All Transacting in PEXA posts

Re: What happens at Settlement?

TJ — Thu, 29 Nov 2018 03:29:06 GMT

Just a note for anyone unsure and to clear things up – once Financial Settlement has moved to Settled, Financial Settlement has been successfully and irrevocably completed.

Re: What happens at Settlement?

DMc — Thu, 14 Dec 2017 03:21:05 GMT

Handy reminder, thanks, Community.

Would like to see this reminder information during an e-settlement workspace maybe a link would be handy.

Suggest Customer version made available in 'Settle-Me' to assist with customer expectations.

Cheers

Re: Source Account FAQs

Ames — Wed, 24 Aug 2016 03:49:21 GMT

Hi - PEXA will verify that funds are cleared and available for Financial Settlement and the funds status of the source line item will move to "Ready".

Transacting in PEXA Checkpoint

EmilyBilling — Thu, 02 Nov 2017 22:51:02 GMT

Now that you’ve learned how to lodge Land Registry documents and complete financial settlement in PEXA, finish the learning checkpoint to earn your Transacting in PEXA badge. Not yet a member of the Community? Register and login to the Community to receive your badge.

Completing a Transfer

EmilyBilling — Tue, 05 Jul 2016 04:36:36 GMT

Verify and Authorise Source Funds

EmilyBilling — Fri, 18 Aug 2017 06:23:50 GMT

On this page, you’ll learn how to:

Verify and authorise the source funds.

For source funds, where a trust account is used, you need to Verify that the funds are in the trust account and will be in the trust account at settlement. A Payment Authoriser must Authorise PEXA to instruct the Financial Institution to draw these funds from the trust account at settlement. This must be done before you Sign the Financial Settlement Schedule.

To do this:

Select Verify Funds from the Actions cog for that Line Item.
Once Verified, select Authorise Funds to Authorise PEXA to send instructions to your Financial Institution to withdraw funds from the trust account.

Note: Authorise Funds will bring up the Signing screen so it may be best to Authorise at the end of the process, when you are also signing the Financial Settlement Schedule, if you have permissions to both Authorise and Sign the FSS.
Note: The source Line Item status will not move to Ready status unless funds have been Verified and Authorised.

Signing the Financial Settlement Schedule (FSS)

To Sign the FSS:

Select Sign from the Actions cog as shown below.
You will notice in the example screen above that the Status is In Preparation. This suggests that the other participant to the transfer may need to complete their entries or they have not Signed yet.
Remember that any changes made to the FSS by another participant may automatically Unsign it and you will need to re-Sign. For example any Third Party Beneficiary Line Items entered by the other participant will Unsign the FSS as this type of Line Item needs to be viewed and signed by both the Vendor and Purchasers’ Representatives.

Financial Settlement Options

There are a number of additional settlement functions you can perform in PEXA. These are available in the Financial Settlement Schedule. The following describes each of the options.

Maintain Settlement Values

This selection is optional and used for informational purposes only. Practitioners can enter information such as deposit amounts and the total adjustment amount.

Mantain Settlement Date

You can accept or propose a new settlement date and time here. If the settlement date changes, the FSS will automatically Unsign and a notification email will be sent to alert all participants in the Workspace that a change has been made and that they need to review the change before re-Signing it.

A change in the settlement time will not Unsign the Settlement Schedule.

Override Lodgement

You can elect to override lodgement to ensure that the financial settlement of the Workspace would proceed in the event that PEXA cannot establish or maintain communications with the Land Registry.
If all source providing Subscribers have selected this option, settlement will continue meaning that funds will be exchanged and disbursements will occur.
PEXA will continue to retry lodgement.

Activity Identified in Title Activity Check (TAC)

When activity has occurred on the Title and identified at the final Title Activity Check (TAC) 1-hour prior to settlement, the incoming participants must re-enter the Workspace to provide their agreement to proceed with settlement.

