What is PEXA?
PEXA (Property Exchange Australia Limited) is Victoria’s mandatory digital platform that facilitates lodgement and financial settlement through online transactions. The e-conveyancing system commenced in Victoria in 2015 and as of 1 October 2018, almost all property transactions are required to be lodged through the online program with very limited exceptions. PEXA provides a means of streamlining the property buying and selling process. By eliminating paperwork and reducing the room for error, wait times are shortened significantly.
What is the point of going electronic?
Transactions conducted through PEXA usually result in an Electronic Certificate of Title being issued to your bank or legal representative (unless a paper title is specifically requested). The major benefit is that this practically eliminates the possibility of fraudulent transactions and lost titles which require an arduous process to replace. By being held electronically by your bank (whist there is a mortgage) or your legal representative, your title is protected and in safe hands as it can obviously not be damaged by fire, floods or other factors that cause deterioration of a paper document. The reduced paperwork and time required to deal with the titles also means lower fees and legal costs for you.
Benefits for property buyers
PEXA’s online document checking provides buyers with the peace of mind that their settlement will happen in the timeframe originally planned for. It provides the guarantee that documents have been lodged almost immediately. In the paper world, by the time everything is signed and posted, it’s not uncommon for the process to occur days or even weeks after settlement, which significantly slows down the process of registering ownership.
Benefits for property sellers
PEXA has completely eliminated the need for paper forms to be filled out. Such forms can be finicky and are prone to human error. Things like spelling mistakes, illegibility of handwriting and other problems commonly arose in the days before online transactions were available. PEXA’s Key app allows sellers to track their settlements in real-time and to securely provide sensitive details such as bank account numbers using secure, encrypted technology.
What problems has PEXA solved?
PEXA reports on their website that before digital transactions became commonplace, 20% of paper settlements were delayed by an average of seven days and that 25% of those affected customers suffered at least some financial loss due to the delay .
Is my data safe with PEXA?
PEXA upholds itself to the standards required by industry specific legislation and regulations. The platform advises they will only ever share information that it is required to in order to remain compliant with its statutory and contractual obligations, including the relevant privacy laws. You can read more about their secure data management here.
How can Glaister Legal assist?
Buying and selling real estate can be daunting. Glaister Legal has a wealth of knowledge in the property and conveyancing space; it’s what we do, day in and day out. Victoria’s move to a digital platform was overall a welcome one, however we understand that many people may still feel overwhelmed by the added challenge of engaging with the technology. Either way, we’re more than happy to step you through the online process, or simply take the bulk of the project out of your hands, leaving you to celebrate your most recent sale or purchase.
Whether you’re buying or selling an investment or a residential property, Glaister Legal is here to help. Call us today on 03 9052 5101 to set up a no-obligation initial consult. Alternatively, we’re also available via the ‘Contact Us’ page.