Property settlements to go electronic
The era of physical title and bank cheque exchanges during property settlements may be over with the introduction of an online property platform.
Property Exchange Australia (PEXA) is to be the real estate equivalent of the Australian Stock Exchange (ASX), according to a Marcus Price, chief executive officer of the system’s developer, National e-Conveyancing Development Limited (NECDL).
“It’s a similar process the ASX went through when they went from share script to a digital register,” Price says.
“It’ll be available to solicitors, conveyancers and banks as an electronic interface rather than the present paper-based system and we think it will be substantially cheaper than current conveyancing.”
Price says the system will be a world first.
“There are electronic lodgement systems in places like New Zealand… but we’re the first ones doing electronic settlement and lodgement concurrently.”
Information released by NECDL indicates PEXA will allow for transactions like new mortgages, mortgage discharges, transfers, settlements, caveats and notices to be carried out online.
Price says state governments and financiers are on board with the program.
“We currently have operating contracts with two of the registries in Victoria and New South Wales, as well as having contracts with three of the major banks.”
NECDL sees the systems implementation as a seamless process for property settlement.
“In an effort to provide the conveyancing and legal market with an end-to-end solution, PEXA will be integrating with information brokers such as InfoTrack to ensure effective and easy uptake of electronic settlements.”