REIQ Contracts allow for 2 forms of settlement:
- The traditional form of settlement where the parties (through settlement agents) attend settlement and exchange the settlement documents and the settlement cheques.
- Electronic settlement through an online platform known as PEXA (Property Exchange Australia).
In order for an electronic settlement to take place it is necessary for both the seller and the buyer to agree to settle electronically and for their respective solicitors to be registered with PEXA.
Not all solicitors are registered with PEXA. Quinn & Scattini is registered with PEXA and this month became accredited by PEXA as a certified PEXA user.
There is a fee payable for using PEXA for settlement.
The advantages in using PEXA include:
- there is no requirement to physically attend settlement,
- there are certain savings such as a settlement title search, bank cheque fees and settlement agents fees,
- settlement funds are sent electronically and should arrive in the recipients’ account on the day of settlement or the business day after (settlement cheques take 3 business days to clear), and
- documents are checked by the Titles Office before settlement and will register immediately following settlement.
PEXA has a platform specifically designed for developer lot sales to make the electronic settlement of large developments easier
Electronic settlements became compulsory in NSW on 1 July 2018. Electronic settlements are not compulsory in Queensland as yet but may became compulsory in the future.
Quinn & Scattini are able to assist clients with electronic settlements in Queensland and NSW as well as developers with large projects.
We are available to meet with you at any of our local offices (Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba) or by telephone or video-conference.
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This update is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.