The future of the Australian conveyancing industry 2025 and 2030 - Deloitte
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The future of the Australian conveyancing industry 2025 and 2030 June 2018
The future of the Australian conveyancing industry 2025 and 2030 |
Table of Contents
The conveyancing
industry is undergoing
a transformation as
components of the
process become
increasingly digitised.
This report identifies key
industry and technology
trends that are likely to
impact practitioners,
buyers and sellers of
property in Australia
between 2022 and 2030
03
The future of the Australian conveyancing industry 2025 and 2030 |
Table of Contents
Table of Contents
Executive Summary 1
Introduction 3
Forecast: What does e-conveyancing look like in 2022? 6
Game changers: Key trends shaping conveyancing 10
Future State: What does the future of conveyancing look like? 24
What next? 50
Appendix 53
The future of the Australian conveyancing industry 2025 and 2030 |
Executive Summary
Executive Summary
The conveyancing industry is undergoing a transformation
as components of the process become increasingly
digitised. This report identifies key industry and technology
trends that are likely to impact practitioners, and buyers
and sellers of property in Australia between 2022 and
2030. It paints a picture of four potential futures that could
emerge for the industry based on critical uncertainties
including the distinctiveness of conveyancing as a
standalone service, and the degree to which the process
becomes digitally led.
Across each of the four potential futures outlined in the
report, there are a number of consistent outcomes:
•• There will be greater professionalism, peace of mind about the end-to-end not to a drastic extent. Consolidation
as practitioners will become more conveyancing process ranges from 5% to 25% across various
service driven in their approach, placing potential futures
•• The rise in technology will see an
greater emphasis on advisory rather
increased importance placed on
than manual components of a property
cyber security, with the ability to
transaction. These could become Overall, digitising conveyancing will have
provide secure networks becoming
automated, with quality of service benefits for customers, practitioners,
a minimum requirement, or ‘ticket to
likely to become a point of competitive regulators, banks and government. The
play’
differentiation impact of technology and competition
•• Time and cost savings can be will likely lead to a more professional,
•• Aggregator platforms will improve
reinvested or potentially banked, transparent, service driven and profitable
the overall quality of service as
leading to higher margins or greater industry, underpinned by the ability to
practitioners will be referred online
investment in technology to underpin conduct transactions in a faster, more
and selected based on crowdsourced
success at scale. This will occur due to efficient and automated way. Ultimately,
ratings, making professionalism and
the relatively low price elasticity of across all potential futures, it will be
quality of service the new source of
conveyancing, which is a relatively small the enterprises able to deliver on these
competition
fee within a property transaction outcomes for customers who will survive
•• Improvements in technology will and thrive.
•• Varying degrees of consolidation are
enable greater transparency for
seen across the potential futures, but
customers, who will have visibility and
1The future of the Australian conveyancing industry 2025 and 2030 |
Executive Summary
2The future of the Australian conveyancing industry 2025 and 2030 |
Introduction
Introduction
Following on from Deloitte Access Economics‘ 2018
report ‘Electronic settlement and lodgement for
conveyancing: Benefits to the conveyancing industry’
(Report 1) forecasting the impact of digitisation of
lodgement and settlement in the conveyancing industry
between 2018 and 2022, this report lays out predictions
for four potential futures that could emerge from 2022,
with a medium term focus on 2025 and long term focus
on 2030. These potential futures outline what a digitised
conveyancing industry may look like for customers
(buyers and sellers of property) and practitioners.
This report focuses on the industry and the technological literacy to interact with purchasing process. When combined,
technological changes most relevant more advanced systems and to undertake these factors help us contemplate potential
to the conveyancing community, with more complex tasks themselves. These outcomes.
consideration of the high level implications same expectations are beginning to impact
for the industry. In particular, this is an the property industry, and are likely to flow In this context, this report is intended
age of technological change which has through to conveyancing. to raise questions and support dialogue
radically reshaped customer expectations. about opportunities and implications for
Customers no longer differentiate between The report highlights two critical practitioners and customers, where change
industries when considering experiences: uncertainties driving potential futures; is most likely to occur and which potential
what was once a comparison between the extent to which technology means futures may emerge.
the experience at two grocery stores is conveyancing becomes digitally enabled
now a comparison between a grocery or digitally led, and the degree to which
experience and an Uber or Amazon conveyancing is a standalone versus
experience. In addition, customers have bundled service as part of the property
2018 2022 2025 2030
Report 2
The future of the Australian
conveyancing industry
3The future of the Australian conveyancing industry 2025 and 2030 |
Introduction
4The future of the Australian conveyancing industry 2025 and 2030 |
Forecast
5The future of the Australian conveyancing industry 2025 and 2030 |
Forecast
Forecast
What will conveyancing look like in 2022?
By 2022 the conveyancing industry will have moved to
‘100% eConveyancing’.
‘100% eConveyancing’ is where the preparation,
settlement and lodgement stages of the conveyancing
process are performed through an electronic lodgement
network operator (ELNO) such as Property Exchange
Australia (PEXA) (see diagram below).
By 2022, a critical mass of relative eConveyancing’ will likely differ between today (2018), given the complexity of the
instruments will be available through states. conveyancing ecosystem and number
ELNOs, and the majority of transactions of stakeholders involved in the process,
will be conducted electronically, including As a result, it is foreseeable that by 2022, there will likely still be inefficiencies and
but not limited to transfers, mortgages, the industry will no longer be operating a opportunities for improvement (see next
discharges and caveats. dual system of paper and e-conveyancing. page for details).
