Progress with Electronic Settlement

Why is electronic settlement such a good thing for buyers and sellers?

1. Once an electronic settlement has been made Ready by all of the parties involved, it is virtually certain that it will proceed to successful completion. This is quite unlike a manual (or paper) settlement, where if any document or cheque is found to be incorrect or missing at the settlement meeting, then the settlement can fail causing significant inconvenience, delay and costs.

2. Cheques are not used, all payments are made by EFT. Buyers don’t have to go the bank to obtain bank cheques, and sellers are able to draw on their proceeds within an hour of settlement, rather than waiting three days for funds to clear. Payments to authorities (Council, Water Authority, Owners Corporation) are also made by EFT, and so buyers can be more confident that their new property does not have inherited debt.

3. The buyer becomes the registered proprietor (legal owner) of the land at settlement, as the electronic documents (Discharge of Mortgage, Transfer, Mortgage) are lodged at and registered by Land Victoria during the electronic settlement process.

4. The provider of the electronic settlement platform (Property Exchange Australia) has an application called PEXA Key. If you have registered as a user of this app, you will be advised automatically when settlement is complete.

For more information, please contact our professional and trusted conveyancer at (03) 9815 2351.