There was a time when Australian settlements had to be conducted in person at a set location. This usually involved long hours sorting through numerous papers to finalise documents. Now, legal representatives and financial institutions are able to attend virtually to complete all types of settlements. This is done through the digital property platform PEXA. In fact, almost all contracts of sale for property will require parties to undertake settlement electronically via PEXA.
What is PEXA?
Founded in 2010, Property Exchange Australia (PEXA) allows immediate collaboration between parties to conduct settlements in a digital workspace. PEXA was created to electronically process settlement funds, lodge settlement documents, and finalise settlement transfers and transactions through the workspace platform.
PEXA is not open to the public. Only legal representatives and mortgagees can register as subscribers to handle transactions on the platform. Click here to learn more about PEXA.
What happens on PEXA settlement?
For settlement to proceed on PEXA, there are 2 main tasks to be completed:
- Finalisation of settlement documents: all the settlement documents are prepared and finalised on PEXA. Parties will sign off the documents to proceed on the settlement day.
- Finalisation of settlement funds: other than documentation, all settlement funds including fees and charges will also be processed and disbursed through the PEXA workspace at settlement.
Once all the tasks are complete and signed off by the parties, the workspace will be ready to proceed and commence automatically at the scheduled date and time.
If any of the parties do not finish their tasks on time, settlement may be delayed. In the past when paper and in-person settlements were conducted, this would likely mean a delay to the next day which causes inconvenience and penalties to the parties. However with electronic settlements, should a delay occur, the system will automatically push the settlement time forward by half hour increments until all parties are ready to start. This allows flexibility and efficiencies in ensuring settlements proceed and finalise as contracted.
For more info on the benefits of PEXA, refer to the link here.
Who attends PEXA settlement?
You do not need to be present as your legal representative will attend settlement on your behalf via the virtual settlement workspace on PEXA.
Other parties involved with the transfer/transaction will also be in attendance.
How can I track my settlement?
PEXA grants an access key called PEXA Key for purchasers and vendors to stay up to date on their settlement status. Your legal representatives will advise on how to set up PEXA Key – it is easy, free and also protects against fraud as it allows you to notify your legal representatives of your payment details in a secure way.
W Legal Group can help!
If you would like one of our conveyancers or lawyers to assist you with settling your property, you can call us on (03) 9590 6180 or email us at hello@wlegalgroup.com.au.
