Modern Law Magazine Issue 67

FORUM
What role can technology, such as blockchain or smart contracts, play
in making conveyancing processes more environmentally friendly, and
what challenges might arise in their implementation?
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Mike: Technology, including blockchain and smart contracts, can
significantly contribute to making conveyancing processes more
environmentally friendly. Blockchain, with its decentralised and
tamper-resistant ledger, can enhance transparency and security in
property transactions, reducing the need for physical paperwork
and minimising the environmental impact of paper production.
Smart contracts, powered by blockchain, can automate
and streamline various stages of the conveyancing process,
eliminating the need for excessive paperwork and reducing the
carbon footprint associated with document transportation and
storage. However, challenges in implementing these technologies
may arise. First, there’s the issue of widespread adoption and
standardisation, as all stakeholders in the real estate industry
need to embrace these technologies for maximum efficiency.
Additionally, ensuring the security and privacy of sensitive
property data within blockchain systems is crucial. There may also
be technical hurdles in transitioning from traditional conveyancing
methods to a more technologically driven approach. Nevertheless,
as these challenges are addressed, the integration of blockchain
and smart contracts into conveyancing can play a substantial role
in achieving a more environmentally friendly and efficient real
estate transaction process.
“Adopting environmentally
conscious practices in
conveyancing can carry potential
cost implications, but they can
be managed effectively.”
David: Clearly the more tech is deployed in the conveyancing
transaction, the less the physical carbon footprint of the
operation. Digital documentation, data transfer, docusign and
electronic communications including status updates are all
supporting the acceleration to paperless process. There is a
natural human resistance to change, and the notepad isn’t leaving
the conveyancer’s desk any time soon, but for a firm that has just
started the tech adoption journey and is staring at a cabinet full
of paper files, reducing the firm’s footprint requires a significant
culture change - and not before time!
Chris: Digitisation is an environmentally friendly initiative
compared to more traditional conveyancing methods. Every
stakeholder will likely agree that the emergence of further
digital services – such as smart contracting or the AI analysis of
leasehold contracts – are also all positive initiatives. However,
we are venturing into a new world. How do we robustly regulate
emerging technology? The sector needs new standards, processes
and governance; and the only way to scale technology quickly is if
the sector delivers the solutions. For example, The Conveyancing
Information Executive, which Landmark helped to establish, has
developed as the standards body that determines the information
that should go into property reports. Our core decision-making
model is changing, and it needs support to fulfil its potential. Put
simply, if we follow the digitisation journey to an end point, then
a transaction will happen off the back of visual representation
of information alone. For example, users will be supplied with a
RAG or smart workflow as a summary statement. However, the
information that underpins this output is hidden or inaccessible
because of the requirement for speed. All this means that the
digitisation process will require evidence and audit as well as a
high degree of trust from the conveyancer where the validation of
the decisions made isn’t always visible yet must still be recorded.
Conveyancers make big decisions based on risk. The challenge
now is ensuring that lawyers (and wider market stakeholders)
understand how technology and data interact and are managed in
order to be clear on risk and the controls in a digital first world.
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