How does electronic conveyancing and PEXA work?
Electronic conveyancing services like PEXA provide a fast, convenient and streamlined way to complete a range of essential property transactions.
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Electronic conveyancing provides a quick, simple way to complete the exchange of property. PEXA (Property Exchange Australia) is Australia’s online property exchange network and helps lawyers, conveyancers and other professionals lodge transfer documents with Land Registries and complete financial settlements digitally.
Let’s take a closer look at PEXA and the advantages of electronic conveyancing.
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What is electronic conveyancing?
Conveyancing is the process of transferring ownership of a property from one person to another, and it is a crucial factor to consider when buying or selling a property. Conveyancing includes the preparation, verification and lodgement of a range of important legal documents, conducting searches on the title of the property and arranging settlement.
Electronic conveyancing, or e-conveyancing, reduces the number of manual processes and the paperwork required with traditional conveyancing transactions. E-conveyancing allows conveyancers, lawyers and financial institutions to lodge important documents and arrange financial settlements digitally, ensuring a faster and more convenient conveyancing process.
What is PEXA and how does it work?
In 2010, the Council of Australian Governments (COAG) formed PEXA as part of its initiative to provide a national e-conveyancing platform for the Australian property industry. The aim of PEXA is to support the property industry as it moves towards a completely digital conveyancing process in the future.
PEXA has an extensive network of Australian property lawyers, conveyancers and financial institutions to help simplify the property exchange process. E-conveyancing is currently live in five Australian states, and PEXA provides a platform to carry out all the steps of conveyancing online.
Home buyers and sellers can search PEXA’s network of conveyancers and lawyers to find the right conveyancing professional to help them through to settlement. The conveyancer can then use PEXA to liaise with the home buyer or seller’s bank, conduct title searches, lodge documents and transfer funds to ensure a fast and smooth settlement. Payments are made digitally rather than via bank cheque. Automatic online document checks reduce paperwork errors, and documents are lodged instantly to make the process as quick and easy as possible.
How can I settle online with PEXA?
- When you visit the PEXA website, you can search its database of conveyancers and property lawyers who can handle the transfer of property through PEXA.
- Once you've found the right conveyancer, they can explain how the e-conveyancing process works and how much it will cost you.
- Your PEXA-registered conveyancer will show you how to settle your property transaction online.
- The main step will be to complete a client authorisation form, which enables your conveyancer to handle all your paperwork online.
- You will receive an email when settlement has been completed.
At the time of writing, there are more than 3,500 members on the PEXA network, and more than $33 billion worth of property has been successfully transacted online via PEXA. The network is only going to get bigger as the property industry works towards a 100% online system of property exchange.
So if you're buying or selling a property and you like the benefits of e-conveyancing, it's worth shopping around for a conveyancer who can help arrange the transfer of ownership online through the PEXA network.
What are the advantages of settling online?
The following are some of the advantages to settling the transfer of property online through PEXA:
- Less paperwork. From postage costs to delays associated with paperwork errors, the traditional method of offline conveyancing had many drawbacks. By eliminating the need for messy and time-consuming paperwork, e-conveyancing makes the process quicker and less stressful, and PEXA’s online document checks reduce the risk of errors.
- Faster. E-conveyancing speeds up and streamlines the conveyancing process. This means faster digital payments rather than waiting days for cheques to clear, and PEXA’s automatic online document checks provide greater certainty that your settlement will be completed on time.
- Save money. By moving every aspect of the conveyancing process online, e-conveyancing can reduce the costs involved when buying or selling a home.
- Peace of mind. When conveyancing is done manually, it can take days or perhaps weeks after settlement to lodge the documents registering your ownership of a property. E-conveyancing ensures that these documents are lodged instantly.
- Track your property settlement. Buyers and sellers who use PEXA can also take advantage of the SettleMe app, which helps you understand the finer points of settlement and allows you to track the process in real-time. Features include a personalised settlement checklist and instant alerts via SMS or email.
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