What can I do?

Encumbrances can be lodged and discharged electronically in South Australia through PEXA. A ‘lift and replace’ of an Encumbrance is also supported.

The roles of Incoming Encumbrancee or Encumbrancee on Title can be invited into a PEXA Workspace.

Using PEXA’s file upload functionality, supporting Encumbrance Covenants can be uploaded and attached to a PEXA Workspace as part of a lodgement case.

An Encumbrance is registered on a title as a restriction regarding the use of the land. It is a covenant that secures the payment of money (e.g. a rent charge or an annuity) with associated covenants creating obligations on the parties that often restrict or forbid certain acts in relation to the property.

Frequently an Encumbrance will include covenants that are personal to the parties and do not run with the land. On the transfer of the land, the covenants that run with the land bind the new proprietor but the covenants personal to the outgoing proprietor cannot. However, a mechanism (often referred to as a ‘lift and replace’) has evolved whereby the Encumbrance includes a (personal) covenant that the outgoing proprietor will be discharged if the incoming proprietor enters into a new Encumbrance in the similar terms as the existing Encumbrance. At settlement, the existing Encumbrance is discharged (i.e. lifted) and a new Encumbrance in the purchaser’s name is registered (i.e. replaced).

Learn more about Encumbrances, including how to lodge or discharge an Encumbrance in PEXA here.


What does this mean for me?

Lodging and/or discharging an Encumbrance through PEXA provides a more streamlined, efficient process. Document creation and preparation is simplified, enabling you to more quickly and easily lodge or discharge an Encumbrance.

Additionally, PEXA performs routine lodgement verifications on all documents within a lodgement case to minimise any risk of lodgement failure. Within a PEXA Workspace, the ability to view all documents associated to a lodgement case provides all participants with greater visibility and thereby reduces the risk of settlement failure.

Once prepared, the Encumbrance will be lodged in real-time with the Land Registry, giving you greater certainty that the Encumbrance is recorded on title as soon as it is needed.

Encumbrances are often lodged by developers on the title of each allotment when dividing a parcel of land for a new development. PEXA members who represent developer clients can complete the settlement of development projects using PEXA Projects – functionality that enables the efficient coordination and execution of the settlement for multiple lots within property developments.

Encumbrances can be lodged and discharged within PEXA Projects Workspaces – further simplifying the settlement process for multi-lot developments.


What are the costs?

The PEXA fees for each Encumbrance lodged or discharged in PEXA can be found in our pricing schedule.

View Pricing