What can I do in PEXA?

Digital services providing improved process efficiency and enhanced user experience are becoming the norm in modern society.

Completing conveyancing transactions and lodgements online through PEXA will help you streamline your business, drive greater client satisfaction and reduce the margin for error that could delay settlement.

On this page, you’ll learn which Land Registry documents are currently available to be completed electronically through PEXA in each state. The majority of property transactions that you are likely to perform in your conveyancing practice are already available. These include:

• Transfers
• Mortgages and discharge of mortgages
• Caveats and withdrawal of caveats
• Encumbrances and discharge of encumbrances (SA)
• Priority notices
• Transmissions and Survivorships (VIC)
• Financial settlement

The below table outlines what is already available across Victoria, New South Wales, Queensland, Western Australia and South Australia. 

Current as of July 2018.  

PEXA Key Terms

This page explains some of the key terms you’ll need to know when completing electronic transactions in PEXA.

A

Active Jurisdiction

The active jurisdiction is defined as the jurisdiction(s) available to complete property transactions online, as set out in the Service Charter. These transactions are completed on the Electronic Lodgement Network (ELN), currently operated by PEXA. The active jurisdiction for an electronic transaction is determined by the geographical location of the land identified in the Certificate of Title.

 PEXA, is currently live in five active jurisdictions: Victoria, New South Wales, Queensland, South Australia and Western Australia.

Refer to the Participation Agreement for further information.

Authorisation/Authorised

This is defined as the provision of approval to complete an activity within PEXA, for example providing authorisation for the movement of funds to enable financial settlement.

 In order to provide authorisation, PEXA users must have a Digital Certificate, and are required to digitally sign using their Digital Certificate.

Refer to the Participation Agreement for further information.

Authorised Signatory

An authorised signatory, is a person(s) who has been nominated by their organisation to digitally sign actions in PEXA, on behalf of their organisation.

For example, a trust account authorised signatory can confirm movement of funds from the organisations’ Trust Account in order to affect financial settlement.

Australian Registrars' National Electronic Conveyancing Council (ARNECC)

The body established to facilitate the implementation and ongoing management of the regulatory framework for National e-Conveyancing.

 ARNECC developed and maintain the Model Participation Rules (MPR) and the Model Operating Rules (MOR), which outline the governance and compliance regulations that apply to operators and users of the Electronic Lodgement Network (ELN).

C

Caveator on Title

Caveator on Title is a role in PEXA which refers to the represented party who currently has a Caveat registered on the Certificate of Title.

Client Authorisation

Client Authorisation is defined as consent provided by the client for a PEXA Member to transact on their behalf in PEXA (as outlined in the Model Participation Rules). In order for a PEXA Member to complete conveyancing matters electronically on behalf of a buyer or seller client, authorisation must be provided. Client Authorisation is not required for Caveats, Priority/Settlement Notices, Extensions of Priority Notices or Withdrawals of Priority/Settlement Notices.
Client Authorisation is obtained using the Client Authorisation Form.

Refer to the Electronic Conveyancing National Law for further information.

Control of the Right to Deal (CoRD) (NSW Only)

In New South Wales, Control of the Right to Deal (CoRD) refers to the right of a party to control the registration of most Land Registry instruments that could affect ownership of the estate or other registered interests in the estate.

CoRD can be held by the following parties:

• If there is a registered mortgage, CoRD could be held by the party who holds the mortgage
• If there a charge against the title, CoRD could be held by the party who holds the charge
• If there is no registered mortgage, CoRD is held by the party listed on the title (registered proprietor)

Consent (NSW Only)

In New South Wales, for a transaction to be successfully lodged the CoRD Holder must provide consent for the transaction. To provide consent, the CoRD Holder must lodge an authorisation document, known as a Consent document, with the New South Wales Land Registry.

E

Electronic Certificate of Title

An eCT is a digital version of a Land Title. eCT’s support the framework developed to enable successful completion of online conveyancing transactions.

Electronic Lodgement Network (ELN)

The ELN refers to the framework developed to support the electronic lodgement of registry instruments or other electronic documents for the purposes of land titles legislation, currently operated by PEXA.

Refer to the Electronic Conveyancing National Law for further information.

I

Incoming Caveator

Incoming Caveator is a role in PEXA, which is used to describe the represented party who intends to lodge a Caveat on a Certificate of Title.

Incoming Mortgagee

Incoming Mortgagee is a role in PEXA, which is used to describe the party (or the represented party) who intends to lodge and register a new mortgage on a Certificate of Title.

Incoming Proprietor

Incoming Proprietor is a role in PEXA, which is used to describe the represented party who intends to be recorded on the Certificate of Title as the new vendor/proprietor of the property. This party is commonly referred to as the purchaser.

