Electronic conveyancing settlements unavailable 8 June 2020
28 May 2020
PEXA will not be available for settlements on 8 June 2020 due to the Reserve Bank of Australia (RBA) being closed for a public holiday in both NSW and Victoria, even though this is not a public holiday in Queensland.
If settlement is scheduled for 8 June 2020 and the parties have agreed to an electronic settlement using PEXA, then practitioners must consider alternative settlement arrangements.
Practitioners may wish to discuss with clients the option of reaching agreement with the other party to extend or bring forward the date for settlement.
If the transaction must settle on 8 June 2020, then practitioners should prepare to settle ‘in paper’ on that day.
Practitioners should also be aware of the relevant clauses in the REIQ/QLS contracts (for the REIQ Residential House & Land Contract, see clause 11). As the Reserve Bank’s closure is pre-planned and announced in advance, it is not certain that clause 11.4 of the Residential House & Land Contract (or equivalent clause) operates to deem settlement to occur the following day. QLS cannot recommend that practitioners rely on these clauses for this purpose. Practitioners should either reach agreement with the other party to reschedule settlement or withdraw from Electronic Settlement. If your client needs to withdraw from Electronic Settlement, there are specific requirements to meet under clause 11.5 (and equivalent clauses), including giving 5 business days’ notice before settlement of the withdrawal, unless one of the exceptions in clause 11.5(2) applies.
Lexon has also published a Risk Alert on this issue - Lexon Risk Alert 17 of 2019/2020 - 22 May 2020