As noted in the Deloitte Access Economics
This is for states where ELNOs are currently report, this is estimated to provide
deployed, including New South Wales, an average time saving of 4 hours,
Victoria, Western Australia, Queensland contributing to a $89m per annum benefit
and South Australia, acknowledging to the conveyancing industry.
that the pace of transition to ‘100% Although this represents progress from
Forecast eConveyancing process in 2022
Contract Preparation Settlement Lodgement Post-lodgement
Prepare contract Prepare contract Property and Transfer documents Notifications of
documents documentation money is are lodged with settlement
exchanged government completion
bodies
Complete verification Parties prepare Confirm and Lodge settlement Notifying other
and authorisation documents – exchange money document with land relevant authorities
Activities
forms, and prepare, contracts, loans, land and settlement title office of transfer and
completed
negotiate and transfer, other documents providing final report
exchange contract relevant instruments to client
Outside PEXA – all in Set up work space Settlement funds Done immediately Notices and reports
paper and invite all parties. reserved and with settlement in can be accessed
PEXA’s
This can be done by released for payment PEXA from PEXA
role
any of the immediately after
participants lodgement through
PEXA
= Current ELNO functionality
6The future of the Australian conveyancing industry 2025 and 2030 |
Forecast
Mortgage
Brokers
Banks
Real Estate
Agents
Seller and
Practitioner* Land
Registries
Developer
market
ELNO
Buyer and State Revenue
Practitioner* Offices
Software providers
(Practise Manage-
ment Software &
Information Brokers)
Local Councils
Utility
Providers
* Practitioners include: 1. Conveyancers, 2. Settlement agents (WA only), 3. Lawyers specialising in
conveyancing (small and large), 4. Lawyers who occasionally conduct conveyancing services to serve existing
clients (small and large)
In 2022 – as today – the conveyancing stakeholder
ecosystem is still likely to be quite complex
A conveyancing transaction requires touch platforms and other elements of the to digitise and automate elements of the
points not only with a buyer or seller, process are automated, software providers process to save time for practitioners,
their respective conveyancers and the will become increasingly involved (see improve customer experience, and lower
State Land Registry, but also banks, State graphic above). the cost of conducting transactions. These
Revenue Offices, local councils, utility are documented at a high-level on the
providers, real estate agents and mortgage Across this ecosystem, a number of manual next page, and explored in further detail
brokers. As practice management software processes are likely to still exist in 2022. throughout the report.
becomes more integrated with ELNO These can provide further opportunities
7The future of the Australian conveyancing industry 2025 and 2030 |
Forecast
Further opportunities
Preparation Contract Enhanced data Schedule Post settlement
development and and automation settlements and notifications
review bank payouts
Digitisation Digitisation and Use of enhanced Automating Automating
of customer automation data could enable the process post settlement
onboarding (e.g. of contract automation of for checking notifications with
verification of development, a number of payout numbers State Revenue
identity, document review and signing manual tasks and and scheduling Offices, utility
upload and review, could potentially easier hand-offs settlements has companies and
data entry) could save time and between various the potential to local councils has
save time in the significantly reduce stakeholders (e.g. reduce the time the potential to
onboarding and paper from the entering and exiting and effort required reduce time and
preparation phase. process. ELNO platforms). In by practitioners. effort required by
addition, the ability practitioners.
to capture, analyse
and monetise
data presents new
opportunities to
create value.
8The future of the Australian conveyancing industry 2025 and 2030 |
Game Changers
9The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Game changers
Key trends shaping the conveyancing industry in Australia:
Industry Trends Technology Trends
The conveyancing
industry in The conveyancing industry is likely to
evolve significantly over the next few years,
As conveyancing transitions from a paper-
based process to become digitised, new
Australia is being impacting customers and practitioners. technologies are likely to be harnessed to
shaped by industry transform how services are delivered.
and technology Key changes for customers: Current technology trends:
trends •• Customer demand for control, and more •• Platform, Cloud & Application
transparency Programming Interfaces (APIs)
These trends have been chosen
•• Emergence of ‘proptech’ and customer •• Cyber security
and prioritised following an
experience innovation
assessment and evaluation of •• eContracts
trends across the industry,
•• Robotic Process Automation
leveraging Deloitte research and
subject matter expert interviews
to determine the trends most Key changes for practitioners: Longer term technology trends likely
likely to have the greatest impact to impact the sector:
•• Shift in value of services provided
on the conveyancing industry.
•• Artificial Intelligence (AI)
•• Bundling of services and new providers
•• Internet of Things (IoT)
•• Shift to cloud based subscription practice
management software and enhanced •• Virtual & Augmented Reality (VR & AR)
user interfaces
•• Distributed ledgers
•• Privatisation and digitisation of remaining
•• Digital Identities
land registries
Regulatory Environment transferred between parties and provide should be noted that many trends and
a traceable and transparent system for changes in technology will be subject
This report assumes there will not
the industry and customers. to regulatory considerations, and this
be dramatic change in the regulatory
will be a critical factor in contributing to
environment over the next decade. As a result, this report assumes that
the potential pace of change (e.g. digital
Aspects including the Torrens title from a regulatory standpoint, the legal
identities).
system and state based real property framework governing conveyancing
acts regulate how property is will not change drastically. However, it
10The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Industry trends 1/2
What is it? Degree of impact
Customer demand for control, and a more transparent, easy
experience
Customers have higher digital capabilities and access to devices, creating
demand for more transparent, easy experiences. They expect to use
customer friendly platforms across industries, compounded by small and
medium enterprises (SMEs) blurring the line between professional and
personal expectations. For home buyers / sellers facing a stressful and
significant financial decision, this is acute.
