Issuu

AUSTRALIAN

Conveyancer. THE PRACTITIONER’S COMPANION

SPOTLIGHT

ARE YOU SELLING How to lift YOURSELF conveyancing SHORT? profits # 3 • N OV E M B E R 2 0 2 3

the burning questions

2 •

Making time to be better at what we do

Johanna P. M. Licuanan. Lawyer & director Licuanan Lawyers

What are the key things you have done in your business workflow to create more time for team?

Having established our legal practice in 2003, it has seen much industry change and experienced ebb and flow over time. Our conveyancing practice uses the legal software triConvey and triSearch, which, when used effectively, are reliable sources of management tools proven to be timesaving and cost-effective, allowing our team to focus on legal work and networking. It’s only possible to keep-up with changing times and meet client expectations with the right team and effective management tools that allow our legal practice to run smoothly, timely and cost-effectively. • Our office operates almost paperless. • The team no longer manually complete forms or are on the phone chasing searches and enquiries. • The software and its back-end team do it all to keep file matters streamlined and updated.

he conveyancing industry has been undergoing an extraordinary period of transformation in recent years. A transition to paperless workflow, ongoing legislative change, and growing responsibility that comes with managing clients’ personal information. It appears that conveyancers are under increasing time pressure every day, so we ask:

What are you able to do differently now because of these changes? COPYRIGHT © Copyright 2023 triSearch Services Pty Ltd. triSearch and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) of this publication including all data, information, images, commentary and content (content). All rights reserved.

A U S T R A L I A N C O N V E YA N C E R • 3

THIS ISSUE DATA DASHBOARD • Sydney’s western suburbs dominated property sales. • The average number of days homes were awaiting sale dropped this year. • More first-home buyers are entering the market.

See more Page 4

SELLING YOURSELF SHORT? Are conveyancers adequately compensated for their services? Should they be charging more?

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Peta Stewart Founder & chief executive Peta Stewart Property Conveyancers

Ann Blannin-Ferguson ABF Conveyancing owner & licensed conveyancer

To create more time for our team amidst the transforming conveyancing landscape, we have rigorously optimised and digitised our workflows. We adopted advanced project management tools and prioritised staff training on new legislative changes and technology. This move streamlined our processes, reduced work, and minimised errors, making each transaction more efficient and giving our team the flexibility to focus on providing excellent service to our clients. With these enhancements, our team now operates with heightened efficiency and precision. We’re able to manage clients’ personal information more securely due to the advanced digital tools in place. Our communication and efficiency has improved remarkably, expediting tasks while ensuring accuracy and compliance with the latest legislative standards. This shift not only bolsters our team’s productivity but also amplifies our ability to deliver superior and timely service to our clients.

We recently decided to implement the following strategies in order to create more time within the team: Office hours • Start no earlier than 8:30am. • End at 6pm, unless there is an urgent need to work later. • Phone calls and emails out of those hours are left unanswered until business hours. • No work on Sundays, even phone calls – EVER. • Try to stop for at least half an hour for lunch each day, preferably a full hour if possible. We find we are better able to think and plan if we keep to those hours and strategies.

PIRATES & PARASITES Cyber security expert Shameela Gonzalez guides conveyancers to safety.

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KNOWLEDGE SHARE Get the full rundown of industry events coming up.

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PERFECT HARMONY Keeping all the property transactions’ moving parts together is critical for clients. See how to foster a productive partnership.

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data dashboard

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How the west was won NSW

Pendle Hill

First-home buyer activity

Hottest suburbs

The western suburbs of Sydney, Australia’s largest and most expensive city for real estate, remained the place to purchase during October, according to the triSearch property sales data. Pendle Hill, Blacktown and Cadden in the west and north-west corridor were the three most desirable locations for buyers. Interestingly, Oakville, September’s hottest suburb in Sydney did not make into the top 10 highest-selling suburbs in October.

The NSW suburbs where most property was bought in October 2023.

It appears to be a price sensitive market

Parramatta

Merrylands

Auburn

POSTCODE

SUBURB

2145

Pendle Hill

2747

Caddens

2148

Blacktown

2560

Campbelltown

2750

Penrith

2155

Kellyville

2150

Parramatta

2259

Wyong

2153

Baulkham Hills

But there are plenty of willing purchasers regardless. Properties are selling faster now than they were the same time last year. The average number of days a property is on the market in NSW before being sold is 54 days, down from 67 days for the same period last year.

Time on market The average time a property spends on market before being sold, compared to the same time last year.

DAYS

2141

Berala

October 2022

77%

70%

2022

2023

23%

30%

Percentage of all property sales recorded by triSearch. Existing home owner First-home buyer

Overseas investment Foreign parties investing in Australian property for the first time in October 2023. Volume percentage ranking by nationality.

Foreign investors making a Sydney property purchase for the first time were led by parties from India, China and Nepal. Despite the strength of the British pound against the Aussie dollar (52 cents buys £1), Brits ranked seventh in the list of internationals buying in to the market.

