PEXA (Property Exchange Australia) is Australia’s online property exchange network, used by conveyancers, lawyers and financial institutions. It replaces manual settlements that use paper and cheques with an electronic system. At the moment the use of PEXA is optional, except for standalone mortgage dealings and refinances. Eventually all conveyancing will be mandatory in South Australia.
With a new system for conveyancing comes pros and cons.
Some of the pros are:
- Settlement can be completed faster.
- More time frames available for settlement.
- Prompt access to cleared funds.
- Documents checked ahead of time.
- No bank cheque fees.
- Ability to track settlement progress.
- Integrated with the Reserve Bank of Australia.
- Immediate lodging of documents.
- Less paper waste.
- PEXA Residential Seller Guarantee.
- High level of security.
Some of the cons are:
- There is a slight risk of fraud, but these exist in both paper and electronic form, and PEXA are taking steps to minimise these risks. Find out more about cyber-crime risks in conveyancing.
- If there is an issue with the computer systems with your conveyancer, bank or PEXA it can increase the time required for your settlement. PEXA works hard to ensure downtime is kept to a minimum.
- PEXA charge a fee to use their service, however this is similar to the fee that many conveyancers charge to attend manual settlements.
- If settlement is not ready when scheduled it will be delayed by 30 min, whereas during paper settlements we can continue working. We mitigate this by booking your settlement in earlier so if there are any delays it will not affect your settlement day.
- Every party to a transaction must participate for a PEXA settlement, but not all industry professionals are registered for PEXA yet.