The Electronic conveyancing Victoria system enables lodgement of instruments and settlement of property transactions through the Property Exchange Australia Limited (PEXA) online platform.
The online PEXA platform is a virtual settlement room which eliminates the need to attend a physical settlement with bank cheques and transfer documents. PEXA stores the data required for lodgement of dealings at Land Victoria and the transfer of funds upon settlement. Then at a nominated time, the funds are transferred and the relevant data lodged.
The PEXA system automatically lodges documents with Land Victoria, exchanges funds, pays stamp duty, removes the need for bank cheques and removes the need to physically attend settlement.
Who can access electronic conveyancing Victoria?
In order to use the PEXA system legal practitioners or conveyancers must subscribe to PEXA. All subscribers will need to go through a verification process and meet certain requirements. Subscribers to PEXA comprise banks, licensed conveyancers, practitioners and government bodies, but not members of the public or real estate agents.
How does PEXA work?
The legislation provides that electronic dealings are to be processed through an Electronic Lodgement Network (ELN). There is currently one ELN which is PEXA. PEXA is a purpose built electronic conveyancing Victoria platform which facilitates lodgement, transfer and settlement of property transactions online. PEXA is a proprietary company, made up of a number of shareholders including state governments, the four major banks and other lending institutions.
Changes to the contract of sale
The standard contract of sale of real estate may not incorporate conditions for electronic settlements. If the transaction is to proceed electronically, conditions dealing with the PEXA system may need to be included into the contract. Such conditions may include things such as ensuring all parties are subscribers to PEXA, an option to opt out of electronic conveyancing Victoria, when settlement has to occur and the provision of physical items that may be required for settlement to proceed. Our office can assist in drafting these special conditions.
Benefits of electronic conveyancing Victoria
The main benefits of electronic conveyancing are the banks, Land Victoria and practitioners willing to adopt this system. Some of these benefits are the elimination of the need to arrange and attend physical settlements, the availability of payout figures online, the immediate availability of funds, all dealings are lodged at settlement, the ability to determine the settlement readiness of the other parties and the reduced risk of identity fraud.
Contact us for further information on electronic conveyancing Victoria.