Understanding the Role of Digital Conveyancing and the use of PEXA when selling a Property on the Gold Coast
PEXA is now Mandated in Queensland
Under the mandate introduced by the Queensland Land Title Regulation 2022, which applies to all industry professionals and corporate entities that are lodging a required instrument dealing with freehold land.
All property transactions, including transfers of ownership, registrations of mortgages, and lodgment of caveats, must be conducted electronically through the Property Exchange Australia (PEXA) platform, effective February 20th, 2023. This mandate applies to all parties involved, including buyers, sellers, legal representatives, and financial institutions.
What is PEXA in Relation to Selling a Property on the Gold Coast?
Your Solicitor or Conveyancer will use PEXA to facilitate the settlement of your property; you will require a Verification of Identity as part of the selling process for a property. The age of digitalisation has brought a host of conveniences to various industries and sectors, and real estate is no exception. Ten years ago, the concept of digital conveyancing was not yet in existence. Today, it’s a reality that has revolutionised the Australian property market, offering transparency, accuracy and efficiency.
A New Era of Property Transactions
Digital conveyancing has made the process of buying and selling property safer, more secure and, most importantly, easier for millions of Australians. It has transformed the complex legal procedures associated with property transactions into a few simple clicks. However, it is important to understand the intricate workings behind this convenience.
Behind the Scenes of e-Conveyancing
The move to e-conveyancing has been rapid and widespread across Australia. The system provides solicitors, licensed conveyancers and financial institutions with a secure digital platform. They can use this platform to prepare, sign, and lodge all the legal documents required to transfer ownership of a property, as well as to finalise the financial settlement between a buyer and a seller.
Property transactions arising from other circumstances, such as refinancing, death or divorce, can also be handled smoothly through this digital system. The electronic filing is then sent to the relevant state land registry, depending on the location of the property.
The PEXA Story
The entire digital conveyancing process is supported by platforms such as PEXA (Property Exchange Australia), which enables conveyancing practitioners to provide streamlined services efficiently. The platform also handles the electronic filing of documents and the secure payment of settlement funds.
In 2008, the Council of Australian Governments (COAG) laid the foundations for a national electronic conveyancing solution known as the Electronic Lodgement Network (ELN). This system allowed people buying and selling property in Australia to complete all related conveyancing processes online.
National e-conveyancing legislation was passed in New South Wales in late 2012 and in Victoria in early 2013. PEXA officially launched in March 2013 with a mission to modernise the Australian conveyancing process.
PEXA Across Australia
PEXA was the first and most dominant electronic conveyancing platform in the market, bringing together conveyancing practitioners and financial institutions on one digital platform.
Some states, including Queensland, Victoria and New South Wales, have made electronic conveyancing mandatory for property transactions, leading to the inevitable phasing out of the once-standard paper conveyancing. Similarly, in Western Australia, electronic conveyancing is mandatory for all property transactions within the scope of electronic lodgement.
Advantages of Electronic Conveyancing
There are many advantages to the electronic system. For vendors, it means faster access to funds via electronic transfer. For buyers, it means that their name is recorded on the title deeds immediately. The transparency of the system also means that errors can be easily identified and corrected, ensuring smooth and speedy transactions.
Previously, an estimated 20-30 per cent of all paper settlements failed or were delayed due to human error, such as misspelled names on cheques. The digital system has significantly reduced these errors.
Safer Property Transactions
The security of paperless property transactions is particularly important when you consider that more than 400,000 properties are bought and sold in Australia every year. The PEXA platform has helped establish digital conveyancing as a more efficient, effective, and safer process. Add to this the use of Verification of Identity that is used with PEXA, and you have a fairly robust system designed to mitigate fraud.
The Future of Digital Conveyancing
Although PEXA is currently the leading player in the digital conveyancing industry, other platforms are emerging. By mid-2023, it is expected that conveyancing practitioners across Australia will have more options when choosing an electronic conveyancing platform to process transactions.
If you’re looking for a conveyancing agent in Southport, understanding digital conveyancing and platforms such as PEXA can significantly streamline your property transactions.