L

Lodgement Instructions

The lodgement instructions are an automatically generated electronic form which outlines the information required by the Registrar, for a registry instrument(s) to be successfully lodged with a Land Registry.

Refer to the Model Participation Rules for further information.

Lodgement Verification

Lodgement verification is an automatic check which is completed between PEXA and the Land Registry, to ensure that the required registry instrument(s) can be successfully lodged with the Land Registry.

Refer to the Model Operating Requirements for further information.

M

Model Participation Rules (MPR)

The MPR is a document that outlines the regulatory requirements of PEXA Members. These rules are determined by the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) on behalf of the Registrars’.

Refer to the Model Participation Rules for further information.

Mortgagee on Title

Mortgagee on Title is a role in PEXA, which is used to describe the party (or the represented party) who currently has a registered mortgage on a Certificate of Title.

P

Proprietor on Title

Proprietor on Title is a role in PEXA, which is used to describe the represented party who is currently named as the owner of the property. This party is commonly referred to as the Vendor.

PEXA Member

A Member is the term used to refer to an entity or person who is authorised under a Participation Agreement to use the Electronic Lodgement Network (ELN) to complete e-Conveyancing transactions on behalf of another person or themselves. Subscribers are often referred to as Subscribers.

R

Registry Information Supply (RIS)

Registry Information Supply (RIS), refers to the Land Registry service where they supply relevant land title information. Once supplied, Land title information is displayed in PEXA, to assist with the successful completion of conveyancing transactions.

Registration Information Supply (RIS) is automatically initiated when a PEXA Workspace is created as well as when a land title is added to an existing PEXA workspace.

Refer to the Model Participation Rules for further information.

Responsible Subscriber

Responsible Subscriber refers to the Workspace participant, who will incur the lodgement fees related to the e-Conveyancing transaction completed. The Responsible Subscriber is also responsible for managing the resolution of any requisitions issued by the Registrar. In paper transactions, they are commonly referred to as the lodging party.

Refer to the Model Participation Rules for further information.

S

Subscriber

A Subscriber is the term used to refer to an entity or person who is authorised under a Participation Agreement to use the Electronic Lodgement Network (ELN) to complete e-Conveyancing transactions on behalf of another person or themselves. Subscribers are often referred to as PEXA Members.

Refer to the Electronic Conveyancing National Law for further information.

Subscriber Administrator / Manager

This term describes a person(s) within a PEXA Member organisation, who has access to complete administration tasks on behalf of their organisation, these include:

• managing workgroups,
• creating and maintaining user details; and
• assisting users as required.

As well as being able to complete administrative functions, a Subscriber Manager is also able to update information relevant to the organisation in the subscriber profile.

Refer to the Participation Agreement or the Model Participation Rules for further information.

Subscriber Profile

A subscriber profile is your account profile within the PEXA platform. Your subscriber profile includes information about your organisation including, registered account details and user permissions.

Refer to the Participation Agreement for further information.

T

Title Activity Check

A TAC is automatically completed to determine whether any activity has been recorded against the title. A positive TAC indicates that activity has been recorded against the title.

Refer to the Model Participation Rules for further information.

U

User

A person(s) within a PEXA Member organisation who is authorised to access and use the Electronic Lodgement Network (ELN) e.g. PEXA. A user can be assigned certain permissions, for example, the permission to sign land registry documents.

Refer to the Model Participation Rules for further information.

V

Verification of Identity

VOI refers to a process by which a person(s) identity can be proven. VOI is completed as defined in the Model Participation Rules (MPR). To transact on behalf of your clients’, you are required to complete a VOI for each client that you represent in PEXA.

Refer to the Model Participation Rules for further information.

W

Workspace

The term Workspace, refers to a shared online area within PEXA, where participants can communicate with each other and complete tasks in preparation for an electronic property transaction.

Refer to the Model Participation Rules for further information

Workgroup

A workgroup, refers to a team of users assigned to complete tasks in PEXA. Creating a workgroup is particularly beneficial for large organisations which include several office locations or multiple business units.

Refer to the Model Operating Requirements for further information.

Business Processes

Before you can take advantage of the increased efficiency of e-Conveyancing, you may need to make a few simple changes to your business processes.

On this page, you’ll learn how to:

• Update your contracts of sale.
• Search for a counterparty on PEXA, or invite them to transact on PEXA.
• Update your initial client engagement letters.

