I asked my friendly lawyer his thoughts about PEXA:
Most of the lawyers I know think it is overpriced and Pexa continues to put their price up. The lawyers keep putting up their outgoings charge to cover increases however there is a limit to that as it becomes more cost effective to employ a settlements clerk. There are firms that just do that. PEXA has almost put them out of business. It doesn't make sense to pay people to travel to a physical settlement however at the PEXA price it may still be the best. The price of a PEXA settlement is ludicrous as a proportion of the conveyancing cost.
I think that anything associated with conveyancing is problematic as an investment. I am not sure why the titles office don't just have their own system. They may in the future. If you are trying to make money in conveyancing good luck as the public perception is that there is nothing to it which does not marry well with the reality that because you are dealing with average people in a non-digital way, it all takes a lot of time.
It is set up primarily to assist the banks as it means that everyone else does their clerical work for them, they need no staff and take no risk. The risk shifts to the lawyer entirely. A lawyers conveyancing excess if there is a claim is $21,000 (only for conveyancing) otherwise it is $7000.
I think conveyancing will be automated. If pexa become that automation they will do very well. If they do not then they will die the same death as the conveyancers.
I cannot imagine there is a big barrier to entry, particularly as it is so overpriced. Once the software is out there it will be replicated.
I have refused to join PEXA. In fact it was one of the reasons I gave up conveyancing. I am old and cynical maybe ask a younger person.