Workspace Summary Screen

At this point, both the Workspace Status and the Financial Settlement Status should be at Ready and settlement will proceed at the settlement time and date as planned.

Note:If the Workspace Summary shows a Prepared or In Preparation status, then you will need to troubleshoot and amend the problem to move the Workspace to ‘Ready’. Amendments may result in Unsigning of documents or the FSS therefore you may need to re-Sign them.

Completing the Getting Started with PEXA program? See whats next.

Now that you've mastered completing a transfer electronically, learn about how you can complete linked settlements electronically by reading the article Linked Financial Settlement.

Preparing a Consent (NSW)

EmilyBilling — Mon, 03 Dec 2018 00:01:33 GMT

Depending on which jurisdiction you operate in, you may need to create a consent in order to lodge your property transaction successfully. PEXA allows you do this in a streamlined way.

On this page, you’ll learn how to:

Create a consent in NSW.

Create Consent

Consent is an authorisation document required by the NSW Land Registry for the successful lodgement of a property transaction. To be able to create a consent you must be, or be representing, a Mortgagee on Title, a Proprietor on Title, or an Incoming Mortgagee in PEXA and hold the control of right to deal (CoRD).

CoRD is the right of the holder to consent to the registration of a subsequent interest in land.

Note: The consent is lodged as part of the transfer lodgement case at settlement. The Consent can be created before the Transfer document has been created by the Incoming Proprietor.

Currently eCTs are only available to:

APRA regulated Financial Institutions, who hold a registered first mortgage; and
Are PEXA Subscribers, or are represented by a PEXA Subscriber.

To create the consent:

Select Documents from the left hand side navigation.
From the Create Document pull down menu, select Consent.

Consent Type	Description
Transacting Party Consent	A “Transacting Party Consent” is required where the CoRD holder is a participant in a transaction. This is the most commonly used Consent type.

The consent screen displays. There are three consent types:

Transacting Party Consents.
Third Party Consents.
Conversion to NO-CT.

When creating a Consent take note of the following information to be entered into the relevant fields.

Third Party Consent

A third party consent is required where the CoRD holder is a third party (i.e. a party that is not a transacting party in the lodgement case). The party that has CoRD is consenting to a third party (another FI in the case of a second mortgage) to transact on the land title.

Document to which Consenting Party Consents	Description
Instrument in Workspace	The transaction is being processed electronically in PEXA within the same lodgement case as the consent.
External Instrument	The transaction is being processed outside of PEXA (documents being lodged via the paper channel).
Plan	When a consent is required by the CoRD Holder to permit the Registration of a Registry Plan (of Subdivision or amalgamation of adjoining lots).
Primary Application	When a consent is required by the CoRD Holder to permit the Registration of an Application to convert Old System land or a qualified Land Title to Torrens Title.

Add Titles

When adding the title details take note of the following information to be entered into the relevant fields.

Title	Select the relevant title
Duplicate Certificate of Title	Select this when you physically have the Duplicate Certificate of Title. The information held on the Certificate of Title includes the Edition Number, Edition Date and the Certificate Authentication Code (CAC). Note: Paper titles issued prior to 4 January 2004 do not have a CAC. If a Paper Certificate of Title (pCT) does not have an encumbrance on the title, the Land Registry will not accept a pCT through PEXA as its validity cannot be guaranteed. In this instance you will need to present the pCT to the Land Registry. Once validated, the LandRegistry will provide a Production Receipt number which can be inputted into PEXA. If there is an encumbrance on the pCT then the pCT can be lodged through PEXA as the Land Registry will accept that the FI that holds the mortgage on the title has carried out the necessary checks to ensure the pCT is valid.
Named in CoRD Record in LandTitle	Select this option when it is an Electronic Certificate of Title (eCT).
Production Receipt	Type in the Production Receipt Code given to you by Land Registry. See the note under Duplicate Certificate of Title.

Select Consenting Party and click Save.

