Australian Conveyancer edition one: Tech that will change the game

Conveyancer.

TECH THAT WILL CHANGE THE GAME

POWERED BY

THIS ISSUE PUBLISHER’S LETTER

DATA DASHBOARD

It’s a tough time to get into property. Our data dashboard reveals how tough.

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CONVEYANCING 3.0

As conveyancers reimagine how they work, there’s more disruption on its way.

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ONE-ON-ONE WITH:

Australian Institute of Conveyancers – NSW chief executive Chris Tyler.

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IT’S ALL HAPPENING!

This month’s events will raise your skillset and arm you with the intel you need.

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BEST PRACTICE

Protect the interests of clients and preserve the reputation of your business.

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The Australian conveyancing industry is navigating an extraordinary transformation during extraordinary times.

Rapid advancement of technologies, data security, regulatory changes, environmental concerns, and evolving consumer expectations are some of the issues confronting conveyances during a prolonged cycle of property market uncertainty.

Welcome to the first edition of Australian Conveyancer, a monthly publication that dives deep into industry developments that matter most to time-poor practitioners.

In times like these, news, insights and data offer an intelligent perspective on the factors that influence business decisions.

Australian Conveyancer is “powered by triSearch” but it is not an advertisement for our services. We have engaged trusted, independent, and highly experienced journalists and editors to curate this magazine.

They are calling on the industry’s – and the nation’s – business leaders, decision makers and policy makers to provide insights you may not otherwise get.

As a reputable solution provider, we see our role in this case as merely an enabler for constructive conversations to occur for the benefit of those passionate about the industry’s success. Just like us.

grows, we want your input, feedback and advice. Let’s grow together.

the burning question

What to do about the housing crisis

Australians are in the middle of a housing crisis. Demand outstrips supply. At the same time the country’s borders are opening further to help ease a widespread labour shortage. The federal government plans a further boost to its social and affordable housing scheme that will see 1.2 million new dwellings built over the next five years.

There is no easy fix to such a significant societal issue and without seeking a political stance we asked industry insiders the following . . .

Does this scheme address all concerns?

What do you think needs to occur to relieve the issues that come with low housing supply, rising home prices, and underlying cost of living pressures?

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© Copyright 2023 triSearch Services Pty Ltd. triSearch and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) of this publication including all data, information, images, commentary and content (content). All rights reserved.

CHRIS GIBBS CEO, triSearch

Here’s what some of our most highly regarded conveyancing colleagues offered . . .

GABRIEL SMITH Licensed Conveyancer BB Smith Conveyancing, NSW

“What we are seeing now are governments at all levels reaping what they have sown over the past 40 years.

“There has been a failure to invest in social and affordable housing close to places of employment and, instead, we’ve seen gentrification of inner-city areas traditionally inhabited by lower income families.

“Valuable taxation incentives such as negative gearing and capital gains tax concessions have been used to attract votes rather than to create infrastructure.

“All considered, residential subdivisions have been approved despite a lack of community facilities. There are no easy answers and no quick fixes.

“Real solutions will be uncomfortable for many and require an investment lifecycle longer than the election cycle.

“The longer we take to make hard decisions the longer the problems will persist and worsen.”

FILIA DRAGONE Licensed Conveyancer Shoreline Conveyancing, Victoria

“Whilst boosting the social and affordable housing scheme will assist with the current housing crisis, it does not address all the issues faced within the housing crisis itself.

“There are many who are literally living week to week with no means of being able to afford these new houses being built, barely getting by.

“We need to start from the bottom, working on the underlying issues faced by many Australians, by giving some breathing room on the cost-of-living pressures and interest rates.

“The high rising of interest rates has put pressure on those still waiting on houses to be finished, with many having to pull out of contracts and lose their deposits pushing them further away from owning a home.

“The injection to finish these houses has come too late for most that can no longer afford it.”

CHANTEL PRIDDY Paralegal Priority Legal, Queensland

“No, the scheme does not address all concerns in my opinion.

“I am concerned that by adding 1.2 million new dwellings (affordable housing), this will have a detrimental effect on the building industry in a whole, similar to what we saw in covid times.

“It is my belief that the cost of building materials will likely skyrocket from this action and as we saw over the COVID period this will create a massive shortage of building materials, causing a significant increase to the overall costs of building, which then saw many builders go into liquidation.

“We also know from this experience that we saw rents increase dramatically, which has, in retrospect, caused a major issue in relation to the current housing shortage that I do not believe building 1.2 million new dwellings will fix.

“By spending so much on affordable housing, this is just a government ‘band aid’ fix that will create more problems than it will alleviate.”

OUR HOTTEST SUBURBS The story of 2023 so far

Heading north for greener pastures

NSW

Sydney’s leafy northwestern outskirts have become the hotspot for home buyers in 2023. It appears the commute is less of a priority than green space and more affordable pricing.

