PEXA Projects is new functionality that allows lawyers and conveyancers to manage large scale projects (i.e. multi-lot developments) and efficiently complete the online property exchange process. At no extra cost, PEXA Projects provides additional features including a single project overview dashboard and the ability to complete bulk actions across your PEXA Workspaces. Together with the many benefits of settling online, these help streamline the processes involved in the coordination and execution of settlements.
A demonstration video which explains the benefits of the functionality can be found here. If you'd like someone to come to your office to demonstrate how PEXA Projects works, please contact your PEXA Direct/Virtual Specialist. If you don't have a specialist, email us at firstname.lastname@example.org.
PEXA can assist you with converting your current data exports into structured CSV files for upload to PEXA Projects. For assistance with converting your files into the required format, please email email@example.com.
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.
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.
The buyer’s representative ensures that the seller’s representative has allowed for the Discharge of Mortgage Fee in the adjustments.
The Lodgement Fee for the Discharge of Mortgage is paid from the pool of source funds (e.g. loan proceeds or purchaser’s equity).
All parties can see the full loan breakdown and destination amounts for stamp duty and Lodgement Fees.
The breakdown to client is supported by the Settlement Completion Record.
This national solution removes the need for additional source line items and confusion when dealing with different banks.
Financial Institutions and their representatives will need to review consumer contracts, processes and systems to ensure they can adequately support the change to existing settlement processes by 1 December 2017.
The Joint Form of General Conditions already confirms that the vendor is obligated to give clear title, which remains the case. The change is in process, not to contractual terms. The process now is to debit the amount from the vendor pre-settlement, rather than have the vendor pay at settlement. Questions regarding the Joint Form of General Conditions should be directed to REIWA and Law Society WA as owners of the document.
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.
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.
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:
Red Bank creates a workspace in PEXA (role of Incoming Mortgagee)
Red Bank to invites Blue Bank to the workspace,in the role of Consentor (NSW) or CT Controller (VIC)
Red Bank would prepare its Mortgage document
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)
If in NSW, Blue Bank would create and lodge a Third Party Consent
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 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
Select the Lodgement Instructions Actions Cog, then Edit.
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.
Select the PEXA Source Account as the source of the funds for the Line Item you have created.
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.
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, once verified your Source line item will move to READY
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).
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.
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.
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.
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.
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:
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
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).