Now that you understand how to create a consent, you’re ready to learn how to complete a transfer. First, read through the transfer guidelines in the next article, and then learn about completing a transfer on behalf of a vendor or the purchaser.

Preparing the Financial Settlement Schedule

EmilyBilling — Fri, 18 Aug 2017 06:23:18 GMT

PEXA’s Financial Settlement Schedule (FSS) is a collaborative tool that contains electronic financial transaction directions for all source and destination line items. All payments are disbursed automatically at settlement, so you’ll no longer spend time waiting for cheques to clear.

On this page, you’ll learn how to:

Enter destination and source line items.
Enter extra details.
Verify and authorise the source funds.
Sign the Financial Settlement Schedule (FSS).
Access extra financial settlement options.
Understand the settlement process.

Preparing the Financial Settlement Schedule

The Financial Settlement Schedule (FSS) is completed by each participant prior to finalising a transfer in PEXA. The FSS should be completed once the following has occurred:

Relevant documents have been prepared; and
All financial adjustments have been agreed between the parties.

To complete the Financial Settlement Schedule, please refer to the below instructions.

To enter in destination and source Line Items for the Incoming Proprietor and Proprietor on Title:

Navigate to Settlement on the left hand navigation. The Financial Settlement Schedule screen displays. The Settlement Summary tab displays summary information about the financial Sources and Destinations.
Click the Sources Tab and Destination Tab in turn to enter your financial line items. The Destination tab has been selected in the example below.
Select Add Destination or Add Source from the right hand side (the screen above shows the Add Destination button because the Destination tab is selected).
Enter your Destination Line Items and click
The following table explains the field options that can be selected when creating Line Items in the financial Settlement Schedule.

Final Account Details (optional field) – for example, where a Financial Institution or practitioner is disbursing all funds to a single account they can then enter a ‘final’ account which shows the actual account that funds are to be disbursed to after settlement; (this would be a manual movement external to PEXA).

Land Registry fees are automatically added as a Line Item in the Destination Funds. These are collected by PEXA on behalf of the Land Registry and then passed on to the Land Registry.
Each participant is charged a PEXA fee which will automatically be entered as Line Items in the Destination Tab.
Unpaid Stamp Duty is automatically entered as a Line Item in the Destination Tab.
On Saving you will be taken back to the Sources or Destination tab in the Financial Settlement Schedule. Notice that the financial Line Item is now displayed. You can edit or remove a Line Item at any time before settlement.
Editing or removing a Line Item will cause the FSS to become Unsigned (if it had previously been Signed). In this case, communicate via PEXA Conversations ASAP. PEXA will also send an email notification that the FSS has been Unsigned.

Underlying Account Details (source funds) and Final Account Details (destination funds)

These optional fields are relevant for practitioners representing financial institutions. Both are for informational purposes only and provide ability to include details which will appear on settlement reports.

This information does not drive any functionality in PEXA. It will appear in the financial Line Item details.

Underlying Account Details (optional field): For example, the source Financial Institution is providing loan funds and they want to record the actual loan account that the funds are coming from.

Final Account Details (optional field): For example, where a Financial Institution or practitioner is disbursing all funds to a single account they can then enter a ‘final’ account which shows the actual account that funds are to be disbursed to after settlement; (this would be a manual movement external to PEXA).

Continue to the next article to find out about Verifying and Authorising Source Funds.

Completing the Getting Started with PEXA program? See whats next.

Now that you'know how the Financial Settlement Schedule operates, learn about how you can verify and authorise funds for settlement in the article Verifying and Authorising Source Funds.

What happens at Settlement?

EmilyBilling — Thu, 29 Nov 2018 03:25:57 GMT

What happens at Settlement?

In order to complete financial settlement, PEXA electronically sends instructions, to payment integrated Financial Institutions involved in the transaction, as well as the RBA. As the funds are exchanged, confirmations are sent back to PEXA, which are then reflected in the Workspace Summary. The following provides an outline of the settlement process and the information provided in the Workspace Summary.

