Electronic settlement · National infrastructure
PEXA: how Australia settles property in 2026
Property Exchange Australia (PEXA) is the digital workspace where the buyer’s conveyancer, seller’s conveyancer and both banks meet on settlement day. It has replaced the old physical bank-cheque settlement room and now carries more than 99% of residential transfers. This is what it costs, where it is mandatory, how it actually works and what can still go wrong.
★Key takeaways
- ✓PEXA (Property Exchange Australia) is the dominant electronic settlement platform, handling well over 99% of residential property settlements nationally in 2026.
- ✓100% electronic mandation: NSW (2019), VIC (2019), SA (2020), WA (2021). QLD, ACT, TAS and NT progressively moving to full mandation.
- ✓Platform fees: approximately $133 per side for a transfer plus $33.50 per mortgage dealing, on top of your conveyancer’s professional fee. State Land Registry adds $130 to $250.
- ✓Settlement runs in a shared digital workspace: buyer, seller, both banks all log in, sign at an exact balance, funds + title transfer in 1 to 2 hours. T+0 same-day funds availability.
- ✓Risks have shifted from physical (lost cheques) to cyber (Business Email Compromise scams, credential compromise). The PEXA Residential Seller Guarantee covers eligible NSW + VIC sellers up to $2 million per transaction for platform-level fraud.
How it works
What PEXA actually does on settlement day
PEXA is an Electronic Lodgement Network Operator (ELNO) approved under the National Electronic Conveyancing System (NECS). The system connects four sets of parties into a shared digital workspace for a single property transaction.
1. Workspace creation
The buyer’s conveyancer creates a PEXA workspace, invites the seller’s conveyancer, and adds the lender(s). Each subscriber digitally signs in with multi-factor authentication.
2. Document drafting + validation
Transfer document, mortgage discharge, new mortgage and any associated dealings are drafted in the workspace. PEXA validates them against the state Land Registry data before settlement.
3. Financial settlement
Settlement statement is built showing the exact balance due, including rates / water / strata adjustments. Both sides must digitally sign at the identical balance, locking the figures.
4. Settlement
At the booked time, all parties sign off and PEXA effects the funds transfer via the RBA settlement system. Title is electronically lodged with the state Land Registry. Settlement complete in 1 to 2 hours.
Source: pexa.com.au; Australian Registrars’ National Electronic Conveyancing Council (ARNECC) operating principles at arnecc.gov.au.
Fees breakdown
What PEXA settlement costs in 2026
Indicative fees as published on the PEXA fee schedule. Verify current rates at pexa.com.au/fees before signing your conveyancing costs agreement.
| Item | Typical cost | Notes |
|---|---|---|
| PEXA Transfer fee (per side) | $133.00 | Charged on each side of a residential transfer (buyer and seller). Standard PEXA fee schedule effective 1 July 2025. |
| PEXA Mortgage fee (per side) | $33.50 | Charged where a mortgage is being registered or discharged. |
| PEXA Caveat lodgement / withdrawal | $30.00 | Per dealing, infrequent in standard residential. |
| State Land Registry transfer registration | $150 to $250 | State-specific lodgement fee paid to Land Registry (separate from PEXA platform fee). NSW $156.30, VIC $130.60, QLD $237.20 indicative 2025 to 2026. |
| Stamp duty | State-based, scales with price | Paid through PEXA in most states, calculated against the contract price. Use a state-specific stamp duty calculator. |
| Title search and disbursements | $50 to $200 | Title search, plan, dealings search. Usually itemised separately on your conveyancer's invoice. |
Total PEXA-related charges typically add $300 to $500 on top of your conveyancer’s professional fee (which itself is $700 to $2,500 for standard residential). Stamp duty is the dominant cost on most transactions and is paid through PEXA on settlement.
Where it is mandatory
Electronic settlement mandates by state
Mandation is a state-level decision by each Land Registry / Registrar General. Where mandated, paper lodgement is permitted only for niche dealings (some adverse-possession claims, some Indigenous land matters, dealings with overseas parties without an Australian witness).
