ELNO vendor guarantee table
In NSW, ELNOs are required to provide a guarantee that compensates vendors in residential eConveyancing transactions for certain losses suffered as a result of fraudulent activity.
Clause 9.1 of the General Conditions establishes the minimum requirements of a vendor guarantee. Each ELNO can provide a guarantee with different terms and conditions provided the terms and conditions meet the minimum requirements in the General Conditions.
While the approval conditions establish the minimum requirements of a vendor guarantee, each ELNO’s guarantee will be subject to different terms and conditions.
On this page you can view a table setting out the key terms of each ELNO’s vendor guarantee.
The table is intended as a reference guide only. For more detailed information about each vendor guarantee, you should contact the ELNO directly or visit its website. You should also seek the advice of your lawyer or conveyancer when deciding which guarantee is best suited to your circumstances.
|Guarantee term and conditions||PEXA|
|Who does the guarantee apply to?||The guarantee applies to sellers of residential property, whose funds have been misdirected after their practitioner has entered the correct bank account details into the PEXA platform.|
|What is the timeframe for making a claim under the guarantee?||The claim must be received by PEXA within 3 business days of settlement.|
|What is the processing timeframe under the guarantee?||PEXA agrees to make the payment within 10 business days of receipt of the claim.|
|If there is a cap on liability under the guarantee, what is this amount?||$2 million in respect of a single settlement.|
|What limitations and exclusions apply to the guarantee?|
For the guarantee to apply, the seller must have provided payment details to their practitioner, who then accurately entered these details into the PEXA platform. A fraudster must then have gained access to the PEXA platform and changed those bank account details. The practitioner must have then approved the settlement by digitally signing the financial settlement schedule, and upon settlement the relevant funds were paid into the bank account entered by the fraudster and not in accordance with the seller’s instructions entered into the PEXA platform. A PEXA claim form must have been signed by both the seller and seller’s practitioner and provided to PEXA within 3 business days of settlement.
The guarantee does not apply in respect of any of the following: