How long does it take for funds to clear after settlement PEXA?

Melbourne's property market moves quickly, and buyers and sellers alike count every hour between signing contracts and seeing cleared money in their bank accounts. Digital conveyancing through Property Exchange Australia (PEXA) has modernised settlements across Victoria, offering real-time title transfer, automated document lodgement and the promise of faster access to sale proceeds. Still, many vendors wonder exactly how long PEXA settlement funds take to clear. Is it minutes, hours or days?

1. PEXA Explained

PEXA is a secure online platform that connects conveyancers, solicitors, lenders, the Reserve Bank of Australia and Land Use Victoria in one digital workspace. Introduced in 2010, it became mandatory for transfer transactions in Victoria in 2019, effectively replacing paper cheques, long settlement rooms and physical lodgements. Since then more than 95 per cent of Victorian transfers occur via PEXA, saving time, reducing paperwork and shrinking the "cheque clearance limbo" that once frustrated vendors and purchasers alike.

Key Advantages

Real time gross settlement through the RBA
Instant electronic lodgement of titles and mortgages
Automated electronic stamping of duty
Immediate digital confirmation to all parties

2. Paper Settlements Versus Electronic Settlements

Before digitisation, settlement day required all parties to meet at a city location, swap signed documents, hand over multiple bank cheques and then send a clerk racing to the Land Titles Office before closing time. Cheques took three to five banking days to clear, meaning vendors often waited a full week before touching their money.

PEXA has streamlined every step. Electronic signatures replace wet ink, money transfers occur through the Reserve Bank's real-time gross settlement system, and lodgement happens instantly. Vendors typically receive cleared funds within the same business day, while purchasers pick up keys mere minutes after electronic completion. The change has been so successful that paper settlements are now the exception rather than the rule, reserved mostly for highly complex transactions or titles not yet eligible for electronic lodgement.

3. The PEXA Settlement Process Step by Step

Workspace creation – Once a contract of sale has been exchanged, the purchaser's conveyancer or vendor's conveyancer opens a digital Workspace on PEXA. All participants vendors, incoming and outgoing mortgagees, and discharging lenders are invited to collaborate.
Verification and compliance – Parties upload certified identity documents, execute Client Authorisation forms, calculate adjustments and arrange stamp duty obligations.
Financial Settlement Schedule (FSS) – Every dollar is accounted for in the FSS, which lists destination line items such as vendor surplus, agent commission, council rate adjustments and mortgage payouts. The schedule must balance to zero before a settlement time can be confirmed.
Digital signing – Practitioners apply electronic signatures to transfers, notices and discharge documents. Lenders authorise mortgage releases and loan proceeds.
Ready status – When all tasks are complete, the Workspace turns Ready for lodgement and Ready for financial settlement. The system automatically checks title references, duty obligations and funds availability.
Cut-off verification – The Workspace must reach Ready/Ready no later than ten minutes before the booked settlement time, and absolutely before the final daily cut off at 5 pm. Otherwise settlement will "roll over" to the next available slot or the next business day.
Real-time gross settlement – At the scheduled minute the Reserve Bank moves cleared funds between the participating financial institutions. The moment funds settle, PEXA lodges the transfer and mortgage documents at Land Use Victoria.
Completion notices – All parties receive immediate confirmations, downloadable settlement statements and updated title references. Keys can now change hands and the vendor begins watching their internet banking for the incoming surplus.

From start to finish the digital sequence often completes in less than 60 seconds.

4. PEXA Settlement Checklist

A well organised checklist is the number one tool for preventing last minute delays. Use the following list as a guide tick every item at least one full business day before the booked settlement time.

Vendor Tasks

Provide discharge authority to current lender at least two weeks before settlement.
Supply bank account details for surplus funds (ideally a standard everyday account, not an offset).
Confirm any GST withholding or capital gains retention obligations with your conveyancer.
Sign all Workspace documents electronically by lunchtime the day before settlement.

Purchaser Tasks

Complete Verification of Identity (VOI) in person or via remote ID app.
Transfer shortfall funds well in advance PEXA recommends three business days for transfers into the PEXA Source Account.
Double check insurance cover is effective from 4 pm on settlement day.
Approve stamp duty assessment or any concessions in Duties Online.

Lender Tasks

Provide accurate loan payout or loan proceed figures no later than 10 am on settlement day.
Confirm auto balancing of source funds in the FSS.
Respond promptly to Workspace conversations, especially if settlement is within two business days.

General Tasks for All Participants

Keep mobile phones handy for two-factor authentication codes.
Review the Workspace dashboard frequently red tasks must be cleared.
Arrange final property inspection a day or two before settlement to avoid surprises.

Following this checklist minimises the risk of rollover and ensures everyone knows their responsibilities.

5. PEXA Settlement Cut off Time

PEXA is open for financial settlements in Victoria Monday to Friday from 9.30 am until 6.30 pm (AEST/AEDT). Although the system technically runs until the early evening, the last practical slot for property transfers is 5 pm. If your Workspace is not Ready by that time the transaction drops off the calendar and must be rebooked for the next business day.

The platform processes settlements in rolling "windows" approximately every five minutes, with particularly busy periods around the Reserve Bank's three funding sweeps 10.30 am, 1.30 pm and 4.30 pm. Booking your settlement in the morning gives the most rescue time should another party miss a task or a bank suffer a short technical outage.