October 2023

How many first home buyers entered the market in October 2023, compared to the same time last year.

5.54%

1. India 2. Nepal 3. China

4.28% 2.63%

4. New Zealand

1.95%

5. Philippines

1.56%

6. Vietnam

1.36%

7. United Kingdom

1.07%

8. South Korea

0.78%

9. Bangladesh

0.39%

10. Pakistan

0.319%

A U S T R A L I A N C O N V E YA N C E R • 5

Our heart was in the centre

Queenslanders retreating the coast QUEENSLAND

VICTORIA October was a case of “hot in the city” as Victoria ‘s property sales results came in. The Melbourne city centre was not only a vibrant hub for shopping and entertainment, it was also the desired place to purchase. The suburb topped last month’s ranks.

Doncaster

Melbourne St Kilda

POSTCODE

SUBURB

3000

Melbourne

3128

Box Hill

3030

Werribee

3073

Reservoir

3141

South Yarra

3029

Tarneit

3030

Point Cook

3121

Richmond

3101

Kew

3182

St Kilda

Morayfield Beachmore

Chadstone

Brighton

Hottest suburbs The Victorian suburbs where most property was bought in October 2023

Queensland’s Moreton Bay is not only a hot spot for a holiday, it seems it’s also high on the list for property investors too.

Deception Bay

Hottest suburbs But for a change of pace, Box Hill, one of Melbourne’s fastest growing health and education locations, was the southern capital’s second-best-selling suburbs last month. The familyfriendly area, 14 kilometres from the city centre, is home to parks and wildlife, making it a popular property investment destination. Across town and in the opposite direction Werribee, 32 kilometres south-west of Melbourne’s CBD, was ranked second for property purchases last month. Outsiders will know the area for its tourist attractions such as the Victoria State Rose Garden, and locals suggest it’s great for families. Property investors have banks on this too and are significant among the buyers’ profile.

The Queensland suburbs where most property was bought in October 2023 POSTCODE

SUBURB

4506

Morayfield

4510

Caboolture

4509

North Lakes

4217

Surfers Paradise

4207

Yarrabilba

4209

Pimpama

4215

Southport

4301

Redbank Plains

4509

Mango Hill

4503

Kallangur

The region’s Morayfield – a thriving retail precinct – was the most popular location for property sales last month. It topped perennial sand, sun and sea favourites like Caboolture, Surfers Paradise and Southport in the ranking.

Disclaimers - The content provided in this publication is of a general nature and does not take into account future market conditions or your individual circumstances. You should exercise your own skill and judgment when considering investment decisions and seek professional advice where appropriate. While triSearch uses commercially reasonable efforts to ensure the content contained in this publication is current, triSearch does not warrant the accuracy, currency or completeness of the content and to the full extent permitted by law excludes all loss or damage howsoever arising (including through negligence) in connection with this publication.

6 •

spotlight

WHY CONVEYANCERS MUST START CHARGING MORE Are you really being paid what you’re worth? (If not, here’s how to do it.)

RALPH GRAYDEN is a journalist, copywriter and co-owner of Antelope Media. He is a former lawyer, who started his working life at one of Australia’s leading firms.

ustralia’s conveyancing sector has a profitability problem. Simply put, many conveyancers carry out highly skilled – and potentially high-risk – work for far less than other qualified professionals. A recent survey conducted by AICNSW found that, in 2022, 66 per cent of conveyancing practices turned over less than $200,000 a year. For sole practitioners, that number rose to 94 per cent. The same also found that the average income of a licensed conveyancer was between $84,000 and $99,000. That’s slightly below the average national full-time adult’s earnings, which sit at around $99,200. “Many conveyancing practices around Australia are what I call ‘zombie businesses’,” says small business author and entrepreneur Andrew Griffiths. “They run on very low profit margins and even the slightest financial hiccup is enough to threaten them with shutdown. “At a recent conference, I asked a room of around 130 conveyancers who believed they were charging what they thought they were really worth. Just two or three put their hand up. Unfortunately, that’s pretty normal.”

A U S T R A L I A N C O N V E YA N C E R • 7

FACING THREATS FROM BOTH SIDES

Conveyancers around the country are being wedged, Griffiths believes. On one side are solicitors, who often charge a premium price but also portray themselves as offering a highly skilled and more premium service. “People engage a solicitor expecting they will have to open their wallet,” Griffith explains. “They don’t go into the relationship expecting a bargain. They expect to receive quality advice.” On the other side of the wedge is a proliferation of lowcost conveyancing services, many of whom promise to offer the same service as other conveyancers but at a fraction of the cost. “You have these really commoditised conveyancers who are going around and saying they’ll do any conveyance for $800,” Griffith notes. “Unfortunately, most conveyancers I meet are caught between the two ends of this spectrum, and it’s really not a good place to be.”

