Frequently Asked Questions

Frequently asked questions

This post is aimed at practitioners and financial institutions who transact in Western Australia and South Australia and will be affected by the 1 December 2017 change to the way the Discharge of Mortgage lodgement fee is paid.

If you have any enquiries about this change please reply to this post or e-mail us at: Angella.Chick@pexa.com.au (WA) / Daniel.Roesler@pexa.com.au (SA).

A second mortgage scenario is where:

a) Blue Bank is the first mortgagee, and
b) Red Bank wants to lodge a mortgage to become 2nd mortgagee on title

In SA, QLD and WA, Red Bank could simply open a standalone workspace in the role of Incoming Mortgagee, create and then lodge the second mortgage.

In order for Red Bank to lodge its new mortgage in VIC and NSW:

1. Red Bank creates a workspace in PEXA (role of Incoming Mortgagee)
2. Red Bank to invites Blue Bank to the workspace,in the role of Consentor (NSW) or CT Controller (VIC)
3. Red Bank would prepare its Mortgage document
4. If in VIC, Blue Bank would lodge a Nomination (Nomination to the PEXA Workspace and Blue Bank will request to retain control of the title)
5. If in NSW, Blue Bank would create and lodge a Third Party Consent
6. Red Bank then lodges its Mortgage

In WA, the second (incoming) Mortgagee needs to obtain the paper title from the first mortgagee. Then the second mortgagee can lodge the second mortgage via PEXA – certifying to Landgate that you hold the Duplicate CT and that it will be destroyed/invalidated for future dealings.

If a new Duplicate CT is to be issued, it needs to be advised via the Lodgement Instructions and sent via post back to the first mortgagee. 

Lodgement Verification 

Lodgement Verification is a service provided by the Land Registry that checks for any errors in a Lodgement Case. The Land Registry will notify the Subscriber of any errors that would prevent Lodgement of the Lodgement Case.
A Lodgement Case cannot be lodged until it has passed Lodgement Verification.

Lodgement verification is initiated when documents exist in the workspace, and lodgement instructions are edited and saved.

Re-trigger lodgement verification

1. Select the Lodgement Instructions Actions Cog, then Edit. 
2. Save the lodgement instructions.
3. Lodgement verification is initiated.

• No, you do not need to have a Trust Account to use PEXA. You have a number of options:
  
  1. 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.
  2. 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
  3. 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.

How do I use the PEXA Source Account?

1. Select the PEXA Source Account as the source of the funds for the Line Item you have created.
2. Create a source financial Line Item in your Settlement Schedule. PEXA will send you a PEXA Source Account Deposit Form for you to provide to your client. The form includes the following:
   • Scheduled Settlement Date
   • Deposit Due Date
   • Deposit Amount
     PEXA Account BSB
   • PEXA Account Number (unique customer deposit account number)
   • PEXA Transaction ID (please note that this information is critical)
   • Statement relating to the collection of Personal Information
     Note: You must provide the PEXA Source Account Deposit Form to the person depositing the money.
     The funds need to be deposited into the PEXA Source Account via electronic funds transfer (EFT) or real time gross settlement (RTGS) via a Financial Institution. The PEXA transaction ID must be included in EFT/RTGS instructions to enable PEXA to verify availability of funds for the Conveyancing Transaction. You may also transfer funds on behalf of your client from a trust account that is not eligible for PEXA integration.

Additional requirements:

• Funds must be cleared and available in the PEXA Source Account no less than 3 business days prior to Scheduled Settlement.
• PEXA will verify that the funds are available in the PEXA Source Account.
• Your client (or you) must keep a record and evidence of this transfer of funds, including evidence of where the funds were transferred from.
• If settlement does not proceed and funds need to be returned, funds can only be returned to the account from which they were transferred (refer to Section 2.4 of the PEXA Service Charter).
• PEXA will verify the financial Line Item in the PEXA Electronic Workspace changing the status of the financial Line Item from “unverified” to “verified”.

In all jurisdictions, except QLD (where all but a few titles are electronic), a paper title may be converted to electronic format as part of the PEXA electronic transaction process. Following conversion, the paper title must be destroyed or marked invalid and securely stored. In New South Wales, the practitioner may be required to ‘Produce’ the title to the land registry and progress the electronic transaction via reference to the title ‘Production Record’ issued by the land registry.

As part of the transaction, the participant who will receive Control of Right to Deal (CoRD) over the title following the transaction (this will be the Incoming Mortgagee or if the title is to be unencumbered, the Incoming Proprietor) may specify whether the title is to be issued in electronic or paper format.

Note:

• In WA, an electronic title cannot be issued in paper format following a PEXA transaction.
• In NSW, only ADIs may hold CoRD for an electronic certificate of title. All other PEXA Members not eligible to receive CoRD must receive a paper duplicate certificate of title.

Yes.

All participants must be PEXA Members to perform an online property transaction. If a participant initiating an electronic transaction finds that another participant is not yet a member, then the initiating participant may submit a request to PEXA to contact the non-member and initiate the registration process.

