The conveyancing industry is about to get another major shake-up as Land Use Victoria (LUV) transitions to 100% digital lodgements on PEXA.
This may have substantial consequences for developers who are coming towards the income realisation and delivery stage of the property development cycle. While PEXA runs smoothly for stand-alone transactions, the industry is still adapting to bulk vendor conveyancing on PEXA.
Developers will also need to be aware of additional disbursements which may be incurred as a result of using the PEXA platform.
A summary of the LUV aspirational timeline, as published in a recent LUV Bulletin, is set out below: From 1 October 2018:
- All settlements that can be done on PEXA must be done on PEXA.
- All instruments or a combination of instruments available in PEXA are to be lodged electronically. Examples include a case comprising a withdrawal of caveat, discharge of mortgage, transfer and mortgage. This requirement applies to conveyancers and lawyers acting for a party or themselves and PEXA subscribers.
LUV will only accept paper lodgements for “stragglers” and only on cases where the transfer instrument is not on PEXA, for example, transfer of lease.
- It is the LUV’s intention for 1 October 2018 to 1 August 2019 to be the transition period. After 1 August 2019, the LUV will no longer accept paper lodgements.
Maddocks is currently, with a number of other developer law firms, in discussions with PEXA about bulk vendor conveyancing and how to continue to achieve the current volume of bulk settlements in PEXA as opposed to the streamlined process in paper that developer law firms have perfected over the years.
Maddocks is a PEXA ready firm.
|Bettina Sheeran | Partner
T +61 3 9258 3325
|Michael Wong | Associate
T +61 3 9258 3003