UNDERMINING THE VALUE OF AN ENTIRE INDUSTRY

Griffiths’ analysis of Australia’s conveyancing sector is echoed by both the NSW and Victorian divisions of the Australian Institute of Conveyancers. Chris Tyler, the chief executive of the NSW Division, says that the low-cost side of the wedge is far more insidious and dangerous for the conveyancing sector than the threat posed by solicitors. That’s because, for many conveyancers, it attacks their value proposition in a way that solicitors don’t. “When you’re driving in the local area, and a car pulls up next to you, and on its side is a big sign saying, ‘We will do any conveyance for $x,’ well, that can be intimidating,” Tyler says. “The automatic reaction can be to think you have to charge the same if you’re going to be competitive. It can be daunting for practitioners, who begin to question their own pricing. Then it becomes a race to the bottom to see who will work for the least. “These super-commoditised services attack the very value proposition of conveyancers, creating a false narrative that cost is the only differentiator in this sector,” he adds. Shakila MacLean, chair of the Victorian Division, also says undercutting is a significant issue in Victoria. “Many businesses, especially newcomers, try to compete by offering extremely low rates, which ultimately undermines the entire industry’s value,” she >> observes.

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THE PERILS OF PLAYING IN THE BARGAIN BASEMENT

Griffiths argues that, while it can be tempting for conveyancers to reduce their prices to compete with these new providers, there are good reasons not to “You will always have the bargain basement service providers, no matter what industry you’re in,” he notes. “But you also need to look at the clients these kind of providers attract. They won’t be loyal. They’ll be the ones shopping around, who leave when an even cheaper provider appears. “If you choose to play with this end of town, you’ll end up with a business that isn’t resilient. The moment someone cheaper comes along, your business will be gone.” A 2000 Harvard Business Review article entitled “How to fight a price war” provides readers with the same caution: “Price wars can create economically devastating and psychologically debilitating situations that take an extraordinary toll on an individual, a company, and industry profitability. No matter who wins, the combatants all seem to end up worse off than before they joined the battle.”

Doing the maths on putting up your fees A simple way to work out how much to put your fees up is to determine how much work you’d need to bring in to gain the same amount of revenue. You should also work out how much revenue you would bring in if you performed the same number of conveyances. This table shows both of these equations based on a practice currently performing 120 conveyances a year at a rate of $1500.

THE COURAGE TO TURN WORK AWAY

Why, then, do so many conveyancers feel that they need to take on all businesses, even if that means reducing their prices and undermining their own profitability? Griffiths puts some of it down to a lack of self-belief, including a feeling that if we don’t take the work, we may not find any to fill its place. However, he says, if they continue to take on “bad” work and “bad” clients, the reality is that there is no space left to take on “good” and better-paid work when it comes along. This concept is also taught by leading professional services business development expert Sue Ella Prodonovich, who compares a business’s capacity for work with the water level in a bath. “You don’t want to have the bathtub at 100 per cent capacity, especially if some of that capacity is taken up with poor quality clients,” Prodonvich says. “Instead, you need to be selective about the work you take on. “Not every client is your client,” she adds. “Not all work is your work. “Trying to please everyone and win every matter that comes your way is not a recipe for business success or for personal happiness. It takes courage to turn down work, but it’s a necessary part of running a professional services business.”

PRICE RISE

TOTAL AMOUNT PER CONVEYANCE

TOTAL REVENUE IF NO CLIENTS LEAVE

TOTAL CONVEYANCES TO ACHIEVE SAME AS CURRENT REVENUE ($180,000)

0% 10% 20% 30% 40% 50%

$1500 $1650 $1800 $1950 $2100 $2250

$180,000 $198,000 $216,000 $234,000 $252,000 $270,000

120 109 100 92 86 80

A U S T R A L I A N C O N V E YA N C E R • 9

HOW TO BEGIN TALKING ABOUT QUALITY

Griffiths says that one key reason many conveyancers are at the mercy of low-cost providers is that many consumers fail to see the benefit of using quality – a bizarre state of affairs given the conveyancing transaction involves what, for many of us, is our most important asset. “Conveyancing has been commoditised. If people see it only as a transaction, it’s easy to compare it and buy on price,” he says. Griffiths argues that it is the conveyancers’ role to change perceptions and to develop a compelling narrative about why many more factors matter so that consumers no longer feel they’re comparing “like with like”. “You need to elevate the conversation you have with clients and have a story about why your fees represent great value even if they’re not as low as others in the marketplace,” he says. “But you can’t just put lipstick on a wombat. You’ve got to come up with a narrative that reflects the reality of the service you offer and why you offer it. “In short, you have to be the best and then develop a story to support it. “Eventually, you can then begin to have a conservation not about price but about quality.”

