On Monday 11 October 2021, NSW will move to 100% eConveyancing by retiring paper titles and CoRD holder consents – providing a pathway for all documents to be digitally lodged. There are new conveyancing rules to support the change available here.
The industry is working together to ensure there is a smooth transition to this significant milestone. There are some important things to note to support this change:
The term “Paper Dealing” will be replaced by “Dealing with Exception” (DwE) in PEXA
New Lodgement Rules will be announced shortly, detailing waivers to the conveyancing rules here
There will be two settlement pathways for Dealings with Exception:
DwE Physical Settlement between parties and responsible subscriber uploads the documents in PEXA; or
DwE Digital PEXA Settlement where each party uploads their respective documents in PEXA (as per usual) Please ensure that you include in the PEXA invitation, under notes: This is a dealing with exception workspace and follow up in the conversation tool within PEXA.
How to transact a Dealing with Exception (DwE)
Financial Institutions have advised that documents required to be lodged as a DwE will require a physical settlement and the Responsible Subscriber (typically the Incoming Mortgagee), will lodge all documents post settlement through a PEXA Workspace. (Note: where there is no Incoming Mortgagee in a transaction, the responsible subscriber would be the Incoming Proprietor).
Financial Institutions are working towards being able to support a digital settlement and we will communicate this date as soon as we can. Note: if you are unable to attend a physical settlement, please contact the Incoming Mortgagee as early as possible to discuss alternatives.
Process for a DwE Physical Settlement involving Financial Institutions:
Financial Institution initiates contact regarding a settlement
Other parties respond as early as possible advising a DwE is required
All parties prepare and complete a physical settlement
Responsible Subscriber creates the Workspace and a PEXA “Dealing with Exception” document for each instrument in the Workspace. Each paper instrument is uploaded and attached to the corresponding PEXA document
Responsible Subscriber submits the Lodgement Case
Only one scanned paper instrument can be uploaded per PEXA document
The order of lodgement must be correct, e.g. Discharge – Transfer – Mortgage
If one DwE is required, all documents in the lodgement case must be created as DwE’s
Ensure attachment is a pdf with no password or encryption
DwE transactions without an Incoming Mortgagee can proceed and the Incoming Proprietor will be the Responsible Subscriber
Participants in a DwE workspace should be advised of a DwE transaction in the invitation notes (eg DwE – discharge deceased from mortgage), and by sending a conversation
In the future, we hope to be able to lodge a hybrid of standard PEXA documents and DwEs. Work on this is underway with NSW LRS.
Residual Document or DwE
Residual Document or DwE
For further information about this important change, please refer to: