What is PEXA?
PEXA is an acronym for “Property Exchange Australia”. It is the entity that manages all conveyancing transactions settling electronically. E-Conveyancing is spreading in Australia and transactions settling electronically are becoming more common in New South Wales. PEXA provides a secure platform to streamline the conveyancing process, making the transaction secure on your behalf as our client.
A client/s simply signs an authority form to allow their conveyancer to conduct the transaction on their behalf . This is in order to take care of all aspects of the matter, both legally and financially. The conveyancer together with the incoming or outgoing mortgagee (finance provider) will provide the necessary details to enact an electronic transaction.
How does PEXA work?
PEXA allows for the settlement of the matter to take place without the need to physically be there. The title particulars are checked against those of Land and Property Information (what was known as the Land Titles Office). This is a process that was often carried out at settlement as the Mortgagee held the title. Now, title particulars are checked for errors or alterations (like say a Caveat lodged against the title). This check happens automatically at least weekly leading up to settlement and hourly on the day of settlement. This check also confirms the names on title as held by Land and Property Information. If, for example, someone who is not the vendor on title is attempts to fraudulently sell a property, we know about it much sooner and can take appropriate steps at that time.
Matters carry on as usual between exchange and settlement with the requisite searches being carried out on your behalf. Using the online platform, we are able to ensure that all expenses are paid, rates, water and sewerage, in addition to any registration fees.
PEXA allows for direct transfer of funds on the same day. So whilst the funds a purchaser adds must be paid a few days prior to settlement (to allow for any delays), the funds paid to a vendor, to pay out a mortgage (in most cases, the exact amount is paid to the bank, without the need for an estimated payout figure), to pay any outstanding expenses (water, council rates etc).
The other benefit of the PEXA platform, is that the registration takes place immediately upon settlement and this process of transferring the title can take as little as 10 minutes.
Do I have to complete my matter electronically?
So do you have to do an electronic settlement for my sale or purchase? In short, it depends. If the contract requires an electronic settlement, and the parties are all subscribers to PEXA, then yes, you must complete an electronic settlement. But, at this point in time, (April 2019) it is not compulsory for settlements to be completed online. The legislation is always changing, however it is envisaged that in the coming years, all settlements will be electronic.
Picton Conveyancing is certified by PEXA as a subscriber. So if you would like to complete your next matter by electronic settlement, just let us know!