More and more conveyancing transactions are being completed electronically.
You may have heard people mention that their conveyance is settling in ‘PEXA‘ or that it is an ‘electronic settlement‘.
What is it? It’s a digital platform that allows parties to transact certain land titles documents/dealings electronically and applicable documents are checked, lodged and registered in real time with NSW Land Registry Services (formerly LPI). If a property settles via PEXA, the same process follows, with the added bonus that settlement funds are disbursed immediately following settlement meaning that most Vendors are receiving funds quicker than in the old paper settlement model.
What does it mean for parties to the transaction? No longer do all of the parties representatives need to be in the same place at the same time and hand over cheques and documents. It is likely vendors will receive their money quicker following settlement as money is transferred into their nominated bank account following settlement (rather than waiting for bank cheques to clear). The rate of errors is reduced as the platform provides a process where documents are checked before going to NSW Land Registry Services. This increases the likelihood of settlements settling on time.
Current mandates are in force as follows:
- the next mandate is 1 July 2018 – all caveats and stand alone transfers in NSW are to be lodged via PEXA. An e.g. of a standalone Transfer is one where there is a cash buyer involved and no other dealings;
- by October 2018 all the remaining paper Certificate of Titles held by banks and building societies will be replaced with e-titles, resulting in a bulk cancellation of paper titles;and
- following that, the next big mandate is 1 July 2019 – all transfers, mortgages and discharges of mortgages to be lodged electronically.
A lawyer or conveyancer must be registered with PEXA to be able to digitally transact. ClickLaw is a registered PEXA subscriber.
If you’re keen to find out more or are about to list your property on the market and wish to explore the opportunity of settling your matter via the electronic lodgement platform, ClickLaw can assist. Get in touch today!