An analysis of the responses to the consultation paper Electronic Conveyancing, a draft order under section 8 of the Electronic Communications Act 2000 has now been published by the Lord Chancellor’s Department.
The concept of permitting electronic conveyancing documents to be used in connection with contracts, dispositions of registered land and dispositions leading to first registration was accepted by the majority of the 69 respondents. The proposals for the use of electronic signatures, dispensing with attestation, deemed written authority, the making of electronic documents by corporations and the four conditions were also generally supported.
Significantly, 98% of the respondents answering the first question agreed that electronic conveyancing documents should be a permissible alternative to paper documents, although 36% made their agreement subject to certain conditions.
Notwithstanding the general support, there were concerns about the need for a secure and robust system. Respondents identified a range of practical issues, including :
- the difficulty of combining paper and electronic documents in a single transaction or chain of transactions;
- the challenge that might be faced by small high street firms in adapting to compulsory electronic conveyancing;
- the benefits of a potential electronic interface with Companies House;
- the need to provide proper assurance of an agent’s authorisation in those cases where an agent signs a document electronically on behalf of his or her principal;
- the possibility that standard form documents may not be suitable for complex transactions;
- the need to avoid delay arising from the earlier involvement of the Land Registry in the transaction;
- the possibility that it may be necessary to underpin arrangements for effecting electronic exchange by professional undertakings broadly similar to those used for paper contracts;
- the need to consider indemnity insurance issues; and
- electronic stamp duty (in particular, how documents could be adjudicated).
Opinion was evenly divided as to the accuracy of the regulatory impact assessment. Several respondents thought it too optimistic. Notwithstanding this, there was also majority support for the view that a voluntary system of electronic conveyancing would be used. None of the criticisms suggested that the costs would outweigh the benefit of permitting electronic conveyancing documents.
The responses also indicated a general consensus that electronic signatures appear to be a satisfactory means of ensuring trust. This is, however, conditional upon satisfactory products and systems being developed.
The full text of the Consultation Response can be viewed at: http://www.lcd.gov.uk/consult/general/e-convresp.htm.
The full text of the Consultation Paper can be viewed at: http://www.lcd.gov.uk/consult/general/e-conv.htm.
References: Propert-e News 20/12/01
