A message exchange system between Electronic Lodgment Network Operators
A sustainable market that gives choice to customers
Today, all parties to a conveyancing transaction must subscribe to the same Electronic Lodgment Network Operator (ELNO) to complete the transaction. This is because ELNOs are unable to exchange information, or ‘talk’ to each other.
With more than one ELNO now operating in NSW, lawyers and conveyancers should be able to transact efficiently and securely while subscribing to the ELNO that best suits their needs. To achieve this, ELNOs are required to connect their back-end systems, or ‘interoperate’.
The concept of interoperability is familiar from other industries – for example, Telstra customers can phone Optus customers without having to set up an account with Optus. Interoperability is widely used by regulators to manage what is called a ‘network effect’, where the value of a good or service improves with increased numbers of users.
The eConveyancing market is a good example of a market with a network effect. The value of services provided by an ELNO to any one user increases as more solicitors, conveyancers and financial institutions use that ELNO’s services. This means that larger and more established ELNOs have a competitive advantage over smaller new entrants, since their users can connect with a larger number of other users to complete transactions.
Interoperability requires ELNOs to design, build and test a series of Application Programming Interfaces (APIs) to exchange transaction data. ELNOs must also develop the business rules and operational parameters to ensure that interoperability works seamlessly, with minimal impact on subscribers. A core principle of interoperability is that it maintains the security and integrity of the eConveyancing process and land titling framework.
Interoperability is a national eConveyancing reform, led by the Australian Registrars’ National Electronic Conveyancing Council (ARNECC). The Interoperability Governance page has more information.
Ministers and their representatives from each State and Territory continue to meet to discuss progress with the national interoperability reform, to support a sustainable competitive market structure for electronic conveyancing.
Benefits
Interoperability will:
- give customers choice and support competition among ELNOs
- promote innovation of new products and services
- enable a high-quality user experience.
Stakeholder engagement
Implementing interoperability between ELNOs will impact a wide range of government and industry stakeholders.
It is crucial that government works with industry, to achieve a reform that meets industry’s needs. The NSW Office of the Registrar General (ORG) and participating jurisdictions recognise the significant amount of time and expertise that this partnership approach demands of industry, and is grateful for industry’s ongoing commitment to the reform.
Implementation approach
Interoperability will be delivered in stages to ensure that electronic conveyancing systems are able to work together seamlessly.
Update on the reform
On 12 September 2023, NSW welcomed the successful completion of the first interoperable transactions between PEXA and Sympli – a significant milestone for the reform. For more information on this milestone, see the ARNECC Media Release.
News and resources
For more information, see our Interoperability publications page.
For updates on the progress of interoperability, please subscribe to the Registrar General emails and see our News page.