Licensed conveyancers who wish to settle property transactions online must use the national electronic conveyancing system operated by Property Exchange Australia Ltd (PEXA).
To conduct electronic settlements, you can use your own general trust account linked to PEXA or transfer your clients’ funds to a financial institution, if it is a subscriber to PEXA.
If your financial institution is not subscribed with PEXA or your trust account is not linked to PEXA, you can transfer electronic funds to the PEXA source account. This is an account in the name of, and administered by PEXA, that can receive funds from external parties.
Under the Sale of Land Act 1962, you can only transfer deposit money from a trust account to the PEXA source account if your client expressly directs you to.
If you do not have a trust account, your client can also transfer funds or deposit a cheque directly into the PEXA source account.
You must have your client’s authority to issue directions to PEXA to disburse any funds held upon settlement.
If you use the PEXA source account, be aware that:
- PEXA limits its liability in various circumstances. You should review those terms and obtain your own legal advice before using PEXA's services
- your client or the buyer may only be entitled to claim on the Victorian Property Fund (VPF) if you are responsible for the loss
- it is not a trust account under the Conveyancers Act 2006 and is not subject to the audit regime of the Act, and
- interest on the account accrues to PEXA, not the parties to the transaction or the VPF.
For more information, visit the PEXA website.
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