Workspace must be in READY/READY status before settlement time.
All documents must be Signed.
Financial Settlement Schedule must be signed and balanced.

At settlement time, the following happens:
- The Workspace locks.
- The Financial Settlement Status moves to Settling.
- If a trust account is involved, a Source Funding instruction is sent to the bank.
- Once Source Funding is complete, Reservation is sent to the RBA (runs every 2 minutes).

Once an RBA Reservation is received:
- Lodgement Request is sent to the Land Registry.
- Lodgement status moves to Lodging.

Once Lodgement is complete, the Lodgement status moves to Lodged.
Note: The Land Registry will commence reviewing documents.

Once Lodgement status is Lodged, Settlement Response is sent to the RBA (runs every 2 minutes).

The RBA will send a response once the Settlement Request has been processed.
When the Settlement Response has been received Financial Settlement status will move to Settled - at this point Financial Settlement has been successfully and irrevocably completed.

Once Settlement at RBA is complete, disbursement will commence, Financial Settlement status moves to Disbursing. Disbursement batch runs every 10 minutes.

When the Land Registry has completed reviewing the documents and has provided a final status for the documents (e.g. registered or rejected) the Lodgement status will move to Completed.
When all banks involved in settlement have returned Disbursement responses, the Financial Settlement status will move to Disbursed.

Completing the Getting Started with PEXA program? See whats next.

Now that you've mastered completing a transfer electronically, learn about how you can complete linked settlements electronically by reading the article Linked Financial Settlement.

Funding Financial Settlement with a Trust Account

EmilyBilling — Fri, 18 Aug 2017 05:39:40 GMT

You will be able to nominate the account as a source account for funds in a financial settlement. The account will be available for you to select from a drop down list, significantly reducing the risk that an account details will be entered in error.

Users set up in your Subscriber Profile can create Line Items and select your Trust Account as the source account for source funds. These Line Items must then be verified and digitally signed. A Subscriber User must first verify funds are available for settlement. A User with permission to sign a Settlement Statement must then Digitally Sign the Settlement Statement and a User/s with permission to Authorise use of Trust Account funds must Digitally Sign to authorise use of the verified funds. Trust Account Authorised Signers are appointed by you and sign in accordance with Subscriber User Signing Rules established by you – i.e. single or dual authorisation and up to the limit assigned.

Sending payment instructions to your financial institution via PEXA does not alter your responsibilities in relation to your trust account.

As with making electronic transfers via Internet banking or drawing cheques, you will remain responsible to ensure cleared funds are in the account for the transaction and that only authorised persons have permission to authorise transactions.

PEXA provides a Trust Account Authorisation Record which you can print and retain for trust account reconciliation and audit purposes.

PEXA also allows Subscribers to access a Settlement Completion Record which records all source and destination line items for the transaction. The combination of your client file and instructions, the Trust Account Authorisation Record (where applicable) and the Settlement Completion Record are all components of record keeping for a PEXA transaction.

Your trust account can also be nominated as the destination account for funds from settlement.

Build your knowledge and have a look at some frequently asked questions on Trust Accounts.

Completing the Getting Started with PEXA program? See whats next.

On the next page, Trust Account FAQs, we'll cover some of the frequently asked questions onTrust Accounts.

Setting up a Trust Account

EmilyBilling — Fri, 18 Aug 2017 05:39:07 GMT

You can nominate source funds for Financial Settlement from your own trust account if it has been set up in PEXA. Find out how to set up your trust account in PEXA in a few quick steps.

Setting up your trust account in PEXA

Your trust account must be held at an approved authorised deposit taking institution.
PEXA will tell you if your financial institution is able to receive instructions on your trust account via the PEXA System.
Upon receiving your request, PEXA will forward your Trust Account Form to your financial institution.
Your financial institution will:
- Verify the account number and details correspond with your account held at the financial institution; and
- Verify the list of authorised signatories against the records held at the financial institution.
Once PEXA receives verification from your financial institution, it will include the account details in your Subscriber Profile.
You will then have control and responsibility for:
- Verifying the accuracy of your account details;
- Activating the account in PEXA;
- Nominating authorised signatories on PEXA (subject to verification by your financial institution);
- Setting limits for signatories;
- Removing authorised signatories;
- Removing your trust account from PEXA.