Locals in Oakville say it community atmosphere that beckons buyers. The area hosts various community events that foster a sense of belonging.

What does this mean for conveyancers?

Building relationships with real estate agents operating throughout the north-west region of Sydney could yield good results in the second half of this year.

Top of the tree is Oakville, an hour’s drive from the CBD where most properties were bought. The Hawkesbury riverside suburb is known for its lush green hills and bush setting. Nearby Schofields, just 10km closer to town, has attracted the second-highest amount of buyers this year, while the slightly more urban Kellyville 35km from town in the same direction landed 3 rd in the charts this year.

A CLOSER LOOK - NSW

Who invested for the first time in NSW (January 2023 to August 2023) By nationality

NSW Highest selling suburbs for August

Year of the out-of-towners Buyers go sunny-side up

VICTORIA

Werribee, a 30km journey southwest Melbourne’s centre has drawn more homebuyers than anywhere else in Victoria in 2023. The news would surprise many. The suburb is best known for its major tourist attractions, which include the former estate of wealthy pastoralist Thomas Chirnside, known as Werribee Park, the Victoria State Rose Garden, the Werribee Park National Equestrian Centre, and the Werribee Open Range Zoo.

And if buyers couldn’t find a suitable spot in Werribee, they found comfort in Point Cook, just a few kilometres away.

If the peaceful southwest wasn’t of appeal, there was a big attraction to the heart of the Melbourne CBD living, where the

third-highest transactions took place for the last 8 months.

What does this mean for conveyancers?

Given the amount of people expanding their interests from Werribee to Point Cook, it would be reasonable to expect this trend to continue, possibly moving further southwest. Conveyancers should look to surrounding suburbs for investment opportunities for their clients.

QUEENSLAND

The blend of seaside living, lush green landscapes and national parks seemed the perfect blend for homebuyers who chose Caboolture to settle this year. The idyllic spot in the shadows of the beautiful Glass House Mountains and 44km out from Brisbane centre was hottest place to purchase in the Sunshine state in 2023.

But a willingness to spend money was a just fine for Brisbane City and Surfers Paradise (Gold Coast) home buyers. They shelled out the most money for property in the State this year.

‘The Goldie’ seems to be a perennial favourite – a variable playground with pristine beaches and endless entertainment

QLD Top 3 - 2023 Caboolture

options. This is where most buyers call ‘home’ in 2023.

What does this mean for Conveyancers?

Caboolture could be a great investment opportunity for your clients, with popularity growing but prices remaining reasonable.

CONVEYANCING 3.0 spotlight

CONVEYANCING

TECH THAT WILL CHANGE THE GAME

THE THIRD WAVE

How a new era of disruption will reshape Australia’s conveyancing industry

Over the past decade, Australia’s conveyancing sector has undergone a technological transformation, taking it from a face-to-face and paper-based profession to one with tech at its core. To date, this evolution has taken place over two waves, one of which reshaped the conveyancing transaction and the other which changed the way conveyancers run their businesses.

Now, a third wave is upon us, built around emerging technologies like generative AI and automation. And this one could be even more disruptive, potentially even transforming the work of conveyancers themselves.

“Tools such as generative AI could impact all core legal work, including conveyancing,” says Joel Barolsky, managing director of Barolsky Advisors and senior fellow of the University of Melbourne. “They have the potential to assist in the drafting of contracts, perform legal research, compare documents and policies and flag non-compliance – all actions currently performed by skilled humans.” >>

RALPH GRAYDEN is a journalist, copywriter and co-owner of Antelope Media. He is a former lawyer, who started his working life at one of Australia’s leading firms.

WAVE ONE Transforming conveyancing work

Any Australian conveyancer who has been in practice for more than a decade will remember well the experience of face-to-face settlements.

“Everyone would arrive at 2pm on a Friday in the settlement room, with their packs,” says Shakila Maclean, president of the Australia Institute of ConveyancersVictoria Division. “Then you’d actually take the contract to the State Revenue Office to be stamped for stamp duty. It seems like another world now.”

“It wasn’t that long ago the fax machine was essential for what we do. Now I don’t think a young

conveyancer would have ever seen a fax machine.”

That’s because, in the 2010s, the conveyancing transaction was rapidly digitised.

In 2010, Property Exchange Australia (PEXA) was founded as a joint venture between lenders, investors and a Council of Australian Governments. When it launched in 2013, Victoria became the first state to adopt e-conveyancing.

NSW followed in 2014, and by 2019, every state and territory in Australia had made e-conveyancing compulsory for most property transactions.

Today, more than 85 per cent of Australian conveyancing transactions take place online. In earlyadopting jurisdictions, such as NSW and Victoria, the figure is much closer to 100 per cent, making Australia’s conveyancing process perhaps the most digitised in the world.