Contract Preparation

In order to transact electronically, please update your Contract of Sale by either drafting your own special conditions or using the latest contract of sale version in your jurisdiction:

• VIC: Electronic Conveyancing Special Condition which can be obtained through the Law Institute of Victoria or the REIV
• WA: Law Society of Western Australia/REIWA Electronic Conveyancing Annexure Special Condition
• QLD: Contract for Sale of Land which can be obtained through the Queensland Law Society
• NSW: Contract for Sale of Land which can be obtained through the Law Society of New South Wales
• SA: You can use any one of the contracts available through REISA, Law Society, AICSA or the Society of Auctioneers and Appraisers, each of which contain e-Conveyancing conditions. 

Engagement with a Counterparty

To confirm if the counterparty for your matter is already transacting on PEXA, you can use the Subscriber Search function in PEXA or alternatively you can use the PEXA Qualifier on the PEXA Website. If the counterparty is not yet transacting on PEXA you can invite them using the Subscriber Search function in PEXA or contact PEXA directly on 1300 084 515. PEXA can assist your counterparty with joining PEXA and transacting the matter electronically.

The initial engagement letter that is sent to the counterparty should be updated to reflect that you would like to transact the matter electronically through PEXA. This could include:

1. I act for the [Vendor/Purchaser] and note that you act on behalf of the [Vendor/Purchaser] and propose the settlement be completed electronically
2. I note the 2014 Edition Contract for Sale of land [has/has not] been used and [propose the contract be varied to include an electronic conveyancing Special Condition]

Precedents

The initial engagement letter that is sent to the client should be updated to reflect that you are able to transact the matter electronically through PEXA. This includes incorporating reference to the Client Authorisation Form and the Verification of Identity process.

You should also consider necessary amendments to your engagement letter, including:

• Outline PEXA fees
• Request for VOI interview
• Enclosing Client Authorisation Form (or requesting client attend to sign)
• Advising client of the Lodgement Override option and your practice’s intention to either select or not select the option (unless the client instructs to the contrary)

Managing PEXA Files

The Subscriber is required to take "reasonable steps" to monitor the usage of systems and activities of their Users.; What constitutes "reasonable steps" may vary depending on the circumstances.; Subscribers are expected to monitor general practice management issues such as setting limits on signing authority, segregation of duties and regular/random file audits etc. In other words, activities which a Subscriber would normally be conducting in any event in the course of general practice management.

PEXA Fee Structure

PEXA-registered lawyers and conveyancers pay only per successful transactions. PEXA doesn't charge up-front fees (although you may need to purchase an additional Digital Certificate) or ongoing subscription fees. Charges are based on the type of transaction (e.g. mortgage, transfer etc.). The PEXA fee is separate from the statutory lodgement fees, which are set by each jurisdiction's Land Registry.

The PEXA fees include a number of services including:

• Lodgement verification checks with the Land Registry
• Title Activity Checks (TAC) that alert you to recent activity on the title
• Pre-population of land registry data
• Electronic disbursement of cleared funds
• Document creation and lodgement in real-time with the Land Registry
• Secure digital signature technology
• Stamp duty verification with the Duty Authority
• Lodgement gap cover (subject to conditions set out in the Participation Agreement)

PEXA fees are reviewed and updated on an annual basis, in accordance with the PEXA Pricing Policy.

Where a transaction involves financial settlement (for example a Transfer), the PEXA and lodgement fees are 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 doesn't involve financial settlement (for example a Caveat), the PEXA fee is debited from your nominated account.

Click here to view the current PEXA pricing schedule.

PEXA Fees and Lodgement Fees - FAQs

We've prepared this information to address some common queries about the treatment of fees in relation to PEXA transactions. Specifically:
(i) South Australian lodgement fees being collected by PEXA, not Revnet;
(ii) Reconciliation and adjustment of the Discharge of Mortgage lodgement fee, particularly in South Australia and Western Australia;
(iii) How South Australian practitioners may now account to their purchaser clients in relation to lodgement fees;
(iv) The different treatment of PEXA fees for Financial Institutions (direct debit) and Representative Subscribers representing Financial Institutions (line items).

Compliance Obligations

The e-Conveyancing compliance framework and Model Participation Rules (MPR) have been put in place to help protect your business and provide security for your clients.

On this page, you’ll learn about:

• Your general obligations as a Subscriber
• Maintaining system security and integrity

Subscriber Compliance

In order to ensure the integrity of the network and protect the property transactions that are being processed electronically, there are a number of compliance obligations for electronic Subscribers. Obligations are set out in the Participation Rules published by each jurisdiction's Land Registry and based on the Model Participation Rules developed by the Australian Registrars’ National Electronic Conveyancing Council (ARNECC).

This document has been developed to assist you (the Subscriber) in understanding the Participation Rules. This is not an exhaustive summary of the Participation Rules (PRs). It should be used in conjunction with a copy of the MPR available on the ARNECC website. It is vital that Subscribers familiarise themselves with this key document. Where this document refers to a certain Participation Rule, the number has been included.

