Professionals Real News

E-Settlement is Here –What Buyers & Sellers Need to KnowNow! Buying and selling a home is often a high-stress transaction, but e-settlement promises to make things simpler for buyers and sellers. For most of us, selecting and buying your home could be one of the most exciting, yet highly stressful times of our lives. Even when we feel we have done everything right, research shows that up to 25 percent of Australian property settlements are delayed, creating extra stress and expense at a time when people least need it. A traditional property settlement involves a meeting between two parties (buyer and seller representatives and their banks). Paper documentation, contracts, certificate of title and cheque information are compared to ensure contents are identical. If all information matches, the settlement proceeds. If not, no matter how small the error, the settlement will be delayed and another physical meeting must be arranged. PEXA Group Executive, Customer and Revenue, Mike Cameron says, “A simple error such as a misspelt name or wrong cheque details will cause a delay and the settlement fails. It’s very stressful. There are instances that people have been waiting out in front of their new home in anticipation and suddenly they are locked out and have to find another place for the night.” The good news is that property settlement has gotten easier. PEXA is a national e-settlement system backed by the big four banks and four state governments that has been operational here in Western Australia since 2014. Through PEXA the settlement process is streamlined, resulting in a better experience for all involved. Cameron says PEXA is on a mission to educate everyday Australians about property settlement via its Settle Better website. “The feedback we’re getting from users of our platform is just extraordinary,” he says. “It’s time for the property industry to benefit from digitisation.” By eliminating paper and enabling all the parties to collaborate online through the settlement process, PEXA reduces the risk of last minute delays. The fact that the parties “meet” online also means that there is a lot more flexibility about timing and, when settlement occurs, the transaction is completed in seconds. PEXA’s Settle Me app keeps buyers and sellers fully in the loop about progress of their settlement and what is outstanding. Perth-based property lawyer David Clark is one of more than 5000 property lawyers and settlement agents already using PEXA. Though his fundamental role of representing his clients’ interests in a settlement is unchanged, he believes PEXA is definitely streamlining the process. “I recently helped a client sell an expensive property in Swanbourne,” he says. “He needed his funds immediately to utilise in another transaction. The fact he could get his money and it was cleared straight away meant he could do the deal.” From a buyer’s perspective, the fact PEXA automatically transfers their name onto the title as soon as money changes hands is important, says Clark. It closes the window that currently exists between payment and lodgement of title when the seller’s creditors could potentially make a claim against the property. A veteran of over 20 years in the property industry, Clark says settling a property doesn’t need to be stressful for homeowners. Because settlement is a legal process, he believes a client’s biggest opportunity to make sure they have a positive experience is by doing their research and making smart choices before the actual process starts. “Once we start settlement, it’s often a bit too late.” Source: