In a complex commercial property transaction using PEXA, the buyer's bank experiences a technical failure 30 minutes before the scheduled electronic settlement time. What is the most appropriate immediate action?
Correct Answer
D) Tell all parties at once, agree a new settlement time and record the failure
Technical failures require immediate communication with all parties to arrange alternative settlement arrangements. PEXA has protocols for such situations, and parties typically need to agree on new timing while documenting the technical issue for legal protection.
Why This Is the Correct Answer
When a party's systems fail shortly before an electronic settlement, the practical step is to tell every other party straight away, agree a new time, and keep a record of the fault. Standard contracts usually contain electronic settlement provisions that deal with delays caused by system failures, and a documented record helps show the delay was not a default.
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In a complex commercial property transaction involving multiple mortgages and caveats, what is the most critical aspect of the electronic settlement process?
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In a complex commercial property transaction using PEXA, the buyer's solicitor discovers a priority caveat lodged against the title 30 minutes before the scheduled settlement time. The caveat was not disclosed in pre-settlement searches conducted one week earlier. What is the most appropriate immediate action?