What is the primary advantage of using electronic conveyancing through PEXA compared to traditional paper-based settlements?
Correct Answer
C) Funds are exchanged at the same moment documents are lodged
PEXA's main advantage is that funds are exchanged at the same moment the transfer and other documents are lodged with the land registry. This removes the gap in paper settlements between handing over cheques and lodging documents. Registration then follows once the registry processes the lodged documents.
Why This Is the Correct Answer
Electronic settlement ties the movement of money to the lodgement of documents, so neither party gives value without the other side being performed at the same time. That reduces settlement risk compared with paper settlements, where cheques were exchanged and documents lodged separately.
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