Emergence of ‘proptech’ and customer experience innovation
Start-ups operate at the intersection of customer tension and profit. Across
the property industry, there is emerging innovation in ‘proptech’ and in
customer experience by start-ups, smaller lenders and accelerators who
are enabling innovation.
Customer impact
Shift in value of services provided
As of 2018, conveyancing prices for services provided by both lawyers and
conveyancers have remained static for a decade. Although the services
and roles vary by state, competition between lawyers and conveyancers
has generally contributed to a customer expectation of more value for the
Practitioner impact
same price, eroding margins. However, margins may improve in coming
years due to digital efficiencies.
11The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Degree of impact? High Medium Low
Post-
What may be impacted? Contract Preparation Settlement Lodgement
lodgement
Others (banks,
Buyers/
Who may be impacted? Practitioners government,
Sellers
real estate)
What might the impact look like? Examples
Dashboards, transparent process and Accessing digital asset histories •• The emerging ‘one stop shop’ model
fees offered by a number of real estate agents
and banks (e.g. LJ Hooker).
The need to include multiple stakeholders The creation of digital asset histories, a
across a complex and fragmented readily available and accessible data source •• Ability to track a customer’s order in the
ecosystem, encompassing pricing, sales, of modifications, inspections and other process of it being delivered provides
contracts, conveyancing, and inspections information regarding a property asset of greater transparency and security for the
is prompting a growing desire for a interest to a potential buyer. buyer.
transparent and easy to follow process
and fee structure. This could be delivered
through a digital dashboard.
New business models New online real estate and services •• Charter Hall and Collective Campus 2017
partnership to develop a property tech
Firms such as BrickX and Rent Roll are Purple Bricks, Loop, ConveyPal and
accelerator.
developing platforms to create new ConveyerPower are providing new
business models and investment options experiences for customers looking to
for buyers. buy and sell homes. For instance, Purple
Bricks are offering customers a platform
with a transparent online process,
charging fees considerably lower than a
traditional realtor. There is an opportunity
for conveyancers to partner with these
services.
Consolidation and economies of scale Value added opportunities •• Digitisation has enabled the banking
industry to reduce the time and cost
Digitisation of conveyancing may contribute As the time and cost of providing
to serve customers, refocusing staff on
to some consolidation in the industry, conveyancing services potentially
value add services or creating cost saving
leading to larger, more profitable firms. decreases, there may be opportunities
opportunities.
for conveyancers to provide value added
services such as advice to clients as a
means of differentiating to increase price
and margin. This is likely to lead to a greater
emphasis on professionalism and service.
12The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Industry trends 2/2
What is it? Degree of impact
Privatisation and digitisation of remaining land registries
In recent years, NSW and SA land registries have been privatised (with VIC
and WA registries in the process of becoming privatised). They operate on
long term contracts, which has prompted the digitisation of registries to
maximise returns and improve customer experience.
Bundling of services and new providers
Bundling of services is the provision of multiple services together for
a customer – often designed to address a single (or interconnected)
customer need. This is occurring in the property industry, public sector
and telecommunications amongst established players and new entrants.
Shift to cloud based subscription practice management software
and better user interfaces
Cloud based software is hosted online. Conveyancing software has a
subscription and title search driven revenue model, and provides regular
ongoing updates to keep practitioners up to date on changes to laws and
Practitioner impact
precedents. Improved user interface and software integration has the
potential to enable conveyancers to manage their entire business digitally.
13The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Degree of impact? High Medium Low
Post-
What may be impacted? Contract Preparation Settlement Lodgement
lodgement
Others (banks,
Buyers/
Who may be impacted? Practitioners government,
Sellers
real estate)
What might the impact look like? Examples
End-to-end digitisation
•• Privatisation of government utilities
Currently, only the preparation, settlement End-to-end digitisation of the exchange such as Telstra has allowed the telco
and lodgement of property exchange has of properties may result in a better, more to enhance its customers experience,
been digitally enabled by ELNOs. However, seamless customer experience for buyers and focus on becoming a world class
there is an opportunity for further value and sellers. technology company.
to be extracted by digitising early stages in
•• The Australian Tax Office enables
the conveyancing process along with other
customers to lodge tax returns online.
manual handoffs such as State Revenue
Offices and utility activities.
‘One stop buy / sell shop’ Specialise at scale, bundle through a •• LJ Hooker provide a realtor, lawyer and
third party conveyancer under one roof.
There is an opportunity for the bundling Rather than providing all bundled services, •• Service NSW as a ‘one stop shop’ for
of a number of legal and conveyancing some may specialise in a particular service government.
services across contracts, legal advice, at scale, sold standalone or bundled by a
•• Telcos are providing combined internet
inspections, reports, exchange, lodgement third provider.
and entertainment deals.
and settlement. There is also a wider scope
of services in the property industry – for
example, banks, realtors and smaller
lenders seeking to provide end-to-end
‘home ownership’ services.
The paperless practice •• Matters Centre by GlobalX has a pay
per search / low fee model to the
Historically, practice management However, there is an opportunity to create
conveyancing industry.
software has included tools such as letters, more practitioner friendly interfaces with
calendars and customer relationship the tools required to integrate service •• Online credit card or insurance
management (CRM). However this has been delivery and practice management into a application processes which provide a
separate to processing and service delivery, single digital workflow. fully online process.
which have involved paper elements. Some
are beginning to provide integration with
ELNOs, (e.g. triggering a new workspace
when a new customer is added to the
CRM).
