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 finalize 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 in most states 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 finalize settlement transfers and transactions through the workspace platform.
PEXA is not open to the public. Only legal representatives, mortgagees and other specific parties can register as subscribers to handle transactions on the platform. Click here to learn more about PEXA.
What happens on a PEXA settlement?
For settlement to proceed on PEXA, there are 2 main tasks to be completed:
- Finalization of settlement documents: all the settlement documents are prepared and finalized on PEXA. Your legal representative will electronically sign off the documents to be submitted to the land registry.
- Finalization 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. This may be include legal fees and fees to be paid to your bank.
Once all the documents are completed and signed off by the vendor and purchaser’s legal representatives, 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. Historically 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 as contracted.
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, such as your bank and the vendor’s solicitor.
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 can advise you 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 if required.
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.
