The New South Wales Land Registry Services (NSW LRS) has recently announced it will be trialling blockchain technology for land registry contracts. By partnering with ChromaWay, a Stockholm-based firm which specialises in blockchain technology and pioneered a platform for the Swedish land registry, the new system is expected to be complete by early 2019.
The transition to electronic conveyancing (eConveyancing) has already been mandated by the NSW Government and replaces many of the manual processes traditionally involved in property transactions. The system is currently supported by an online and national property exchange platform known as PEXA (Property Exchange Australia). However, there have been numerous security issues since it has been in operation.
From July 1st 2019, it will be mandatory for all property transactions to be completed electronically. There are many benefits to eConveyancing when compared to the traditional processes. Firstly, there is no longer any requirement for physical documentation or physical attendance at settlements. Through the use of technology, human error is reduced, and funds can be transferred electronically. The latter removes the need for checks to be cleared in order to access settlement funds.
ChromaWay has highlighted the potential of using a blockchain-based registry system, explaining that it will offer immutability while maintaining access and providing search features. The system will also provide increased information transparency, reduce data duplication and improve security.
Commenting on the partnership, the CEO of NSW Land Registry Services, Adam Bennett released the following statement:
“Blockchain and distributed ledger systems are being implemented in land jurisdictions overseas where they are already delivering significant benefits. NSW LRS is therefore working with ChromaWay to investigate and test selected use cases that might be relevant to our market.”
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