Many people in the property market right now may have seen the recent news stories about PEXA and the new online settlements e conveyancing platform that is currently being rolled out. SDS Conveyancing have been using this new system for many months and we were among the first conveyancers in Victoria to register and begin using them for our property settlements. Currently up until October 1st 2018 you can still conduct a property settlement the old fashioned way, but after this date any kind of settlement that can be done online, will be done online using this new electronic web based process. This is going to become the mandatory process and at this time only PEXA exists until new competitors arrive on the scene. Infotrack’s Sympli platform is currently in development and set to come online sometime near the end of this year which will introduce a direct competitor to PEXA.
How Settlements are done the old fashioned way
The way we have done settlements up until now is with people, paper and cheques. You go to a good conveyancing company or solicitor and have all the paperwork prepared, contracts generated and signed, bank finance sorted out and your settlement is booked to take place at a venue somewhere either in the CBD or a solicitors office, perhaps one of the many big settlement agencies around the city such as Globalx, or SAI Global. The settlement clerks all meet up and exchange the appropriate documentation and paper cheques and everything is carefully looked over and approved. Once all parties in attendance are satisfied, settlement is completed and phone calls are made, keys are picked up and moneys are banked. The post settlement process is then undertaken to pay government stamp duty and register transfers of names into the certificate of titles.
How Settlements are going to be done after October 1st
Now you will be asked to first verify your identity either at Australia Post or an app on your smartphone. Your conveyancer will need to then create a workspace within the online PEXA platform and invite the various parties involved to join and enter all the vital information required to get the process started. Names, financial organisations, account details, title details, addresses all have to be entered without any errors. Conveyancers are now getting used to the tighter security rules that have recently been introduced to make the platform secure from fraudsters.
Once everything is setup and finance is approved your settlement will be booked at a date and time and will be completed electronically. Funds will be distributed to the vendors, councils and state departments and title will be registered seamlessly into the new owners names. The main benefits of the new system is it drastically reduces the time taken to get the title registered and funds into accounts. Usually with the old way, dealing with paperwork takes time, stamp duty and title registration can take up to 2 weeks to be completed, now with e conveyancing the whole process from start to finish can be done within the space of 20 mins.
PEXA has even introduced an alert system that can track and update you on the progress of your settlement called SettleMe. So now all you have to do is sit back and wait for your phone to tell you your settlement is complete.