New found optimism - here we go again

Courier Mail | Renee Viellaris and Melissa Ketchell | July 02, 2008 12:00am

HOMEOWNERS have been promised significant savings when buying and selling real estate under a new scheme to be announced by the Rudd Government.

After homeowners were yesterday warned that lenders may increase interest rates despite the Reserve Bank leaving its cash rate on hold, Prime Minister Kevin Rudd will today reveal that agreement has been reached on a national electronic conveyancing system.

The Government predicts the system could reduce the total costs of buying and selling property by $250million a year, and end the mismatched system across states and territories.

The Council of Australian Governments, which will meet tomorrow in Sydney, has agreed to start the new system in 2010.

Conveyancing is the process of transferring the legal ownership of real estate from one person to another. It costs up to $800 for an average priced home.

The new system will settle property transactions, lodge instruments with land registries, and meet associated duty and tax obligations - all digitally.

"A single national electronic conveyancing system is a significant and beneficial step towards creating a seamless national economy in Australia," documents from the Prime Minister's office say.

"Consumers will save money by spending less on expensive legal and conveyancing fees and transaction costs such as bank cheques."

The Australian | Phillip Coorey | July 2, 2008

MUCH of the expense and hassle involved with selling property will be eliminated under a uniform national system of electronic conveyancing.

The states and the Commonwealth will formally agree at tomorrow's Council of Australian Governments meeting in Sydney to establish the system.

The Prime Minister, Kevin Rudd, will spruik the achievement as "a significant and beneficial step" towards his goal of creating a seamless national economy in which differing rules and regulations between the states are standardised.

The Government has earmarked about 27 areas that need reform.

The national electronic conveyancing system will be operational by March 2010. It will be used to settle property transactions anywhere in the country and is expected to save $250 million a year in fees and costs.

"Consumers will save money by spending less on expensive legal and conveyancing fees and transaction costs such as bank cheques," Mr Rudd said.

Currently only Victoria has such a system and other states and territories had their own "with different processes and procedures, based on an antiquated system of paper-shuffling".

In an open letter sent yesterday to the Prime Minister and the premiers and chief ministers, the Business Council of Australia said progress towards a seamless national economy was critical.

"Failure to achieve the promised reforms will leave us locked in a state-based approach more suited to the 19th century," it said.

"As they meet tomorrow, the BCA urges all members of COAG to set aside parochial differences, grasp the opportunity and lead us forward."