BECOMING SYNONYMOUS WITH YOUR NICHE

The strongest practices – and those that can usually charge the most – are those that understand one segment, audience, issue or area so well that they become synonymous with it, Prodonovich says. “One legal practice I know deals only with crane operators and their disputes,” she says. “I also know a lawyer in the United States whose practice is built on the business of pest extermination companies. They call him the ‘bug lawyer’. “These examples sound odd, but they’re both exceptionally profitable and successful practices.” Prodonovich says that conveyancers should think the same way and look to develop their own niche, even if it doesn’t have to be quite as, well, niche. “The most obvious niche for conveyancers is a geographic one, where you become the conveyancer of choice for a local area, town or suburb,” she says. “A lot of people find this appealing because it’s an easy way to market. You can become known by sponsoring local events, meeting the right people, such as real estate agents and financial advisers, and generally becoming part of the community.” But Prodonovich also says that, especially in the digital age when it’s easier than ever to find your people, this shouldn’t be the only way conveyancers try to differentiate themselves. “Where I live, a lot of apartments are company title. What if you were the conveyancer who specialised only in that? Alternatively, you could become known for specialising in properties with easements or rights of way, or for jetties or community title or anything. “You could specialise in conveyancers for doctors or business owners or people moving into retirement villages. Whatever it is you specialise in, you can start to charge more because you understand how your clients >> think and act, and you begin to own the space.”

Sue-Ella Prodonovich, Business development adviser for professional services firms.

“Whatever it is you specialise in, you can start to charge more because you understand how your clients think and act, and you begin to own the space.” Sue-Ella Prodonovich

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“Conveyancers tend to give away too much work. Start charging for contract reviews and other work you currently perform for free.”

INTERVIEWEES Andrew Griffiths Author and small business adviser Sue-Ella Prodonovich, Business development adviser for professional services firms Shakila Maclean President, Australian Institute of Conveyancers (AIC) – Victorian Division Chris Tyler Chief executive officer, Australian Institute of Conveyancers (AIC) – NSW Division

Andrew Griffiths

THE BUILDING BLOCKS OF SUCCESS

How I built a profitable practice When she’s not fulfilling her role as AICVIC President, Shakila Maclean is running a thriving conveyancing practice. But, while hers may now be among the ranks of Australia’s profitable conveyancing firms, she says that success didn’t come overnight. “When you start out, it’s natural just to want to win all work,” she explains. “As you mature, you begin to understand the importance of billing and invoicing properly and how different ways of working and providing services can directly impact profitability.” Maclean says that along her journey, she has worked with business coaches, experienced practitioners and mentors. Together, they have helped her look at her business through a different lens, encouraging her to shift her mindset and position her practice for profitability. She also stresses the importance of hiring and training the right staff as part of the profitability jigsaw. “Not everyone is cut out to be a conveyancer,” she says. “You want people around you who share your vision and can act on it as though it’s second mature. You also need to create a safe space for your team members so they feel supported and encouraged to do their best work.”

To own a particular area, though, Prodonovich says you need to have a few ingredients in place. If you’re targeting an industry, you should obviously have experience dealing with it and connections within that sector. You should also ensure you speak directly to your audience and in their language. “This could be by blogging, appearing at conferences, attending industry events, hosting information sessions, taking out advertising in trade publications or anything that shows you understand them,” she explains. You also need to project an image with which your clientele is comfortable. “If you’re targeting affluent inner-city clients, make sure your offices, your website and social media, and the way you dress all reflect that. If you’re in the outer suburbs, you probably want to project a different image.” “You want clients to be comfortable with you and see what you represent and the kind of values you have.” Finally, and perhaps most importantly, Prodonovich argues that you need to build a referral network so that people begin sending specialist work your way. “For anyone in professional services, one of the best sources of quality work should be others within your profession,” Prodonovich says. “If they know what you do and that you do it well, they will send work your way when it’s within your field of expertise. But to make it work properly, you also need to reciprocate and start sending work to them when it’s within their field of expertise, too. “For many, this will require a mindset shift, where you see other conveyancers not as competitors, but as colleagues.”

A U S T R A L I A N C O N V E YA N C E R • 1 1

How to put up your prices Andrew Griffiths says there’s a right way and a wrong way to go about putting up your fees. Here’s what he says practitioners should do before they take the step of raising the amount they charge.

PUTTING PRICES UP

Andrew Griffiths (pictured above) says that once you have a solid narrative that explains why people should come to you – that doesn’t include price – you’ll be able to command the highest fees. “The downside of this is that you’ll lose a few existing clients. But guess what? They’re the ones you wanted to get rid of anyway. They’re usually the pains,” he says. Griffiths says that all practice owners can work out how many clients they’re likely to lose if they put prices up – for instance if you were to lift prices by 10 per cent, would you really lose 10 per cent of clients? If not, it’s a no-brainer to raise prices. However, he says many practices can afford to raise prices by far more than just that. “I was working with some conveyancing practices, and the first thing I got them to do was to put their prices up by as much as 30 per cent in some instances.” “I also got them to charge for the extras like contract reviews they were giving away for free.” “There was no pushback. Some practices almost immediately increased their revenue by 100 per cent, he says. “The immediate reaction of most business owners >> was just, ‘Why didn’t we do this sooner’?”

