PEXA is pleased to present the next release of the PEXA System, Release 5, scheduled for business go live 28 November 2016.
In the November release, we are introducing a new document type of Priority Notice in NSW, together with the new simultaneous linked financial settlement.
The PEXA System has also been enhanced to streamline how you process your transactions.
All of these changes are in direct response to your valued feedback. Please continue to leverage the ideas and feedback portal on the e-Conveyancing Community to provide feedback.
Enhanced Functionality
In NSW, you can lodge a Priority Notice to reserve priority for a pending transaction
PEXA now has the ability to lodge a Priority Notice in NSW. When recorded on title, a Priority Notice has a twofold effect:
- Reserve priority for the transaction set out in the priority notice, and
- Notify parties searching the title that a transaction to be lodged against title is imminent.
Introduction of the Simultaneous Settlement model
For many clients, the financial settlement of their new property is dependent on the funds available from sale of their current property. PEXA now provides the ability to link workspaces settling at the same date and time, so that funds for financial settlement are linked. This new settlement model also ensures that all settlements proceed together.
- Priority Notices in NSW
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A Priority Notice is a notice which is lodged against a title to reserve priority for a pending transaction that will affect that title.
A Priority Notice, when recorded on title, has a twofold effect:
- Reserve priority for the transaction set out in the priority notice, and
- Notify parties searching the title that a transaction to be lodged against title is imminent.
A Priority Notices' purpose and function is to preserve and protect the rights of the Parties named in the ‘Documents to be Lodged’ in the Priority Notice. It protects the interest of those parties named in the ‘Documents to be Lodged’ for the time between lodgement of the Priority Notice and the lodgement of the ‘Documents to be Lodged’ with the Land Registry.
A Priority Notice is lodged by a Subscriber on behalf of the Applicant. The Applicant can be either the Subscriber lodging the Priority Notice or the 'Receiving Parties' (e.g. Transferee or Mortgagee) named in one of the ‘Documents to be Lodged’ in the Priority Notice.
Electronic and Paper Channels
Importantly, a Priority Notice may be created for a future dealing that will be completed in either the paper or the PEXA channel.
- If the dealing is expected to occur in the paper channel, then a standalone Priority Notice is created in the role of Applicant.
- If the dealing is expected to be processed electronically, in a PEXA Workspace, then the Priority Notice can be created by the participant in the role of either Incoming Mortgagee or Incoming Proprietor inside the PEXA workspace.
Note: If the transaction, for any reason, then reverts to the paper channel and does not progress electronically, the Priority Notice can still be lodged within this workspace, as it belongs to its own lodgement case.
Duration
A Priority Notice will be effective on title for 60 calendar days from the date of lodgement. A Priority Notice may be extended for a period of 30 calendar days only once. An extension is facilitated through the lodgement of an Extension of Priority Notice.
Note: The Subscriber that lodged the Priority Notice is the only Subscriber that may extend or Withdraw that Priority Notice.
Learn how to Create a Priority Notice in this article.(Referencing PEXA CR654)
- Introduction of the Simultaneous Settlement model
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Linked settlements are used when destination funds from one workspace are to be used as source funds in another workspace.
With this release, PEXA will introduce the concept of the linked simultaneous settlement model.
With your linked workspaces, you can now select between two options, Simultaneous and Sequential.
- Select Simultaneous (at the same time) if one cannot proceed to settlement unless all proceed. These must be scheduled for the same time and date.
- Select Sequential (after each other) if each proceeds to settlement before the next commences (earlier settlements cannot be unwound). These must be scheduled on the same date, at least one hour apart.
What are the defining features of the Simultaneous Settlement model?
- Each workspace in the settlement chain must be scheduled to execute on the same day and at the same time.
- Funds for all workspaces in the chain are aggregated and settled in a single transaction. Only once all funds have been successfully settled will lodgement of dealings associated with the transfer of land commence.
