Do I need a Trust Account to use PEXA?
- No, you do not need to have a Trust Account to use PEXA. You have a number of options:
- If you do have a Trust Account that is integrated with PEXA then you must use this if you wish to contribute source funds to a Financial Settlement.
- If you do not have a Trust Account (or have one which is not currently integrated with PEXA) then you have the option to use the PEXA Source Account to provide source funding – read more on this here
- You can participate in any PEXA Workspace without a Source Account linked to your Profile. Without a Source Account, you can lodge any document supported by PEXA as a standalone lodgement or participate in a transfer Workspace noting that you will not be able to contribute source funds on behalf of your client.
- Note: If you elect to join PEXA without using your Trust Account or registering for the PEXA Source Account, you can always add a source account at a later date.
Funding Financial Settlement
- Practitioners can fund Financial Settlement from their own Trust Account or nominate the PEXA Source Account, depending on which one has been set up on your Subscriber Profile. The account will be available for you to select from a drop down list, significantly reducing the risk that an account will be entered in error.
- Users set up in your Subscriber Profile can create Line Items and select your Trust Account as the Source Account for Source Funds.
- These Line Items must then be Verified and Digitally Signed.
- A Subscriber User must first Verify that funds are available for settlement.
- A User with permission to sign a Settlement Statement must then Digitally Sign the Settlement Statement and a User(s) with permission to Authorise use of Trust Account funds must Digitally Sign to Authorise use of the Verified funds. Trust Account Payment Authorisers are appointed by you and must Sign in accordance with Subscriber User signing rules established by you – e.g. up to the limit assigned.
- You will remain responsible for ensuring cleared funds are in the account for the transaction and that only authorised persons have permission to Authorise transactions.
- Your trust account can also be nominated as the destination account for funds from settlement.
Getting Your Trust Account Set up in PEXA
- Your trust account must be held at an approved authorised deposit taking institution.
- PEXA will tell you if your Financial Institution is able to receive instructions on your trust account via the PEXA System.
- Upon receiving your request, PEXA will forward your Trust Account Form to your Financial Institution.
- Upon receipt, your Financial Institution will:
- Verify that the account number and details correspond with your account held at the Financial Institution; and
- Verify the list of authorised signatories against the records held at the Financial Institution.
- Once PEXA receives verification from your Financial Institution, it will include the account details in your Subscriber Profile.
- You will then have control and responsibility for:
- Verifying the accuracy of your account details;
- Activating the account in PEXA;
- Nominating authorised signatories in PEXA (subject to verification by your Financial Institution);
- Setting limits for signatories;
- Removing authorised signatories; and
- Removing your trust account from PEXA.
- To add a new trust account, you will need to again complete a Trust Account Form so that PEXA may seek verification from your Financial Institution.
- You can remove an authorised user or an account from your Subscriber Profile at any time.
- Note: Once you remove a trust account from your Subscriber Profile, it can only be added again by repeating the above process.
Frequently Asked Questions
Q: When do I need to ensure funds are cleared in the trust account to fund a Financial Settlement?
- A: Funds must be clear and available in your trust account by the date of settlement, prior to the scheduled settlement time. You must Verify that funds are cleared and available for use in the Conveyancing Transaction prior to Authorising by Digitally Signing.
Q: Who can sign for my trust account in PEXA?
- A: You will establish signing permissions within your PEXA Subscriber Profile. You must not add an Authorised User to your PEXA Profile who is not a signatory to your trust account at your Financial Institution.