What are Electronic Settlements?
Put simply, an electronic settlement is a form of online conveyancing. It involves practitioners deciding to make a settlement via the electronic platform provided by PEXA – Australia’s regulatory framework.
What is PEXA?
Think of PEXA as the settlement‘s middleman’. This online conveyancing platform enables all involved – the lawyers, conveyancers and banks – to coordinate and process transactions with each other.
Online conveyancing mostly involves lodging documents and finalising settlements electronically. With PEXA being utilised in five states in Australia – WA included – it is a useful tool for individuals looking to purchase property interstate.
PEXA allows for those ‘in-person’ parts of the transaction to be performed virtually. Today, everyone is online, and so at Cape Settlements, we make a point of being on top of the latest requirements for electronic conveyancing – these continue to grow and change, so we’re constantly educating ourselves on the matter.
What are the Benefits of Electronic Settlements?
There’s a reason why Australia has switched to settling online opposed to offline. Not only does it offer more assurance, it provides greater protection for all involved. This is because all parties require registration with, and verification from PEXA, and so every transaction is highly secure.
By making your settlements online, you’ll no longer have to sort out any bank cheques – it’s easy for these to get lost, or to delay a settlement due to waiting on mail. Today, most banking is done online, and so it makes sense for settlement transfers to be put through through the same secure online channels, rather than a cheque.
Utilise PEXA and if you’re a buyer, within 24 hours the property will have been transferred to your name; there’ll be no need to wait for the bank to clear the funds. Electronic settlements also mean no bank cheque fees for the buyer or seller.
Online settlements and efficiency go hand-in-hand. Make a settlement online and immediately there’ll be less time and money spent running after mortgages. PEXA also requires every document to be registered online before a settlement is completed, so every piece of information you need is filed in one system. It’s also easier to monitor the distribution of electronic funds, which means that all parties involved will be well informed on a settlement fund’s status – no follow-up emails or phone calls needed.
When and Where can I Make an Electronic Settlement?
If you’re based in WA, you’ll be glad to know that electronic conveyancing is up and running here, so you can take advantage of it’s speed, efficiency and security for any of your property settlements. Something worth taking note of is that all manual settlement systems will eventually be paperless, and probably sooner than later…so for any upcoming settlement, it makes sense to get on board with PEXA.
Being accredited PEXA conveyancers, at Cape Settlements we are always up to date on how this online conveyancing platform works. Have us guide you through the system, and the settlement process will be done with utmost ease, security and efficiency. Contact us today and say goodbye to all the settlement paperwork, and all the waiting that comes with it.