What Is PEXA and How Does Digital Settlement Work in NSW?

Remember when property settlements involved everyone sitting around a table exchanging enormous bank cheques and stacks of paperwork?

The frantic phone calls. The yelling across the settlement room. The last-minute scramble when someone’s bank cheque was wrong.

We might be in the minority here, but we actually miss it.

There was something strangely satisfying about the chaos, the adrenaline and finally walking out knowing you’d pulled off another settlement.

These days, property settlements in NSW are completed electronically, usually through a platform called PEXA.

It’s faster, more efficient and considerably less dramatic.

Although, for those of us who remember the old settlement rooms, perhaps just a little less exciting.

What is PEXA?

PEXA (Property Exchange Australia) is an electronic conveyancing platform used to complete property settlements.

Instead of everyone physically meeting to exchange cheques and documents, the parties involved in your transaction, including the conveyancers, solicitors and banks work together in a secure online workspace.

Through PEXA, settlement funds are transferred electronically and the relevant documents are lodged with NSW Land Registry Services.

You don’t need a PEXA account or to log in yourself. That’s our job.

How does digital settlement work?

Before settlement day, we coordinate with the other parties through the PEXA workspace to prepare everything needed for completion.

This includes:

• Preparing and checking the transfer documents.
• Liaising with the incoming and outgoing banks.
• Confirming settlement adjustments and financial figures.
• Arranging for funds to be available and distributed correctly.
• Ensuring the necessary documents are signed and ready for settlement.

Once everything is ready, settlement is scheduled to take place electronically.

If all parties and banks are ready, the funds are transferred and the documents are lodged.

No bank cheques. No settlement room. No running across Sydney with a folder of paperwork.

What happens on settlement day?

For buyers and sellers, digital settlement in NSW is generally fairly straightforward.

You don’t need to attend settlement or sit in front of your computer watching PEXA.

We’ll monitor the process and let you know once settlement has been completed.

If you’re buying, we’ll also notify the agent so they can release the keys.

If you’re selling, we’ll provide the agent with an Order on Agent following settlement, authorising the release of the deposit held in their trust account, less any agreed deductions such as the agent’s commission.

One important point: don’t assume settlement will happen at the exact scheduled time.

Banks can be delayed, figures can need adjusting and occasionally technology decides it has other plans.

That’s why we generally recommend avoiding booking removalists for settlement day if you can.

Nobody wants a removalist truck parked outside a property you don’t legally own yet.

What do you need to do before settlement?

Most of the preparation happens well before settlement day.

We’ll guide you through the necessary paperwork, including your Verification of Identity (VOI) and Client Authorisation, which allows us to act electronically on your behalf.

If you’re purchasing with finance, you’ll also need to complete your lender’s requirements and ensure any additional funds needed for settlement are available when required.

And don’t forget your pre-settlement inspection if you’re purchasing. It’s your opportunity to check the property’s condition before completion.

We’ll take care of coordinating the legal settlement process and keep you informed along the way.

Can a PEXA settlement be delayed?

Yes.

Electronic conveyancing has made settlements much more efficient, but it hasn’t eliminated every possible delay.

Banks can run behind, funds might not be ready or another party in the transaction may not be prepared to settle.

And occasionally PEXA itself experiences technical issues.

We monitor the workspace, liaise with the relevant parties and work to resolve issues as quickly as possible.

Because while we love technology, we’re still waiting for the version that makes banks move faster.

Does your conveyancer need to be local?

Not necessarily.

Because PEXA settlements are completed electronically, your conveyancer doesn’t need to be physically located near the property.

At MG Conveyancing, we act for clients buying and selling property across NSW, with offices in Sydney and on the Central Coast.

We can arrange electronic signing and remote appointments where appropriate, making the process convenient wherever you are in Australia.

Buying or selling property in NSW?

PEXA has made the mechanics of settlement easier, but there’s still plenty happening behind the scenes.

At MG Conveyancing, we coordinate the paperwork, banks, settlement figures and electronic completion so you don’t have to.

Our favourite kind of settlement? The boring kind.

Everything ready, everyone on time, keys released.

Just the way we like it.