14The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Technology trends
As conveyancing transitions from a paper-based process
to become digitised and potentially automated, new
technologies will be harnessed to transform the buyer
and seller experience by changing how services are
delivered by practitioners.
Key trends in technological development that are likely
to have the greatest impact on the conveyancing sector
have been prioritised. They address technologies that
are already in use, or represent opportunities to improve
future processes. An indication as to when these might
be applied in the conveyancing industry is shown below.
Timeline of selected technology trends
•• Platforms, Cloud &
Application Process •• Virtual & Augmented
Interfaces Reality (VR & AR) •• Internet of Things (IoT)
•• Cyber Security •• Cognitive Automation & •• Artificial Intelligence (AI)
•• Robotic Process Insights
•• Blockchain
Automation •• Digital Identities
•• eContracts
Now Coming soon Further down
the track
15The future of the Australian conveyancing industry 2025 and 2030 |
Game Changers
Across these
technologies,
digitisation is
already occurring,
and this can enable
automation
Digitisation to automation spectrum
Digitisation Robotic Process Cognitive Cognitive Artificial
Automation Automation Insights Intelligence
Converts data Mimics human Mimics human Augments human Mimics human
into a digital form actions judgement intelligence intelligence
•• Enables a •• Used for rules •• Used for •• Used for •• Acquires human-
computer based processes judgement based predictive like thought
to process (simple to processes ‘decisioning’ processing
information complex) and thinking
•• Machine learning •• Dynamically self-
capabilities
•• Faster, lower cost, •• Faster, higher capability adaptable and
easier to transact volumes, reduced managing
•• Interprets human
information errors and cost
behaviour
16The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Technology trends 1/3
What is it? Degree of impact
Platforms, Cloud & APIs support ease of use and scale
Platforms create value by enabling buyers and sellers to connect and
exchange products or services. They enable other services to plug in via
APIs to create ecosystems. This is where customers can access a range of
services from one central site, sometimes from multiple vendors. Platforms
capture a large volume of customer data, which can be stored in cloud-
based software. Cloud is a storage and computing service provided by global
platforms (AWS and others), which enables fast, cost effective and powerful
computing which is paid for on a usage basis.
Robotic Process Automation (RPA) automating repetitive tasks;
ChatBots answering questions
Process robotics is gaining popularity as a relatively low cost, non-invasive
and flexible tool to automate repetitive manual tasks and as an alternative
to complex systems integration.
ChatBots are a customer facing tool that are programmed to respond to
certain terms or questions, and taught when to filter complex enquiries
through to human operators. Machine learning can enable chat bots to
learn to provide increasingly better responses.
Cyber security for risk mitigation
Cyber risk and security is a burgeoning challenge shared across industries
and geographies. As the world becomes increasingly digitised the risk of
digital attacks has increased. The protection of systems, networks and
programs from being destroyed or having sensitive information accessed
Current use cases
has led to a proliferation of cyber security offerings to protect customers’
identities and personal data. As a result, we may see regulators create
minimum standards for data and cyber security, certainly for companies
transacting customer data, and potentially for users of these systems.
17The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Degree of impact? High Medium Low
Post-
What may be impacted? Contract Preparation Settlement Lodgement
lodgement
Others (banks,
Buyers/
Who may be impacted? Practitioners government,
Sellers
real estate)
What might the impact look like? Examples
Cloud based practice management Data monetisation •• Amazon as an ecommerce platform
platforms for connectivity and allows users to purchase goods online
integration from multiple vendors from one site.
Platforms enable better connection Capturing property data in cloud-based •• Aggregator sites such as Home Alliance
between practitioners, banks, agents software allows information to be accessed and Conveyancing Calculator in the UK
and customers. Cloud based practice with greater speed and ease. The data allow customers to view and select the
management software can manage captured in this process leads to a new service and pricing that meets their
workflow whilst enabling integration privileged asset which can be monetised needs.
through API plug-ins to perform other – however this can come with challenges
activities along the value chain. Platform around customer trust and government
based services may lead to a more regulation.
professional and profitable approach to
conveyancing.
Removing manual hand offs and •• Insurance companies use telematics to
accelerating standard transactions triage motor claims based on recognition
of common characteristics.
The current conveyancing process state registry offices as well as fast-tracking
has a large number of manual hand credit, eligibility checks for mortgages and •• Customer service chat bots used by
offs and extensive communication. utility adjustments. airlines help to direct customer queries
There is an opportunity to automate and escalate to human intervention when
these tasks with RPA, reducing time for specialist advice is required.
standard transactions through workflow
•• RPA in banks to automatically perform
management.
loan eligibility checks.
RPA can simplify the process through
prescriptive analytics to enable automated
approvals of lodgement documents by
Cyber security measures in place for There may be minimum standards to •• As transactions are increasingly digitised
all software solutions adhere to and data is stored in the cloud, it will
be crucial to invest in software such as
Cyber security measures can be Maintaining strong cyber security
Norton Security which protects against
embedded into every digitised aspect protocols along the entire value chain will
viruses, ransomware and malware.
of the conveyancing process. Examples likely require training in order to provide
include smart contracts, communications more efficient and more secure services •• Communications should be protected
and cloud storage. Cyber security will be to buyers and sellers, and to develop a from conveyancing fraud, with Cisco
crucial to ensure that customers feel safe, greater level of trust with customers. Cyber building firewalls and intrusion
adoption is high and digital solutions can security measures will be a ticket to play for prevention systems to address phishing.
function seamlessly. conveyancing.
