What is Property Exchange Australia (PEXA)?
PEXA is a national platform that supports the exchange of property, through the ability to perform lodgements and property settlements online in a simple transaction.
PEXA will provide an electronic environment to:
create the Land Title dealing documents and related instruments needed to register changes in property ownership and interests
allow the different and accredited parties involved in the transaction to view and complete the documents to conclude the property exchange or transaction
allow for the electronic settlement of all financial transactions at a nominated date including settlement monies, duties, taxes and any disbursements
lodge electronically Land Title instruments for registration with the relevant State or Territory Land Registry for electronic processing.
Who’s involved with PEXA?
Revenue Offices and Land Titles Offices and Registries
Peak Industry Bodies – Law Societies & Australian Institute of Conveyancers
Banks and other Financial Institutions including Credit Unions
The Reserve Bank of Australia
When does PEXA ‘go live’ in NSW?
PEXA will ‘go live’ in NSW from November 2014. This launch will be restricted to preselected Sydney firms and a regional hub (Wollongong and surrounds).
When will all NSW practitioners be able to access PEXA?
All NSW practitioners will be able to access PEXA from February 2015.
What transactions can I lodge through PEXA?
You can lodge:
- transfer of real property
- discharge of mortgage
- caveat - lodgement and withdrawal.
Can I lodge Transfers through PEXA that are not part of a financial settlement?
Yes. Non-monetary transfers can be lodged with Land and Property Information (LPI) through PEXA (e.g. Family Law Transactions etc).
Can I lodge a Mortgage/Caveat through PEXA that is liable to Duty?
For the November 2014 release, Mortgages and Caveats liable to duty have not been included. These transactions will be made available for processing in PEXA during 2015.
What are the benefits of being an Electronic Duties Return (EDR) client and PEXA subscriber?
By being an EDR client and PEXA subscriber, the firm is in control of the whole conveyancing process from their office. The benefits include:
being able to access both services quickly when required
reduce your time and administration costs
control all instruments at all times, as they do not need to leave your premises
improve your customer service by delivering fast and efficient services
access a simplified settlement process
pay your disbursements from PEXA electronically (no cheques).
I have a delayed settlement, can this be lodged through PEXA?
Yes. Generally with delayed settlements, the Duty has already been paid to us (i.e. three months from date of first execution) and you now need to settle. Enter the OSR Reference number into the PEXA workspace. PEXA will conduct a verification service with us to confirm:
- the OSR Reference Number is correct
- the transfer details in the PEXA workspace match our assessment information
- what duty, if any, is payable.
Do I need to be an EDR agent to participate in PEXA?
No. You can be a PEXA subscriber without being an EDR approved person.
EDR integration with PEXA
How does EDR integrate with PEXA?
If you are a PEXA subscriber and EDR client, the integration between both services will be seamless.
As a PEXA subscriber you will be able to open the PEXA workspace, create the document and have the information confirmed by all participants to the transaction.
As an EDR client you can perform a Duties assessment and nominate that it is a PEXA transaction. After completion of the assessment you can enter the OSR Reference number into the PEXA workspace and perform a verification service with us. The verification will confirm that the OSR Reference number and the data associated is correct.
For successful verifications we will return to PEXA the duty payable (if any). This amount and our payment information will be included in the PEXA Settlement Summary.
If there is a verification error we will return an error message. The PEXA process cannot progress until the error is resolved and a successful verification received.
As an EDR client you will be able to resolve an unsuccessful verification quickly by comparing the data entered in the PEXA workspace with the data on the Duties Notice of Assessment/Duties Statement.
When the error is resolved you can resend the verification service.
If you choose to pay the duty via PEXA, we will receive payment on the day of settlement and your matter will be finalised.
Should I open a PEXA workspace before I have an OSR Duties assessment?
Yes, wherever possible. By opening the PEXA workspace first, you confirm:
participants to the transaction are all PEXA members
transaction you want to lodge is available in PEXA
property information is correct (LPI verification)
the transfer information is correct (All parties to the transaction have reviewed).
If you open the workspace after you have created your Duties assessment, you increase the likelihood of a verification error. Some common examples are:
property details are not correct (e.g. subdivision, parent land on agreement, child land on transfer)
party names are not complete or wrong (this normally occurs at settlement when the incoming mortgagee checks their mortgage against the transfer).
How will a PEXA transaction be identified in the EDR system?
An additional data field has been added to certain EDR document types:
If you select ‘yes’ you must enter the PEXA Lodgement Case ID (PEXA workspace number). When you nominate that the transaction is a PEXA transaction, your EDR assessment will be automatically excluded from your EDR weekly return, allowing you to make your duty payment electronically by way of a PEXA settlement disbursement.
If you select ‘no’ we will expect the assessment payment as part of your EDR weekly return.
What other changes have been made to EDR?
The changes to our EDR service have been delivered in two releases (May 2014 and October 2014). Full details of the changes can be found in our EDR Updates:
May 2014 EDR Update - National e-Conveyancing Readiness
October 2014 EDR Update – NSW e-Conveyancing Launch.
What OSR assessment information do I need to enter in the PEXA workspace?