Tip for anxious vendors: ask your conveyancer to secure an 11 am or midday slot. Banks have already executed their first funding sweep, and there is plenty of daylight left if an adjustment is required.

6. How Long Do PEXA Settlement Funds Take to Clear?

Short answer: many vendors see the money in their account within two hours of completion. However, banking rules mean clearance can take longer, so PEXA advises allowing up to three business days.

Why the Variation?

Receiving institution policies – The Reserve Bank moves funds instantly, yet some banks run internal batch postings that show external transfers only at set intervals. Major banks (CBA, Westpac, NAB and ANZ) usually post PEXA proceeds within two to four hours, whereas regional banks and credit unions can take overnight.
Time of day – Settlements booked in the final window around 4.30 pm may not post until the bank's evening processing cycle, meaning the funds appear after 8 pm or the next morning.
Public holidays and weekends – If settlement occurs late on the Friday before the AFL Grand Final public holiday, the long weekend pushes visible clearance to the following Tuesday even though the RBA completed the transfer on Friday.
Account type – Offset accounts or high interest savings accounts sometimes reflect external credits more slowly than standard transaction accounts.
Linked transactions – Large developers often run simultaneous "linked settlements" across multiple lots. Where one lot is delayed the whole chain pauses, pushing clearance into the next business day.

Practical Expectations

Same day, same-bank: less than two hours.
Same day, major different bank: two to four hours.
Late afternoon or smaller bank: next business day.
Linked settlements or credit unions: up to three business days.

Remember, these timeframes refer to visible clearance in internet banking. Legally the funds are yours the moment the RBA completes settlement.

7. Tips for Receiving Your PEXA Settlement Funds Faster

Provide an everyday account – Supply a standard transaction account rather than a loan redraw or offset; banks often process external credits to ordinary accounts first.
Settle before lunch – Morning slots leave spare windows to fix hiccups and give banks two posting cycles before close of business.
Keep the FSS balanced early – The Financial Settlement Schedule locks when the Workspace turns Ready. Finalising destination figures the day before reduces last-minute edits that may alarm lenders.
Transfer shortfall early – If you are the buyer, make sure your shortfall arrives three business days before settlement. Delayed shortfall is a top reason deals roll over.
Monitor Workspace conversations – Respond within the guideline timeframes (eight business hours normally, four when settlement is two days away). This courtesy prevents cascading delays.
Avoid Friday at 4.30 pm – Technical or banking delays risk a Monday rollover, which may clash with movers, cleaners or purchasers' expiring finance approvals.

8. Common Causes of Delay and How to Troubleshoot

Bank Processing Bottleneck

Sign: Workspace is Ready/Ready but rolls to the next window repeatedly.
Fix: Conveyancer contacts the lender directly to confirm funds release; sometimes a manual override is required.

Incorrect Surplus Account Details

Sign: Settlement completes yet funds bounce back to the lender.
Fix: Supply a new BSB and account number; bank reallocates funds manually, which can take two extra days.

Outstanding Council Certificates

Sign: Rating authority fees cannot be balanced in the FSS.
Fix: Escalate with council; if unavailable, parties may agree to a retention until figures arrive.

Late Duty Assessment

Sign: Duties Online shows "Pending" minutes before settlement.
Fix: Purchaser's representative lodges emergency manual assessment or rebooks settlement to next window.

Software Outage

Sign: PEXA status page reports partial disruption.
Fix: PEXA typically restores within thirty minutes; parties can agree to roll the Workspace to a later time the same day.

9. Frequently Asked Questions

Do I still receive a bank cheque on settlement day?

No. PEXA deposits funds electronically into nominated accounts. This eliminates cheque clearance delays and removes the risk of lost cheques.

When will my mortgage balance update?

If you are the vendor, your lender's discharge team reduces your loan to zero instantly at settlement. The closed balance appears in internet banking within a few hours.

Can the estate agent release the deposit before settlement?

In Victoria, early release under a Section 27 statement is possible, but only if the buyer signs consent and their incoming mortgagee raises no objection. Consult your conveyancer before spending any deposit money.

Is PEXA safe?

Yes. The platform uses secure log-in credentials, multi factor authentication and encrypted data channels. Settlement funds travel through the Reserve Bank's real time gross settlement, the same system used by major banks.

What happens if my settlement rolls over?

The Workspace automatically shifts to the next available window, provided there is room in the day's calendar. If the last window passes, settlement must be rescheduled. Your conveyancer will coordinate a new time with all parties.

10. The Bottom Line for Melburnians

PEXA has transformed Victorian property settlements, shrinking a week long wait for cheques to, in most cases, a same day bank credit. While the Reserve Bank component is instantaneous, internal bank posting policies mean vendors should allow a cautious three business days before planning removalists, onward purchases or big splurges. By staying organised, following the PEXA settlement checklist and respecting the cut off time, you can usually rely on seeing cleared funds in your account within two hours of completion.

Ready for a Stress Free Settlement?

Pearson Chambers Conveyancing has helped thousands of Victorians achieve smooth, on time settlements and rapid access to their sale proceeds. If you would like tailored advice, or a free Section 32 contract review, contact us today:

Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au