PEXA vs Paper Settlement in WA: The Cost Difference

You’re going through settlement, you’ve looked at your statement, and there’s a “PEXA fee” sitting there. Naturally you’re wondering: what is it, why am I paying it, and would the old paper way have been cheaper? Let’s clear it up.

The short answer: in WA, most property settlements are now done electronically through PEXA rather than on paper, and electronic conveyancing has been mandatory for eligible transactions since 1 December 2018. Electronic settlement carries a set PEXA transaction fee; paper settlement avoids that particular fee but brings its own costs, such as bank cheques and manual handling — so the difference isn’t as simple as one being “cheaper.”

Key takeaways

• PEXA is the electronic platform used to settle and lodge property transactions in WA; paper settlement is the older, manual method.
• According to Landgate, electronic conveyancing has been mandatory in WA for eligible transactions since 1 December 2018, with paper now used only by exception.
• Electronic settlement includes a set PEXA transaction fee, plus the usual government lodgement and registration fees.
• Paper settlement avoids the PEXA fee but can involve bank cheque fees, manual attendance and longer timeframes.
• Only registered professionals (settlement agents, lawyers and banks) can transact in PEXA — you can’t use it yourself, which is one reason you engage a settlement agent.

What’s the difference between PEXA and paper settlement in WA?

PEXA (Property Exchange Australia) is the electronic lodgement network used for e-conveyancing — the online system where your settlement agent, the other party’s representative, the banks and Landgate (the WA land registry) complete settlement and lodge documents digitally. Settlement happens online at the agreed date and time, with funds transferred electronically.

Paper settlement is the traditional method: representatives physically meet to exchange documents and bank cheques, and paper documents are lodged with Landgate afterwards. It’s how WA property changed hands for well over a century — but it’s now the exception rather than the rule.

Is electronic settlement compulsory in WA?

For most transactions, yes. Electronic conveyancing has been mandatory in WA for documents capable of being lodged electronically since 1 December 2018, under the framework administered by Landgate (and enabled by the Electronic Conveyancing Act 2014).

Landgate generally won’t accept paper lodgement for these “mandated” documents unless the transaction genuinely can’t be done electronically — and even then, a specific request explaining why must be submitted. Paper is still used for some cases, such as ineligible titles, certain complex dealings, or particular duty situations.

So for a typical Perth home sale or purchase, electronic settlement through PEXA is simply how it’s done now — not really a choice you actively make.

Why is there a cost difference?

The difference comes down to the kind of costs each method involves.

What does electronic settlement cost?

With an electronic settlement, you’ll typically see:

• A PEXA transaction fee — a set fee for using the platform, often split between the parties.
• Government lodgement and registration fees charged by Landgate — these apply whether settlement is electronic or paper.

In return, electronic settlement removes several older costs: there are no bank cheques to draw, no one has to physically attend a settlement meeting, and funds are transferred and documents lodged automatically at settlement.

What does paper settlement cost?

A paper settlement avoids the PEXA fee, but tends to carry other costs:

• Bank cheque fees — paper settlements usually involve several bank cheques, and banks typically charge a fee for each.
• Manual handling and attendance — someone has to prepare, exchange and lodge physical documents, which takes more time.
• Potentially slower timeframes, since registration happens after the physical exchange rather than automatically.

So neither method is simply “free” or “expensive” — they just have different cost structures.

Does electronic settlement actually save you money?

Sometimes, but we won’t promise it always does — it depends on your transaction. The PEXA fee is a visible line item that paper settlements don’t have, which is why people notice it. But electronic settlement often offsets that by removing bank cheque fees and the cost of manual attendance, and by transferring funds faster on the day.

The bigger practical benefits for most buyers and sellers are speed and certainty: funds and registration happen together, electronically, at the set time. If you’d like to understand how this works for your settlement, that’s exactly what we walk clients through during e-conveyancing.

Can you choose paper instead?

Usually not, if your transaction is eligible for electronic settlement. Because e-conveyancing is mandatory for eligible WA transactions, paper is reserved for situations that can’t be handled electronically, and it needs Landgate’s acceptance. Your settlement agent will tell you which path applies to your matter — and for the large majority of residential purchases and sales, that’s electronic.

Frequently asked questions

What is a PEXA fee on my WA settlement statement? It’s a set transaction fee for using the PEXA electronic settlement platform, often shared between the buyer and seller. It covers settling and lodging your transaction online with Landgate, rather than by paper.

Is electronic settlement mandatory in WA? For eligible transactions, yes. Electronic conveyancing has been mandatory in WA since 1 December 2018 for documents capable of electronic lodgement. Paper is used only where a transaction genuinely can’t be settled electronically, with Landgate’s acceptance.

Is PEXA settlement cheaper than paper? Not automatically. Electronic settlement adds a PEXA fee but removes costs like bank cheques and manual attendance, so the net difference depends on your transaction. For most buyers and sellers the bigger benefits are speed and certainty.

Can I use PEXA myself? No. Only registered subscribers — settlement agents, lawyers and financial institutions — can transact in PEXA. That’s one reason buyers and sellers engage a licensed settlement agent to handle settlement for them.

We’ll handle the settlement for you

Whether your transaction settles electronically (as most now do) or needs a paper process, we manage it end to end and explain every line on your statement in plain English. We’re a licensed settlement agency in Victoria Park, looking after buyers and sellers across Perth and WA. To learn more, see our e-conveyancing page or get in touch.

This article is general information only and not legal or financial advice. For advice about your specific situation, please get in touch with our team.