Introduction to PEXA

Some 20 years in the making, property conveyancing and settlements are finally electronic and online.

The online platform known as PEXA (Property Exchange Australia) eliminates the need to attend a physical settlement with bank cheques and paper documents, followed by instantaneous electronic lodgment of transfer instruments with the Land Titles Office and notification to the rating authorities of the change of ownership. In addition to this, funds transfer to the discharging mortgagee bank, balance of funds to the vendor and payment of rates and land tax also occurs instantaneously.

Benefits

  1. Fast access to funds – Payout figures are available online and funds available shortly if not immediately after settlement, removing the several days waiting time for a bank cheque to clear.

  2. Registration within minutes – Buyers have peace of mind knowing that they are the registered owner within minutes of settlement, replacing a manual process that used to take a week or more.

  3. Reduced delays – All documents are visible to the vendor and purchaser representatives online once created to allow for any errors to be corrected prior to settlement. Delayed settlement due to an error on a cheque or signatures that do not match on a contract, mortgage or transfer of land document are a thing of the past.

What you need to know

Various steps in the conveyancing process have been updated and new steps have been introduced. The critical changes are –

  • Verifying the identity of clients according to a Verification of Identity Standard at the beginning of a transaction

  • Obtaining a signed Client Authorisation to electronically certify and sign land transfer documents on behalf of clients

  • Replacement of multiple paper State Revenue Office duties forms with a single all-in-one form that can be emailed to the client for signing online

Ultimately the result is a more streamlined and efficient conveyancing process and on time settlement for clients.

  • In order to establish your entitlement to transact on PEXA we are required to verify your identity at a face-to-face meeting and to certify certain original identity documentation provided by you. We perform this process using an app called InfortrackID which securely stores your data in the cloud.

    A firm must take steps to identify a client themselves, they cannot rely on the verification of another solicitor. The only independent verification we can accept is Australia Post. Once verification is complete it is valid with that firm for 2 years.

    At the time of your appointment you need to bring with you all the original documents from the Category that you can satisfy. Download VOI – Acceptable documents PDF

    Alternatively, if you are unable to attend our office in person we can discuss options to complete remotely using InfotrackID or provide you with a form to have the process completed at your nearest Australia Post Office for a fee.

    Please note the following for certificates:

    • Birth certificate must be registry issued, an extract of entry is not acceptable.

    • Marriage certificate must be registry issued, the one you received on the day is not acceptable. This requirement will generally only apply to women who have changed their name from their birth surname to evidence the difference in surnames.

  • Only registered PEXA Subscribers are able to use the system and therefore require the authorisation of their clients to electronically sign documents on their behalf.

    Generally an individual Client Authorisation will be signed for each transaction, however if multiple properties are being sold at the same time or land is being subdivided for sale of multiple lots, a batch or standing authority may be given.

    We will arrange for you to sign a Client Authorisation form at the start of a file when we complete your VOI.

  • 16 paper forms have now been combined into a single, streamlined application that will be used to calculate stamp duty applicable to a transaction. This will end double handling, duplication of information and data inconsistencies.

    Some common forms that have been replaced are the goods statement, purchaser statement, principal place of residence concession declaration, pensioner concession declaration and first homeowner declaration.

    The form can be signed online or manually.

    Online signing: you will be emailed a rendered image of the form in PDF format. You can accept and sign online via a tick box, or decline.

    Manual signing: The form can be printed to be signed manually, then we complete the signing online on your behalf.

    Once all parties have signed a Settlement Statement is produced. All of the parties to a transaction will have contributed to the creation of the Settlement Statement prior to settlement which will reduce failed or delayed settlements due to errors on multiple forms.

  • We have electronic transfer documents and online duties forms, “what about paper titles?” I hear you say.

    On 22 October 2016 the four major banks underwent a process to convert all of the paper titles that they hold to electronic titles. This was not something that was widely publicised.

    Again on 22 July 2017 other lenders such as Bendigo and Adelaide Bank Limited and Rural Bank Limited also undertook a bulk conversion of paper titles to electronic titles.

    These conversions had the effect of making the first registered mortgagee the Controlling Party of the electronic title. This means that in the future when you sell a property you will change the Controlling Party in PEXA rather than handing over a paper title.

    Therefore, in order to transact on PEXA if a bank holds the title they will electronically nominate it into the PEXA workspace to enable settlement to occur.

    Similarly, if we hold the paper title on your behalf we can convert it to an electronic title and nominate it into the PEXA workspace to enable you to transact.

    Paper titles are not regularly obtained anymore as all transactions involve using the title electronically. Only PEXA Subscribers can hold titles electronically.

  • To keep you involved throughout the process, you can sign up to PEXA’s notification service PEXA Key.

    PEXA Key is a free app that brings peace of mind to buyers and sellers at every step of their property settlement.

    The app protects property buyers and sellers against phishing and fraud (backed by PEXA’s Secure Communications Guarantee) and features a moving checklist with a high-level guide on what happens during settlement.