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.
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.