18The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Technology trends 2/3
What is it? Degree of impact
eContracts eliminate the need for wet signatures
An eContract is a legally binding contract enacted through purchasing goods
or services online between an electronic agent and parties who have no
personal contact or relationship. eContracts are signed when the purchaser
clicks “I agree” or “I accept” to signify acceptance of the terms and conditions
of the seller. In future, this could extend to electronic development and
reviewing. More complex versions can include fillable fields, data that can be
Customer impact
readily transferred between systems, and are accessible on various devices
(e.g. an agent’s iPad).
Progression of cognitive insights through AI
AI is the creation of software that is capable of mimicking human
judgement. It can be used to augment human actions. This is harnessed
through cognitive computing where systems are configured to self-learn
through pattern recognition and natural language processing. AI sits at
the end of the automation spectrum, as it exhibits highly sophisticated
processing, and is capable of more complex tasks. This underpins
opportunities for exponential impact – for instance the emergence of AI
driven advice.
IoT: connecting to your home at all times
IoT allows objects to be measured, sensed and controlled remotely,
creating opportunities to adjust or turn systems on or off from elsewhere,
Practitioner impact
and capturing large volumes of data on how a property is used.
Customers with smart systems could be able to track their energy use and
receive real time data on billing estimates. However, as more and more
devices become connected, the risk of compromise and attack increases.
19The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Degree of impact? High Medium Low
Post-
What may be impacted? Contract Preparation Settlement Lodgement
lodgement
Others (banks,
Buyers/
Who may be impacted? Practitioners government,
Sellers
real estate)
What might the impact look like? Examples
eSigning eContracts to enable development & •• DocuSign, Adobe eSignatures have
review enabled people to sign contracts and
documents remotely.
Digital contracts can be signed online, RPA tools, and increasingly AI, can be
which providers such as DocuSign taught to recognise terms, perform data •• In April 2018, the first digital mortgage
support by embedding electronic signing analytics and assess risk by identifying was signed in the UK and entered into
capabilities, reducing travel time to sign suboptimal clauses in eContracts. the HM Land Register Gov.UK. Verify was
documents in person. These tools can used to verify the identity of the borrow
eContracts could also help to simplify the
also be programmed to alert parties remotely enabling them to sign the
process of building and managing contracts
when variations are made and resigning is mortgage deed online.
by enabling practitioners to select from
required.
standard and specialised terms to ensure
consistency and transparency.
Machine learning for workflow •• Siri (by Apple) and Alexa (by Amazon)
management, judgment calls to recognise voice commands and complete
escalate complex tasks requests based on natural language
processing abilities.
End-to-end digitisation of the conveyancing building AI capability for cognitive insights,
process provides multiple opportunities the system could theoretically compile •• Data Visioning can be used to assess
for AI to be embedded into workflow and required documents, and obtain funds the damage of car crashes by comparing
practice management software including and permissions independently of a photos from claimants and determining
exchange, contracting and settlement. practitioner, and make judgments of where the severity and credibility of the story
escalation to human user intervention is through accessing the data history of
Systems could use machine learning to
required. Longer term this may even lead to similar incidents.
trigger the initiation of the next activity
the delivery of advice by an AI tool.
(cognitive automation) once notification
that tasks have been completed. By
Smart buildings to feed data into •• An Australian bank has added sensors to
digital asset records crops to predict the productivity and risk
portfolio of agribusinesses.
The ‘smarter’ buildings become, the more and enabling focused inspection activity in
opportunity property managers may have the near term. •• Smart hubs (Google Home and Amazon
to remotely monitor, maintain and gather Echo) can remotely adjust lighting,
However, it may be some time until there
data about the physical asset. temperature, turn appliances on, play
is sufficient scale of homes connected to
music or order groceries at a voice
This information could feed into a ‘digital IoT for property data to be widely used in
command.
twin’ asset record for prospective buyers to conveyancing.
assess as part of the conveyancing process, •• Singapore has an intelligent transport
potentially eliminating the need for system, with congestion optimisation and
inspections and reports in the long term dynamic tolling.
20The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Technology trends 3/3
What is it? Degree of impact
Convergence of physical and digital through Virtual and Augmented
Reality (VR & AR)
VR is a computer-generated simulation of a three-dimensional image or
environment that can be interacted with in a seemingly real or physical way
by a person using special electronic equipment.
AR is a technology that layers computer-generated enhancements over an
existing reality to make it more meaningful or interactive.
Face-to-face (F2F) verification of identity (VOI) requirements
Currently as part of digital regulatory requirements, verification of identity
must occur in person. However, given trends toward digital identities, and
the possibility that government may create a digital identity, it is likely that
this requirement is relaxed or replaced over time. Industries are already
seeing a shift towards multi-factor authentication access models that could
over time become more accurate than face to face verification of identity.
Distributed ledger technology and smart contracts for direct buyer
to seller transactions
Blockchain is a type of digital record that tracks financial, physical or
Practitioner impact
electronic assets. It facilitates a continuous ledger, which can be shared
and corroborated by anyone with appropriate permissions. It is typically
distributed and spread across multiple sites, countries or institutions.
Smart contracts enable exchange whilst avoiding the services of a middle
vendor by defining and enforcing the rules and penalties associated with
an agreement.
