CHOICE membership

PEXA and multi-vendor liability

PEXA - whose shareholders are state governments and major banks, among others - was established in 2010 to deliver a single, national e-conveyancing system.

It is designed to enable lawyers, conveyancers and financial institutions to lodge documents with land registries and complete financial settlements electronically.

One solution to do it all - how convenient for the ‘bad guys’ **:slight_smile: and,

Fairfax reported the family still had not managed to recover the funds, and was struggling to find a party in the end-to-end conveyancing process that would accept liability for the incident.

Two or more banks, two conveyancers/lawyers all hiding under the same rock ? To me, the issue here is understanding who is responsible, maybe the wrong word, accountable if something goes wrong. There are many situations where the end user/customer is dealing with a plethora of intertwined parties, whether they know it or not. BPay comes to mind, who seem to have become far more flaccid in the last couple of years when it comes to enforcing their contracts and agreements - but house settlement is probably one of the biggest that Jill/Joe Average will entrust their money to … but how many people ask for the process to be explained in detail along with who the parties are and where any risk lies?

While it’s being spun as a one-off (but they are searching for other instances) - email interception is fairly trivial especially for people ‘in the right place’, and given they are reportedly looking at enhancing security it suggests there might be more to it.

** re ‘bad guys’, it’s hard to tell who they are with banks and lawyers in there was well :wink:

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This is another news article about the same PEXA breach.

What is potentially concerning is electronic exchange of property, like PEXA, will become mandatory in Victoria in October, with NSW to follow suit next July. Possibly these and other state governments need to ensure that any system they do adopt in the future is fail safe and require lock tight verification processes. This may have to include a closed system only accessible say at a government agency office/branch.

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Imagine how many lawyers are making money out of this one !!

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