unfair competition, increased financial burdens and insurance hikes are affecting Victorian conveyancers and the way they do business in 2024, according to industry leader Shakila Maclean.

“Many Victorian conveyancers are having to compete with firms offering unrealistic bottom-of-the-barrel pricing,” Maclean, president of AIC VIC, tells Australian Conveyancer magazine.

The industry head says it is a “troubling trend” where many practitioners are not adequately valuing their work.

“This, in turn, results in risks to clients and increasing insurance claims against firms,” says Maclean, whose focus at AIC VIC is to equip the organisation’s 600-plus members with the “knowledge, resources and network they need so they can grow with clarity and confidence”.

With the number of new dwellings needed to ensure housing for the state’s growing population, Maclean is confident Victoria has enough conveyancers to take on the extra work required to service the growth.

“The state has a robust network of conveyancers who are prepared to manage the additional workload efficiently,” says Maclean.

OPPOSITE: The heart of Melbourne – Victorian conveyancers locked in a price battle.

BELOW: AIC VIC president Shakila Maclean.

“By pricing their services too low, these practitioners not only jeopardise their own business sustainability but also contribute to a broader problem that undermines the perceived value of conveyancing services,” she says.

With 2000 licensed conveyancers in Victoria and over 700 conveyancing businesses statewide, Maclean says “mixed standards” exist across the industry due to a “lack of mandatory CPD (continuing professional development)”.

“Moreover, the profession is adapting to meet future needs, with ongoing efforts to train and support new conveyancers. This proactive approach ensures that Victoria can effectively support the housing growth and maintain a smooth property transaction process.”

The majority of licensed conveyancers in Victoria operate their own business, either as a sole practitioner or within a small team, and Maclean says they have experienced several changes, innovations, and regulations in recent years which have both facilitated and challenged them.

Digital innovations like electronic settlement platforms and digital contract management systems have streamlined many aspects of conveyancing.

At the same time, increased compliance requirements including new regulations and heightened scrutiny around anti- money laundering (AML) and consumer protection have added layers of complexity to the conveyancing process.

“Overall, while technological advancements and regulatory changes have made many aspects of conveyancing easier, the profession continues to navigate challenges related to compliance and cost,” says Maclean.