Electronic Conveyancing is Here
All Lawyers will soon be able to prepare title documents and settle residential Conveyancing matters electronically using the National Word Base Property Exchange System known as PEXA.
What does this mean for you? It means that you can have your commission cheques banked into your account on settlement and have them cleared in 2 minutes!
PEXA is a secure electronic platform which facilitates a creational lodgement of documents and payment of settlement monies electronically at a virtual settlement room. The system will be used specifically for the preparation of title documents and settlements. All other Conveyancing processes will remain the same (i.e. contract preparation signing, advising the client about the transaction, performing searches, calculating settlement adjustments and the payment of transfer duty).
Before deciding to settle a Conveyancing transaction electronically the buyer and seller must first sign the new versions of the QLS REIQ contract 11th Edition or 7th Edition CTS contract form. The parties may then elect to proceed with an electronic settlement pursuant to the new provisions if one (1) party does not agree then it proceeds with the usual paper based.
The benefits of using electronic settlement:
- No paper documents;
- No bank cheques or trust account cheques;
- No cheque title search on the day of settlement;
- No telephone call to bank to arrange and re-arrange settlements;
- No settlement agents;
- No errors in title documents eliminating requisitions;
- Indicative payout figures provided by the seller’s bank two (2) days prior to settlement;
- Almost immediate lodgement of documents;
- Almost immediate distribution of settlement money;
- Lodgement of settlement notices may occur without proceeding with an electronic settlement;
Either party can withdraw with electronic settlement giving at least five (5) days notice before the settlement date.
We are entering new and exciting times so let’s start preparation on contracts in the new format and take advantage of these systems.
If you would like more information on the upcoming PEXA system, feel free to call 3345 4388 or email firstname.lastname@example.org.