ARNECC Guidance Notes

ARNECC publish Guidance Notes which are a valuable source of guidance and assistance. Currently the Guidance Notes cover:

• MPR Guidance Note #1 - Client Authorisation
• MPR Guidance Note #2 - Verification of Identity 
• MPR Guidance Note #3 - Certifications
• MPR Guidance Note #4 - Right to Deal
• MPR Guidance Note #5 - Retention of Evidence
  MPR Guidance Note #6 - Compliance Examinations

Complying with the Participation Rules

Complying with the Participation Rules

To access the Model Participation Rules please visit the ARNECC website.

General Obligations (Participation Rule 6)

A Subscriber must ensure compliance with the General Obligations as set out in Section 6 of the Participation Rules. These include, but are not limited to:

6.1 Ensure User compliance
6.2 Keeping details complete and up to date
6.3 Client Authorisation
6.4 Right to Deal
6.5 Verification of Identity (VOI)
6.6 Supporting evidence
6.13 Mortgages

6.1 Ensure User Compliance

A Subscriber must ensure that each of its Users is aware of the terms of the Participation Rules as appropriate. The Subscriber is responsible for all use of the Electronic Lodgement Network (or more broadly the PEXA System) by any of its Users.

6.2 Keeping details complete and up to date

Subscribers must ensure that their details are up to date on the Electronic Lodgement Network (ELN). If you are experiencing difficulty changing these details, please contact PEXA.

6.3 Client Authorisation

You can download a copy of the Client Authorisation Form by visiting the ARNECC website.

Subscribers that act as a Representative must:

1. use the Client Authorisation Form for any Client Authorisation it enters into; and
2. except for Caveats and Priority/Settlement Notices, Extensions of Priority Notices and Withdrawals of Priority/Settlement Notices, for which a Client Authorisation is optional, enter into a Client Authorisation with its Client before the Subscriber Digitally Signs any Registry Instrument or other Electronic Document in the ELN; and
3. comply with the Client Authorisation and act in accordance with its terms; 
4. take reasonable steps to verify the authority of each Person entering into a Client Authorisation on behalf  of a Client to both bind the Client to the Client Authorisation and to the Conveyancing Transaction(s) the subject of the Client Authorisation; and
5. take reasonable steps to ensure that any Client Authorisation is signed by the Subscriber's Client or their Client Agent.

6.4 Right to Deal

1. Where the Subscriber is a Representative, for each Conveyancing Transaction the Subscriber must take reasonable steps to verify that its Client is a legal Person and has the right to enter into the Conveyancing Transaction.
2. Where the Subscriber is a mortgagee, or the Subscriber represents a mortgagee, for each mortgage the Subscriber must take reasonable steps to verify that the mortgagor is a legal Person and has the right to enter into the mortgage.

6.5 Verification of Identity (VOI)

ARNECC have produced a guidance note on the subject of VOI, click here to access this guidance note. Please refer to Schedule 8 of the PR for the Verification of Identity Standard.

The Subscriber must take reasonable steps to verify the identity of:

1. Clients: each Client or each of their Client Agents; and
2. Mortgagors
3. Persons to whom certificates of title are provided
4. Signers: each of its Signers, prior to the initial allocation of a Digital Certificate to the Signer
5. Subscriber Administrators

To comply with PR 6.5.1 the Subscriber, or a mortgagee represented by the Subscriber, can either:

1. apply the Verification of Identity Standard; or
2. verify the identity of a Person in some other way that constitutes the taking of reasonable steps.

NOTE: PR 6.5.3 – the Subscriber must undertake further steps to verify the identity of a Person Being Identified if:

• The documents do not appear genuine
• or photograph on an identity Document produced is not a reasonable likeness
• inadequate documentation presented without a reasonable explanation

NOTE: the Subscriber need not re-verify the identity of the Person Being Identified if:

1. the Subscriber complied with Participation Rule 6.5.1 within the previous 2 years; and
2. the Subscriber takes reasonable steps to ensure that it is dealing with the Person Being Identified.

If the Verification of Identity Standard is used:

1. the Subscriber, or a mortgagee represented by the Subscriber, may use an Identity Agent for example Australia Post and ZipId; and
2. where an Identity Agent is used, the Subscriber or the mortgagee must direct the Identity Agent to use the Verification of Identity Standard; and
3. the Identity Verifier must be:

(i) the Subscriber and/or the Subscriber’s Identity Agent; or
(ii) where a Subscriber represents a mortgagee, that mortgagee and/or that mortgagee’s Identity Agent; and
(d) the Subscriber or the mortgagee must receive from any Identity Agent:
(i) copies of the Documents produced to verify the identity of the Person Being Identified and/or any Identity Declarant signed, dated and endorsed as a true copy of the original by the Identity Agent; and
(ii) an Identity Agent Certification.

