Queensland Law Society

PEXA residential seller guarantee

PEXA has released details of the PEXA residential seller guarantee which is available to sellers in the event of certain kinds of fraud.

The guarantee applies to settlements on or after 29 June 2018 which meet certain criteria. The guarantee only applies in respect of the sale of residential property where the seller’s funds are misdirected after the seller’s practitioner has entered the correct bank account details into the PEXA platform. There is a $2 million cap and there are some exclusions. Further details of the criteria and exclusions are available on the PEXA website.

To make a claim on the guarantee, both the seller and the practitioner must complete the PEXA Claim Form. PEXA requires that the claim form be received by PEXA within three business days of settlement (or such longer period as PEXA in its absolute discretion will allow).

Practitioners should be aware that by signing the claim form, practitioners are giving certain warranties and representations to PEXA in relation to the circumstances of the incident. The practitioner also warrants and represents that they are authorised to sign the document on behalf of the seller’s practitioner. PEXA may also request further information from the seller’s practitioner as outlined in the claim form.