Find out more: What is PEXA?
PEXA is a world-first digital conveyancing platform that has revolutionised how property is exchanged in Australia. PEXA connects people, businesses and governments across the property industry, providing secure digital infrastructure, integrated solutions and actionable insights.
PEXA, a publicly traded company on the Australian Securities Exchange (ASX), is a global leader in digital property exchange platforms and property insights solutions. Since its inception in 2014, PEXA has facilitated over 16 million property settlements in Australia, achieving an impressive 88% market share. In 2022, PEXA expanded its reach to the United Kingdom, marking a new chapter in its global expansion.
The PEXA Group of companies, encompassing .id (Informed Decisions), Value Australia, and Land Insight, provides cutting-edge digital insights and property solutions that empower government agencies, financial institutions, banks, and property professionals to unlock the full potential of property assets.
THIS IS HOW YOUR JOURNEY TO A SUCCESSFUL GOLD COAST PROPERTY SALE STARTS
My simplified guide below will take you through a 20-step process for selling your property anywhere on the Gold Coast;
I proudly sell homes across the entire coast.
1. PREPARING YOUR GOLD COAST PROPERTY FOR SALE + SOME OF THE LEGAL REQUIREMENTS
- Tidying gardens and decluttering everything inside and out.
- All homes for sale, are legally required to have hardwired photoelectric, interconnected smoke alarms.
Non-removable 10-year battery smoke alarms can be installed as an alternative.
- By law, you are required to complete a pre-contractual seller’s disclosure statement: generally related to limitations, restraints, or defects in the property title, such as easements, covenants, leasing, zoning, etc.
- A pool safety certificate is also required if you have a swimming pool or if the property has a shared swimming pool (Body Corporate).
2. COMPARATIVE MARKET ANALYSIS REPORT FOR YOUR GOLD COAST PROPERTY
After showing me around your property, I will provide you with a Comparative Market Analysis (CMA) report. This is a detailed, legally required analysis of your home’s market value.
The CMA is based on recently sold and for-sale properties similar to yours in the immediate area. I will need to view your home to prepare this report.
3. SETTING A MARKETING BUDGET FOR YOUR GOLD COAST HOME
The third step in selling your home is to create a marketing budget.
By law, this must be based on actual costs.
There are various marketing options to consider, such as:
– Internal, External and Drone Photography.
– Property and House Plans show potential buyers the exact layout of your home and property.
– Internet Advertising on platforms such as RealEstate.com.au, Domain.com.au, Facebook.com, Instagram.com, etc.
– For Sale Sign on the street is still essential to attracting potential buyers. Even though many buyers start their search online, they often drive around neighbourhoods to see what’s available.
A simple fact: Not having a For Sale sign can significantly reduce the number of people who see your property and may be interested in buying it.
4. PREPARING AND APPROVING THE FORM 6 AGREEMENT WHEN SELLING A GOLD COAST PROPERTY
A Form 6 Agreement is a document provided by the Queensland State Government. It outlines all relevant details of the property sale, including the marketing budget.
Our administration team will prepare this form for you and send it for your review and approval.
5. PAYING THE MARKETING BUDGET FOR YOUR GOLD COAST PROPERTY
Once you have approved the Form 6 Agreement, the next step is to pay for the marketing budget that you have chosen.
6. STARTING THE ADVERTISING PROCESS
Once your payment is received, the advertising campaign will commence.
Advertising strategies will align with the choices you made within your marketing budget.
7. MONITORING MARKET RESPONSE
If your property hasn’t received offers within 30 days, don’t assume there’s no interest.
It often means the price isn’t aligned with what buyers are willing to pay at this time.
This is your signal to review and adjust your pricing strategy so your home remains competitive and receives the attention it deserves.
8. ARRANGING BUYER VIEWINGS
When buyers express interest in your property, viewings will be arranged to allow them to see your home in person; you need to be away from the property during these viewings.
This helps potential buyers feel relaxed and visualise themselves as the new owners, thereby forming a deeper connection with your property.
9. CONSIDERING A BUYER’S OFFER
When you receive an offer on your home, it means a buyer is serious and ready to move forward at a certain price.