NOTE: Refer to PR 6.5.6 for information regarding “reasonable steps”.

6.6 Supporting evidence

The Subscriber must retain the evidence supporting an electronic Registry Instrument or other electronic Document for at least seven years from the date of Lodgement of the Registry Instrument or other electronic Document that is registered or recorded including evidence:

1. any evidence required by the Duty Authority; and
2. any Client Authorisation and any evidence supporting that Client Authorisation; and
3. any evidence supporting a Party’s right to enter into the Conveyancing Transaction; and
4. any evidence supporting verification of identity; and
5. any other evidence demonstrating compliance with Prescribed Requirements.

6.13 Mortgages

Where a mortgagor (in its capacity as mortgagor) is not a Subscriber or represented by a Subscriber, the mortgagee, or the mortgagee’s Representative, must:

1. ensure that the mortgagor grants a mortgage on the same terms as the mortgage signed by, or on behalf of, the mortgagee; and
2. ensure that it holds the mortgage granted by the mortgagor; and
3. provide Certification 5 of the Certification Rules.

Where the mortgagee or its Representative signs the mortgage, the mortgagee signs only on its own behalf and not on behalf of the mortgagor.

Maintaining System Security and Integrity (PR 7)

A PEXA Subscriber has obligation under the PRs to ensure it does nothing that may have an adverse effect on the Electronic Lodgment Network (ELN). PEXA has developed a Security Policy which the Subscriber must comply with. This document can be found at https://www.pexa.com.au/security-policy .

Please note this is a not an exhaustive list of the compliance obligations in relation to Security, for further information please refer to the PRs 7.1 Protection Measures.

The Subscriber must take reasonable steps to protect the ELN, this includes but is not limited to:

• Having appropriate virus protection software installed
• training and monitoring of its Users in relation to the Subscriber’s security obligations; and
• not do anything that it knows or ought reasonably to know is likely to have an adverse effect on the operation, security, integrity, stability or the overall efficiency of the ELN.

In relation to Users, the Subscriber must keep the following up to date:

1. their Users’ Access Credentials
2. signing rights linked to those Access Credentials
3. administrative rights linked to those Access Credentials.

The Subscriber must also:

Ensure that they have at least 1 person within the practice who has taken on the role of Subscriber Administrator (note that Subscriber Managers perform functions including the function of Subscriber Administrators).

7.4 Signers

The Subscriber must also, in accordance with PR 7.4.1(b) take reasonable steps to ensure that the Signer is not or has not been subject to:

1. an Insolvency Event within the last 5 years; or
2. a conviction of fraud or an indictable offence or any offence for dishonesty against any law in connection with business, professional or commercial activities; or
3. disqualification from managing a body corporate under the Corporations Act; or any disciplinary action of any government or governmental authority or agency, or any regulatory authority of a financial market or a profession, which may impact on a Signer’s conduct of a Conveyancing Transaction.

NOTE: If a Signer is: an Australian Legal Practitioner, a Licensed Conveyancer, a Public Servant acting on behalf of the Crown in right of the Commonwealth, a State or a Territory, or a Local Government Officer acting on behalf of a Local Government Organisation, the Subscriber is deemed to comply with Participation Rule 7.4.1(b) as detailed above.

7.5 Digital Certificates

Please note the following important compliance items:

• All Electronic Documents Lodged through the PEXA System must be Digitally Signed;
• Subscriber’s must obtain and maintain valid at least one Digital Certificate.
• Take reasonable steps to ensure that only Signers that are legally entitled to sign Registry Instruments (refer Participation Rule 5.3(b)) Digitally Sign electronic Registry Instruments or other electronic Documents

7.7 Jeopardised Conveyancing Transactions

Please note the following important compliance items:

1. If the Subscriber knows, or has information or belief a Conveyancing Transaction has been Jeopardised, they must:
2. where possible Unsign any electronic Documents relating to the Conveyancing Transaction immediately; or
3. where it is not possible to Unsign any electronic Document, the Subscriber must immediately notify PEXA.

• bring to the attention of the other Participating Subscribers any information about the Conveyancing Transaction that it believes to be incorrect, incomplete, false or misleading or that the Conveyancing Transaction has been Jeopardised.

7.10 Certifications

The Subscriber must comply with the Certification Rules.