Joel Barolsky’s Four Factors for Disruption

Barolsky says that how susceptible a legal sector or process is to AI disruption depends on four factors.

1. Labour costs. How expensive is the labour that AI would be replacing? Would it drive savings?

2. Client power. How much buying power do clients have? Will they demand the cheaper, more efficient practices AI can bring?

3. Effectiveness. How effectively can AI analyse data to solve a problem? For instance, in motor vehicle accident claims, AI could potentially predict the likely outcome of a case based on past decisions and data so insurers know when to settle. Could the same apply to conveyancing?

4. Regulatory constraints. What hurdles to implementation need to be overcome? Are these insurmountable?

Joel Barolsky, managing director of Barolsky Advisors and senior fellow of the University of Melbourne.

INDUSTRY-DRIVEN CHANGE

“For some reason, people tend to think of the conveyancing industry as traditional and nontechnical when the opposite is true,” says Chris Tyler, CEO of the Australian Institute of Conveyancers, NSW Division. “We were really at the forefront of digitisation”.

“The big push to move online wasn’t something that started with governments. It was initiated by the profession itself, which realised it could make property transactions both more efficient and more secure.”

Today, Tyler says that almost every part of the conveyancing process is already digital or is headed that way, with eContracts and eSignatures now beginning to displace traditional signed documents as they become both more secure and more common.

For instance, in April 2020, the NSW government changed the Conveyancing Rules allowing paper land dealings, plans and section 88B instruments to be signed electronically. While the original change was meant to be temporary, the efficiency it brought to property transactions means it remains in force.

“The COVID pandemic gave digitisation a big push along,” Shakila Maclean explains. “We were seeing these trends slowly starting to happen, but it really hit the accelerator.”

WAVE TWO

Transforming the way conveyancers work

The second wave of tech disruption was less about the conveyancing transaction and more about how conveyancers carried out their day-to-day work, especially when it comes to managing both clients and their practices.

COVID-19 didn’t simply hit the accelerator for digitising the conveyancing transaction. It also became a catalyst for many practitioners to truly integrate tech into their business operations. With travel restrictions and lockdowns a new feature of life, as many as 50 per cent of all Australians – and an even higher number of professionals – worked from home over large periods of 2020 and 2021. This drove the takeup of tools that enable remote working, with collaborative software such as Microsoft Teams, Google Suite, Slack and Zoom becoming the standard means of communication in many conveyancing practices.

However, the changes in this second wave of digitisation weren’t driven only from within practices. As clients became accustomed to working from home and using technology to interact with the world, they also increasingly expected their service providers to do the same thing.

One McKinsey study found that these changing customer expectations were among the most likely effects of the pandemic to last into the post-pandemic world. It also concluded that the businesses that set themselves up to deal with this new reality were the most likely to succeed over the coming years.

First wave technologies

• PEXA and Sympli

• eSignatures and eContracts

• Secure exchanges

MORE THAN A PANDEMIC

Chris Tyler says, however, that COVID-19 wasn’t the only factor behind this wave.

“In many ways, the COVID pandemic was a real enabler for technology,” says Chris Tyler. “But the trend towards digital adoption started well before that.”

Tyler argues that an even more significant factor in the take-up of tech relates to costs. The rise of >>

“The COVID pandemic gave digitisation a big push along. We were seeing these trends slowly starting to happen, but it really hit the accelerator.”

Shakila Maclean

How COVID-19 digitalised businesses: THE NUMBERS

cloud computing, as well as the growing capability, increased competition, and changing models of software providers, have put technology well within the budgets of most conveyancers.

“Even though we do specialist work, in many ways, conveyancers are small businesses, and the issues and solutions that apply more broadly to the SME sector also apply to us,” Tyler explains. “Every decision we make has to be undertaken using a costbenefit analysis, so when prices come down, it can make a massive difference to uptake.”

This is borne out by the rapidity with which prices for Saas products have come down, at the same time as their capabilities have gone up exponentially. Today, an ongoing subscription to MYOB Business Pro costs less than $30 a month, as does an “essentials” package on Intuit Quickbooks.

Unlike a decade ago, today’s accounting software also does so much more, linking with payroll, payment and invoicing, and practice management software.

These integrations mean conveyancers are operating on a single system, one with a customer relationship management (CRM) system, such as triConvey, at its centre. This powers all other functions of practice, from marketing and customer service to the conveyancing transaction itself, and moving the profession towards a paperless office.

