In the manual world, there is a lodgement gap risk. This means that a late dealing on the title, in between settlement and lodgement, may impact registration.
In the electronic world, the gap is covered as PEXA now assumes responsibility for any loss incurred (subject to the conditions set out in the Participation Agreement) when a dealing prevents registration or takes priority, giving you and your clients greater peace of mind.
This applies to any intervening dealing between the last successful Title Activity Check (TAC) and lodgement. The last TAC must have taken place within 2 business days of the scheduled settlement.
In this case, PEXA will assume responsibility for:
- Any resulting difference in the land value;
- Legal fees incurred; and/or
- Certain other expenses that are incurred
There is no equivalent cover in the manual world. Your clients have the option to take out insurance but this would be at an additional cost.
For purchasers, this coverage is applied by default and is at no extra cost.
PEXA also reduces the gap between settlement and registration by lodging with the Land Registry in real-time.