Do the maths. Work out how much revenue you stand to gain by putting your prices up, as well as how many clients you could afford to lose and still generate the same revenue. (Remember, if you’re doing fewer matters, you’ll also have reduced input costs.) Charge for incidentals. “Conveyancers tend to give away too much work,” Griffiths says. Start charging for contract reviews and other work you currently perform for free. Explain why. If you’re putting up your prices, or charging for services you once gave away, explain why your policy has changed. “Most clients are reasonable,” Griffiths says. “At least the ones you want to keep. If you explain that you now have to charge for contract reviews because they’re an important part of the process and it’s vital to get them right, people will understand.” Give them some warning. It’s not normally great practice to increase prices on longstanding clients without warning. “If you say to someone in three month’s time we’ll be putting prices up by x, that’s likely to elicit a much better response than if you put them up by x overnight,” Griffiths explains. Don’t worry about losing clients. Some degree of dropoff could happen, but that won’t always be the case. Those who leave you just because you need to earn a living were never the kind of loyal clients on which you could build a successful practice, Griffiths says.

SOURCES • Australian Institute of Conveyancers (NSW Division) 2023 Conveyancing Industry Business and Remuneration Survey • hbr.org/2000/03/how-tofight-a-price-war • prodonovich.com.au/ blog/2015/2/12/why-itstime-to-say-goodbye-tobad-clients • canstar.com.au/homeloans/removalist-cost/ • openagent.com.au/blog/ much-cost-advertisemarket-property • openagent.com.au/blog/ commissions-pay-newsouth-wales-real-estateagent

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Where conveyancers sit in the property transaction

Although conveyancers perform vital work in a property transaction, their fee accounts for only a small fraction of the total transaction value, as the table below shows.

For Buyers House purchase price

$1,396,888 (Sydney median house price Oct 2023) $59,884.50 (Based on NSW rate with no subsidies or grants)

Transfer Duty

$279,378

Home deposit (20%) Mortgage establishment fee Removalist fees Mortgage repayments Conveyancer’s fees

$700 $3,000 30-year principal and interest home loan for 80 per cent $6,657 (assuming of property value for 30 years at 5.95 per cent interest)

$1,620 (NSW average for buyers) For vendors

House sale price Agent’s commission

$1,396,888 (Sydney median house price Oct 2023) $29,335 (based on NSW average of 2.1%)

Advertising fees

$10,000 (estimate based on averages)

Removalist fees

$3,000

Conveyancer’s fees

$1,526 (NSW average for vendors)

A U S T R A L I A N C O N V E YA N C E R • 1 3

q+a

14 •

SHAMEELA GONZALEZ Director – Strategy and Consulting, CyberCX

How to close the door on pirates and parasites BY LEIGH REINHOLD

Digital technology is central to the business of conveyancers and lawyers. The transition from hardcopy searches and transactions to online feels like a natural progression. Business is better and faster – in the main – but the shift to digital has created an Achilles heel of sorts. Although the openings are small and closing, cyber pirates and parasites are finding their way through the cracks. Criminals are looking to expose any weakness in systems for their own gain. The victims are often everyday people – mums, dads, and businesses. As industry matures, so do their defences against fraud. Vigilance is key. In this exclusive Q&A, Shameela Gonzalez from cybersecurity firm CyberCX speaks to Australian Conveyancer magazine about the rise of cybercrime in our industry and what conveyancers can – and should – be doing to keep their clients and their businesses safe in cyberspace.

A U S T R A L I A N C O N V E YA N C E R • 1 5

AUSTRALIAN CONVEYANCER: How important is it for conveyancers to protect client data in a digital environment? SHAMEELA GONZALEZ: Start by understanding that digitisation is the fundamental core of your business. For anyone handling financial services, what you’re really holding onto is a goldmine of data. Once you understand that, you start to realise the complexity of it, not just in terms of capturing it but how long you store it, how you meaningfully store it to perform your function as a conveyancer, but then also storing it for regulatory and legal purposes. When you realise for any individual client it’s their personal information, their privileged and sensitive information that you’re holding, then you can start to think about how a criminal might want to exploit that – both for financial gain and to make someone vulnerable. You realise the real gravity of what you’re holding on to. It’s generally uncommon for someone to understand how a criminal looks at their business.

government bodies asking for some kind of information. A common indication you are being targeted is a sense of urgency from the criminal. A criminal actor might ask you to do something with some kind of immediacy and threat. It might involve a risk to your license if you don’t respond, or it could be something to do with taxation. That’s how a criminal will look for the keys to your kingdom and the information that is precious to them.

AC: How do criminals look at businesses like conveyancers and real estate agents? GONZALEZ: In a digital forum, criminals are basically looking for any gateway in. If you have a device, are running on systems or operating a network – any way you can access your information – these are all avenues a criminal would look to exploit. If you run an organisation with a few employees who have to log in to do their job, a criminal could be looking at all of that as a possible gateway in. They are looking for the keys to the kingdom. Let’s say you’re using a username and password to log into something. Typically, you’re opening a platform and are running a simple process, transacting, and filling in a form. In the eyes of a criminal, all of this is an opportunity to gain access and potentially steal large amounts of data. Typically, they will then either keep it or on-sell it to other criminals.