The Subscriber must provide those of the following certifications that are required when Digitally Signing each electronic Registry Instrument or electronic Document:

1. The Certifier has taken reasonable steps to verify the identity of the [transferor/transferee/mortgagee/mortgagor/caveator/applicant].
2. The Certifier holds a properly completed Client Authorisation for the Conveyancing Transaction including this Registry Instrument or Document.
3. The Certifier has retained the evidence supporting this Registry Instrument or Document.
4. The Certifier has taken reasonable steps to ensure that this Registry Instrument or Document is correct and compliant with relevant legislation and any Prescribed Requirement.
5. The Certifier, or the Certifier is reasonably satisfied that the mortgagee it represents,:
   • has taken reasonable steps to verify the identity of the mortgagor; and
   • holds a mortgage granted by the mortgagor on the same terms as this Registry Instrument or Document.
6. The Certifier has:
   • retrieved; and
   • either securely destroyed or made invalid the (duplicate) certificate(s) of title for the folio(s) of the Register listed in this Registry Instrument or Document.

Client Engagement

There are many benefits to switching to electronic transactions, for both you and your clients.

On this page, we explore the benefits of e-conveyancing for your clients, whether they are vendors or purchasers. 

Client Pitch

Exchanging property online through PEXA can lead to a number of benefits for your clients. These have been detailed below.

Vendor Benefits

Fast Access to Funds

In the manual process, the client would wait days for a cheque to clear in order to access settlement funds, or would pay a fee for special clearance. In the PEXA System, funds are transferred electronically as part of settlement and when the vendor banks with a major bank, are typically available to the vendor within hours (this may vary depending on which institution the vendor banks with).

Greater Certainty of Successful Settlement

In the manual world, settlement may fail because of an error in documentation. In order to ensure greater certainty of successful settlement, PEXA ensures that the name on transfer matches the name on the mortgage prior to settlement. A Lodgement Verification is automatically initiated at pre-determined intervals during a Financial Settlement Transaction. If the Lodgement Verification indicates an error, then PEXA will Unsign the affected documents (if previously signed) and notify the relevant Subscribers. This ensures that the registry instruments can be corrected in order to effect a successful settlement through PEXA.

Better Information

As Subscribers in a Workspace have greater visibility over the settlement process, clients of these practitioners can expect to be better informed than clients who settle using the manual process.

• SettleMe is the application for vendors and purchasers.
• It allows clients of PEXA Subscribers to track the progress of their settlement.
• SettleMe also incorporates task lists for the client.

Purchaser Benefits

Greater Security

In the manual process, lodgement of documents at the Land Registry may occur sometime after settlement. In PEXA, lodgement of documents occurs in real time (purchaser’s interest will be lodged against the title in a matter of minutes, rather than days or weeks).

Greater Certainty of Clear Title

A Title Activity Check (TAC) is carried out in PEXA at pre-determined intervals as well as one hour prior to the time of scheduled settlement. PEXA identifies any activity on the Land Title Reference since the last TAC was completed and therefore provides greater certainty that the purchaser’s interest will be registered on title compared to the manual world. If the TAC indicates activity on the Land Title, PEXA will not allow a Conveyancing Transaction to proceed unless the Subscribers who are, or who are acting for, any purchaser, incoming mortgagee or incoming caveator have all elected to continue with the transaction. In the manual world, the purchaser’s representative would not be aware of any activity on the Land Title Reference without doing a title search.

Greater Certainty of Successful Settlement

In the manual world, settlement may fail because of an error in documentation. In order to ensure greater certainty of successful settlement, PEXA ensures that the name on transfer matches the name on the mortgage prior to settlement. A Lodgement Verification is automatically initiated at pre-determined intervals during a Financial Settlement Transaction. If the Lodgement Verification indicates an error, then PEXA will Unsign the affected documents (if previously signed) and notify the relevant Subscribers. This ensures that the registry instruments can be corrected in order to effect a successful settlement through PEXA.

More Efficiencies

The purchaser is no longer required to purchase bank cheques for settlement.

This alleviates any last minute rush to arrange cheques and settlement being delayed when printed cheques contain errors in names, or when there is a last minute change to the required amount.

Better Information

As Subscribers in a Workspace have greater visibility over the settlement process, clients of these practitioners can expect to be better informed than clients whose settlement is undertaken using the manual process.

The practitioner will be able to inform the purchaser of whether their bank has completed their part of the transaction and provide an update on whether the counterparty is ready for settlement.

Less Paperwork

The Client Authorisation Form authorises the Subscriber to act on behalf of the client in a Conveyancing Transaction, including Signing documents on their behalf.

This reduces the amount of paperwork that the client has to complete.

• SettleMe is the application for vendors and purchasers.
• It allows clients of PEXA Subscribers to track the progress of their settlement.
• SettleMe also incorporates task lists for the client.

Lodgement Gap Cover

In the manual world, there is a lodgement gap risk. This means that a late dealing on the title, in between settlement and lodgement, may impact registration.

