Introduction to PEXA

Some 20 years in the making, property conveyancing and settlements are finally going electronic and moving online. The online platform known as PEXA (Property Exchange Australia) eliminates the need to attend a physical settlement with bank cheques and paper documentation, followed by instantaneous electronic lodgment of paper 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 will be 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 will 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 will be a thing of the past.

What you need to know

To support this change, 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 new Verification of Identity Standard is at the beginning of a transaction
  • Obtaining client authorisation to electronically certify and sign land transfer documents on behalf of clients
  • Replacement of paper State Revenue Office duties forms with a single all-in-one form that can be emailed to the client for signing online

We are currently in a transition phase, which allows for both paper and electronic documentation and settlement, however this will culminate in October 2018 whereby the majority of transactions will need to be completed via PEXA.

Whilst it will take time to adjust to the new system, ultimately the result will be more streamlined and efficient conveyancing practices and on time settlement for clients.