Many people will have heard of the significant changes which have occurred with respect to the way we are now required to conduct property transactions. If you’ve bought or sold property this year, chances are you may have encountered some of these changes. Specifically, from 1 October 2018, property transactions are now conducted via an online property settlement platform. Online settlements are managed by PEXA (Property Exchange Australia), which commenced operating this settlement process in 2015. The advantages of online settlements include that purchasers will no longer need to pay for bank cheques and the vendor will receive their money more quickly as settlement funds will be paid by EFT from a secure bank account on the PEXA platform. Title documents will be registered almost immediately after settlement and there is no need for transfer documents to be signed by a vendor or purchaser; however verification of identity must be completed now by all vendors and purchasers and a client authorisation signed prior to the settlement process commencing. It is this signed client authorisation which allows the vendor or purchaser’s legal practitioner or representative to digitally sign the transfer documentation on behalf of their client within the online property settlement platform.
You may have recently have heard that PEXA has been subject to some cyber security issues or concerns however, in response to this, PEXA has made changes to the system and introduced new features to overcome these incidents and strengthen the security. This includes new users not being able to be set up on PEXA without strict verification requirements and a two factor authentication for existing and new users when they login and make changes. Whyte, Just and Moore have also increased our security processes by always telephoning clients to verify their account details for any transaction, amongst a number of other precautionary measures. We are excited about the future of property transactions with PEXA and our experienced and dedicated property team remain prepared and committed to assisting you with all your property needs.
Lydia Eastwood (formerly Lydia DeRaad)
Lawyer