A two-minute overview on how to complete a purchase in PEXA will introduce you to some common e-Conveyancing processes.
While it may feel different, many elements remain the same when you change from traditional conveyancing to e-conveyancing. This simple overview explains how you will act for a purchaser in PEXA.
You'll open a digital Workspace and input data
Typically, the first thing you’ll do when representing a purchaser in PEXA is accept an invite to join a new digital Workspace. However, you may also create the Workspace yourself and invite the vendor’s representative.
PEXA allows you to schedule a settlement date much earlier than you otherwise would in the traditional process. Whoever creates the Workspace will propose a settlement date and time, which can be accepted by the other participants once they are invited into the Workspace. Alternatively, the other participants can propose a new settlement date and time. If your client is borrowing money to complete the purchase, you’ll be able to invite your client’s lender into the Workspace as well. The settlement date and time is arranged without the need for a lengthy phone call to the bank. Re-booking is as simple as sending a new request, which the notifications tab allows you to easily track.
Signing on behalf of clients
When taking initial instructions, you’ll need to get your clients to sign a Client Authorisation form. This allows you to transact and sign documents digitally on their behalf.
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.
Creating the digital transfer document
You will still receive and exchange the contract in paper format. However, with PEXA you can then go ahead and create the transfer document in PEXA. As the industry moves towards a 100% digital process, e-Contracts will become the norm.
Digitally signing the transfer
By digitally signing the transfer and other registry documents, you can be sure there’s no chance of anything going missing or a mail delay causing stress around settlement. You can also be sure that the documents will be accepted for lodgement on settlement, thanks to PEXA’s in-built checking system.
Saving time preparing for settlement
You will prepare the statement of adjustments as you normally would, however there’s no need to prepare cheque directions. You’ll go ahead and create the source and destination line items (such as third party rates and your fees) in PEXA. If funds are to be contributed to settlement on behalf of your client, then instead of arranging a trust cheque, or asking your client to arrange a bank cheque, you’ll simply make sure the money is sitting in your trust account or the PEXA Source Account prior to settlement. PEXA also pre-populates some line items for your convenience, so you only need to check them -- these include stamp duty, lodgement fees and PEXA fees.
Saving time on settlement day
With PEXA, there’s no need to leave the office to attend a physical settlement. Once all the tasks have been completed before settlement, you really don’t need to do anything else. Except perhaps enjoy a well-earned coffee break.
Like most things, you’ll learn the process even faster once you start to apply your knowledge in practice. If you’d like to have a practice run, our simulator can step you through a purchase process.
Would you like to start transacting electronically? You can access all the resources you need any time in Help & Community. Contact firstname.lastname@example.org and request a PEXA Direct Specialist to help you learn how to use the system.
Author: Libby Hakim