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.
Why This Is the Correct Answer
PEXA settles only when the funds in the workspace are verified as available. If the purchaser's funds fall short, settlement cannot run until the shortfall is covered, and the purchaser may be in default in the meantime.
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During a PEXA settlement, who is responsible for ensuring all financial calculations are correct before the settlement proceeds?