In the electronic world, the gap between last successful Title Activity Check (TAC) and lodgement is covered as PEXA now assumes responsibility for any loss incurred (subject to the conditions set out in the Participation Agreement) when a dealing prevents registration or takes priority, giving you and your clients greater peace of mind.

This applies to any intervening dealing between the last successful Title Activity Check (TAC) and lodgement. The last TAC must have taken place within 2 business days of the scheduled settlement.

In this case, PEXA will assume responsibility for:

• Any resulting difference in the land value;
• Legal fees incurred; and/or
• Certain other expenses that are incurred

There is no equivalent cover in the manual world. Your clients have the option to take out insurance but this would be at an additional cost.

For purchasers, this coverage is applied by default and is at no extra cost.

PEXA also reduces the gap between settlement and registration by lodging with the Land Registry in real-time. 

Client Authorisation Form

On this page, we'll help you obtain a Client Authorisation Form.

For each PEXA transaction, the practice must obtain a Client Authorisation Form signed by the Client or Client Agent (e.g. an attorney).

The signed copy of the form must remain on file (either electronically or otherwise) throughout the lifecycle of your matter (including the obligation to retain for 7 years post completion).

Decide when this will be provided to clients (e.g. posted out with the engagement letter or handed to client in interview at the time of VOI)?

You can download a copy of the Client Authorisation Form by visiting the ARNECC website at http://www.arnecc.gov.au/publications

If you are a Subscriber that is a Representative, you must:

1. use the Client Authorisation Form for any Client Authorisation you enter into; and
2. except for Caveats and Priority/Settlement Notices you must enter into a Client Authorisation with your Client before the Subscriber Digitally Signs any Document; and
3. comply with the Client Authorisation; and
4. take reasonable steps to verify the authority of each Person entering into a Client Authorisation.

The below is an example of a completed Client Authorisation Form taken from MPR Guidance Note #1 – Client Authorisation Version 0.7 (draft) - 05/01/2015 which can be found on the ARNECC website here.

Verification of Identity for your Client

On this page we'll explore how to meet the Verification of Identity Standard on behalf of your clients.

ARNECC have produced a guidance note on the subject of VOI. Please refer here to access this guidance.

Please refer to Schedule 8 of the PR for the Verification of Identity Standard.

The Subscriber must take reasonable steps to verify the identity of:

1. Clients: each Client or each of their Client Agents; and
2. Mortgagors
3. Persons to whom certificates of title are provided
4. Signers: each of its Signers, prior to the initial allocation of a Digital Certificate to the Signer
5. Subscriber Administrators

To comply with PR 6.5.1 the Subscriber, or a mortgagee represented by the Subscriber, can either:

1. apply the Verification of Identity Standard; or
2. verify the identity of a Person in some other way that constitutes the taking of reasonable steps.

Note: PR 6.5.3 - You must undertake further steps to verify the identity of a Person Being Identified if:

• The documents do not appear genuine
• or photograph on an identity Document produced is not a reasonable likeness
• inadequate documentation presented without a reasonable explanation

Note: The Subscriber need not re-verify the identity of the Person Being Identified if:

1. the Subscriber complied with Participation Rule 6.5.1 within the previous 2 years; and
2. the Subscriber takes reasonable steps to ensure that it is dealing with the Person Being Identified.

If the Verification of Identity Standard is used:

1. the Subscriber, or a mortgagee represented by the Subscriber, may use an Identity Agent for example Australia Post and ZipId; and
2. where an Identity Agent is used, the Subscriber or the mortgagee must direct the Identity Agent to use the Verification of Identity Standard; and
3. the Identity Verifier must be:

(i) the Subscriber and/or the Subscriber’s Identity Agent; or
(ii) where a Subscriber represents a mortgagee, that mortgagee and/or that mortgagee’s Identity Agent; and
(d) the Subscriber or the mortgagee must receive from any Identity Agent:
(i) copies of the Documents produced to verify the identity of the Person Being Identified and/or any Identity Declarant signed, dated and endorsed as a true copy of the original by the Identity Agent; and
(ii) an Identity Agent Certification.

NOTE: Refer to PR 6.5.6 for information regarding “reasonable steps”.

How can I VOI my clients?

Decide on whether you will apply the VOI Standard in Schedule 8 of the MPR or take other reasonable steps to verify your clients.

Factors to consider:

• Will you require VOI to be face-to-face (per the standard)?
• Will you conduct VOI in-house or use an Identity Verifier service?
• Will there be one person in the practice responsible for VOI or will each staff member VOI their own clients?

If you do not perform the verification of identity yourself, you may be able to use an agent (such as Zip ID, Australia Post or ID Secure) to verify the identity of your client. Please note, there is a cost associated with this service, please contact your service provider for further details.

