In New South Wales all property transfers are now taking place electronically as of 1st July 2019.
PEXA (Property Exchange Australia) is the largest electronic lodgement network in Australia and is the electronic platform provider for settling conveyancing transactions.
The PEXA Process
PEXA provides an online space where we work with other representatives and banks to finalise your settlement. The “front end” of the transaction, and the exchange of contracts is still the same, with both parties signing a physical contract, but the transfer of the property and full payment is done in “real time” and electronically.
Rather than signing all the paper documents after exchange, you sign a single authorisation allowing us to create and lodge all documents electronically. This includes the Certificate of Title which is converted into electronic format for the transaction. PEXA provides regular title checks to ensure there are no surprise restrictions on the transfer.
Paper cheques are replaced by direct electronic transfers to or from nominated bank accounts.
Where you are selling your property with a mortgage, banks can provide exact payout figures and take only the money they need to discharge your mortgage, while all other funds are provided directly into your nominated account.
If you have obtained finance to purchase a property, your bank is able to provide all funds from your loan electronically, with any shortfall able to be provided by you directly, or by giving authority to your bank to access a nominated account.
Should you be selling a property to use the funds to purchase another, there is the ability to ‘link’ settlements so that your sale funds are sent directly to your purchase.
Settlement is booked during a timeslot on the settlement date agreed in the contract, and all parties can see what tasks are outstanding and who is responsible for the task.
Once settlement begins, parties can view the progress from settlement, to disbursement of funds, to lodgement of documents. Should a task not be completed ready for the timeslot, settlement does not fail and simply rolls on to the next half hour. This is continuous until settlement occurs. Once settlement is completed, the property transfer is registered at the Land Titles Office with the new owners listed as the registered proprietors. This “real time” registration and electronic funds transfer are significant improvements in the settlement process.
Trinity Law is a registered PEXA firm, undertaking electronic settlements for clients across New South Wales. Our dedicated property team lead by Michael James can assist in explaining, and guiding you through, the process of eConveyancing in your next sale or purchase in New South Wales.
The information in this document represents general information, and should not be relied for your specific circumstances. If you require legal advice and assistance on the matters contained or associated in this document you should contact Trinity Law. Subject to the limits of the law, Trinity Law disclaims any liability on persons relying on this document.