With PEXA, you must wait for funds to appear on your statement before you hand over the keys to your customer.
In Victoria, the majority of all property transactions are completed online using PEXA. This means that settlement occurs, and keys can be handed over to customers when the PEXA Workspace* records the status ‘settled’.
Disbursement of funds happens after the transaction has settled, and in most instances, takes less than 30 minutes to complete once settlement has occurred.
Importantly, you don’t need to wait for funds to clear to consider the settlement finalised.
The reason for this is that once a property transfer reaches a status of ‘settled’ on PEXA, the purchaser’s funds have been moved to the receiving bank at RBA (Reserve Bank of Australia) level. The receiving bank holds the funds on behalf of the vendor and attends to disbursement after settlement.
This is equivalent to a paper settlement when a cheque is handed over and is later deposited into the vendor’s account. The depositing occurs after settlement. In both paper and electronic settlements, keys can be released to a purchaser after confirmation of settlement.
Additionally, PEXA can send notifications to developers and estate agents upon successful settlement. Your law firm can use this functionality, allowing you to be notified by e-mail when a property has settled and therefore commence handing over keys to your customer.
*Shared online area in PEXA where the participants can communicate and prepare documents for a property transaction.
Visit the PEXA site here.