54x amount Zoom usage grew between January and April 2020

43% Growth in revenue for workplace messaging platform, Slack, between March 2020 and April 2021

Second wave technologies

• CRMs (including triConvey)

• Accounting software, such as Xero, MYOB and Intuit

• Teams software, such as Slack, MicrosoftTeams and Google Teams

• Video conference software, such as Zoom

• Marketing and sales software, including Salesforce, MailChimp and Campaign Monitor

32% percentage of customer interactions that were digital in December 2019 (APAC)

53% percentage of customer interactions that were digital in July 2020 APAC)

WAVE THREE Transforming the work of conveyancing

The second wave of technological disruption hasn’t even started to peter out, and yet a third wave is already upon us.

Many conveyancers have probably already attempted to use ChatGPT, an online natural language processing tool – or chatbot – that provides human-like responses to any typed question. The Australian government reports that 47 per cent of full-time employees have already tried it. This type of product, known as generative artificial intelligence (AI), can already be used to carry out functions such as writing and coding, as well as research and analysis.

And yet this is just the tip of the iceberg, according to professional services strategy adviser, Joel Barolsky.

“Right now, generative AI is still an immature technology,” Barolsky explains. “We’re at about where the Apple iPhone 3 or 4 was, but we’re rapidly heading to the iPhone 10 or 11.”

Barolsky explains there are still genuine issues surrounding AI, many of which involve the security of information and its propensity to answer questions incorrectly. However, he believes that these will be resolved sooner rather than later, and that when this happens, there will be a profound impact on the legal services sector.

He argues that, when this happens, generative AI could move beyond how work is carried out to impact the nature of work itself.

“If you look at how CAD (computer-aided-design) impacted architects, there once were rooms full of draughtspeople drawing up plans for buildings. Now, they’re all made redundant. I think we may see generative AI do something with many parts of the law.”

But, while this may have had a short-term effect on jobs, Baroslky points out that it also opened up new efficiencies, as well as new opportunities.

“CAD transformed the customer experience and the way architects work. They could suddenly collaborate across multiple locations and show clients 3D renderings of buildings before they’re built.”

“Designing a 40-storey building used to be a timeconsuming and difficult process, now architects can do it in a day,” he explains. They can even design buildings that just weren’t possible pre-CAD.”

Barolsky says that generative AI will combine with automation and other technologies to impact different legal sectors and processes in different ways (see the box out at left).

As this happens, he says that those businesses that back the right technology and implement it quickly almost always receive a competitive advantage.

“If you look at CAD, the first firms that embraced it got a major advantage. While the market eventually equalised, there was a real ‘sugar hit’ for the early adopters, who saw increased levels of profitability.”

At the same time, however, he cautions against >>

Shakila Maclean, president, Australian Institute of Conveyancers (AIC VIC) – Victorian Division

jumping in and adopting unproven technology too quickly. “You don’t want to fall for the hype from either side,” Barolsky says.

“You need to be watchful and keep on top of what’s happening. Going back to our iPhone analogy, you don’t want to start off with the iPhone 1, but you also don’t want to wait until the iPhone 12. You really want to jump in with the iPhone 6 or 7.”

CHALLENGES TO TECH TAKE-UP

Despite the enormous potential technology brings, Baroslky notes that there are many challenges ahead. Not least of these are the well-publicised regulatory and ethical obstacles to taking up generative AI, as well as the security risks. However, he is confident that these will be addressed soon and that developments will begin to happen.

“The ethical regulatory and IP issues may put a big handbrake on takeup in the conveyancing sector and

may even prove to be insurmountable. But history shows us people usually find a workaround,” he says.

“There is also the issue that most of the generative AI we’re seeing so far, such as ChatGPT and Google Bard, tends to be generalist in nature, so it’s not really suitable for carrying out legal work in its current guise.”

Again, however, Barolsky says that this is changing, pointing to the US-based generative AI app, CoCounsel, as an example of how the sector may be impacted. The app, which bills itself as an AI legal assistant, harnesses the capabilities of ChatGPT to comprehend legal documents. Its creators claim that it can carry out due diligence functions, analyse contracts and write legal clauses at a postgraduate level.

“In effect, it promises to do most of the work junior solicitors now perform,” Barolsky notes. “Technology like this could have enormous repercussions for the sector.”

But, despite the intensifying pace of change, Shakila Maclean observes that the tech-driven practice is not the only model for conveyancers.

“I know of some very successful practices that are low tech, where the owners meet every client face-toface and as much as possible remain paper-based.”

“Ultimately, it comes down to the type of business you want to be and the kind of clients you’re trying to attract. Increasingly, the younger generation, however, is tech savvy, and clients demand a high level of tech.”

Third-wave technologies

Tech terms you’ll need to know over the next decade

Over the past decade, the world of technology has changed out of sight. Over the next decade, it’s likely to change further. Here are some terms you need to know, and how they might apply to conveyancing.

ARTIFICIAL INTELLIGENCE (AI)

DEFINITION: Involves using systems or machines that mimic human cognitive functions, such as problem-solving, pattern recognition, and decisionmaking.

