I have used PEXA since Feb 2016 and have enjoyed being able to have a settlement date set out in PEXA with all sides working toward that date. Recently however, banks have began not accepting a settlement date right up until the settlement date and in some cases waiting until the morning of settlement then changing the settlement date by a week as it doesn't suit them.
This has occurred three times this week, in which the bank has had ample time to prepare for settlement and decided to change the settlement date without any prior notification.
As PEXA transactions increase, i am worried this practice is going to cause chaos for lawyers/conveyancers.
The settlement date is set in the Contract and is a legally binding date, and should not be able to be changed by a bank as they are not a party to the Contract.
I suggest that banks should not have the ability to amend a settlement date on PEXA. If they are not ready to settle, they should be contacting the client's legal representative to discuss amending settlement date.
I agree and this is exactly the feedback we love. As we are now seeing further push towards digital in the transfer space, the next wave in industry transformation looks set to focus on this very matter.
stay in touch in the community as we will keep you on the loop regarding industry initiatives to improve the digital transfer process.