21The future of the Australian conveyancing industry 2025 and 2030 |
Game changers
Degree of impact? High Medium Low
Post-
What may be impacted? Contract Preparation Settlement Lodgement
lodgement
Others (banks,
Buyers/
Who may be impacted? Practitioners government,
Sellers
real estate)
What might the impact look like? Examples
VR & AR enabling remote or enhanced •• Oculus Rift is a VR product that uses a
inspections via digital property twins helmet with a screen, fitted with sensors
to adjust images to the user’s movement.
Developing ‘digital twins’ for properties as VR and AR also support teleconferencing,
part of an asset record could be amplified enabling parties to communicate directly •• Spectre is a company which creates
by creating VR or AR property simulations. from their own offices or homes, cutting immersive AR and VR models of
down unnecessary time spent commuting. developments to help potential off the
Assuming high quality simulations, a ‘digital
plan buyers understand their potential
twin’ could enable remote inspections,
purchases.
or prospective home owners to ‘visit’
the property to assess need for contract
conditions.
Single recognised legal identity •• The Australian Government’s Govpass
project aims to make proving who you
The Australian Federal Government is consultation with Australia Post to explore
are to government services online simple,
working to develop a legal digital identity how Digital ID can be integrated.
safe and secure.
for citizens (Govpass) where individuals’
information is embedded in a unique •• Australia Post Digital ID provides a way of
identifier to eliminate the need for further verifying your identity without providing
verification. This could support digital 100 points.
signatures on eContracts, enable a secure
•• BPAY PayID allows users to pay anyone
transfer of funds and minimise the chance
with a unique code.
of fraud, as well as save buyers, sellers and
practitioners time commuting to perform
F2F VOI. Govpass is being developed in
Smart contracts and blockchain- •• To ensure safety, security and protect
enabled settlement against cyber threat, the Estonian
government developed a blockchain
By maintaining an asset record, purchasers However, there is limited impetus to build
to enable secure, digital government
can immediately access the history of blockchain in conveyancing in Australia
services and store citizen’s information.
a building including when it was built, in the near term, as the benefits of the
serviced, modifications made, results of trusted and transparent Torrens title •• Smart contracts can be written in code,
inspections and so on. system already exist. As a result, blockchain shared and executed over blockchain,
is more likely to come from external parties allowing parties to engage directly
Coupled with RPA and smart contracts
(e.g. banks or foreign entrants) who have without a middle vendor.
where permitted parties can transact
already invested in the infrastructure.
directly through digital identities through
terms coded into the blockchain, this could
provide further time savings.
22The future of the Australian conveyancing industry 2025 and 2030 |
Future State
23The future of the Australian conveyancing industry 2025 and 2030 |
Future state
Future state
What does the future of conveyancing look like?
Potential futures are...
Potential futures
•• Rich, data-driven stories about tomorrow
which overcome the tendency to project
to operate – not descriptions of
organisations themselves
help predict what
current state, allowing us to see multiple
•• A framework to recognise and adapt to
the future may
possibilities for the future
change over time, ahead of time, helping hold, and how it
•• Imaginative narratives that stretch
thinking, challenge conventional wisdom,
to navigate uncertainty and surface key
considerations
might occur
and are always plausible and logical
Potential futures are not predictions,
•• Descriptions of an external environment forecasts, descriptions of trends in
in which organisations may need isolation, or strategies
How to read this section
The next section provides a high-level sellers and practitioners, and the outcomes
overview of four potential futures and for these stakeholders. Comparative
comparator industry transformations industry and business case studies are
that may eventuate in the conveyancing also provided to help bring these potential
industry by 2030. Following is a deep dive worlds to life. Ultimately, while these are
into each of the four potential worlds, with not predictions, they should provoke
a narrative outlining what that world might thought and reflection about what the
look like, high-level signals of change in future may bring.
2025 and 2030, how it may feel for buyers,
24The future of the Australian conveyancing industry 2025 and 2030 |
Future state
Potential futures
Four potential futures have been developed based on
two critical uncertainties:
01. The degree to which conveyancing 02. The visibility of conveyancing as When combined, these factors help us
is digitally enabled versus digitally a distinct or embedded service: contemplate potential outcomes.
led: how fast actors take up continued the extent to which customers and
digitisation, move towards automation the industry move toward purchasing
and integrate new technologies into conveyancing as a separate, standalone
the industry such that conveyancing service, or to which it becomes
becomes a digitally enabled service horizontally integrated into other
delivered by people, or a digitally led elements of the property transaction
service requiring less human input. process – such as real estate sales
This will be dependent on investment or banking and mortgage broking.
cost, customer demand, government This will be dependent on customer
regulation or the industry working preferences, industry business models,
together to establish new standards. cost and competition.
25The future of the Australian conveyancing industry 2025 and 2030 |
Future state
2. ‘The Digital Advisor’ 3. ‘One Stop Property Shop’
•• Digitised end-to-end •• Shift to digital may make a case for real
More embedded
•• Automation of simple components of the estate agents, banks and mortgage
value chain brokers to bundle conveyancing
•• Shift in focus to delivering value add •• Split in advisory services and ‘DIY’
advisory services approaches where customers supported
to step through the process online
•• SaaS allows conveyancers to streamline
service and provide greater transparency •• Consolidation from acquisitions likely
•• Technology will likely result in some •• Example comparator industry: travel.