Once your account is set up in PEXA

Account details are locked once verified and cannot be modified by either you or PEXA. However, the account can be removed by you. To add a new account, you will need to again complete a Trust Account Form so that PEXA may seek verification from your financial institution.

Verification will also be sought when you wish to add any new signatories. At any time you can remove an authorised user or remove an account from your Subscriber Profile. You should be aware that removing the authorisation of a User will impact any Authorisations performed by that User in Electronic Workspaces which have not reached settlement causing all of those Authorisations to be Unsigned.

Note: Electronic Workspaces that have already initiated Financial Settlement or have completed Financial Settlement will not be affected.

If you delete your account, it will not be available to fund any future Financial Settlements, other than those where Financial Settlement has been initiated (on the Scheduled Settlement Date and Time).

On the next page we'll show you how to Fund a Financial Settlement.

Completing the Getting Started with PEXA program? See whats next.

Now that you've set up your Trust Account, learn about funding Financial Settlement using your Trust Account in the next article, Funding Financial Settlement with a Trust Account,

Source Account FAQs

EmilyBilling — Fri, 18 Aug 2017 05:41:13 GMT

PEXA offers a Source Account to some Subscribers, but this does not replace an eligible trust account.To help you understand the distinction, on this page we’ve listed the answers to some of the most frequently asked questions about the PEXA Source Account.

Q. What is the PEXA Source Account?

Practitioners who do not have a statutory trust account, or have a statutory trust account with a Financial Institution that is not currently integrated with PEXA, may wish to use the PEXA Source Account to contribute funds to a Financial Settlement. Money in the PEXA Source Account is held by PEXA as trustee for the Purchaser in a Conveyancing Transaction and will be dealt with on instructions from the relevant Subscriber. Funds are held on trust for the Purchaser and direction for use of funds can only be given by the Purchaser's Subscriber.

Q. Why does PEXA offer the PEXA Source Account?

The PEXA Source Account is available to eligible Subscribers who do not already operate a trust account with a bank that is integrated with PEXA. The PEXA Source Account is not an alternative to a PEXA eligible trust account.

Q. How much does it cost to use the PEXA Source Account?

There is no cost to use the PEXA Source Account.

Q. Does interest accrue in the PEXA Source Account?

No interest accrues in the PEXA Source Account for the benefit of the purchaser or any party to a PEXA Transaction.

Q. When do I need to ensure funds are cleared in the PEXA Source Account?

Funds must be cleared three business days prior to settlement.

Q. Is money in the PEXA Source Account trust money?

PEXA recommends that you work with your local regulatory body to satisfy yourself of your own professional obligations in relation to handling client money. PEXA also continues to work with the trust account regulators in the relevant jurisdictions to provide guidance on this issue. Some regulatory bodies have deemed money in the PEXA Source Account to be “power money”. For example, the Queensland Law Society guidelines.

If you intend to use the PEXA Source Account, you should familiarise yourself with the requirements regarding power money under the legislation which applies to you.

Q. Am I able to use the PEXA Source Account?

Subscribers should be comfortable that they will meet their regulatory requirements before requesting PEXA to register the PEXA Source Account in their Subscriber Profile.

You must satisfy yourself of your own professional obligations in relation to handling client money subject to each state or territory’s obligations for reporting and record keeping. PEXA cannot advise you in relation to your own reporting obligations.

Please refer to the Service Charter for more details: Section 2.4 PEXA Source Account

Q. How do I use the PEXA Source Account?

Please see the article How do I use the PEXA Source Account.

