Paper settlements a thing of the past

February 22, 2023

Paper property settlements in Queensland are now a thing of the past as Electronic Conveyancing (eConveyancing) using the national Electronic Lodgement Network (ELN) has been mandated in Queensland from 20 February 2023.

Traditional paper settlements require solicitors, conveyancers and banks to meet in person to exchange bank cheques and hand over paper transfers and mortgages to complete a settlement for the sale and purchase of a property.

In an eConveyance, once a contract is signed, solicitors acting for the buyer and seller connect via an online platform along with any financial institution involved, for example a bank releasing a mortgage or providing funds, and do everything necessary to transfer ownership of property through an ELN web-based platform.

At this stage Property Exchange Australia (PEXA) and Sympli Australia Pty Ltd are the only two approved ELN operators in Queensland.

Only approved customers, usually law firms and financial institutions, can log in to PEXA and access ELN workspaces.

Fox and Thomas are highly experienced in the eConveyancing process, having conducted over 1000 settlements through PEXA since subscribing in 2015 when eConveyancing first became possible.

Benefits of PEXA

Our Property Team are excited that eConveyancing is now mandated in Queensland as we have found it provides the following benefits to our clients:

• Using PEXA, the property is immediately transferred to the buyer, whereas the paper registration process could take weeks and sometimes even months with bank delays.
• The seller has immediate access to the sale proceeds, rather than having to wait three days for a settlement cheque to clear as is the case in a paper settlement.
• There is less risk of settlement delays with PEXA. Parties are not waiting on receipt of physical documents to complete a settlement, as all transfer and mortgage documents are prepared online. This allows for greater certainty and efficiency in the conveyance process.
• While PEXA does charge a fee for the use of the platform, there is a saving on settlement agents fees and bank cheque fees.

While the future of conveyancing settlements is online, Fox and Thomas still offers a very personalised conveyancing service, assisting you through the whole process.

We would love to discuss eConveyancing or any other conveyancing queries you might have.

Contact a member of our rural property, commercial property or residential conveyancing teams today.