What happens at Settlement?
In order to complete financial settlement, PEXA electronically sends instructions, to payment integrated Financial Institutions involved in the transaction, as well as the RBA. As the funds are exchanged, confirmations are sent back to PEXA, which are then reflected in the Workspace Summary. The following provides an outline of the settlement process and the information provided in the Workspace Summary.
- Workspace must be in READY/READY status before settlement time.
- All documents must be Signed.
- Financial Settlement Schedule must be signed and balanced.
- At settlement time, the following happens:
- The Workspace locks.
- The Financial Settlement Status moves to Settling.
- If a trust account is involved, a Source Funding instruction is sent to the bank.
- Once Source Funding is complete, Reservation is sent to the RBA (runs every 2 minutes).
- Once an RBA Reservation is received:
- Lodgement Request is sent to the Land Registry.
- Lodgement status moves to Lodging.
- Once Lodgement is complete, the Lodgement status moves to Lodged.
Note: The Land Registry will commence reviewing documents.
- Once Lodgement status is Lodged, Settlement Response is sent to the RBA (runs every 2 minutes).
- The RBA will send a response once the Settlement Request has been processed.
- When the Settlement Response has been received Financial Settlement status will move to Settled - at this point Financial Settlement has been successfully and irrevocably completed.
- Once Settlement at RBA is complete, disbursement will commence, Financial Settlement status moves to Disbursing. Disbursement batch runs every 10 minutes.
- When the Land Registry has completed reviewing the documents and has provided a final status for the documents (e.g. registered or rejected) the Lodgement status will move to Completed.
- When all banks involved in settlement have returned Disbursement responses, the Financial Settlement status will move to Disbursed.
Completing the Getting Started with PEXA program? See whats next.
Now that you've mastered completing a transfer electronically, learn about how you can complete linked settlements electronically by reading the article Linked Financial Settlement.
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