The introduction of PEXA
- Published: March 6, 2020
- Author: Alex Stapleton
E-conveyancing is part of Australia’s national commitment to leading digital innovation within the property world. In 2010 the Council of Australian Governments introduced Property Exchange Australia (PEXA) with the purpose of creating an online property exchange network supporting lawyers, conveyancers and financial institutions and enhancing the regulatory framework for e-conveyancing in Australia.
Through a shared online platform, PEXA allows authorised participants to electronically lodge documents with state land registries and transfer monies to the relevant authorities and vending parties.
Whilst the Council of Australian Governments allowed for the transition from paper to electronic transactions between 2017 and 2019, the traditional paper and manual processes are no longer available unless they fall under an exception of the state’s land registry.
What are the benefits of PEXA?
The leading benefit is PEXA’s shared workspace and pre-lodgement verification allowing participating parties to access quick and accurate information before proceeding to settlement. This allows for surety and confidence amongst Purchasers and Vendors.
As a participant, you can see the development of the counterparty and/or participating financial institutions. This minimises the manual processes and undue paperwork traditionally involved in a property transaction required to be completed and exchanged between the contracted parties.
Lastly, payments made through PEXA are instantaneous allowing relevant authorities and the vending party to access their funds upon the completion of settlement.
How is PEXA secure?
PEXA’s safeguards have significantly increased since its introduction. Whilst no online system is infallible, PEXA has incorporated a strict, multi-factor authentication process across its infrastructure to ensure that only authorised individuals and firms can use the system, finalise outgoing and incoming trust payments and complete transactions.
The shared workspace also reduces the risk of internal and external errors and delays compared to the un-conventional paper-based systems and processes.
To support PEXA’s online security, solicitors and conveyancers have implemented stringent procedures when communicating account details and sensitive information. Such information is always confirmed via written and verbal correspondence to ensure that the information and financial data of Purchasers and Vendors is safe and secure.
Together, e-conveyancing and PEXA have delivered benefits and security to the property world with further advancements expected over time.
Should you require assistance with your purchase or sale of residential or commercial property, please feel free to contact Asparq Legal.
The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such require specific examination. Asparq cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.