E-conveyancing as touted by PEXA is coming to WA soon, but just to clarify some points of misconception around e-conveyancing in Perth WA;
- Nomenclature; the misnamed “e-conveyancing” does not encompass the entire process of transferring property into some other persons name. Merely the electronic equivalent of the final stage of the conveyancing process often referred to as “settlement” which includes booking, title check, attending settlement, lodging title forms, and funds distribution. Thus more apt term would be “e-settlement”. That process (at least in current manual process) is usually carried out by an ‘Outside or junior settlement clerk’.
- ‘e-settlement’ cost is additional to current manual process. Each party is liable for PEXA fees just for using it. This fee will be charged to each applicable party and their representative i.e. Outgoing lender with their Discharge of Mortgage(financial $38.70) the Seller Transfer Title PEXA fee ($104.50) the Buyer Transfer Title PEXA fee ($104.50) plus any applicable New Mortgage (financial $51.70). The fees are charged to each representative at settlement. There are additional fees for Caveats and Notices etc. source: https://www.pexa.com.au/pricing-schedule It is also worth noting that each representative can accrue additional fees and charges in utilising the searches and other features of their sponsor in order to access the (Electronic Lodgment Network Operator -E.L.N.O) PEXA network; yet to be advised.
- The only saving in e-settlement might be the time taken in arranging a booking for settlement, title check search, and funds transferral, for which each party will pay PEXA’s premiums. These fees will need to be passed on as additional disbursement to each e-settlement. We note an Outside Settlement Service fee (if applicable) and bank cheque fee & check search may be the only cost negated when compared to the manual settlement.
- All parties and their representatives need to be participants to be able proceed in the e-settlement environment. If the Parties sign the REIWA e-conveyancing Special Condition; The Seller needs to open the workspace, then notice needs to be served where any party or lender is not able to proceed in the e-settlement environment. Where able to proceed with e-settlement then the Seller needs to make the booking 1 week prior to settlement. This is reverse of the current procedure where the Buyer would be the usual first party to nominate booking time since it is usually requested and their lenders (Perth WA CBD) Settlement room or choice of venue if no incoming mortgage.
- Until PEXA is fully integrated (via their sponsors) with settlement Software solutions as used by your practitioner; not expected till much later in the year. Your practitioner may not be able to take advantage of any time or cost/benefits of e-settlement on your behalf, otherwise re-entry of data and information and additional re-checking may accrue extra time for each e-settlement.
For more information visit http://www.commerce.wa.gov.au/publications/settlement-industry-bulletin-issue-48-e-conveyancing-coming-western-australia-april or contact A1 Conveyancing to discuss your needs.
16/6/15 Just an update PEXA will already be increasing their fees from the above mentioned amounts come July.