EXAMPLE: Siri, Apple’s virtual assistant, uses AI to interpret and respond to user requests.

GENERATIVE AI

DEFINITION: A subset of AI that uses algorithms to produce new content, creating images, sounds, and texts that are often indistinguishable from those produced by humans.

EXAMPLE: ChatGPT by OpenAI uses generative AI to create coherent, contextually relevant text based on the input it receives. It could potentially be used as the basis for carrying out legal and conveyancing work.

CHATBOT

DEFINITION: A software simulating human conversation, often used for customer service.

EXAMPLE: Many websites, such as banks and other large companies, use chatbots for FAQs. Conveyancers could use them to do the same.

BLOCKCHAIN

DEFINITION: A decentralised digital ledger recording transactions securely.

EXAMPLE: Bitcoin uses blockchain for secure, transparent transactions. The same technology could potentially be used to secure property transactions.

BIG DATA

DEFINITION: Large datasets analysed for patterns, trends, and associations.

EXAMPLE: Retailers use big data to analyse purchasing habits and tailor marketing. When combined with other tech, such as machine learning and generative AI, it could have a powerful effect on property law and conveyancing.

of AI, allows computers to learn from experience and make decisions without being explicitly programmed.

EXAMPLE: Netflix’s recommendation system uses machine learning to analyse a user’s viewing habits and then suggest movies and TV shows tailored to their preferences. The same could be used for predicting likely patterns in the law and conveyancing.

AUTOMATION

DEFINITION: The use of technology, especially computer systems, to control and operate processes and systems with minimal or no human intervention.

EXAMPLE: The automated checkout kiosks in supermarkets, which allow customers to scan and pay for items without cashier intervention. It could be applied to many conveyancing processes and to client interactions/

SOURCES

PEXA, About us and timeline: https://www.pexa.com.au/ company/#about-pexa

Embracing the Digital Future: A Look into Australia’s E-Conveyancing Revolution. Searchlight Technology: https://www.linkedin.com/pulse/ embracing-digital-future-lookaustralias-e-conveyancing/

Dench McClean Carlson, Review of Intergovernmental Agreement for an Electronic Conveyancing National Law: https://www.arnecc.gov.au/wpcontent/uploads/2021/08/iga-reviewdraft-final-report.pdf

Law Society of NSW: Electronic Conveyancing a New Age: https:// www.lawsociety.com.au/advocacyand-resources/publicationsand-resources/my-practice-area/ electronic-conveyancing/new-age

NSW Registrar General: Electronic signing options for dealings and plans extended: https://www. registrargeneral.nsw.gov.au/news/ electronic-signing-options-fordealings-and-plans-extended-to-31december-2021

Melbourne Institute: Study Shows Australians happy working from home: https://melbourneinstitute. unimelb.edu.au/news/news/ australians-happy-working-fromhome,-men-and-women-are-lookingto-upskill,-but-young-people-feelingthe-pinch

PEXA: A New Digital Era in Queensland: https://www.pexa. com.au/content-hub/australiaworld-leaders-in-online-propertysettlement/

McKinsey: How COVID-19 has pushed companies over the technology tipping point—and transformed business forever https://www.mckinsey.com/~/media/ McKinsey/Business%20Functions/ Strategy%20and%20Corporate%20 Finance/Our%20Insights/How%20 COVID%2019%20has%20pushed%20 companies%20over%20the%20 technology%20tipping%20 point%20and%20transformed%20 business%20forever/How-COVID-19has-pushed-companies-over-the%20 technology%20tipping-point-final. pdf

YouGov: Awareness v Usage of ChatGPT in Australia https:// business.yougov.com/content/8400awareness-versus-usage-of-chatgptin-australia-how-do-they-varydemographically

q+a

CHRIS TYLER, CEO Australian Institute of Conveyancers – NSW

A journey of learning and discovery

Australian conveyancing is vastly different today from the industry Chris Tyler entered seven years ago. The transition from hard-copy property title searches to digital, heightened scrutiny, law reforms, and increased competition have been game changers.

Conveyancing matters to millions in this country, shaping decisions by home owners and businesses alike.

The former banking and finance executive has always understood the complex but critical role the profession plays. But it wasn’t until Tyler was appointed chief executive of the Australian Institute of Conveyancers –NSW that he fully appreciated the depth of responsibility carried by practitioners.

As head of the NSW peak body, he is part mentor, part adviser, part innovator. It’s paternal.

Despite the industry’s evolution, he cites a common and ageless need: Conveyancers must prioritise speed and efficiency while preserving service quality and trust. He sat down with Australian Conveyancer magazine to explain why.:

AUSTRALIAN CONVEYANCER When you first took on the role of AIC NSW CEO, what were your first impressions?

