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.