Last year the ACT government introduced legislation which will permit settlements to be conducted through an online electronic conveyancing solution, such as PEXA. The first electronic conveyance is likely to be completed towards the end of the year starting a dramatic shift in how practitioners in the ACT complete settlements.
Currently, the ACT conducts physical settlements in which all parties to the transaction (incoming and outgoing banks, seller solicitor and buyer solicitor) attend in person to complete the transaction. The buyer solicitor will organise for bank cheques to be drawn on the morning of settlement and handed to the seller solicitor in return for title to the Property.
The process means that there is potential for settlements to be delayed. On rare occasions one of the parties might be unable to attend, or the settlement figures need to be adjusted at the last minute. This can mean the settlement needs to be postponed by at least a day. This is often at the expense of the client.
The electronic settlement platform will significantly minimise the chance of these issues arising. The PEXA platform means there is no physical settlement, no bank cheques are required, and any last minute adjustments can easily be balanced in the hours and minutes leading up to the settlement.
In addition, PEXA has electronic transfers allowing clients to receive their sale proceeds faster. Normally a bank cheque is collected on settlement. The bank cheque is often unable to be banked until the next business day, and there is 3-5 day wait until the money clears in the client’s account. After a PEXA based settlement, the funds are transferred immediately, meaning the client can receive their funds within 24 hours from the settlement.
Chamberlains already conduct all NSW transactions through the PEXA platform and we are ready and excited to be conducting ACT transaction through PEXA shortly.
PEXA is an exciting and positive step forward for conveyancing in the ACT which will benefit practitioner and clients alike.