CHRIS TYLER The first impressions were very much already informed impressions, having dealt with the industry for many years prior. The industry is quite unique in that about 85 per cent of our members are female. And, importantly, they run small- to mediumsized businesses, which facilitates the property transaction. The main changes in the last few years our practitioners have seen have been changing regulations, legislation, and technology.

AC What technology changes have really driven change?

TYLER Practice management software, cloud based technology, and the overall growth in electronic conveyancing have been major changes which practitioners can now benefit from.

AC What do you see as the most significant developments in the following areas in technology, legislation and the economy that have impacted most on our industry?

TYLER Firstly, it’s very much the advancement in electronic conveyancing. In the future, it’ll be improvements to electronic conveyancing, interoperability, and other platforms coming into the market.

Secondly, continued improvement in practice management software. And thirdly, one of the big things with tech will be artificial intelligence (AI), and how that will play out remains to be seen.

AC In terms of economic factors, interest rates and the like, what do you think that’s going to do in terms of impact to the industry?

TYLER The key with economic factors is that we’re servants to the market. The property market will go up and down, but we’re just going to be very careful how we manage our business.

A good example is when COVID first hit, our members were worried about business volumes, so they laid off staff. Then, of course, months later, the market started peaking, and many businesses >>

who laid off staff were experiencing burnout. And, at the time, many had to rehire, but this proved difficult, so it put a lot of pressure on the entire industry.

Fortunately, when that happened, electronic conveyancing had already been mandated and embedded in work practices and accepted by practitioners. Because of this, our industry was ready to service the increasing level of demand.

Adopting solutions like virtual VOI and digital signing meant that, in the end, our industry thrived during COVID in some respects.

AC What are your thoughts on artificial intelligence (AI) and how it will impact the industry and how do we embrace it?

TYLER AI is still very much an unknown. We’ve already proved it can be of use, however. It has already been used for simple jobs like contract reviews in the last 12 months or so.

It’s imperative that practitioners are still physically doing the complicated, that they’re providing advice on the complicated issues, and we know the property transaction isn’t always a simple one. So, there will always be an element of hands-on which should be provided by the practitioners.

We’ve got to leverage those complicated transactions and systemise areas where AI can be used for the simple things.

AC Do you think there’s a fear and intimidation from the industry about around AI?

TYLER I don’t get a sense of that. During some of the best-practice groups we run, our practitioners say they are more concerned with profitability and adapting to change as opposed to the adoption of AI.

I think the risks are still largely an unknown, and you still have to be concerned with the actual algorithms and the software that drives AI. With contract reviews for example, you can use AI to review, scan, and identify issues, and it can be largely accurate for simple contracts.

However, you’re still on the line if there’s an error, so you still need to apply a certain degree of supervision over that piece of work, ensuring it’s correct.

AC What are the benefits of AI?

TYLER The benefits are largely with saving time, helping practitioners put margin back into their business, and that will, in turn, help with profitability.

AC What are the challenges for achieving profitability?

TYLER The major challenge is that the industry at large doesn’t charge enough. That stems down to the education of the public. They don’t necessarily understand what a conveyancer is and does.

In terms of the value chain of the property transaction, we’re sitting down the bottom in terms of return. Real estate, government, mortgage brokers, and financers take a bigger slice of the property transaction before, arguably the most important service in the equation, the conveyancer.

AC Why is the fee structure like this?

TYLER The fee structure is built off the back of the scaling of fees from about 25 years ago.. It was obviously an uncompetitive, anti-competitive process or structure .

Now, there is no scale of fees, so what can happen is that when new businesses enter the industry, the first thing they do to get a foot in, is to start with fee discounting. Unfortunately, that’s very detrimental to the whole industry.

Another issue is that a lot of our members are very great at what they do technically, but that skill doesn’t necessarily translate to being good at running a small business. Each year we see all sorts of authority, search and other fees increase, however, some of our members don’t necessarily pass on that increase to their customers. That’s largely where the mindset needs to change.

AC What’s the solution for improving the fee structure balance in the industry?

TYLER Improving fees and being paid what you are worth or the value of your service has been a consistent theme in all our education events. Firstly, they need to put their prices up. Members must start developing a mindset that they maintain a strategy about price increases, and it’s not just every five years, but on a regular basis.

“Each year we see authority fees increase, however, our members don’t necessarily pass on that increase to their customers.

That’s largely where the mindset needs to change.”

AC Do you think conveyancers could take a percentage of the sale like real estate agents?

TYLER I think a percentage fee scale would work in conveyancing and I know of members who do charge a percentage fee. However, there are a lot of challenging and complex areas in each transaction that go beyond the conveyance itself and our members don’t get paid for that. A billable time structure is another method of billing which covers for time spent on a matter.

AC Can billable time work in conveyancing?