consolidation Traditional players faced competition
from online travel agencies, acquired to
•• Example comparator industry: cloud- compete
based accounting
Digitally enabled Digitally led
1. ‘More Professional’ 4. ‘The iConveyancer’
•• Minimal change from what is anticipated •• Online DIY conveyancers enable
in 2022 (100% digitisation of settlement customers to use a ‘skinny’ platform to
and lodgement) conduct direct conveyancing for relatively
simple transactions (~90%)
•• Conveyancers are likely to be fewer but
more profitable due to economies of •• The industry may split to cater towards
scale and some process automation one-off transaction vs regular traders
(developers / investors)
More distinct
•• Conveyancers are likely to maintain local
presence to provide a personal, trust •• Complex transactions are likely to still
based service and provide reassurance require in-depth conveyancing advisory
(~10%). Buyers and sellers may demand
•• Example comparator industry: the local local presence
café or restuarant
•• Example comparator industry:
stockbroking
26The future of the Australian conveyancing industry 2025 and 2030 |
Future State
Imagining the future of
conveyancing
In order to articulate the future of conveyancing,
experiences across comparative industries that are
widely relatable for most Australian businesses and
customers were used.
The transformations experienced across of pricing models, and an increased focus
these sectors are a plausible proxy for on enhancing customer experience.
the potential futures of conveyancing as
they shared similar critical uncertainties as Further detail around the transformations
highlighted on the previous page. of these industries over the past five years
is provided in each potential future.
These transformations also resulted in
beneficial outcomes for customers in terms
Local Café Accounting Travel Stockbroking
Local knowledge, Trusted advisor Provide a mix Self-serve
relationships and of bundled and transactions
assurance bespoke services with advisors for
complex cases
How this is quantified Limitations
For each of these potential worlds, time and money saved for practitioners, The quantitative analysis is high-level and
leveraging work from Deloitte Access the indicative price customers may pay based on assumptions derived from the
Economics’ report and comparator for services and the potential degree of potential future narratives and comparative
industries, there are indicative numbers industry consolidation. changes seen in similar industries. For
for the possible size of industry, number a full documentation of limitations and
of transactions, number of key players, assumptions, see Appendix page 53.
27The future of the Australian conveyancing industry 2025 and 2030 |
Future State
28The future of the Australian conveyancing industry 2025 and 2030 |
Future state
Drivers of consolidation
There are four potential drivers of consolidation in the
conveyancing industry forecast to range from 5% - 25%
across potential futures
Research has revealed there are four key fewer employees. Research suggests that
drivers of potential consolidation in the in addition to this, consolidation will occur
conveyancing industry – forecast to range as businesses that are well placed to use
from 5% - 25% across potential futures. The digital technology expand their customer
first hypothesis was that a smaller number base and compete for market share,
of conveyancers and lawyers would service while those not ready to adapt struggle to
the market, as commercial drivers result compete and potentially cease trading.
in lower cost conveyancer businesses with
29The future of the Australian conveyancing industry 2025 and 2030 |
Future state
Driver 1: Changes to cost structure
The largest benefit from electronic lodgement and settlement is time savings. Practitioners have indicated that time savings are
unlikely to drive customer prices lower but enable businesses to process larger volumes of transactions for the same fixed costs,
improving their profit margins.
While lawyers’ profit margins from conveyancing are not high relative to other work they do, the continual stream of work and
short turn around for payment makes it an attractive revenue source.
Driver 2: Market expansion
Electronic conveyancing reduces the need for proximity to clients as practitioners no longer have to physically attend settlement.
However conveyancers are still bound by state laws, so their ability to expand will be limited. Lawyers are not bound by the
same constraints and can operate on a national settlement / lodgement system – particularly if unencumbered by face to face
verification of identity requirements. However it is plausible that buyers and sellers will still value a local presence.
Driver 3: Methods of attracting new customers
Conveyancers already using streamlined electronic conveyancing are likely to attract more customers than late adopters. Real
estate agents often provide recommendations to clients on which practitioners to use and will funnel customers to those
businesses who provide the best experience for them.
Customers often do not have strong preferences for certain conveyancing businesses. They tend to choose by price or word of
mouth especially from real estate agents and the shift toward aggregator platforms will enhance this, meaning conveyancers will
need to be on platforms in order to win work.
Property developers are also another source of referral, creating an incentive to batch settlements together.
Driver 4: Requirement to lodge electronically
Larger and more progressive businesses expect to expand their market share – others are likely to drop out of the market
given their lack of readiness and willingness to move to an electronic conveyancing platform. This will be mostly driven by the
requirement to lodge electronically.
30The future of the Australian conveyancing industry 2025 and 2030 |
Future State
Potential industry
structures
Based on the potential drivers of consolidation and the
potential futures identified, there are four high-level
potential industry structures
Today, in part due to the state based with an average size of four employees.
