Mandatory eConveyancing with PEXA: What You Need to Know
As of 20th February 2023, all property transactions in Australia will be required to be conducted electronically through PEXA (Property Exchange Australia). This means that all conveyancers and solicitors must use PEXA to settle property transactions, including transfers, mortgages, and caveats.
What is PEXA?
PEXA is an online platform that allows for the electronic settlement of property transactions. It was introduced in 2014 as part of the National eConveyancing Development Program, a joint initiative of the Council of Australian Governments (COAG) and the property industry. The platform connects all parties involved in the transaction, such as conveyancers, solicitors, financial institutions, and land registries, in a secure and efficient way.
The benefits of PEXA include faster settlement times, reduced errors and delays, increased security, and a simplified process for property transactions. Instead of having to physically attend settlements, all parties can complete the transaction online from their own devices, reducing the need for paperwork and manual processes.
How does mandatory eConveyancing with PEXA work?
From 20th February 2023, all conveyancers and solicitors in Australia will be required to use PEXA to settle property transactions. This means that all documents, funds, and other information required for settlement must be submitted electronically through the platform. The parties involved in the transaction will be able to monitor the progress of the settlement online and receive real-time updates.
To use PEXA, conveyancers and solicitors must register with the platform and complete the necessary training. They will also need to have access to the necessary technology and software, such as a computer with internet access, a digital certificate, and a web browser that is compatible with PEXA.
It's important to note that while PEXA is mandatory for all property transactions, there are certain exceptions, such as settlements involving deceased estates, matrimonial property settlements, and some transactions involving government bodies.
What does mandatory eConveyancing with PEXA mean for property buyers and sellers?
For property buyers and sellers, the introduction of mandatory eConveyancing with PEXA means faster and more efficient settlement times, as well as a more streamlined and secure process for property transactions. The electronic nature of the platform also means that transactions can be completed remotely, without the need for all parties to be physically present.
However, it's important for buyers and sellers to ensure that they have a conveyancer or solicitor who is registered with PEXA and has completed the necessary training to use the platform. They should also ensure that they have access to the necessary technology and software, and be prepared to submit all necessary documents and information electronically.
In summary, mandatory eConveyancing with PEXA is a significant change to the property industry in Australia. While it may take some time to adjust to the new system, the benefits of faster settlement times, increased security, and a simplified process for property transactions make it a positive step forward for the industry.