AC: Where are these cyber criminals? Where do they live? GONZALEZ: Some of them could be down the road, but the majority are international players. Because we live in an internet age they can physically be located anywhere around the world. It’s groups of criminals who could be living anywhere, but cybercrime can also involve nation states. These might be the states themselves or maybe politically motivated groups supported by certain governments. The important takeaway is that cybercriminal groups can be anywhere, and they are looking for financial gain most of the time.

AC: How will you know if you’re being targeted? GONZALEZ: You are going to see more and more suspicious emails coming towards you. While these requests will seem innocent and straight forward, they will usually ask you to transact in some way or to hand over some vital information. For example, you will have actors mimicking

AC: What is ransomware? GONZALEZ: If a criminal takes over your systems, hacks into them and takes away your ability to use and access them, then the criminal is effectively holding you to ransom. If the criminal can demand a payment for you to regain access to your systems, by taking over access to critical systems, encrypting them and then demanding a ransom payment for access to them again, we call that ransomware.

AC: Is Australia at risk because of our net high wealth? GONZALEZ: We do have a robust and strong economy so that makes us attractive. The ABC interviewed a criminal group as part of an investigation earlier this year in which they asked the group is Australia an attractive target. The response from the criminal was something like Australians have “a lot of money and no sense”. Obviously, we reject this, but it gives you some understanding of the criminal mind. Maybe it does come from a history of being somewhat trusting. We’re urging people to become more distrusting, become more >> suspicious.

AC: Is it actually becoming very worrying for Australian business? GONZALEZ: After the past 18 months to two years, in which we have seen some high-profile attacks, there is a general level of awareness and concern. People need to ask, if I was phished, if I was scammed, what does that mean for me and my business? It is your responsibility to all your customers to ask, what is the bare minimum I should do to keep me, and my customers protected?

“No one thinks there’s a live cyber attacker somewhere actively targeting their business. Because cyber criminals are invisible.”

AC: Where can mid- and small-tier businesses get help to make sure they are complying with basic cybersecurity requirements? GONZALEZ: Bodies like the Australian Cyber Security Centre are there to help with information that is free. The ACSC publishes a range of really helpful and easy to use advice and guidelines. The ACSC even has a small-business guide where they simplify for any small business owner what are the three or four minimum things, they can do to protect their business. Check out cyber.gov.au. AC: So, why do you think some conveyancers are ignoring the warnings? GONZALEZ: No one thinks there’s a live cyber attacker somewhere actively targeting their business. Because cyber criminals are invisible. At CyberCX we respond to hundreds of incidents a year. A lot of the time our digital forensic team uncovers that a threat actor has been inside observing an organisation’s systems for months before anyone noticed. AC: Do you think cyber criminals see conveyancers as an easy target? GONZALEZ: We talk a lot in our world about high-value targets, and that can be organisations or individuals. So, from a conveyancer point of view, one thing a criminal will consider, in terms of individuals, is, who are the Australians that are financially better off? What do they represent? What postcodes do they live in? What are their mortgages? The properties they’re buying. What do their portfolios look like? That information becomes really lucrative for cyber criminals to then go and exploit an individual or on-sell the information to other cybercriminal networks.

AC: How could business email compromise affect a conveyancer’s clients? GONZALEZ: A criminal trying to replicate your business could spoof your email address, making a slight change so it still looks like your email address. They will probably have uncovered an email of yours and they will do their best to replicate it and probably steal your logos and branding. The criminal will put a lot of work into making sure any correspondence looks exactly like it would if it came from you. Then they’ll reach out to your legitimate customers in an email that looks exactly like yours asking for funds to be transferred to a bogus account. This can create serious reputational damage. If customers don’t feel like they can trust you anymore, they are not going to come back to you. AC: And once the money is gone? GONZALEZ: The money gets funneled through and shuffled in many ways. In the world of fraud and scams there’s something called muling, which is basically the transfer of your funds that have been stolen to another possibly innocent individual and then funneling the funds through them. AC: And it happens in seconds? GONZALEZ: We are in an age of rapid transactions. Payments happen almost instantly. From a financial services perspective, what that basically means is that all the controls, the monitoring, the friction, if you like, that we want to have in terms of checking a transaction before it goes through, have been lost because we’ve moved towards ease and convenience. So, we live in this constant world of trade-offs. We want immediacy of payment and transaction because it helps people financially but how do we bolster the right controls to make sure we can monitor and scrutinise everything that might not be as innocent as it seems? AC: How can a conveyancer do that? What are the steps they can take? GONZALEZ: In a conveyancing world, one of the benefits they have is it doesn’t have to be a real time transaction. So, they can sit there and scrutinise the transaction. In a lot of ways this is an advantage.

