The conveyancing process is undergoing significant digital transformation, driven by the need for improved efficiency, security and convenience. This is a direct result of the pitfalls of processing traditional physical documentation when compared to digital alternatives. These include potential security threats and unnecessarily long processes.
HM Land Registry has responded to these factors by making the shift to electronic processes, a step many neighbouring industries have already done. To achieve this, they have published Practice Guide 81 and 82, which provide comprehensive compliance steps for identity verification and electronic signatures in the digital conveyancing process.
In this article, we will explore both these practice guides in detail and highlight how they are revolutionising property transactions.
Until recently, conveyancing has remained as one of the few legal areas where electronic processes, such as electronic signatures, were not allowed. This led to a reliance on physical documentation, which is a practice fraught with inefficiencies and security risks. Physical signatures and identity verification processes can be time-consuming, vulnerable to forgery and inconvenient for many, especially during times when remote interactions are necessary.
Fortunately, there has been a shift towards digitalisation in conveyancing law which addresses these challenges head-on. HM Land Registry has allowed the use of electronic signatures and digital ID verification that are gradually becoming the norm, streamlining processes, enhancing security and offering greater accessibility. Other industries have already embraced digital transformation, setting a precedent that conveyancing is now following, accelerated by the pandemic and the necessity for remote operations.
To address the evolving needs of the conveyancing industry, HM Land Registry has introduced Practice Guides 81 and 82, which focus on identity verification and electronic signatures. These guides provide essential compliance frameworks to ensure secure and efficient processes. Their publication marks a significant step towards modernising conveyancing, tackling issues related to physical documentation, and enhancing the overall experience for professionals and clients.
Practice Guide 81 is focused on establishing secure digital identity verification procedures in conveyancing. This guide from HM Land Registry sets the standards for verifying the identities of parties involved in property transactions, addressing the shift from traditional face-to-face verification to digital methods. PG81 introduces robust verification processes, including biometric checks and NFC passport checks, to ensure that all parties are accurately identified before any transaction takes place. This guide is essential for conveyancers as it helps prevent fraud and ensures that only legitimate parties are involved in property dealings, thereby increasing the security and trustworthiness of digital conveyancing.
Practice Guide 82 deals specifically with the use of electronic signatures in conveyancing transactions. It provides a framework for legally binding electronic signatures, replacing the need for physical signatures and addressing the inefficiencies and security risks associated with them. The guide also mandates that conveyancers maintain a detailed evidence trail, which records every step of the signing process to ensure compliance and legal validity. By following PG82, conveyancers can streamline transactions, reduce delays and enhance security, making property dealings more efficient and reliable in a digital context.
Digitalisation in conveyancing offers numerous advantages that address the pitfalls of traditional methods:
HM Land Registry’s Practice Guides 81 and 82 are paving the way for a more efficient, secure and convenient conveyancing process. By adopting electronic signature platforms and digital identity verification methods, conveyancers can significantly enhance their operational efficiency and compliance.
To stay informed about future articles and detailed guides on staying compliant with HM Land Registry’s new guidelines, follow our updates and ensure you are equipped to navigate the evolving landscape of conveyancing law.