- Funds are settled prior to lodgement of dealings
- If funds for one workspace in the chain are unable to settle, for example insufficient cleared funds are available in one or more practitioner trust accounts at the scheduled settlement time, then (following re-try efforts if available) all settlements in the chain will fail.
- Each lodgement occurs independently of all others. If one lodgement fails to lodge successfully no other lodgement dealing is impacted.
When do I use the Simultaneous Settlement Model?
For many clients, the settlement of their new property is dependent on the funds available from sale of their current property.
For many clients, the settlement of their new property is dependent on the funds available from sale of their current property.
A party both buying and selling can choose to either have its purchase:
- settled at the same time as the sale (both settlements must complete successfully together); or
- commence after the sale has successfully settled (no option to wind back the sale if the purchase does not proceed for any reason).
The Simultaneous Settlement model facilities settling at the same time (while the existing Sequential Settlement option facilitates settling after each other).
The Simultaneous Settlement model facilities this type of transaction.
What are the benefits of Simultaneous Settlement in PEXA?
- Simultaneous Settlement in PEXA allows for greater transparency. Participants can identify when their workspace is part of a simultaneous settlement when viewing the Financial Settlement Schedule.
- Participants are able to view the progress of other linked workspaces and identify early warning signs if any are at risk (i.e., Workspace status is not in Ready-Ready status close to the settlement date and time).
- At the time of settlement, PEXA provides the assurance that all funds will be disbursed to the parties specified across all linked workspaces. If a party is unable to provide the appropriate source funding, PEXA will ensure that none of the linked workspaces will proceed with settlement.
- All lodgements are independent of each other. If funding is successful and lodgement fails for one workspace in a Simultaneous Settlement, it will not impact any other linked workspace.
Linked Settlement – Preparation Activities
Note: In this example, either the Proprietor on Title creates the linked destination line item in the preceding workspace OR the Incoming Proprietor creates the linked source line item in the trailing workspace.
Once either of these are created, a link request is sent to link the selected workspaces.
Upon acceptance by the user within the workspace to be linked, PEXA automatically creates a linked line item in the financial settlement schedule.
Settlement Date and Time must be the same for the linked Simultaneous Settlement.
What rules does PEXA apply for linking of Workspaces for Financial Settlement?
The pre-requisites to be met to enable two PEXA workspaces to be linked for settlement in a chain are:
- The Participant acting for the vendor in the preceding workspace must be the same as the Participant acting for the purchaser in the trailing workspace
- Vendor proceeds from the preceding workspace must be used as Purchasers equity in the trailing workspace
- Workspaces may only be linked for one link type. A single workspace may not be linked for sequential settlement on one end and simultaneous settlement on the other.
Rules – Simultaneous Settlement
The following key rules/requirements have been applied for the new Linked Simultaneous Settlement:
- A maximum of ten financial settlements may be linked for simultaneous settlement
- All workspaces in the chain must have the same settlement date and time.
- Workspaces that are linked for the purposes of simultaneous settlement can be in different jurisdictions.
- All settlements in the chain must succeed, or no settlements in the chain will succeed
- Linked financial line item must have an amount greater than $0.
Questions and Answers – Simultaneous Settlement
- What happens if the settlement date and/or time is updated for any one workspace in a Simultaneous Settlement chain? If settlement is changed or delayed for any one workspace in the chain, all related workspaces will be receive a notification and a prompt to alter their date and time, as they must all settle at the same date and time. The Linked Settlement tab on the Financial Settlement Summary screen will clearly display the settlement date and times of each workspace.
- What happens if insufficient trust funds for one or more workspaces in the chain cause the settlement time to be moved forward one hour?
If any one of the Trust Accounts has insufficient funds, PEXA will delay funds reservation for one hour. The workspace(s) will remain locked and all participants are informed of the issue.