A U S T R A L I A N C O N V E YA N C E R • 1 7

AC: How do they safeguard themselves? GONZALEZ: First and foremost, train yourself. Educate yourself about what a cyberattack looks like. Understanding the risks and potential vulnerabilities within your business is a critical step. Essentially, if you understand your risks, you’re more likely to build in contingency and understand how to react if those risks are realised. AC: What would be the ballpark costs to a mediumsize conveyancer to ensure they’re cyber safe? GONZALEZ: It varies depending on the size of a business. Best practice, especially for a conveyancer who might be particularly worried about high value targets, 20-30 per cent of your annual technology spending should be allocated to security. If you understand what the cost could be to your business by not investing in it, you will find that it is a reasonable investment to be making. We strongly recommend to a lot of organisations, if they’re struggling implementing security that’s when we at CyberCX are here to help. You shouldn’t have to try to decipher it all on your own when you’re not a cybersecurity expert. AC: What is the cost of not doing anything? GONZALEZ: It’s reputational. It’s loss of licence. It’s the inability to even operate. We don’t say these things because we’re trying to dramatise the implications of a cyberattack, we’re not. We want to see an industry that can withstand a cyberattack, recover and be resilient as quickly as possible. AC: What are your top three tips to keep safer online? GONZALEZ: Look at your online personal footprint. What information is out there that could give criminals a lens on your life? What innocent things have you shared with friends and family that someone could stitch together if they were going to guess your password to manipulate you or your clients? Use strong passwords that cyber criminals would find hard to guess even if they have hacked your online presence. Use multi-factor identification on any services you use. Wherever your customer’s personal information is being handled, always opt in for two-factor authentication. It will bolster your defences.

AC: ASIC has put companies on notice that they will come after them if they don’t protect their business. But what does that mean, in effect? GONZALEZ: In the most severe cases ASIC can threaten licences and your ability to operate. They can issue significant fines that could put you out of business. You should be able to demonstrate to the ACSC that you have been looking at guard rails like the Essential Eight. In other words, that you comply with ACSCs published minimum standards. If you are struggling to do that as an independent task, seeking the help of a thirdparty professional to do that for you could be a great demonstrable asset to show ASIC that, yes, I have been compromised by a cyberattack but here’s evidence of where I went to understand what my cyber risk is. Here’s how I got a third-party firm to come in and validate that for me. AC: Do you think conveyancers are generally prepared for scammers? GONZALEZ: They are generally aware but probably not generally prepared. That’s largely an observation on the whole financial services sector. And that’s because the definition of prepared keeps changing. The nature of the threat is constantly evolving – what could be defined as “prepared” last year, may not meet the definition next year, and certainly not the following year. Preparation is an exercise to constantly revisit. Unfortunately, the sophistication of attackers means they will always try to be one step ahead. And, at CyberCX we will do whatever we can to prevent that from happening. But investing in being resilient is the best mode to adopt. Accepting that it may happen and then focusing on how quickly you can recover from it may be the best approach for your business to make sure you withstand it, survive it and learn from it. AC: Is there a role that the government can play? GONZALEZ: The role of government is critical, but it’s not necessarily something the government can solve on its own. Working co-operatively with industry is really important. I think it has been broadly acknowledged by both industry and government that there is so much more to do to get things to a level where it is much faster and more rapid for all tiers of industry to take hostile actors down.

“Use strong passwords that cyber criminals would find hard to guess even if they have hacked your online presence.”

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events Australian Property Institute webinar: The Dynamics of the Regional Property Markets of Australia November 23, 1pm-2pm Location: Online Housing one third of the population and generating two-thirds of the export economy, regional towns and rural areas are a significant part of the Australian socioeconomic structure. Although there is a substantial body of policies that focuses on regional development and improving the wellbeing of its residents at federal and state levels, much of the detailed, large scale, longitudinal studies on the built environment, real estate and property markets are often focused on the capital city regions. This webinar will take a deep dive into Dr Balamurugan Soundararaj’s research paper around the current regional property market, including price trends and engaging data visualisation.

Legalwise seminars: Complex conveyancing Issues November 23, 9am-1.15pm Location: 4 CPD, online Based on Victorian legislation, delve into the intricate world of property rights, restrictions, and agreements as you unlock the secrets to seamless conveyancing. Catch up on the latest conveyancing cases, master easements and covenants, understand how to handle squatters’ rights and adverse possession, heritage and more in this essential guide. Chaired by Kelly Young, AIC Victoria

https://legalwiseseminars.com.au/ course/?eventtemplate=3266-complexconveyancing-issues&event=11747

https://www.api.org.au/professionaldevelopment/events-webinars-online-courses/ live-webinars/apref-16-the-dynamics-of-theregional-property-markets-of-australiag231123/

AICNSW November webinar November 29, 1pm-2pm Location: Online Presented by Tony Cahill, this webinar will take a look at recent changes in legislation over the past 12 months including: • Changes to the first-home buyers’ legislation • Revenue amendments • Residential tenancies (including changes affecting short term rental accommodation) • Building amendment legislation • The new strata legislation recently introduced into parliament.

https://register.aicnsw.com.au/

A U S T R A L I A N C O N V E YA N C E R • 1 9

QLS: Solicitor Advocate course (Advanced)

QLS: Legal Profession Breakfast (Networking)

