09 Nov QUICK GUIDE TO CONVEYANCING WITH PEXA
PEXA – What is it?
In 2016 the NSW Government announced a progressive phasing out of paper conveyancing in favour of a digital or electronic conveyancing process. The transition has been timetabled to conclude on 1 July 2019. After that date, all standard conveyancing transactions will be effected electronically. At the moment PEXA is the only provider.
“From 1 July 2018, standalone transfers, standalone caveats, and ADI Institution mortgages, discharges of mortgage and refinances are online in New South Wales” – NSW Land Registry Services.
How does it work?
Property Exchange Australia Limited (known as PEXA) is an online lodgement and financial settlement platform. PEXA was formed to provide a national eConveyancing platform to Australian property industry professionals.
PEXA works as a provider of an online platform for solicitors and conveyancers to create an online workspace. The workspace is joined by a number of participants being the representative and principal subscribers, usually the representative subscriber for the buyer and seller and the financial institutions with an interest in the transaction, usually the financial institution with a mortgage on the title and the financial institution lending the funds to buy. All relevant information and documentation is shared between the participants. Documents are also signed in the workspace by the appropriate authorised subscriber after being verified against the land registry database. In the same way, money is transferred electronically via the secure platform. Within moments of settlement taking place, monies are disbursed and release to the destination accounts locked into the workspace at settlement. All subscribers are then notified when the successful transfer has happened.
> A buyer’s solicitor/conveyancer sets up a workspace;
> All documents are created and checked
> Documents are signed and account details are entered prior to settlement
> PEXA executes the transactions at locked in settlement time
> PEXA triggers the Reserve Bank of Australia to release funds which are paid in minutes
> Once settlement has occurred and monies disbursed the transaction is settled and complete.
What hasn’t changed
There is still a comprehensive contract for sale and purchase of land, the terms of which must be negotiated before signing and exchange. In addition to negotiating the contract, there is also a number of conveyancing procedures and processes to navigate through so it is important that you obtain professional advice before entering into any property transactions. If you would like more information please email Yvette at firstname.lastname@example.org