Spending two minutes reading this simple overview of using PEXA when acting for a vendor will help you understand how e-conveyancing works.
At first glance, e-conveyancing may look and feel quite different to the traditional paper process. However, apart from a few timing and logistical differences, the process is actually a familiar one. Here, we highlight the key differences when acting for a vendor in PEXA so you can transition to e-conveyancing with ease and confidence.
Updating the contract of sale
The contract is still prepared and exchanged in the same way as with the traditional paper process. However, a provision covering electronic conveyancing should be included in the contract. Your local Law Society or REI owns the contract in all states except SA, where it is AIC. Check your templates – some older versions may not include this important clause.
Obtaining client authorisation to sign
To conduct a conveyance electronically, you’ll need to obtain written authorisation from your client. The Client Authorisation form allows you to sign documents on your client’s behalf, submit documents for lodgment with the relevant Land Registry and do anything else necessary to complete the transaction digitally. You can download the form from the ARNECC website. PEXA also provides a sample engagement letter that you can send to your clients.
Using digital Workspaces
Opening a new digital Workspace in PEXA is straightforward.
You enter basic vendor and property details and schedule in a settlement date. This means you’ll stay organised by booking in settlement well ahead of when you otherwise would in the traditional conveyancing process. You then invite the mortgagee on title (if any) and the purchaser into the shared online Workspace.
Saving time on pre-settlement tasks
The transfer document is signed quickly and efficiently by the representatives of the vendor and purchaser with a digital signature.
Before settlement, you’ll need to enter the Workspace to check the settlement figures provided by other parties. You will also enter destination line items and sign the Financial Settlement Schedule. There’s no need to call the bank to chase a payout figure – PEXA prompts the outgoing mortgagee to enter all necessary information into the Workspace. The banks will add the payout figure the day prior or on the day of settlement. You can also input the vendor’s banking details so that the money automatically transfers to their nominated account, instead of your client receiving a bank cheque. Your client could receive funds on the same day as settlement.
Saving time on settlement day
With no physical settlement to attend, you can now grab a coffee, sit back and watch the settlement happen instantly on-screen. Or you can let it go ahead in your absence while you move on to the next thing on your list.
It’s important to remember we’ve highlighted the PEXA differences, to help explain how e-conveyancing actually works. Rest assured, the overall process will still seem very familiar. Want to know more? We have a simulator that can take you through a transaction representing the vendor in more detail.
Would you like to start transacting electronically? You can access all the resources you need any time in PEXA’s Help Centre. Contact firstname.lastname@example.org and request a PEXA Direct Specialist to help you learn how to use the system.
Author: Libby Hakim