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.
Over the past four years, conveyancing has digitally transformed. With five states now completing property transactions electronically, industry recognises the importance of national alignment to fully realise the efficiencies that a digital settlement network provides. As a result, the next phase of national alignment will take place in Western Australia and South Australia with an alteration to the Discharge of Mortgage lodgment fee procedure.
Effective 1 December 2017, there’ll be an alteration to the Discharge of Mortgage lodgement fee procedure in Western Australia and South Australia.
In a PEXA settlement, the Incoming Mortgagee will provide the amount for this statutory fee, rather than the Mortgagee on Title or Proprietor on Title. Where there is no Incoming Mortgagee, the Incoming Proprietor will provide the amount.
It is still incumbent upon the seller to provide clear title. The seller must therefore allow a reduction on the balance of purchase monies. All states that complete property transactions online will then be aligned, reducing confusion and improving the digital settlement process for the entire network.
To maintain consistency across all scenarios, industry has decided to replicate this change for paper settlements.
All lenders who have an active presence in Western Australia and/or South Australia are working towards operationalising this change in readiness for the switch-over on 1 December 2017.
Yes. To maintain consistency across all scenarios, industry has decided to replicate this change for paper settlements.
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).
e-Conveyancing represents an exciting frontier for the entire property industry, presenting new opportunities and the potential for innovative work practices. At the same time, e-Conveyancing raises questions about how the traditional understanding of a vendor and a purchaser’s obligations will evolve, in order to adapt to a digital settlement process.
Being ready, willing and able to settleRead more...
The next phase in the transition to 100% digital is underway in Victoria with conversion of paper certificates of title to electronic certificates of title (eCT). This represents an important component of the e-Conveyancing framework.
The FAQs in this article are based on information produced by Land Victoria in relation to management of electronic certificates of title. The guides can be found here.Read more...
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:
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 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
How do I use the PEXA Source Account?
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.
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.
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.
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.
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.
No, you do not need to be logged in during an electronic settlement.Read more...
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:
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 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).