What is PEXA and how does electronic settlement work in Queensland?

PEXA (Property Exchange Australia) is Queensland’s electronic settlement platform that enables property ownership to be transferred digitally, replacing traditional paper-based settlements.¹ Since becoming mandatory in Queensland in 2019, PEXA has revolutionised how property transactions are completed.²

How PEXA Works

Electronic settlement through PEXA allows the simultaneous electronic exchange of:

• Funds from buyer to seller (and to discharge mortgages)
• Title registration with Queensland Titles Registry
• Mortgage registration for new loans
• Discharge of existing mortgages

All of this happens digitally, instantaneously, and without anyone needing to physically attend settlement.³

The Traditional vs. PEXA Settlement

Traditional Settlement (Pre-2019)

The old process required:

• Parties’ solicitors to physically attend settlement
• Cheques to be exchanged for title documents
• Multiple trips to banks and land titles office
• Settlement could take days to finalise
• Risk of cheques bouncing or documents being lost

PEXA Electronic Settlement (Current)

The modern process involves:

• All parties connect to the PEXA “workspace” digitally
• Settlement occurs at a scheduled time (usually 2-4 PM)
• Funds transfer electronically via verified bank accounts
• Title registration happens automatically
• Settlement completes in minutes
• Zero physical attendance required⁴

Who Participates in PEXA Settlement?

Each party’s financial settlement authority must be digitally signed:

Buyer’s Side:

• Buyer’s solicitor/conveyancer
• Buyer’s mortgage lender (if borrowing)
• Buyer’s bank (for deposit release)

Seller’s Side:

• Seller’s solicitor/conveyancer
• Seller’s existing lender (to discharge mortgage)
• Seller’s bank (to receive proceeds)

All participants must be PEXA subscribers (licensed to use the platform).⁵

The PEXA Settlement Process: Step-by-Step

Before Settlement Day

1-2 Weeks Before:

• Your solicitor creates a “PEXA workspace” for your transaction
• All parties are invited to join the workspace
• Financial institution verification occurs
• Documents are prepared and uploaded

3-5 Days Before:

• Final settlement figures confirmed
• Financial Settlement Schedule created
• Buyer arranges funds transfer to solicitor’s trust account
• Seller’s solicitor obtains mortgage payout figures

On Settlement Day

Morning (9 AM - 12 PM):

• Final verification of all funds in trust accounts
• Last-minute adjustments (rates, water, body corporate)
• All parties confirm readiness in PEXA workspace

Settlement Time (Usually 2-4 PM):

1. All financial settlement authorities are digitally executed
2. PEXA validates all authorities and funds
3. Electronic funds transfer occurs simultaneously:
   • Buyer’s funds → Seller
   • Seller’s mortgage discharge → Seller’s lender
   • Buyer’s new mortgage funds → Seller
4. Titles are automatically registered with Queensland Titles Office
5. New title issues showing buyer as registered owner
6. Settlement complete (usually within 10-15 minutes)

After Settlement:

• Seller’s solicitor releases keys to real estate agent
• Buyer can take possession
• Final trust account statements prepared
• PEXA workspace archived⁶

PEXA Costs and Fees

PEXA charges transaction fees that are typically split between parties:

Service	Cost (Approx.)	Who Pays
Lodgment fee	$118.50	Shared 50/50
Financial settlement	$166.30	Shared 50/50
Subscriber fee (per party)	$53.50	Each party
Title search	$25.40	Buyer
Mortgage registration	$220.00	Buyer (if borrowing)
Mortgage discharge	$160.00	Seller (if mortgaged)

Total typical PEXA costs for a buyer: $300-$400 Total typical PEXA costs for a seller: $200-$300

Note: Fees current as of 2026 and subject to change.⁷

Key Benefits of PEXA

✅ Security: Bank-grade encryption and multi-factor authentication ✅ Speed: Settlement completes in minutes, not days ✅ Certainty: Simultaneous exchange eliminates timing risks ✅ Transparency: All parties see transaction status in real-time ✅ Convenience: No physical attendance required ✅ Efficiency: Reduced risk of errors and lost documents

Common PEXA Settlement Issues

Delayed Settlement

Settlement can be delayed if:

• Insufficient funds in trust accounts
• Bank verification issues
• Incorrect mortgage payout figures
• Party’s solicitor unavailable to execute authorities
• Technical issues with PEXA platform

What happens: Settlement reschedules to later that day or the next business day.

