During a PEXA settlement, what happens if there are insufficient funds in the buyer's account to complete the transaction?
Correct Answer
B) Settlement cannot proceed until the shortfall is funded and confirmed
PEXA operates on a 'funds confirmed' basis, meaning settlement cannot proceed without sufficient verified funds in the buyer's account. If funds are insufficient, the transaction will fail and must be rescheduled once proper funding is arranged.
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A vendor in Victoria fails to include a current planning certificate in their Section 32 statement, and the buyer discovers this after exchange but before settlement. The buyer later discovers the property is affected by a planning overlay that significantly impacts development potential. What is the likely legal outcome?
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During a PEXA settlement, who is responsible for ensuring all financial calculations are correct before the settlement proceeds?