What is the PEXA Source Account?
- Practitioners who do not have a statutory trust account, or have a statutory trust account with a Financial Institution that is not currently integrated with PEXA, may wish to use the PEXA Source Account to contribute funds to a Financial Settlement.
- Money in the PEXA Source Account is held by PEXA as trustee for the Purchaser in a Conveyancing Transaction and will be dealt with on instructions from the relevant Subscriber. Funds are held on trust for the Purchaser and direction for use of funds can only be given by the Purchaser's Subscriber
- There is no cost to use the PEXA Source Account.
- The PEXA Source Account is not an alternative to a PEXA-eligible trust account.
Is money in the PEXA Source Account trust money?
- PEXA is unable to provide advice regarding whether money in the PEXA Source Account is statutory trust money in your jurisdiction. You must satisfy yourself of your own professional obligations in relation to handling client money. If you are not sure whether you can meet your professional obligations in relation to handling of trust money when using the PEXA Source Account, you should contact the statutory trust account regulator in your jurisdiction. PEXA continues to work with the trust account regulators in the relevant jurisdictions to provide guidance on this issue.
- Some regulatory bodies have deemed money in the PEXA Source Account to be “power money”. For example, the Queensland Law Society guidelines.
- If you intend to use the PEXA Source Account, you should familiarise yourself with the requirements regarding power money under the legislation which applies to you.
How do I use the PEXA Source Account?
- Create a source financial Line Item in your Settlement Schedule.
- Select the PEXA Source Account as the source of the funds for the Line Item you have created.
- PEXA will send you a PEXA Source Account Deposit Form for you to provide to your client. The form includes the following:
- Scheduled Settlement Date
- Deposit Due Date
- Deposit Amount
- PEXA Account BSB
- PEXA Account Number (unique customer deposit account number)
- PEXA Transaction ID (please note that this information is critical)
- Statement relating to the collection of Personal Information
NOTE: You must provide the PEXA Source Account Deposit Form to the person depositing the money.
- The funds need to be deposited into the PEXA Source Account via electronic funds transfer (EFT) or real time gross settlement (RTGS) via a Financial Institution. The PEXA transaction ID must be included in EFT/RTGS instructions to enable PEXA to verify availability of funds for the Conveyancing Transaction. You may also transfer funds on behalf of your client from a trust account that is not eligible for PEXA integration.
- Funds must be cleared and available in the PEXA Source Account no less than 3 business days prior to Scheduled Settlement.
- PEXA will verify that the funds are available in the PEXA Source Account.
- Your client (or you) must keep a record and evidence of this transfer of funds, including evidence of where the funds were transferred from.
- If settlement does not proceed and funds need to be returned, funds can only be returned to the account from which they were transferred (refer to Section 2.4 of the PEXA Service Charter).
- PEXA will verify the financial Line Item in the PEXA Electronic Workspace changing the status of the financial Line Item from “unverified” to “verified”.