The Need for Digital Transformation of the Real Estate Industry
There is widespread recognition among industry leaders that the role of digital technology is rapidly shifting, from being a driver of marginal efficiency to an enabler of fundamental innovation and disruption.
The 2018/19 Annual Report of the Residential Tenancies Authority confirms that 80.6% of Queensland rental properties are managed by real estate practitioners and that a vast majority of property sales are also facilitated by real estate practitioners. As Queensland continues to deal with the COVID-19 pandemic, the REIQ now more than ever calls for a commitment to evaluate the process of which real estate transactions are conducted through:
- facilitating the use of electronic signatures by corporations and individuals;
- recognition of electronic contracts and approved forms by governing authorities; and,
- further streamlining real estate processes by permanently implementing measures that assist virtual transactions on a permanent basis extending beyond the COVID-19 pandemic.
These can be achieved by updating the execution requirements of Property Law Act (1974) and maintaining the execution provisions under Corporations (Coronavirus Economic Response) Determination (No. 1) (2020) beyond the COVID-19 pandemic. Take up of DocuSign alone shows the industry is more than ready: 350% increase in the number of DocuSign users and 680% increase in DocuSign usage to date since the outbreak of COVID-19.
While it’s clear that digital technology will transform how real estate is transacted, there are a number of challenges that need to be understood such as the opportunities for value creation and amendments of outdated regulations. These challenges need to be addressed by industry and government leaders to unlock the substantial benefits digital offers our industry.
The REIQ is calling for the establishment of a Digital Advisory Committee between industry and government to work collaboratively towards the goal of industry digitalisation with a view to reducing red tape and bringing it into line with contemporary legislation.
Passionate about the digitisation of the real estate industry, the REIQ partnered with Hutly to revolutionise Queensland’s general tenancy agreement by creating a smarter, faster and easier way to complete, issue, track, and digitally sign the Form18a. One Touch Execution (OTE) is a world leading smart contract technology that enables fast, secure and compliant contracts for all parties involved. Real estate agencies can have a lease finalised and signed within minutes, ready for new tenants to pick up their keys and move in. OTE exists within the Realworks platform, which has generated over 26 million forms and contracts over the past 5 years and is the most used platform in real estate in Queensland.
 Dynamic Methods Report Data Comparisons: March-August 2019/March-August 2020