09 May What is Pexa electronic conveyancing?
PEXA is electronic conveyancing platform for use by conveyancers, lawyers, banks, purchasers and sellers of property. It replaces the traditional face to face conveyancing settlements.
Apart from arranging settlements of purchases and sales, conveyancers and lawyers are now also able to lodge caveats using PEXA. The lodgement of the caveat is lodged directly on title in as little time as 4 minutes.
In the future many other aspects of electronic conveyancing will become mandatory. There will be less and less paper based transactions. It is anticipated that there will no longer be a “paper title” only electronic one.
Some benefits of electronic conveyancing are the avoidance of paper forms eg Transfers of Land and Caveats, and the fact that you can have automatic clearance of funds on the same day of the settlement-good for the seller, bank and agent.
PEXA describes itself as a secure online platform that allows property transactions to be completed quickly and easily.
Benefits of electronic conveyancing
- Real time lodgement of Land Registry documents
- Fast access to cleared funds for property sellers
- Greater certainty of successful, on-time settlement
- No need for physical attendance at settlement
Until recently a 160-year-old paper-based process was the norm for finalising property transactions.
Land Victoria and Landgate (W.A.) are the first states to move away from paper to electronic lodgement from 1 August 2016. This means that ADIs transacting in Victoria and Western Australia – and practitioners (law firms) acting on their behalf – must lodge all standalone discharges of mortgage and standalone consumer mortgages electronically.
Financial institutions are switching to online transactions as they go more and more paperless. The big four banks are already using Pexa. Hundreds of legal and conveyancing organisations are doing the same. For some contracts of purchase or sale using Pexa for the settlement will become a special condition.