Buying or selling property can involve a lot of paperwork, so you may be wondering:
“What is PEXA?”
“What actually happens on settlement day?”
“Do I need to attend settlement in person?”
In Victoria, most property settlements are now completed electronically. PEXA is one of the electronic lodgment networks used by conveyancers, lawyers and financial institutions to complete property transactions online.
PEXA provides a secure online platform where the parties involved in a property transaction can work together to prepare the transaction, complete financial settlement and lodge the relevant documents electronically.
For most buyers and sellers, this means you do not need to attend a settlement meeting in person.
What Is PEXA?
PEXA stands for Property Exchange Australia.
PEXA operates an online property settlement platform known as PEXA Exchange.
The platform allows lawyers, licensed conveyancers and financial institutions to collaborate electronically on property transactions, including transfers, mortgages and discharges of mortgage.
Instead of everyone meeting around a table with paper documents and bank cheques, the relevant parties can complete the settlement process through an electronic workspace.
What Is Electronic Conveyancing?
Electronic conveyancing is the electronic preparation and lodgement of property transactions through an approved Electronic Lodgment Network.
In Victoria, electronic lodgment is used for many types of land transactions, including transfers of land, mortgages, caveats, survivorships and other dealings.
PEXA is an approved Electronic Lodgment Network Operator.
Another electronic lodgment network is also available in Victoria, so PEXA is not the only possible electronic lodgment system.
What Is Electronic Settlement?
Electronic settlement means that the financial settlement and associated electronic lodgement are completed through an electronic settlement platform rather than by everyone attending a physical settlement.
For a typical property sale, the seller’s conveyancer or lawyer, buyer’s conveyancer or lawyer and relevant financial institutions work together in the electronic workspace.
The settlement process can include:
- Preparing the transfer
- Preparing financial settlement figures
- Confirming mortgage payout amounts
- Confirming adjustments
- Arranging payment of settlement funds
- Completing the electronic settlement
- Lodging the relevant documents with the Land Registry
- Disbursing funds after settlement
PEXA describes its platform as providing a shared electronic workspace where conveyancers, lawyers and financial institutions can collaborate on property transactions.
Do I Need to Attend Settlement in Person?
Usually, no.
One of the major advantages of electronic conveyancing is that buyers and sellers generally do not need to attend a physical settlement meeting.
Your conveyancer or lawyer manages the settlement process on your behalf.
PEXA specifically notes that electronic settlement removes the need for lawyers and conveyancers to attend settlement in person.
This is particularly convenient if you:
- Live interstate
- Live overseas
- Are working during the day
- Cannot easily travel to a settlement location
- Are buying or selling property remotely
What Does the Buyer Need to Do?
Although your conveyancer manages the electronic settlement, there are still important things you need to do as a buyer.
Depending on your circumstances, you may need to:
- Complete your identification requirements
- Sign relevant documents
- Arrange your loan with your lender
- Provide your conveyancer with required information
- Pay your contribution towards settlement funds
- Arrange building insurance where required
- Complete your final inspection
- Confirm that settlement can proceed
Your conveyancer will tell you what is required and when.
What Does the Seller Need to Do?
The seller also has responsibilities before settlement.
These may include:
- Providing identification information
- Signing the required documents
- Providing mortgage details
- Confirming discharge arrangements with the lender
- Providing information required for settlement
- Ensuring the property is ready for settlement
- Vacating the property in accordance with the Contract of Sale
- Handing over keys in accordance with the agreed arrangements
Your conveyancer will coordinate the settlement requirements with the buyer’s conveyancer or lawyer and any relevant financial institution.
What Happens Behind the Scenes?
A lot of work happens before the actual settlement time.
The conveyancers or lawyers may need to:
- Review the Contract of Sale and Vendor Statement.
- Obtain and review title information.
- Prepare the transfer and other required documents.
- Arrange mortgage discharge documentation where applicable.
- Confirm the buyer’s finance arrangements.
- Calculate settlement adjustments.
- Confirm the amount required from the buyer.
- Confirm the amount required to discharge the seller’s mortgage.