The only assessment information you are required to enter in the PEXA workspace is the OSR Reference Number. The OSR Reference Number can be found on your Duties Notice of Assessment.
When the OSR Reference Number is entered in PEXA a real time web verification service will be conducted with us. This verification service will confirm that the OSR reference Number is correct and the data entered in the PEXA workspace is correctly included in the Duties assessment.
If the verification service is successful we will return the amount of duty payable (if any) and the required payment information to PEXA. The duty payable and the payment information will be displayed automatically in the PEXA Financial Settlement Schedule.
If the verification service is unsuccessful, we will return an error message. The PEXA process cannot progress until the error is resolved and a successful verification received.
I have received an OSR error message, how do I fix it?
We will send an error message number and verification message when there has been an unsuccessful verification.
To resolve an unsuccessful verification you will need to review the data entered in the PEXA workspace with the data on your Duties Notice of Assessment/Duties Statement to identify where the error has occurred.
Where the error relates to the data entered in the PEXA workspace, simply correct the data and resubmit the PEXA verification service.
Where the error relates to the data entered when creating the Duties assessment the error must be corrected by us before you can proceed with the matter in PEXA. Please complete the e-Conveyancing Error Resolution Form ODA 073 and email it together with the required documents specified, to email@example.com.
To help you understand the error message, refer to the e-Conveyancing – Error Resolution Guide.
If you need help, contact us on 1300 208 528.
I have two OSR Reference Numbers (Agreement and Transfer) which one do I enter in PEXA?
If the transfer was assessed on a different OSR Reference Number to the agreement for sale you must enter the OSR Reference Number that relates to the transfer assessment.
Note: From Monday 9 June 2014, all agreements for sale of land processed by us include a transfer as part of the assessment.
When should I do an EDR assessment for a transaction being lodged through PEXA?
EDR clients should process their EDR transaction the week before settlement is scheduled. By doing this, you will:
have time to correct any errors that arise from the PEXA verification service with us
allow you to time to finalise all other PEXA related activities.
How do I stamp documents associated with a PEXA lodgement?
If you are an EDR client, you will still endorse the documents you have assessed that are not being lodged through PEXA (e.g. Agreement for Sale of Land).
Matters lodged with us will still be endorsed with a revenue receipting imprint.
When should I stamp the documents not being lodged through PEXA?
EDR clients should stamp the agreement for sale of land when they receive their Duties Notice of Assessment.
I have lodged a transaction through PEXA, what records do I need to retain for EDR audit purposes?
In addition to your current record keeping requirements you should retain a ‘rendered’ copy of the document lodged through PEXA (e.g. transfer).
You can download a copy of the document from the PEXA workspace.
My clients have provided Australian Post, Verification of Identity for PEXA. Is this acceptable for OSR client identification purposes?
How do I cancel an OSR Duties Assessment associated with a PEXA lodgement?
Note: If your settlement is rescheduled in PEXA you will not be required to cancel the EDR transaction.
Payment of duty/tax
When is duty payable for an OSR assessment lodged through PEXA?
The due date for payment is published on your Duties Notice of Assessment.
Can duty be paid through PEXA?
Yes, when a successful verification service is received by a subscriber in PEXA, we will return the amount of duty payable (if any) and the required payment information. The duty payable and the payment information will be displayed automatically in the PEXA Financial Settlement Schedule.
You can pay this duty amount as an electronic disbursement from PEXA.
Can I pay duty on a PEXA transaction as part of my EDR weekly return?
EDR clients can elect to pay through existing arrangements if they wish. However, if you nominate that your EDR assessment is going to be lodged through PEXA you must pay us as a one off payment because the assessment has been excluded from your weekly return.
Note: A lodgment in PEXA cannot proceed until the duty payable has been paid to us or a commitment to pay via a PEXA disbursement has been arranged.
Can I pay duty on a PEXA transaction directly to OSR?
Practitioners can elect to pay through existing arrangements if they wish.
Note: A lodgment in PEXA cannot proceed until the duty payable has been received by us or a commitment to pay via a PEXA disbursement has been arranged.
Can I lodge my documents with LPI via PEXA prior to all duty being paid?
No. The total tax payable (duty and any interest) must be paid before a transaction can be lodged with LPI.
How will PEXA know if I have paid the duty?
PEXA conduct a series of verification services with us. Whenever a verification service is received we will return the amount of duty that is payable. If the duty payable amount varies the disbursement schedule in PEXA will be adjusted.
When the final verification service is conducted (about 2 hours before lodgement) we will return the final amount payable. This amount must be paid for the PEXA transaction to proceed.
What happens if interest becomes payable prior to lodgement through PEXA?
You must pay any interest or accrued interest before a transaction can be finalised in PEXA.
Can I make a third party disbursement through PEXA for associated Duties assessments?
Yes, you can make an additional third party disbursement through PEXA. You will be required to enter the duty payable and our payment information in the PEXA Financial Settlement Schedule.
This information can be found on your Duties Notice of Assessment. If you have not excluded this matter from your weekly return call your regional EDR team on 1300 308 863, they will exclude the transaction for you.
You will then need to order an EDR Notice of Assessment reprint.
Can I pay Land Tax through PEXA?
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