There has been lately some national media
publicity about lost monies in the Electronic Conveyancing (also known as
PEXA). This was where monies went
missing due to fraud in the new electronic conveyancing settlements system.
PEXA
is own by the major banks and runs the system and they have now (after much
adverse publicity) agreed to provide a PEXA Residential Seller Guarantee (Guarantee) to all Vendors of land
(sellers) as and from 29.6.2018 to reimburse for loss up to a limit.
Key
points are:
- The seller has the option to make a claim under the
Guarantee, rather than seeking
to recover the loss by an alternative means;
- The Guarantee
applies to sellers in respect of the settlement of residential property
where the seller’s funds are misdirected after the seller’s legal
practitioner has entered the correct bank account details into the PEXA
platform;
- There is a $2 million cap on PEXA’s liability per
settlement;
- You must be represented
by a lawyer or conveyancer that is registered with PEXA such as Matthews
Williams Solicitors; and
- The Seller through his or her lawyer
or conveyancer makes a claim within 3 business days of the transaction.
An
important point with this is that the guarantee does not apply to commercial
properties and Sellers of residential property should check their bank account
next day to make sure funds went into the bank account so that they can make a
claim.
If
we can help further at Matthews Williams please contact us……