TYLER There are many conveyancers that charge an hourly rate. But it’s hard to predict the time investment in each transaction. For example, you may have a case where there’s a problem, and the client isn’t going to call the real estate agent, they’re going to the conveyancer. In this scenario, do the conveyancers charge for that time? Often, they won’t charge the 15 minutes to talk to the customer.

We are working with our members to find a recipe which works and encourage them to charge more on the do able processes.

AC What will the next five years be like?

TYLER First and foremost, we need to help increase the profitability of members conveyancing businesses. Secondly, we need to have more experienced, licensed conveyancers. We need to encourage our education providers to incorporate a practical component to their courses. We do have a shortage of conveyancers at the moment, and I think it will be important that we increase that number dramatically for the industry to thrive.

We also need a shift in our regulator. We are currently regulated by NSW Fair Trading, and they treat us the same as panel beaters, tattoo artists, and hairdressers. If we were treated differently, we may have a better self-image of our profession, which is important.

The final piece is legislation. We need to encourage businesses to grow, and currently legislation has some limitations, which will which prevent those businesses from growing too big. Currently you must have a licensed conveyancer in each office location, and it makes it very difficult to manage and scale up

business. We’re hopeful that Fair Trading can change this structure for us in the near future.

AC How would you structure businesses to allow for scale up with legislation?

TYLER We’ve put forward to Fair Trading that practitioners should be able to manage as many offices as they can effectively supervise. Over the past 10 or 15 years, the legislation hasn’t really changed, and you’ve got cloud-based software systems which allow you to operate remotely.

Many of our members could manage multiple offices from one location and ensure they have the appropriate supervision over it. Risk management is another important change we need. We’ve had systemic issues associated in conveyancing around revenue collection which imposes pressure on our profession. It’s important that we manage risk, have appropriate stakeholder consultation and support from organisation like Revenue NSW.

AC What’s stopping the industry from getting here?

TYLER Apart from the long-standing history and entrenched lack of change, we also have consumer awareness of the value conveyancers offer.

It’s industry self-confidence, which comes back to education from us and for our members to be more confident about the necessity and importance of the services they provide for their clients, and charge appropriately based on that fact.

We also have legislation pushed through without appropriate consultation from the conveyancing community, so when it’s initiated, it has an adverse effect on conveyancers. We need more stakeholders and conveyancers involved in the reform process for legislation pertaining to their industry.

AC What are your thoughts on referral fee legalities?

TYLER In NSW referral fees are illegal and I know that our members are fully conversant of their obligation in relation to incentives. The problem arises when practitioners come across from other jurisdictions like Victoria, where it’s legal, and they conduct business in the same way in NSW which, of course, is illegal. My advice would be to report it immediately to Fair Trading.

QUEENSLAND Lead QLS into the future – election 2023

The Queensland Law Society council election is fast approaching and this year it is a four-week election period, with nominations, campaigning and voting taking place from September 11 to October 9.

It is an exciting time to join the QLS council. As a council member, you will play a pivotal role in leading QLS to help achieve its strategic objectives and goals.

Nominations will open on Monday, September 11 and only full members on the roll of electors on that date are eligible to stand for election, vote and nominate candidates. To be included on the roll please ensure you are a full member before Friday, September 8 and that your contact details, especially your email address. mobile phone and address, are up to date.

The society encourages practitioners from all around the state and all practice areas and PAEs to nominate and vote in this year’s election.

More information: qlsevents.eventsair.com

NSW Orange Education Day

Saturday September 16, 8:30am-4:30pm Location: Orange ExServices Club

5 CPD points

Registrations close: September 8 More information and registration: register.aicnsw.com.au

VICTORIA Seminar – Get Your Act Together on Conditions and Breaches

Thursday September 21, 5:45pm-9pm

Location: The Cheeky Squire 510 Nepean Highway FRANKSTON VIC 3199

AIC VIC will be hosting an encore session in the peninsula area with Michael Benjamin. Michael will provide an overview and analysis of general conditions, breaches of contract with recent case law and examples. Your ticket includes dinner and a glass of wine.

More information and registration: aicvic.com.au

QUEENSLAND Practice Management Course: Sole practitioner to small practice focus

Monday September 25 - Friday September 29 Online

The QLS Practice Management Course (PMC) is an investment in your future. It is designed for aspiring Principals of small legal practices or sole practitioners. This online course gives you the essential skills and expert knowledge needed to manage a legal practice. You will learn the art of attracting and retaining clients, managing people, appropriate and effective ways to bill clients and manage their expectations, business planning and development, managing practice finances and trust accounts, identifying and managing professional risks and your professional ethical obligations. As a PMC alumni, you will have access to ongoing bespoke support from experts in trust accounting, ethics and risk management. You will also have access to ongoing support from the QLS Practice Support and Trust Accounting consultancies.

