National E-Conveyancing Development Limited (NECDL) is the corporate entity established to build and manage a national e-conveyancing system. It has received seed funding from the state governments of New South Wales, Victoria and Queensland.
NECDL provided an update on its activities today via a webcast in which it was revealed that the e-conveyancing system will take up to 18 months to 2 years to build from the time that development funding is secured. NECDL is open to obtaining development funding from both public and private sector sources.
“We believe that we now have an investible business proposition that will enable the funding to be secured and the delivery of the system” said Alan Cameron, chairman of NECDL.
“Importantly I think for the first time in e-conveyancing in Australia, the full costs, benefits, delivery scenarios and management structure and the implications of all of this have been developed and addressed from a fully commercial point of view” said Alan Cameron.
The estimated cost of building the e-conveyancing system was not disclosed for commercial confidentiality reasons as NECDL will engage in negotiations with potential external development partners.
Marcus Price, CEO of NECDL stated that the economic benefits of e-conveyancing are “roughly evenly distributed across banks, solicitors/conveyancers and the end consumer”. He also stated that “the banks drive a lot of the value proposition for e-conveyancing”.
In relation to how much each party will pay to use the system, Marcus Price said “we’ve looked at ensuring that the economics of the platform are such that each party bears a proportionate amount of cost in terms of the product pricing (and that) each party is equitably represented in the pricing model.”
A recording of the webcast is available here