NSW
100% electronic mandatorySince 1 July 2019
NSW Office of the Registrar General mandated electronic lodgement for all eligible dealings (transfers, mortgages, discharges) on PEXA or another approved Electronic Lodgement Network Operator (ELNO).
VIC
100% electronic mandatorySince 1 August 2019
Land Use Victoria mandated electronic settlement for all eligible standard documents. Paper lodgement permitted only by exception.
SA
100% electronic mandatorySince 3 August 2020
Land Services SA mandated 100% electronic lodgement for transfers, mortgages, discharges and caveats.
WA
100% electronic mandatorySince 8 March 2021
Landgate mandated electronic lodgement for the most common dealings. Some niche dealings still permit paper.
QLD
Substantially electronic, not yet 100% mandatedSince Progressive 2020 to 2025
Titles Queensland operates a mixed system. Most transfers and mortgages now settle electronically through PEXA but paper remains available for specific cases. Full mandation is being progressively rolled out.
ACT
Substantially electronicSince 2020 (progressive)
Access Canberra Land Titles Office accepts PEXA settlement and is in transition to fuller electronic mandates.
TAS
Electronic available, paper still commonSince 2021
Land Titles Office TAS supports PEXA settlements but transaction volumes are lower and many small firms still default to paper for non-standard dealings.
NT
Electronic available, paper still commonSince 2022
NT Land Titles Office supports PEXA but low transaction volumes mean uptake is gradual. Many NT settlements are handled by interstate conveyancers on PEXA.
What can still go wrong
PEXA failure modes and fraud risks
PEXA is more reliable than paper settlement, but it is not infallible. The most common reasons settlements fail or are delayed are operational (a party not signing on time, a 5-cent mismatch in the workspace) rather than fraud-related. Fraud cases are rare in proportion to volume but materially harmful when they occur, and the Australian Cyber Security Centre (ACSC) has consistently flagged property settlement payments as a high-value target for Business Email Compromise scams.
Workspace mis-matched (settlement balance off by even one cent)
PEXA requires every party (buyer, seller, incoming and outgoing mortgagee) to digitally sign at the same financial balance. A 5-cent disparity blocks settlement. Adjustment for rates, water or strata fees mis-keyed by one side is the most common cause.
Resolution: Conveyancers re-align figures and re-sign. Adds 30 to 90 minutes to settlement.
One participant offline or late to the workspace
If the seller's mortgagee bank has not signed off discharge by the booked settlement time, PEXA cannot settle. Reported by PEXA as the most common cause of delay (per PEXA quarterly transparency reports).
Resolution: Conveyancers re-book settlement for later same day or next business day. Penalty interest may accrue (typically 10 to 12% per annum on the unpaid balance).
Source-of-funds verification block
Large incoming deposits trigger anti-money-laundering (AML / CTF) checks at the buyer's bank. The bank may delay clearing funds into the conveyancer's trust account before settlement.
Resolution: Buyers should clear deposits 48 to 72 hours before settlement, not on the day. Conveyancers can also confirm clearance with the bank in advance.
PEXA platform outage
PEXA has had documented outages (most notably December 2022, March 2024) that prevented settlements for several hours. The platform publishes uptime statistics; long outages are rare but not zero.
Resolution: Settlements re-booked once the platform restores. Most contracts cover technology delay under force majeure or "circumstances beyond reasonable control" clauses.
Buyer payment fraud (BEC, identity theft)
Business Email Compromise (BEC) scams targeting buyers about to pay deposit or settlement balance have been a sustained issue. Fraudsters pose as the conveyancer and email fake account details. ASIC, ACSC + PEXA have issued repeated alerts since 2023.
Resolution: Always confirm bank account details verbally with a known phone number for the conveyancer before transferring any funds. PEXA does not email account details for settlement payments.