Completing the Getting Started with PEXA program? See whats next.

In the next article, Setting up SettleMe, we'll show you how you can organise for your clients to receive instant up-to-date notifications as their settlement progresses, using your free property app, SettleMe.

Trust Account FAQs

EmilyBilling — Fri, 18 Aug 2017 05:40:23 GMT

Q: What happens once PEXA receives my trust account details?

Upon receiving your request, PEXA will forward your completed Trust Account Form to your financial institution for verification. Once we receive verification from your financial institution, we will include the account details in your Subscriber Profile. You must Verify the account, then link Users to the account as payment authorisers. We will then verify each of these Users against the form that has been validated by your bank.
All other permissions are managed by you in your Profile.

Q: When do I need to ensure funds are cleared in the trust account to fund a financial settlement?

Funds must be clear and available in your trust account by the date of settlement, prior to the scheduled settlement time. You must verify the funds are cleared and available for use in the Conveyancing Transaction prior to authorising by digital signing.

Q: Who can sign for my trust account in PEXA?

The Subscriber Manager will establish signing permissions within your PEXA Profile. Only Users who are signatories to your trust account at your financial institution will be able to hold the permission of “signer – trust account” and therefore be able to authorise the withdrawal of funds from your trust account.

Q: Will PEXA access my trust account?

It is important to note that while trust accounts can be registered as a source account in your profile, PEXA does not access a practitioner’s trust account.
At the settlement time, the workspace will lock and PEXA will send payment instructions to your financial institution to move funds from your trust account to your financial institution’s internal account. The financial institution will provide a response confirming that funds have been transferred. PEXA will then send a funds reservation request to the RBA to reserve funds prior to settlement. After funds reservation, documents are lodged with the Land Registry and settlement funds are then exchanged between banks at the RBA. It is important to note that the workspace will not lock unless it is in ready status, which requires, among other things, all financial instructions to have been digitally signed, including an authorisation for the movement of trust funds.

Q: What documentary evidence does PEXA provide for the movement of funds from my source account?

When a signer authorises a source financial line item, a Trust Account Authorisation Record is created. You will have the ability to access the Trust Account Authorisation before and after settlement as documentary evidence of the transaction performed for the relevant trust account source line item. This document records approval provided by the signer(s) for the debit of the amount of funds specified in the source line item from your trust account into your financial institution’s nominated internal account for the purposes of the property transaction.

Q: Are trust account instructions signed using my Digital Certificate in PEXA?

Yes authorisation of a trust account instruction must be signed using your Digital Certificate in PEXA.

Q: Who has the last action in a Workspace for trust accounts?

The Subscriber must create and verify and authorise all Line Items.If a Line Item is amended by a Subscriber User, it will become unverified. The Source Financial Line Item must be verified in order for an Authorised User to authorise the funds. All trust account instructions (Line items) must be authorised in order for the settlement to get to ‘Ready’ status and the settlement to proceed.

Q: If I am a sole proprietor, can a paralegal sign off on my trust account?

PEXA has the capability to allow a single signer to provide instructions on trust accounts. It is your responsibility to be familiar with the statutory signing rules applicable to your trust account and ensure only persons authorised at law are Authorised Users in your PEXA Profile.
For example, if you are a legal practice and are entitled at law to authorise “two or more authorised associates jointly” to give payment instructions, you should establish the same rules in your PEXA Profile.

Q: What happens if I or someone in my organisation removes a signatory from my records at the Financial Institution but forgets to remove the permissions from the PEXA User/signer in PEXA?

You will be responsible for all authorised transactions in PEXA including any transactions which are authorised by PEXA Users who are no longer signatories on the account records. You should ensure appropriate controls are in place to prevent misalignment.

Completing the Getting Started with PEXA program? See whats next.

If you don't have a trust account, or your trust account is a with a Financial Institution that isn't integrated with PEXA, you may wish to use the PEXA Source Account, learn more about this in the article, Source Account FAQs.