Zip ID

If you would like to use the ZipID VOI App for completing the VOI in your client interview, you can register for free and download the App at www.zipid.com.au/app. If your client prefers the convenience of being verified at home or work, ZipID's mobile representatives can complete the VOI on your behalf (Mon-Sat).

Australia Post

If you would like to use the Australia Post Verification of Identity service for your client VOI requirements you will first need to register with Australia Post by completing the Land Title ID form. Once you have completed the form, Australia Post will contact you to complete the final steps. Please visit www.auspost.com.au for more information.

IDSecure

If you would like to use IDSecure's national 'come to you'  available in selected metropolitan and regional areas and/or in-house verification solution, you can register for free by visiting www.idsecure.com.au/contact/. Please visit www.idsecure.com.au for more information.

Completing the Getting Started with PEXA program? See whats next.

On the next page, Updating my Client Engagement Letter, we'll assist you with communicating the benefits of PEXA to your clients and requesting authorisation to settle transactions electronically on your clients' behalf.

Updating my Client Engagement Letter

The following letter will help you update your client engagement letter to communicate the benefits of online land title transfers and obtain their authorisation to complete electronic transactions on their behalf.

Note: Information in this document is for illustrative purposes only and is intended to give you a general outline of how your engagement letter could be worded. This wording is a guide only and does not constitute and is not intended to constitute legal advice.

ELECTRONIC SETTLEMENT

Dear [name of client],

Congratulations on your purchase and thank you for choosing [name of conveyancing service].

Legislation in [state name] means we now have the option of completing property transactions electronically, through a secure platform known as PEXA (Property Exchange Australia).

Settling electronically helps streamline the conveyancing process by:

• Reducing the chance of delays.
• Eliminating the need for you to personally attend our office to sign certain documents.
• (If purchaser) Eliminating the need for you to obtain bank cheques for settlement.
• (If vendor) Processing your sale proceeds to your nominated account as cleared funds, so you don’t have to wait for a bank cheque to clear.

Find out more about the benefits of PEXA, by visiting the PEXA website at https://www.pexa.com.au/buyers-sellers.

Another benefit of PEXA is that you will be covered, subject to conditions, against any last-minute unforeseen activity (such as a caveat) that might affect registration. This means, in the unlikely event of there being any issues with lodgement, we can proceed with a ‘lodgement override’ option. This cover, which in the manual world would require insurance at an additional cost, is free with PEXA. Please let us know if you have any concerns with this.

If your transaction is able to be completed electronically, you can access the free settlement tracking app, SettleMe. Through SettleMe, you can easily view up-to-date settlement information on a customised dashboard, as well as receiving instant notifications as settlement progresses. Find out more here https://settleme.pexa.com.au/.

If your transaction is eligible for electronic settlement and you would like us to proceed with this option, you will need to provide us with a Client Authorisation (see attached form). This gives us the authority to digitally sign documents on your behalf.

[Subhead] APPOINTMENT FOR VERIFICATION OF IDENTITY

As we are required to verify the identity of our clients, we ask that you contact us on (XX) XXXX XXXX to arrange an appointment. Please bring your passport and driver’s licence to this appointment.

If you do not have these documents, let us know and we will advise of alternative acceptable documentation.

© Property Exchange Australia Limited 2016.

23 May 2016

PEXA Residential Seller Guarantee

The PRSG provides protection to sellers of residential property in the event of a certain kind of fraud. Where the PRSG applies, the seller has the option to make a claim against PEXA, rather than seeking to recover the loss by an alternative means.

Access to proceeds of sale is much faster with PEXA. If your client hasn’t received their funds within 24 hours this should raise a red flag for you and your client. Speak with your client and ensure they contact you as soon as they suspect something unusual.

How it works

The PRSG applies to settlements of residential property on or after 29 June 2018 and sellers can only avail of this guarantee if their conveyancer settles the sale of their property online using PEXA.

Key points

• The PRSG applies to sellers in respect of the settlement of residential property where the vendor’s funds are misdirected after the seller’s practitioner has entered the correct bank account details into the PEXA platform.
• There is a $2 million cap on PEXA’s liability per settlement.
• Further conditions must be satisfied before a claim can be made under the PRSG. A summary of conditions can be found here.

For further information, you can view these frequently asked questions.

In this edition of 5 in 5, Senior Lawyer, Emma Elsworth, speaks with Marcus Price, PEXA CEO, about the introduction of PEXA’s Residential Seller Guarantee (PRSG).

Business Ready Checkpoint

Now that you’ve read the key items in this module and are confident with implementing e-conveyancing in your business, complete the learning checkpoint and earn your Getting business-ready badge. Your badge will display on your profile, so others can see what you’ve achieved! Not yet a member of the Community? Register and login to the Community to receive your badge.