- Enter the required information into the electronic workspace.
- Confirm that all parties are ready for settlement.
- Complete the electronic settlement.
- Arrange electronic lodgement and payment of funds.
The exact steps depend on the circumstances of the transaction.
What Happens at the Actual Settlement Time?
Once the electronic workspace is ready and the required parties have completed their tasks, the settlement is processed electronically.
The transaction may involve both:
Financial settlement — the settlement funds are transferred between the relevant parties.
Electronic lodgement — the relevant instruments are lodged with the Land Registry.
PEXA explains that once financial settlement occurs, the transaction cannot simply be unwound through the PEXA system.
This is why your conveyancer needs to carefully check the settlement figures and documents before settlement is completed.
Does PEXA Transfer the Property Into My Name?
PEXA provides the electronic platform through which the transfer and other settlement documents can be lodged.
The Land Registry records the change in ownership.
In Victoria, electronic lodgment is the process used to submit land transactions to the Victorian Land Registry through an Electronic Lodgment Network.
Your conveyancer will monitor the transaction and confirm the relevant settlement and lodgement position.
What Happens to the Money at Settlement?
For a buyer, settlement generally involves providing the balance of the purchase price together with any other amounts required for settlement.
For a seller, the settlement funds may be used to:
- Discharge an existing mortgage
- Pay authorised amounts
- Account for settlement adjustments
- Pay other amounts properly authorised as part of the settlement
- Transfer the remaining balance to the seller
The exact calculation depends on the transaction.
Your conveyancer should provide or explain the settlement figures before settlement.
What About Stamp Duty?
Stamp duty, also known as land transfer duty in Victoria, is an important part of a property purchase.
Your conveyancer may assist with the duty assessment and settlement arrangements.
PEXA’s current service information explains that, in Victoria, PEXA interacts with the Victorian duty authority as part of the electronic transaction process and receives evidence of duty assessment for the relevant transfer.
However, PEXA does not decide whether you qualify for a duty concession or exemption.
Your eligibility for a concession or exemption depends on the relevant Victorian duty rules and your circumstances.
Do I Need a PEXA Account as a Buyer or Seller?
Generally, no.
PEXA is primarily used by the professionals and financial institutions involved in the transaction.
Your conveyancer or lawyer manages the PEXA workspace and communicates with the other parties.
You do not normally need to log into PEXA to complete your property settlement yourself.
PEXA also provides separate client-facing tools for tracking settlement progress, but these are different from the professional PEXA Exchange workspace used by conveyancers and lawyers.
Can I Track My Settlement?
Depending on the arrangements used by your conveyancer, you may be able to receive updates about your settlement.
Your conveyancer should also keep you informed about important milestones, including:
- Whether the transaction is ready for settlement
- The expected settlement date
- The settlement amount
- Whether settlement has occurred
- What happens after settlement
If you are unsure about the progress of your transaction, contact your conveyancer.
What If Settlement Cannot Proceed on the Day?
Electronic settlement does not guarantee that every transaction will settle exactly as planned.
Settlement can be delayed if, for example:
- A lender is not ready
- Required documents are incomplete
- Settlement figures have not been agreed
- There is a problem with the title
- Funds are not available
- A party has not completed a required task
- There is a technical issue
- The parties have not satisfied the requirements of the Contract of Sale
If settlement cannot proceed, your conveyancer will communicate with the other parties and work through the issue.
This is one reason why it is important to prepare for settlement well before the scheduled settlement time.
Is Electronic Settlement Safe?
Electronic conveyancing is designed to provide a secure environment for property transactions.
PEXA operates as an approved Electronic Lodgment Network Operator and provides a secure electronic workspace for participating professionals and financial institutions.
However, property transactions involve significant amounts of money, so appropriate identity verification, payment verification and fraud-prevention procedures remain important.
You should always be careful with bank account details and verify any changes to payment instructions through a trusted communication channel.
Do I Still Need a Paper Certificate of Title?
Not necessarily.
Victoria has been transitioning to electronic Certificates of Title, and new Victorian Certificates of Title issued from August 2024 are electronic.