This is a key moment in your selling journey. Take the time to go over the offer carefully.
Look beyond the price; check the terms, conditions, and settlement timeframes. Make sure it works for you before accepting, countering, or declining.
10. ACCEPT, COUNTER, REJECT
When an offer is presented, you will need to respond by accepting, countering, or rejecting it.
Accepting locks in the agreed-upon price and terms.
Countering proposes changes and initiates further negotiations. If countering, present revised terms clearly; open, respectful communication is key for a smooth sale.
Rejecting means the offer is unacceptable; in this case, respond promptly and professionally, explaining your reasoning for the decision.
11. YOUR LEGALITIES
When you finally accept an offer, you will engage your conveyancer or solicitor to facilitate the legal requirements to complete the sale.
If you are part of a Body Corporate, you will need to provide a Disclosure Statement from them.
Your solicitor will use PEXA to settle your property. Part of the process requires Verification of Identity. Also, anyone selling a property must complete an ATO Clearance Certificate.
12. BUYER’S DEPOSIT
The buyer’s deposit is a crucial step in the property purchase process; it will be held in the agency’s Trust account.
This is a tangible expression of the buyer’s commitment to purchase your property.
13. BUILDING AND PEST INSPECTIONS
Typically, a buyer will arrange for a building and pest inspection report to be completed, usually within 14 days of the contract date.
Additionally, they may have the contract subject to finance, which is generally applicable for 21 days from the contract date.
14. COMPLETING YOUR GOLD COAST PROPERTY SALE
Based on the outcome of the building and pest inspection report, as well as any finance being sought, the buyer will proceed with their offer or withdraw it.
At this point, the sale either falls through or becomes unconditional.
15. LOOKING FOR YOUR NEW PROPERTY
If the sale becomes unconditional, it is time to start looking for a new property. Remember, there is no need to rush.
It is essential that you take your time, as this needs to be a very considered purchase.
Your new home is of substantial value and can be costly if you change your mind. Something you may want to investigate is Short-Term Bridging Loans.
16. ALTERNATIVES YOU SHOULD CONSIDER
An alternative to seriously consider when deciding where to live between selling and buying is renting while you look for a new property.
Renting for a short period gives you breathing room; it allows you time to clear your head, make a confident, considered decision, and ultimately buy where you truly want to live, with no pressure or panic.
17. TIME FOR YOU TO MOVE
Leaving your home opens doors to a new chapter full of new beginnings. Embrace the excitement of a fresh start and cherish the memories you’ve made.
Every box you pack brings you one step closer to a new adventure full of possibilities that lie ahead.
18. YOUR SALE CONCLUDES
The culmination of the property sale is settlement; it marks the transfer of the property to the new buyer.
As the final chapter concludes, this marks a sense of achievement: your property has now SOLD.
19. YOUR FUTURE OPTIONS
If you have chosen to rent, you will continue to look for and eventually purchase a property, apartment, or perhaps even buy land and build; now there’s something to consider.
20. TIME TO UNWIND AND MAKE YOUR NEW HOME YOUR OWN
As you unpack and furnish your new home, embrace the gradual process of creating your haven.
Enjoy the transformation, one room at a time.
Relax in the tranquillity of your surroundings and immerse yourself in the gentle sounds of your new neighbourhood.
Explore the nearby parks and cafes; enjoy the unique charm of your new community.
Remember, settling in is a journey in itself; it’s not a race. Embrace the process of creating a home that reflects your unique style and personality.
Whether you’re downsizing, relocating or just ready to move on, I’ll guide you through every step of selling your Gold Coast home with confidence and ease.
Navigating the intricacies of selling your property can be complex, but it doesn’t have to be.
My 20-step guide provides a simplified general overview; as you would naturally expect, your steps may vary.
Author – Craig Douglas
Are you ready for a conversation about selling your Gold Coast home?
Let’s get you Selling
LET’S GET YOU SOLD
Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
You can find me working at a Boutique Real Estate Agency
These are just some of the suburbs that I proudly sell homes in:
Sovereign Islands
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