Failed Settlement

Settlement can fail if:

• Buyer cannot obtain necessary finance
• Critical document defects discovered
• Seller’s mortgage cannot be discharged
• Caveat lodged against the title

Consequences: Contract may be terminated, deposits forfeited, or damages claimed.⁸

What Buyers and Sellers Need to Do

For Buyers:

1. Organise Final Funds: Transfer settlement money to your solicitor 2-3 days before settlement
2. Confirm Finance Approval: Ensure your lender has approved all conditions
3. Final Inspection: Conduct walk-through 24-48 hours before settlement
4. Utilities: Arrange connections for settlement day
5. Insurance: Arrange building insurance from settlement date

For Sellers:

1. Obtain Payout Figure: Your solicitor requests final mortgage balance from your lender
2. Keys Ready: Leave keys with real estate agent or solicitor before settlement
3. Vacate Property: Ensure property is vacant and clean by settlement
4. Final Utilities: Take meter readings and notify providers
5. Forward Address: Provide forwarding address for any remaining correspondence

PEXA vs. Paper Settlement: Is There a Choice?

In Queensland, PEXA is mandatory for most residential property transactions.⁹ However, paper settlement may still be used for:

• Transactions under $250,000 (optional)
• Rural properties in remote areas
• Certain commercial transactions
• Deceased estates in some circumstances

Your solicitor will advise if paper settlement is available or preferable for your transaction.

Security and Fraud Prevention

PEXA uses multiple security layers:

Identity Verification:

• Multi-factor authentication for all users
• Verified client identity (VOI) requirements
• Subscriber credential verification

Transaction Security:

• Bank account verification
• Digital signatures with audit trails
• Encrypted communications
• Real-time monitoring for suspicious activity

Fraud Protection:

• PEXA verifies all financial institutions
• Funds cannot be diverted once authorities executed
• Immediate registration prevents fraudulent dealings¹⁰

What Happens if Something Goes Wrong?

Before Settlement:

If issues arise before settlement time, your solicitor can:

• Postpone settlement to a later time or date
• Request additional time to resolve issues
• Abort the workspace if settlement cannot proceed

During Settlement:

If PEXA encounters technical issues during settlement:

• The platform will pause the transaction
• All funds remain secure in trust accounts
• Settlement reschedules once issues resolve
• No participant loses money due to platform failures

After Settlement:

If errors are discovered post-settlement:

• PEXA maintains complete transaction records
• Disputes can be resolved through legal channels
• Professional indemnity insurance may apply
• Queensland Titles Registry can rectify registration errors¹¹

Interstate and Cross-Border Transactions

PEXA operates nationally, enabling electronic settlement for interstate transactions:

• Queensland buyer purchasing in NSW, VIC, SA, WA, or ACT
• Interstate seller selling Queensland property
• All jurisdictions use the same PEXA platform
• Same security and process standards apply¹²

PEXA Glossary of Terms

Workspace: The digital “room” where your transaction occurs FSA (Financial Settlement Authority): The digital document you sign to authorise settlement Subscriber: A licensed user of PEXA (solicitor, conveyancer, financial institution) Lodgment Case: The title registration component managed through PEXA Settlement Schedule: Document showing all financial adjustments and amounts

Related Property Law Topics

Understanding PEXA is just one part of the conveyancing process. You might also be interested in:

• What is the cooling-off period for property in Queensland?
• How much does conveyancing cost in Queensland?
• Can I pull out of a property contract after signing?
• Do I need a building and pest inspection?
• Residential Conveyancing Guide: 5 Critical Steps

Get Expert Conveyancing Assistance

While PEXA simplifies the technical settlement process, professional legal representation remains essential. Your solicitor:

• Manages the entire PEXA process on your behalf
• Verifies all financial calculations
• Ensures compliance with contract terms
• Handles any issues that arise
• Protects your interests throughout settlement

Settlement is the most critical stage of your property purchase or sale. Don’t risk errors or delays with inexperienced representation.

At Bell & Senior, our property lawyers handle PEXA settlements daily. We ensure smooth, stress-free electronic settlement for every client.

Need conveyancing assistance? Contact our Southport office for fixed-fee conveyancing quotes or call (07) 5532 8777 to speak with an experienced property lawyer.

---