nature of conveyancing regulations and the Of this 12,000 enterprises, roughly 40%
traditional need for proximity in order to (predominately conveyancing practitioners
settle, there are few large national brands: and larger law firms) are responsible for
instead conveyancing is a local service 92% of conveyancing transactions, with
provided by sole practitioners and small the remainder filled by a long tail of smaller
businesses. Across the industry, there law practices who perform a handful of
are roughly 12,000 enterprises (~9,000 transactions for existing clients. In each
law firms that offer conveyancing services potential future below, consolidation is
and ~3,000 conveyancing practitioners) likely to occur in a number of ways:
1. ‘More Professional’ 2. ‘The Digital Advisor’
Some initial consolidation from Greater time saving enables conveyancers
practitioners who retire early rather than to compete on customer service, leverage
transition to digital. Practitioners either software platforms and white label
join or are acquired by large firms with solutions to enable the transaction and
scale to invest in technology, or subscribe underpin advice. Competition and use of
to platforms and networks which provide online aggregators drives consolidation,
software to their users. with the emergence of dominant
players, and a middle market allied to
various software network providers and
contracting to law firms outsourcing small
volumes of conveyancing work
3. ‘One Stop Property Shop’ 4.‘The iConveyancer’
Technological innovation and time saving Automated apps effectively enable
reduces the human effort required to customers to self-serve a conveyancing
conduct a conveyancing transaction. transaction. Firms with scale to invest in
Coupled with customer demand for this technology prosper, whilst others
bundled services and a fight to own the move toward serving the ~10% of complex
customer, this leads to consolidation of transactions that cannot be automated
industry verticals, conveyancers move in
house with banks and real estate agents,
or contract to bundled providers and law
firms
31The future of the Australian conveyancing industry 2025 and 2030 |
Future state
2. ‘The Digital Advisor’ 3. ‘One Stop Property Shop’
More embedded
Dominant players
Dominant players e.g. Banks, national
real estate services
Middle
market
Middle
Bundled
market
services (real
estate, etc)
Sole Sole
practitioners practitioners
Subcontractors
Network alliances
Digitally enabled Digitally led
1. ‘More Professional’ 4. ‘The iConveyancer’
Dominant
Dominant players
players
Player + DIY platform
More distinct
Middle market
Acquisitions / consolidation
Complex specialists
Middle
market
Sole
practitioners
32The future of the Australian conveyancing industry 2025 and 2030 |
Future state
1. ‘More Professional’
If you believe that conveyancing will become
technologically enabled, and that it will remain a distinct
service where buyers and sellers engage conveyancers
in a similar way to today, you are likely to see a world
with a largely fragmented industry, with some initial
consolidation due to the shift to 100% eConveyancing,
as well as some time savings for practitioners.
Market Process improvement Customer acquisition
5% 4.5
Fewer enterprises1 Hours saved2
The initial wave of digitisation may see a Conveyancing could be completed on cloud Customer acquisition is unlikely to change,
small drop off in standalone practitioners based platforms that can be accessed by occurring through real estate/bank
who choose not to take up digital APIs and workflows for other software to referrals, or through friends and family
practices. There may also likely be some integrate. locally. Smaller conveyancing practices
consolidation as sole practitioners and This could allow RPA digitisation of a (and individuals) may partner with banks,
mid market firms join or are acquired by number of manual hand-offs including mortgage brokers and real estate agents to
larger firms. Large law firms may invest contract review, which could lead to half an become their conveyancer of choice.
in technologies to streamline parts of the hour in time savings. A few digital boutique conveyancers
conveyancing process. Practitioners may still engage with buyers may emerge, providing an entirely
ELNOs will continue to facilitate and sellers in-person, particularly given online service. This could minimise the
preparation, settlement and lodgement VOI requirements. However, digital requirement for physical interaction with
stages. However these can support enablement could fast track elements buyers and sellers who might prefer to
plug-ins from practice management by allowing buyers and sellers to view a engage online. This could be customers in
software solutions to enable title search dashboard online and keep track of the the younger demographic, rural customers
and workflow management. This could status of their settlement, enabling a who might like to minimise travel time, or
advantage practitioners with scale, more professional service and experience. buyers / sellers who have more experience
who may be able to complete a high The cost to practitioners of developing in executing property transactions.
volume of exchanges at speed. Given the complex technology solutions is predicted However, the desire for face to face
fragmentation of the industry, margins are to be high, likely limiting the extent of reassurance may persist, limiting demand
likely to be steady as practitioners use time process improvements as only a few large for fully digitally led solutions.
savings to compete on price to achieve organisations will have the appetite to
scale efficiencies. invest.
33The future of the Australian conveyancing industry 2025 and 2030 |
Future state
How will we know it’s happening? Structure
2025 2030
•• Initial wave of consolidation driven by •• Consolidation slows, but firms with scale
requirement to lodge electronically become more profitable and professional
Dominant
and licensing framework as some
•• Further savings are realised from players
practitioners elect not to transition to
automation
digital
•• Industry partnerships form to ensure Acquisitions / consolidation
referral channels Middle
market
•• Proptech companies such as Purplebricks Sole
integrate conveyancing offerings, and practitioners
capture a small percent of transactions
Outcomes for users
Others (incl. banks, real estate
Buyers and sellers Practitioners
agents, councils)
$1,100 - $1,250 17%
Avg Price Range3 Profit margins
•• By streamlining the customer journey
•• Opportunity for improvements in process •• Opportunity for better integration across
and reducing manual processes, there
speed, transparency and visibility in the value chain with digital handoffs
are time and cost savings for a number of
the longer term (e.g. dashboards), and between steps
players in the ecosystem. However, this
professionalism
•• In person experience and local expertise requires significant investment from State
•• Opportunity to reduce fragmentation, Registries, ADIs, real estate agencies
however some digital handoffs still exist •• Some time savings, but incremental and practice management software
along the value chain beyond those forecast in Report 1 companies
•• Physical experience, minimal cost savings •• Digital process easier and faster, but •• Partnerships developed between
minimal translation of time savings into conveyancers and banks / real estate
•• E-conveyancing take up strongest rurally scale or additional services agents to formalise referral process
to minimise travel for physical signing and
settlement •• Leaves practitioners open to being
disrupted if potential efficiencies are not
•• Complex cases to be processed by operationalised or realised
lawyers
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