Once all trust funds have been successfully moved, PEXA initiates reservation, followed by immediate settlement of funds. In the unlikely event that the end of day is reached and there are still insufficient funds, the settlement date and time is cleared for all workspaces. Importantly, all subscribers in each of the linked workspaces will receive timely notifications at each stage of this process.
Proprietor on Title: Add Linked Destination Financial Line Item in Preceding Workspace
- Navigate to the Financial Settlement screen for the selected workspace.
- On the Financial Settlement Schedule, select the Destination tab.
- Click Add Destination button.
- Select the Linked Financial Settlement in the Account Category field.
- Select the Linked Settlement type. Link workspaces here for either simultaneous (up to ten workspaces can be chained) or sequential (up to three workspaces can be chained).
- Select Simultaneous (at the same time) if one cannot proceed to settlement unless all proceed. These must be scheduled for the same time and date.
- Select Sequential (after each other) if each proceeds to settlement before the next commences (earlier settlements cannot be unwound). These must be scheduled on the same date, at least one hour apart.
- Click Select Trailing Workspace button.
- Search for the Trailing workspace using the Subscriber Reference or Party Name.
- Locate the correct workspace and click Select.
- Enter the amount for the destination linked account. This is the amount that will be linked to the Trailing account.
- Click Save.
Result: The Linked Financial Settlement line item is created and added to the Destinations list screen.
Alternatively, the Incoming Proprietor Adds Linked Source Financial Line Item in Trailing workspace
Navigate to the Financial Settlement screen for the selected workspace.
- Select Sources tab.
- Click Add Source button.
- Select Linked Financial Settlement account Category.
- Select the Linked Settlement type. Link workspaces here for either simultaneous (up to ten workspaces can be chained) or sequential (up to three workspaces can be chained).
- Select Simultaneous (at the same time) if one cannot proceed to settlement unless all proceed. These must be scheduled for the same time and date.
- Select Sequential (after each other) if each proceeds to settlement before the next commences (earlier settlements cannot be unwound). These must be scheduled on the same date, at least one hour apart.
- Search for the Preceding workspace using the Subscriber Reference or Party Name.
- Select the correct workspace and click Select.
Note: For Simultaneous Settlement, a message is displayed if the Settlement date and time is not the same for the linked workspaces. The link can be saved, but please ensure that the settlement date and time is updated. Settlement will not proceed unless all workspaces have the same date and time.
- Enter the Source Amount.
- Click Save.
Result: The Linked Financial Settlement line item is created and added to the Source list screen.
Linked Financial Settlement Tab
You can view all the details pertaining to workspaces with linked financial settlement via the Linked Financial Settlement tab.
- Navigate to the Financial Settlement screen for the selected workspace.
- On the Financial Settlement Summary, select the Linked Financial Settlement tab.
Linked Financial Settlement tab
All details for linked financial settlement workspaces are displayed on the Linked Financial Settlement tab. The associated workspaces are displayed according to their relationship to the current workspace:
- Preceding Workspaces
- Current Workspace
- Trailing Workspaces
Details for each linked financial settlement includes your Subscriber reference for the workspace, the Settlement link type (Simultaneous or Sequential) and the Workspace status. Importantly, this is where you can also see the date and time for each workspace. All new link requests are displayed on this screen.
(Referencing PEXA CR624)
User-friendly system
A quicker and easier way to enter address details
Thanks to your valued feedback, with this release you will have the ability to create and manage addresses either at the Party level, or now directly within your documents. Address input fields and categories have also been streamlined, making it easier to complete address information across the PEXA System.
New Digital Signing plugins for Fire Fox and Internet Explorer
While PEXA is a browser based platform, to digitally sign documents using your PEXA Digital Certificate (USB Device), you do need to install some additional software. This installation process has been streamlined across all popular browsers, adding Fire Fox and Internet Explorer to the existing Google Chrome installation process.
Automatic Representation of Frequently Represented Parties
Subscribers leveraging the Frequently Represented Parties functionality will see some immediate improvements that assist in representation of parties. Now, with Release 5, if a party record is returned from the land registry against a title, and they exist in your Frequently Represented parties table, PEXA will automatically assign representation for you on the Participants screen.