The Victorian land registry’s electronic lodgment program explains that electronic conveyancing is now a major part of the Victorian land registration system.
If you have an old paper Certificate of Title, your conveyancer can determine what needs to happen with it as part of the transaction.
What Happens After Settlement?
Once settlement has been completed, your conveyancer will generally confirm that settlement has occurred.
For a buyer, you can then usually arrange:
- Collection of keys
- Moving into the property
- Utility arrangements
- Insurance
- Other post-settlement matters
For a seller, the settlement proceeds can be dealt with in accordance with the settlement arrangements.
Your conveyancer can also provide information about what happens next.
For more information, see our article:
What Happens After Settlement in Victoria? A Buyer’s Checklist
PEXA Does Not Replace Your Conveyancer
It is important to understand that PEXA is a technology platform — it is not your conveyancer.
PEXA provides the electronic infrastructure used to facilitate electronic lodgement and, where applicable, financial settlement.
Your conveyancer or lawyer is responsible for managing your conveyancing transaction, checking the relevant documents and communicating with you and the other parties.
PEXA itself explains that lawyers and conveyancers use the platform to manage property transactions electronically.
Frequently Asked Questions
What does PEXA stand for?
PEXA stands for Property Exchange Australia. It operates an online property settlement and electronic lodgment platform used by conveyancers, lawyers and financial institutions.
Do buyers need to attend settlement?
Usually, no. Electronic settlement means the relevant professionals can complete settlement online without the buyer attending a physical settlement meeting.
Do sellers need to attend settlement?
Usually, no. Your conveyancer or lawyer manages the electronic settlement on your behalf.
Do I need a PEXA account to buy a property?
Generally, no. Your conveyancer or lawyer uses the professional PEXA platform to manage the transaction.
Is PEXA the same as my conveyancer?
No. PEXA is the electronic platform. Your conveyancer or lawyer manages your particular property transaction.
Does PEXA transfer ownership?
PEXA facilitates the electronic transaction and lodgement. The Victorian Land Registry records the relevant change in land ownership.
What happens if settlement is delayed?
Your conveyancer will work with the other parties to identify and resolve the issue and arrange a new settlement time if required.
Can I settle my property purchase from interstate?
Yes. Electronic conveyancing means you generally do not need to physically attend settlement. You can provide the required information and complete your obligations remotely, subject to your conveyancer’s instructions.
Is electronic settlement available for all property transactions?
Electronic lodgment is now used for most conveyancing transactions in Victoria, although particular transactions or circumstances may have different requirements or exceptions. Your conveyancer can determine the appropriate settlement method for your transaction.
How Prox Conveyancing Can Help
At Prox Conveyancing, we manage Victorian property transactions electronically, helping buyers and sellers navigate the settlement process from preparation through to completion.
You don’t normally need to attend a settlement meeting in person.
Our role is to coordinate the conveyancing process, prepare and check the required documents, communicate with the other parties and help ensure your transaction is ready for settlement.
Whether you are buying or selling a property in Victoria, we can help you understand what needs to happen before, during and after settlement.
About the Author
Meet Sally
Sally Kwok is a Licensed Conveyancer and the Director of Prox Conveyancing. With more than 16 years of experience in the conveyancing industry, she is committed to helping buyers and sellers navigate Victorian property transactions with confidence. Sally is passionate about providing clear communication, practical guidance and personalised service throughout every stage of the conveyancing process.
👉 Learn more about Sally on our About page.
About Prox Conveyancing
Prox Conveyancing is a Victorian conveyancing practice providing professional conveyancing services for residential property transactions across Victoria. We assist buyers, sellers, investors and families with a wide range of conveyancing matters, delivering personalised service, transparent communication and professional support from contract through to settlement.
👉 Learn more about Prox Conveyancing on our About page.
This article provides general information only and is not legal, financial or tax advice. Electronic conveyancing requirements and procedures can change, and the appropriate process depends on the circumstances of each transaction. If you require advice about your specific property transaction, please contact a qualified legal professional or licensed conveyancer.