Electronic conveyancing or ‘eConveyancing’ is a new digital way of managing a settlement and completing the lodgement process of a conveyance. By using 'ELNO' an electronic lodgement network operator instead of paper or traditional manual steps a property settlement transaction is performed between the seller and buyer.
PEXA is Australia’s online platform for Solicitors and Financial Institutions to electronically lodge settlement documents.
The current cost of a PEXA settlement is $57 for the buyer in addition to their costs for conveyancing ( Professional fees and search costs) and the same amount for the Seller in addition to their standard fees for conveyancing. In essence each party is paying PEXA to use their platform.
In order to complete financial settlement, PEXA electronically sends instructions, to payment integrated Financial Institutions involved in the transaction, as well as the RBA. To conduct a conveyancing settlement the PEXA platform will send settlement instructions to the banks or financiers involved in the transaction and also to the Royal Bank of Australia.
After the settlement funds are exchanged and confirmed, PEXA notifies all parties involved in the conveyance by publishing a confirmation in their Workplace Summary. The advantage is more for the Seller because the funds for settlement are immediately credited into their account.
If the settlement is not done by PEXA then a bank cheque for the Seller’s money is handed over at settlement and banked into the Seller’s account after settlement with a settlement agent. This cheque can take a couple of days to clear before the Seller can withdraw the funds or before the bank will pay any interest on the funds. In Victoria all settlements have to occur by PEXA.
If you have any questions about Conveyancing in Queensland or the new eConveyancing legislation don’t hesitate to call the River City Conveyancing team today for assistance and a free fixed quote for all Conveyancing services 07 3013 2300.
More information from PEXA on their website: https://www.pexa.com.au/company
Lawyer’s Weekly new article: The emergence of e-conveyancing
Queensland Law Society: Office of State Revenue OSR update: eConveyancing expansion