For lawyers and conveyancers, property settlements can be a complex process, often subjecting clients to significant legal and financial risks if not managed with care.
A recent New South Wales Supreme Court case, Cui v Salas-Photiadis [2024] NSWSC 1280 (‘Cui’), exposed a shortcoming in the property ownership transfer process when a buyer of a $4,350,000 home in Blakehurst, Sydney, secured a mortgage loan from Westpac, only to discover a third party lodged a caveat against the property just before the final transfer of ownership.
What could have been done to mitigate the outcome?
The Cui case has prompted commentary regarding the importance of conducting a final search before settlement, and possibly doing this by means of a title refresh, so the parties are aware of the state of the subject title(s) when proceeding to settlement.
By identifying any interests registered on the title, such as caveats or liens, legal professionals can prevent the last-minute uncovering of claims or encumbrances so these issues can be addressed proactively.
SettleIT lawyer John Macmillan said: “A final title search is more than a precaution – it is a fundamental step in safeguarding clients’ investments. By identifying any encumbrances or claims early, we ensure that property transfers proceed smoothly, minimising the risk of costly disputes or delays.”
In addition, technology can play an integral part in mitigating overall risk in property settlement. Unlike traditional manual methods, e-conveyancing technology tools are purpose-built with a specific focus on security, compliance and efficiency.
How can SettleIT support mitigating property settlements risks?
SettleIT, a trusted solution for seamless property settlement, recognises the needs of property market professionals first hand. By engaging with practising lawyers and undergoing rigorous testing, the intuitive platform ensures it meets the growing demands of its users.
“At SettleIT, we understand that the property market is increasingly dynamic, with new challenges emerging regularly,” SettleIT General Manager Daniel Petrucci said. “That’s why we’re continually refining our processes to ensure that property settlements are as secure and efficient as possible.”
By automating many aspects of the settlement process – including automated title searches and enhanced title activity checks – SettleIT drastically reduces the chances of human error and proactively ensures thorough completion.
- Automated title searches: Conducted before and after settlement to verify ownership transfer.
- Title activity checks: Ensures any recent changes or claims are identified.
“We’re not just streamlining the settlement process; we’re giving our clients a trusted, forward-thinking partner,” Daniel said.
Supporting legal professionals with seamless settlements
Where property transactions demand rigorous due diligence, SettleIT’s commitment to rigorous title search protocols ensures that legal professionals can deliver secure and efficient settlements. With the support of SettleIT, law professionals can navigate the complexities of property transfers with confidence and reliability.
Get in touch today to learn more about how SettleIT can help streamline your processes and help you stay ahead in a fast-paced property market.
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