For a cash settlement, ie no incoming mortgagee, how does the buyer make funds available?
Is the buyer able to lodge funds directly into a PEXA trust account OR are the funds lodged into the conveyancers trust account and the conveyancer issues the Source Funding instruction to authorise the drawings of funds from their trust account at settlement?
No, you do not need to have a Trust Account to use PEXA. You have a number of options:
If you do have a Trust Account that is integrated with PEXA then you must use this if you wish to contribute source funds to a Financial Settlement.
If you do not have a Trust Account (or have one which is not currently integrated with PEXA) then you have the option to use the PEXA Source Account to provide source funding – read more on this here
You can participate in any PEXA Workspace without a Source Account linked to your Profile. Without a Source Account, you can lodge any document supported by PEXA as a standalone lodgement or participate in a transfer Workspace noting that you will not be able to contribute source funds on behalf of your client.
Note: If you elect to join PEXA without using your Trust Account or registering for the PEXA Source Account, you can always add a source account at a later date.
Nick Karolidis Principal Lawyer & Accountant Karolidis & Co