Whether you are buying or selling real estate property in Western Australia, one of the most important steps will be choosing a qualified settlement agent to handle the legal and financial aspects of the settlement process.
Not all settlement agents are the same, and to ensure that you are dealing with a reputable professional you must check whether the settlement agent is suitably qualified and licensed.
In Western Australia, settlement agents must be licensed by the government authority known as The Department of Energy, Mines, Industry Regulation and Safety (DEMIRS).
Why licensing matters
A licensed settlement agent is legally permitted to carry out real estate property settlements and is bound by strict regulations designed to protect clients. Licensing ensures that the agent has the necessary qualifications, adequate experience in the industry, follows ethical standards, and carries professional indemnity insurance. Engaging an unlicensed settlement agent could put your settlement transaction at risk, leading to financial loss or legal complications.
Steps to check if a settlement agent is licensed
Here’s how you can verify a settlement agent’s credentials:
- Search the DEMIRS license database
The simplest way to verify a settlement agent is licensed is to use the online license search tool provided by DEMIRS on their website: DEMIRS | WA Online License Search - Check for membership with industry bodies
While not mandatory, many professional settlement agents are members of the Australian Institute of Conveyancers Western Australia (AICWA) and the Real Estate Institution of Western Australia (REIWA). Membership in such organisations often indicates that the settlement agent adheres to additional industry standards and best practices above and beyond just the minimum requirements. - Ask for license details directly
A reputable settlement agent should have no issue providing their license number upon request. You can then cross-check this information with DEMIRS to confirm its validity. - Verify their insurance coverage
Licensed settlement agents must carry professional indemnity insurance, which provides financial protection in case of errors or negligence. Asking for proof of insurance can add another layer of security to your settlement transaction.
Lawyers and real estate property settlements in Western Australia
In addition to licensed settlement agents, lawyers can also carry out real estate property settlements in Western Australia. Lawyers who handle real estate property settlements must hold a valid legal practicing certificate issued by the Legal Practice Board of Western Australia. Unlike settlement agents, lawyers are not required to have a separate settlement agent’s license nor have any prior experience in the industry, as their legal qualifications already authorises them to conduct conveyancing work.
When engaging a lawyer for real estate property settlements, ensure that they:
- Are registered with the Legal Practice Board of Western Australia;
- Hold professional indemnity insurance; and
- Have sufficient experience in conveyancing and property law within Western Australia – there are many differences in the real estate property settlement process and requirements compared to the other states of Australia.
Interstate settlement agents and lawyers
Settlement agents and lawyers from other states of Australia who wish to conduct real estate property settlements in Western Australia must meet certain jurisdictional requirements. They must either:
- Obtain jurisdiction in Western Australia through the relevant regulatory authority; or
- Apply for mutual recognition of their qualifications and license under the Mutual Recognition Act.
However, while interstate professionals may gain the necessary jurisdiction to be able to operate in Western Australia, they may not be familiar with all of the unique aspects of Western Australia’s real estate property settlement process, legislation, and local requirements. Differences in state regulations, documentation, and procedural nuances mean that interstate settlement agents and lawyers may not fully understand WA-specific requirements.
PEXA and electronic conveyancing matters
In 2019 Western Australia introduced electronic conveyancing and since then has been conducting most real estate property settlements electronically through an online settlement platform called PEXA (short for Property Exchange Australia).
Electronic conveyancing through PEXA provides a faster, more efficient, and more secure way to complete real estate property settlements, reducing paperwork and minimising the risk of manual errors.
To be able to complete settlements electronically for real estate property in Western Australia, both settlement agents and lawyers must be registered with PEXA and have the appropriate jurisdiction in PEXA. Without this, they will not be able to facilitate electronic conveyancing.
Self-represented parties and settlement requirements
Individuals may choose to represent themselves in a property settlement instead of engaging a settlement agent or lawyer to act for them. However, self-represented parties must meet specific requirements to complete a real estate property settlement successfully, and they will be required to complete the processes manually as they will not have access to the services and portals available to settlements agents.
To conduct a self-represented settlement, parties must:
- Understand conveyancing and legal obligations: including duties, fees, and required lodgement of forms;
- Liaise directly with the relevant parties: including financial institutions and government authorities, to ensure all documents and funds are correctly processed; and
- Meet compliance and verification requirements: such as identity verification and statutory declarations.
Self-represented settlements can be complicated and time-consuming, requiring an intimate knowledge of property law and settlement procedures. For this reason, most people choose to engage a licensed settlement agent or lawyer to handle the process on their behalf.
Landgate also recommends that all persons intending to conduct land transactions in Western Australia obtain the services and advice of a qualified industry professional.
Ensuring that your settlement agent is licensed and trustworthy
Checking whether a settlement agent is licensed in Western Australia is a crucial step in protecting yourself during a real estate property settlement. By using the DEMIRS Licensee Search, confirming industry memberships, and requesting proof of licensing and insurance, you can ensure that you are working with a qualified professional. Taking these precautions will help you avoid potential pitfalls and ensure a smooth settlement process.