- A quicker and easier way to enter address details
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Thanks to your valued feedback, we are improving the way in which address information is entered in the PEXA System.
Address input fields and categories have been streamlined. Addresses have also been more closely aligned to the type of transaction you are processing. And with this release, you will have the ability to create and manage addresses either at the Party level, or now directly within your documents.
Adding an Address
Address details can now be added either alongside either a Party record, or directly within the Document you are processing in PEXA.
Party Address details
Address details can be added alongside a Party record via the Participants screen. These address details are then referenced in your documents.
Party screen> Address details
Multiple addresses can be entered against a Party record. Each address entered is assigned a label that helps you identify the address later.
Labels can include:
- Residential Address
- Investment Property
- Work Address
- Other
Document screen> Address Details
When completing a document, you are prompted to select which address you would like to use. From the Document screen, you can now either select an existing address record, or create a new address.
The new Add Address button means you no longer have to return to the Participants screen to create the record. The new record can be created and aligned with the correct Party record immediately, ensuring you can continue processing your document with minimal interruption.
New Add/Edit Address Details form
Address types now include:
- House
- Unit / Apartment
- Land
- Commercial Property
- Correspondence Address
- Overseas Address
- Non-Standard Address
Most Commonly Used Selections
When completing address details, list options are now clearly divided into two sub-categories:
- Most Commonly Used
- Others
This helps reduce the complexity of choice presented, with the most common selections placed at the top of the list.
The new form provides an improved and consistent address entry experience across the PEXA System.
Smart Field Selection
Smart field selection now allows you to enter the characters 'Ro' or 'Str' in Road name field. This streamlines the data entry and avoids the requirement to click on a list of values, scroll and select 'Road' or 'Street'.
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(Referencing PEXA CR611)
- VIC: Lodgement override capability has been extended to include Stamp Duty
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For settlement transactions in the jurisdiction of VIC, the lodgement override capability has been extended to include Stamp Duty.
If selected, the Override Stamp Duty and Lodgement function advises PEXA to proceed with settlement in the event that communications with the VIC SRO or Land Registry cannot be obtained at the time of settlement.
Post settlement, PEXA will continue to re-try Stamp Duty verification and Lodgement until the communications exception is resolved and the dealings are submitted for stamping and lodgement.
For more details, please refer to the Setting Stamp Duty and Lodgement Override article.
(Referencing PEXA CR477) - New Digital Signing plugins for Fire Fox and Internet Explorer
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PEXA is working on a wide ranging project focusing on improving the experience of our digital certificate software. The first part of this large project has begun. Firstly, we are looking at moving away from using JAVA plugins. With the move by Google Chrome to remove support for JAVA, based on some earlier security vulnerabilities, we developed a simple to use and secure digital installation process. We would now like to move this new technology to both MS Internet explorer and FireFox browsers, so that all users are on a consistent, secure and easy to use digital certificate software package.
With Release 5, we are looking to pilot our new digital certificate installation process for those using Internet Explorer (IE) and FireFox on Windows.
Note: All subscribers not engaged in this pilot will continue to use the Java based installation. There is no risk to security using this installation. Only once we gather your feedback and this pilot is deemed a success will we look at moving all PEXA subscribers away from the Java file installation to the new install.
If you are interested in joining the pilot group, please review the installation instructions and contact us via the community article.
- QLD: A new email field on the QLD Form 24 document to align with the newly updated paper form
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Subscribers in QLD can now add an email address to the Form 24 document, aligning PEXA with the newly updated paper form.
(Referencing PEXA CR628)
- Automatic representation of frequently represented parties
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Subscribers leveraging the Frequently Represented Parties functionality will see some immediate improvements that assist in representation of parties.
Subscribers who are frequently representing organisations in PEXA have the ability to add parties they represent in the roles of:
- Mortgagee on Title
- Proprietor on Title
- Incoming Proprietor
- Incoming Mortgagee
- Incoming Caveator
You can then select a frequently represented party when you create a Party record in a workspace.
Now, with Release 5, if a party record is returned from the land registry against a title, and you have entered this party, in that role, in your Frequently Represented parties table, PEXA will automatically assign representation for you on the Participants screen.
Scenario:
- A Representative Subscriber is acting on behalf of a bank, and they are processing discharge of mortgage documents for the bank in the role of Mortgagee on Title.
- They add the bank’s name under Frequently Represented parties in the role of Mortgagee on Title.
- Now, with automatic representation, when a title added to a workspace returns from the Land Registry with the represented bank on title, the representation is automatic.
- The representative subscriber can go to the Participants screen to view this representation.
(Referencing PEXA CR673)
- SA – CAVEAT IMPROVEMENTS
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PEXA is improving the process when subscribers, transacting in the jurisdiction of SA, are creating a caveat as an ‘Administrator’ to protect the interest of a Proprietor on Title who is a ‘Protected Person’.
With this improvement, you no longer have to create the Proprietor on Title party again as an Incoming Caveator (who has a ‘party capacity’ of a ‘protected person’).
Now, the improved process is:
- Create a new workspace in the role of Incoming Caveator
- Create the Incoming Caveator party you represent and add a party capacity of ‘Administrator’
- Select the Registered Proprietor/Caveatee as the Caveatee affected by the Caveat (no capacity)
- By virtue of the Claim Type selected, the land registry determines that the Caveatee must be ‘a protected person’ and then renders this correctly on the Caveat template.
(Referencing PEXA CR718)
- NSW - Expanded scope for valid estate types
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Perpetual Leasehold, Mineral and Leasehold Estate Titles will now be able to be electronically traded in PEXA in the jurisdiction of NSW.
(Referencing PEXA CR663)
- marking and identifying the transaction type for a workspace
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Many of our subscribers, especially the financial institutions, highlighted a requirement to clearly identify the transaction types in PEXA. Importantly, they wanted to clearly identify a Transfer workspace, so they can quickly respond to time sensitive nature of the transaction.
Marking and identifying a workspace with the type of transaction directly helps improve workflow, allowing team leaders to easily allocate specific workspaces to appropriate teams, along with improved reporting.
With Release 5, when creating a workspace that includes financial settlement, you are now prompted with a simple question, Will this transaction involve a Transfer?
- Select Yes for Transfer transactions.
- Select No if the workspace isn’t for a transfer transaction (for instance, a refinance transaction)
The workspace is then clearly identified on Your Dashboard as either a Transfer or Non-transfer transaction.
Note: Workspaces without financial settlement, like standalone caveats or discharges, are automatically assigned the label of Non-transfer.
(Referencing PEXA CR695)
- Improved bpay reference validation
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To provide greater confidence when entering your financial line items, we are improving the automatic checks against BPAY Reference data entered in PEXA. These detailed checks help reduce the chance of invalid BPAY payment details entered into PEXA.
(Referencing PEXA CR664)
- nsw caveats - service of notice address can now be australia wide
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PEXA will now align with recent NSW Land Registry changes to allow the Service of Notice Address on the NSW Caveat to be an Australian wide address. This was previously limited to NSW addresses only.
(Referencing PEXA CR611)
- removed the requirement for date of birth when completing caveats
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To assist in the creation of Caveats and Withdrawal of Caveats in PEXA, we have removed the requirement to capture Date of Birth for the relevant parties on the Party screen. This field is now optional.
(Referencing PEXA CR729)
- improved telephone number fields
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The Telephone Number fields throughout PEXA have been improved. We now cater for a wide range of different formats, ranging from mobile phones, land lines and international numbers. We also clearly identify the required formatting and assist you in the completion of the number.
(Referencing PEXA CR631)
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