November 22, 5-6.30pm November 23, 5-6pm November 25, 8.45am-3pm Location: online

November 23, 6.45-9am Location: Brisbane City Hall

Increase your skill base for advocacy work in courts and tribunals through an intensive online advocacy course. As an ever-increasing share of advocacy in Queensland is undertaken by solicitors, clients and employers are looking for candidates with a skill set that includes the ability to run matters personally, in courts and tribunals. Whether you are an early-career lawyer looking to bolster your employability, a solicitor transitioning to back-end work or looking to start your own practice, strong advocacy skills are a must. The ability to conference with and prepare clients, examine and cross-examine witnesses and deliver persuasive submissions will be essential to the solicitors of the future. To enhance your ability to deliver personalised and effective advocacy and give you the edge in court, the QLS Ethics and Practice Centre have partnered with the Australian Advocacy Institute to offer an intensive course covering these essential skills. The course will provide the opportunity to practise these skills in a real court setting and under the guidance of expert instructors, including judges and experienced advocates. Disciplines covered by the course include: • Presenting applications and injunctions • Development of case theory • Preparing and delivering effective examination and cross-examination • Preparing and delivering logical and persuasive opening and closing submissions • Communication in the courtroom • Advocating in an ethical way.

https://www.qls.com.au/Education/SolicitorAdvocate-Course

A special anniversary event, the 10th Annual Legal Profession Breakfast, supporting Women’s Legal Service Queensland. This year’s breakfast is particularly special as it marks the 10th anniversary of the Legal Profession Breakfast. We invite you to join your colleagues and friends to reflect on this year’s theme: 10 Years – A Legacy of Care. All proceeds from this milestone event will help Women’s Legal Service Queensland (WLSQ) provide free legal and social work support to women and their children who experience domestic and family violence.

https://qlsevents.eventsair.com/lpb-23/ registration/Site/Register

AIC VIC: Managing Risks in Conveyancing, Stewart Title Claims Update November 29, 12-1.30pm Location: Online Greg Cooper will highlight emerging areas of risk in the conveyancing transaction and present a Stewart Title claims update to illustrate the benefits of title insurance for both property practitioners and their clients.

https://www.aicvic.com.au/event/webinarmanaging-risks-in-conveyancing/

DISCLAIMERS The content provided in this publication is of a general nature and does not take into account future market conditions or your individual circumstances. You should exercise your own skill and judgment when considering investment decisions and seek professional advice where appropriate. While triSearch uses commercially reasonable efforts to ensure the content contained in this publication is current, triSearch does not warrant the accuracy, currency or completeness of the content and to the full extent permitted by law excludes all loss or damage howsoever arising (including through negligence) in connection with this publication.

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the toolbox

Five ways to find a perfect partner A successful and smooth property sales transaction is the result of numerous professional stakeholders working in harmony and in the best interests of vendors and buyers. It’s the engine room that navigates the required detail of title searches and legal obligations that support the oftenemotional element of a real estate sale. Conveyancers and real estate agents are in the centre of it. The relationship between these practitioners is therefore critical. Respect, positivity, and effective communication holds the key, say representatives of both professions. It’s a symbiotic partnership and getting it right brings ongoing business referrals and ongoing work for agents and conveyancers alike. As the face of the transaction, agents will likely be the first opportunity for your business to be chosen for any conveyancing needs. Australian Conveyancer has distilled five tips that may help your business secure productive stakeholder relationships.

1. COMMUNICATION

Being a good communicator will be a great start to building your agent relationship. Fast response times, friendly interactions, accurate, and professional are all key factors to use across all communication channels. Doing this will show the agent you are capable of providing an efficient service and make your business more referrable.

2. KNOW THE MARKET

Knowing the ebbs and flows of the property market, and any major trends that could affect your workflow directly will be an important benefit when communicating with an agent. Having a deep understanding of the property market is essential for any conveyancer, but it’s especially important when working with real estate agents. Agents want to work with

someone who can provide valuable insights into the market and help them make informed decisions.

3. UTILISE TECHNOLOGY

Using technology in your workflow goes hand-in-hand with providing an efficient and excellent service for all stakeholders in the conveyancing industry. Especially with an integrated practice management software system, you can construct your digital contract and have it with the agent within 10 minutes. Providing a service like this is a sure-fire way to build a good relationship with a real estate agent.

4. NETWORKING

By networking with an agent and fellow conveyancers, you could connect with more potential clients, gain greater knowledge and understanding of industry trends and take advantage of the type of mentoring and support that comes with sharing mistakes, successes and advice.

5. TRANSPARENCY

Being upfront with mistakes or outlining expectations to an agent can go a long way to gaining favour with an agent. Sharing your workflow in initial stages of building the relationship will outline what tools you utilise, how it will align with their business and workflow, as well as set honest expectations for time periods. It will also establish a trustworthy bond, which will be important for solving any potential issues as they arise. Establishing connections with agents can be done in a range of ways. Ultimately, developing a strong relationship once that connection is made will be an important factor in the success of your business.