PEXA is a platform for e-conveyancing and facilitates an electronic settlement of your sale or purchase of land in real-time. Put in its simplest form, it is part of the e-conveyancing process that deals with property settlement and land registration, and is supported by legislation nationally. It is anticipated that by 1 July 2019, electronic settlements will be compulsory in NSW.
Most conveyancers and solicitors are making the move towards electronic settlements now as it provides greater certainty and security of a successful property settlement. Whilst there are various factors that can impact a property settlement, a simple matter of documents not arriving or a cheque being spelt incorrectly can delay a settlement by days. This can cause significant stress, especially for vendors who are relying on settlement funds or for purchasers having to reschedule removalists.
PEXA removes the manual aspect of property settlements. Therefore, there is no need to wait for settlement documents to arrive or to rush to the bank to organise bank cheques. In fact, an electronic settlement uses electronic funds transfers which have a faster clearance period.
PEXA also facilitates real-time lodgement of documents including the validation of documents prior to settlement. In a manual settlement, it can be weeks after settlement before a Transfer is registered. If the Transfer is requisitioned by the Land and Property Information, the process can be even longer. This results in delays in notification to the applicable government departments of the change in ownership. Whilst rare, this delay can also cause issues in the event new legal interests are registered on the title prior to registration of the Transfer.
We are still in the transition period for electronic settlements. It is, therefore, important you discuss with your conveyancer or solicitor whether it is available in your sale or purchase as all parties must be agreeable to processing the transaction via PEXA. There is also a fee in settling via PEXA, however, this fee is offset by the costs incurred in manual settlements including bank cheque, postage and agency settlement fees.
Everingham Solomons has and will continue to extensively invest in training for solicitors and staff to ensure a seamless transition occurs with the new system and to continually enhance client service quality.
At Everingham Solomons, we aim to process your transaction with due speed and minimum inconvenience to you because Helping You is Our Business.