Contact Events Management on 07 3842 5806 or events@qls.com.au with any queries

NSW October Webinar 2023

Tuesday October 10, 1pm-2pm

Location: Online live, 1 CPD point

Registrations close: October 8

More information and registration: register.aicnsw.com.au

NSW State Conference

Saturday October 21 10am-6:30pm

Location: Crowne Plaza Coogee Beach 5 CPD points

Registrations close: October 12

More information and registration: register.aicnsw.com.au

NSW A Q&A Seminar – Andrew Griffiths

Thursday September 28, 1pm-2pm

Location: Online live 1 CPD point

Due to the success of our first three webinars in this series, Andrew Griffiths has kindly agreed to come back and give us further insights on how to grow a business and share the benefit of his experience.

Registrations close: September 27

More information and registration: register.aicnsw.com.au

VICTORIA

Seminar – Legal Drafting In Conveyancing Ballarat Area

Saturday October 7, 9am-12:30pm Location: The Grand Ballarat

203 Dana Street BALLARAT VIC 3350

Adam Maric will lead this seminar and take you through such issues as the importance of legal drafting, taking adequate instructions regarding the right to deal and specific issues such as powers of attorney, family disputes, remote clients and more. This seminar is critical for developing good risk management strategies.

More information and registration: aicvic.com.au

VICTORIA Saturday Seminar –Unfair Contract Terms and Section 27 Refresher

October 14, 2023, 9am-12.30pm Karstens, 123 Queen Street MELBOURNE

Seminar will cover:

• Unfair Contract Terms (UCT)

• What is an ‘unfair’ Contract?

• The general prohibition on misleading or deceptive conduct.

• Specific unfair practices relevant to property transactions.

• Identify template contracts used by your business and assess if they may be a standard form contract.

• Identify any one-sided, unfair or excessively favourable terms in those standard form contract agreements.

• Significant financial penalties will apply to any person or business that relies on an unfair contract term.

Details: Events aicvic.com.au

NSW November Webinar 2023

Thursday November 9 5pm-6pm

Location: Online live 1 CPD point

Registrations close: November 8

More information and registration: register.aicnsw.com.au

best practice Keeping cyber wolves at bay

Conveyancers are the keepers of precious data that sits between families and their prized property assets.

The information is digitally stored. But there is a burden of responsibility that comes with this, knowing that cybercriminals skimmed $3.1 billion from Australians last year.

This eye-watering figure was an 80 per cent increase over the losses reported in 2022.

Cyber threats hang low over conveyancers due to the volume of sensitive data moving daily.

In protecting the interests of clients and preserving the reputation of their business, conveyancers should keep areas of vulnerability top of mind:

1 IDENTITY FRAUD

Identity fraud is not new. Criminals are adept at combining leaked personal information with available data on the internet and social media profiles.

The advancement in AI technology allows cybercriminals to effectively impersonate consumers’ voices and faces to bypass verification controls.

They can then use available information and AI to generate new synthetic profiles with documents, facial images, and voice cloning to apply for loans and claim social benefits. This creates challenges for businesses to authenticate their customers, and poses serious financial and personal risks for individuals.

To prevent identity fraud, the Australian Cyber Security Centre (ACSC) has prepared a list of measures you and your clients can follow to minimise the risk.

2 FRAUD-AS-A-SERVICE

Fraud-as-a-service is commonly seen when criminals impersonate supply services to carry out fraudulent activity.

Cybercriminals are turning to automated voice bots for impersonating businesses and socially engineering customers

either over the phone or, commonly, via email. Typically, cybercriminals will copy your email signatures and bank details, changing only one or two numbers in the accounts to have your clients transfer funds to their own account, instead of yours.

A common prevention method is to never exchange details through unsecure communication tools, and have all your settlement and payment options secured with billing and accounting software.

Another important method is to educate each client that you will never ask for fund-transfers details to be sent in emails, and to double check and verbally confirm any fund transfers with other businesses throughout their property purchase or sale.

3 RANSOMWARE ATTACKS

Ransomware boomed during the pandemic, with large institutions and critical infrastructures facing disruptions and being forced to pay millions in ransom.

Experian suggests that the use of AI will further power ransomware attacks, leaving both customer data and critical business information exposed.

The ACSC observes that cybercriminals continue to successfully use ransomware to disrupt operations and cause reputational damage to Australian organisations, and has cited no slowing down of this threat.

The ACSC advises Australian organisations to adopt multiple layers of defence against ransomware, explaining that no single mitigation will protect against all threats.

Other common cyber attacks on conveyancing firms include malicious software (malware) and scam emails, as noted by ACSC.

Managing your software, data and online accounts is drastically becoming best-practice for increasing your business’ protection from the most common types of cyber attacks, with data rapidly becoming the most important commodity in this technological era.

It is important all data is untampered and secured from any external threat, especially when involved throughout the conveyancing workflow.

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