Electronic conveyancing is scheduled to roll out over the next year. In this post, I’ll fill you in on the key dates and explain how electronic conveyancing might affect you.
If you haven’t heard of PEXA before, it’s the new system which will enable settlement agents and financial institutions to transfer property electronically. Once it becomes available, there will be no need for us to meet face-to-face with the other parties in the city as we do now.
Rather than send an outside clerk into the city, settlement agencies will be able to enter all the required documentation into PEXA and agree on a settlement time ahead of the date. On the morning of settlement, each party will confirm that all requirements are satisfied and the property will automatically settle at the agreed time.
Electronic conveyancing will affect agents, buyers, and sellers in a few ways:
- Sellers will receive their funds through electronic funds transfer (EFT) instead of by bank cheque,
- Lodgement will be immediate, which will protect buyers against losing the property to a third party who registers an interest during the ‘gap’ between settlement and registration of the new owner’s interest, and
- Electronic conveyancing may reduce Landgate’s registration fees, because Landgate’s staff will have to do less manual handling of paperwork.
Last year, I promised that I’d keep you updated on the roll out of this system. Already, some financial institutions are using PEXA. Today, a Victorian conveyancer successfully lodged a caveat, and New South Wales and Victoria will see additional functionality deployed in October 2014.
In May 2015, all Western Australian Practitioners will be invited to join PEXA. This is when Residential Settlements will begin to use the system, so until then, your buyers’ and sellers’ settlements will occur under the current system.
Any questions about the changes? Leave a comment below.
Image by izzatFulkrum via Flickr.