In NSW

You can identify when there is no paper certificate of title (no CT) by conducting a title search. The folio section on the register clearly identifies that there is no certificate of title. Instead, an electronic Control of the Right to Deal (CORD) record is recorded. This is known as eCT.

In NSW, eCT may only be held by an APRA regulated Financial Institution. A Request for CoRD Holder Consent eForm should be completed and provided by the vendor’s representative to the financial institution.

The CoRD holder (eg. the Vendor’s bank) will complete and lodge a Consent in PEXA relinquishing CoRD upon registration of the settlement dealing. This is the electronic equivalent of bringing a paper title to settlement.

This means you no longer need a certificate of title to be issued for a manual settlement. You can conduct another title search and check that all dealings now appear. This is your guarantee that the property transaction can proceed just as it would with a paper title.

You are now ready to attend settlement. Although it is not necessary, you are able to print the title search showing completion of all dealings and take it to settlement. 

In VIC

Electronic certificates of title (eCT) will be easily identified in the Administrative Notices section on a title search. This will also identify who holds eCT Control. 

In Victoria eCT Control may be held by any PEXA Subscriber. The eCT Controller (eg. the Vendor’s Bank or if unencumbered, the Vendor’s representative) will complete and lodge a Nomination in PEXA, relinquishing eCT Control upon registration of the settlement dealing. This is the electronic equivalent of bringing a paper title to settlement.

This means you no longer need a paper certificate of title at a manual settlement. A title search/final search will confirm the Nomination has been registered, along with its dealing number. This is your guarantee that the property transaction can proceed just as it would with a paper title. 

You are now ready to attend settlement. Although it is not necessary, you are able to print the title search/final search showing completion of all dealings and take it to settlement. 

Sponsors, also known as information brokers or conveyancing software providers, will integrate PEXA with their existing product offerings, providing an end-to-end solution to property lawyers and conveyancers.

Once completed, integration will allow documents to be pre-populated, removing the need to key information twice. 

We have a range of resources available on the Community to help you get your business ready for PEXA. We suggest you have a look at our Getting Started with PEXA - Business Ready resources here. 

At the settlement time, the Workspace will Lock.

Where funds are being provided from the practitioner’s Trust Account, PEXA will send payment instructions to the practitioner’s financial institution to move funds from their trust account to the financial institution’s internal account.

Upon confirmation that funds have been transferred, PEXA will then send a funds reservation request to the RBA to reserve funds in the financial institution’s exchange settlement account (ESA) held at the RBA. After funds reservation, documents are lodged with the Land Registry. Settlement funds are then exchanged between ESAs and disbursed.

It is important to note that while trust accounts can be registered as a source account in your profile, PEXA does not access a practitioner’s trust account.

As of June 2016, there are over 2,500 businesses able to settle online via PEXA.

Before beginning any transaction, you can search the PEXA Membership list to ensure all parties to the transaction are also members.

Searching from within the PEXA platform

Simply click 'Subscriber Search'  in the Main Menu

Enter the Subscriber’s name to search for them in PEXA.

If the counterparty is not a PEXA Member, you can then submit a request to PEXA to contact them  and initiate the on-boarding process so the settlement can be completed online.

Searching from outside the PEXA platform

You can easily locate PEXA Members through the online search tool. Enter their postcode, suburb or business name at https://www.pexa.com.au/member-search

A PEXA fee is charged to each Subscriber in a Workspace upon successful completion of a transaction through PEXA. The fee will vary based on the type of transaction being completed.

For example, if you’re acting for the outgoing proprietor in a property transfer, you will pay the transfer title fee.

The fee includes:

• Document creation
• Lodgement support services: pre-population of registry data, lodgement verification and automatic title activity checks
• Digital signature security
• Document lodgement with the land registry
• Stamp duty verification
• Lodgement gap cover; cover under the signed Representative Subscriber Participation Agreement (PA) whereby PEXA assumes responsibility for any loss incurred (subject to conditions set out in the PA) when an intervening dealing impacts registration of a covered dealing
• Electronic settlement booking
• Financial settlement
• Electronic third party disbursements

Where a transaction involves financial settlement (such as a Transfer), the fee is automatically added as a line item in the Financial Settlement Schedule. There is no cost if a Workspace is abandoned and the settlement is not completed in PEXA. Where the transaction does not involve financial settlement (such as a caveat), the PEXA fee is direct debited from your nominated account.

For all the details, please refer to our Pricing page on our website.

Lodgement Fees
Lodgement Fees are charged by Land Registries when documents are lodged. These fees are provided by the Land Registries when Lodgement Verification is performed.

Fee changes explained

If a fee change is introduced on 1 July, what about Workspaces prepared before 1 July but settling/lodging after 1 July ?
Workspaces with Financial Settlement: PEXA fees will automatically update in the Financial Settlement Schedule for Workspaces settling on or after 1 July when Lodgement Verification is triggered. Please allow for these updated figures in their calculations.
Workspaces without Financial Settlement: PEXA fees will be assessed based on the time of the last Lodgement Verification (these include Caveats, Settlement Notices, Mortgages and Discharges).