Conveyance overhaul proposed to speed up property deals
A new report on electronic conveyancing — otherwise known as e-conveyancing — by the Law Society recommends a “back to basics” approach for the legal transfer of ownership of property.
Among its main recommendations is that the seller of houses should in future be required to disclose any potential issues surrounding the title of property in a move designed to remove some of the onus on buyers to carry out numerous searches and inquiries. However, it stressed that purchasers would still have to carry out their own surveys of the property.
It also proposed there should be a complete electronic, searchable planning register, while all loan approvals should be issued and signed electronically without the requirement for separate mortgage deeds.
Under e-conveyancing, the Law Society believes the total transaction time for the conveyance of a family home from initial viewing of the property to completion, registration of ownership and discharge of the prior mortgage could be five working days.
The Law Society said it endorsed the modern electronic system of conveyancing for solicitors because of the rapid and successful roll-out of electronic and online services such as those offered by Property Registration Authority and the Revenue Commissioners.
The report said the current system of conveyancing wasn’t broken but admitted it was “creaking at the seams”.
“The current process is not adapted to deal with modern society, increased volume and diversity of transactions and market expectations for speed and transparency. It is hampered by a complex, cumbersome legislative framework and thus inherent delay,” it stated.
The Law Society claims the introduction of e-conveyancing also provides an ideal opportunity for a detailed review of the entire conveyancing process.
According to the Property Registration Authority which recorded over three million online transactions last year, the number of application to the Land Registry rose by more than 7% last year to a record level of 260,180.
The report shows that the state has used the conveyancing process for functions for which it was never designed including the collection of tax, the implementation of social policy and statutory enforcement.
“As a result even the most basic residential conveyance now requires multiple inquiries that have little to do with ownership, transfer and security of title,” it noted.
The Law Society has strongly recommended only those aspects of conveyancing which impact on the transfer of title should be retained.
It also proposed the title to all land and any interests in property must be registered with the Land Registry in a move which is seen as an attempt to prevent fraudulent activity such as the taking out of multiple mortgages on the same property.
In addition, the report recommends that all rights which affect land without registration must be removed.
The new report was presented to the president of the Law Reform Commission, Ms Justice Catherine McGuinness by the Law Society’s president, James MacGuill at a function in Dublin yesterday.
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