PEXA participant identity fraud (registered subscriber compromise)
A small number of cases (most prominently the 2018 Master Wealth / "Vanderlay" case in NSW) involved a fraudster gaining access to a registered PEXA participant's credentials and transferring proceeds to a fake account at settlement. PEXA Residential Seller Guarantee was created in response.
Resolution: PEXA Residential Seller Guarantee (introduced 2018, updated 2020) covers eligible NSW + VIC residential sellers up to $2 million per transaction for loss caused by PEXA fraud. Buyers covered separately for some scenarios.
Public PEXA fraud incident statistics published quarterly at pexa.com.au/about/trust-and-safety. ACSC scam awareness guidance at cyber.gov.au.
Common questions
PEXA – common questions
Is PEXA mandatory?
In NSW, VIC, SA and WA, electronic lodgement of common conveyancing dealings (transfers, mortgages, discharges) is 100% mandated. PEXA is the dominant Electronic Lodgement Network Operator (ELNO) approved in every state. A second ELNO, Sympli, has limited functionality and is not yet at parity with PEXA for full settlement. QLD, ACT, TAS and NT are progressively moving toward electronic mandates.
How much does PEXA cost on top of my conveyancing fee?
PEXA charges a platform fee per side of around $133 for a transfer plus around $33.50 per mortgage dealing. On top of this you pay the state Land Registry transfer registration fee ($130 to $250 depending on state) and any title search disbursements. Total PEXA-related charges typically add $300 to $500 on top of your conveyancer's professional fee. PEXA fees are usually itemised on your conveyancing settlement statement.
How does PEXA actually work on settlement day?
Every party (buyer's conveyancer, seller's conveyancer, buyer's bank, seller's outgoing mortgagee) logs into a shared digital workspace. Documents (transfer, discharge, mortgage) are pre-uploaded and validated. At the booked settlement time, every party digitally signs. Funds are transferred via the Reserve Bank of Australia's settlement system, the title is electronically lodged with the state Land Registry, and the keys are released. Settlement typically completes in 1 to 2 hours.
What is the PEXA Residential Seller Guarantee?
A PEXA-funded protection introduced in 2018 (and updated since) that covers eligible NSW and Victorian residential sellers up to $2 million per transaction for financial loss caused by PEXA-platform fraud (where settlement proceeds are diverted to a fraudster). It does not cover non-PEXA fraud (e.g. Business Email Compromise scams that intercept communications outside the PEXA workspace) or buyer-side fraud. Coverage details published at pexa.com.au.
Are PEXA settlements safer than the old paper system?
On balance yes, with one caveat. Electronic settlement eliminates lost bank cheques, simplifies funds tracing, audits every action and locks all parties to the same balance. The risk that has emerged is cyber-fraud at the edges (fraudulent emails to buyers, compromised participant credentials) which did not exist in the paper world. PEXA has invested in multi-factor authentication, behavioural monitoring and the seller guarantee in response. Net outcome: fewer total losses, but the loss profile has shifted from "lost cheque" to "BEC fraud".
What happens if PEXA is offline on my settlement day?
Settlement does not proceed. PEXA publishes a real-time platform status page and conveyancers track outages closely. Most contracts contain a "circumstances beyond reasonable control" clause that excuses brief technology delays. Re-booking is usually for later the same day or the next business day. Penalty interest is generally not enforced against either party for a PEXA outage, but contract wording varies.
Can I attend my PEXA settlement to watch it happen?
No. PEXA is a closed digital workspace accessible only to registered subscribers (conveyancers, solicitors, banks, statutory authorities). You will not see the workspace itself. Your conveyancer will confirm settlement to you typically within 30 minutes of the booked time and arrange release of keys from the real estate agent.
What is "T+0" and why does it matter?
T+0 means funds are available to the seller on the same calendar day as settlement (T being settlement day). The old paper system was effectively T+1 to T+3, with bank cheques clearing over multiple days. T+0 lets sellers immediately apply settlement proceeds to a new purchase, making same-day "sell and buy" chains workable in a way they were not in the paper era.