article Transfer Guidelines in Help Centre

Transfer Guidelines

EmilyBilling — Tue, 13 Nov 2018 05:29:24 GMT

Transfer Guidelines - Current as of May 2018

The PEXA guidelines have been developed to assist Subscribers with what they should be doing, and when, in order to ensure the timely and successful completion of a PEXA settlement. They have been developed through industry-wide collaboration with the intention to meet the needs of all PEXA Subscribers.

The guidelines are:

not intended to override existing obligations between parties to a transaction, such as those contained in the Contract of Sale.
to be read sequentially therefore start at step 1 and work through the stages that are relevant to your role.
not intended to cover sub divisions.
For any escalations relating to your transaction please contact the Financial Institution via their current settlement booking line. For members that are not Financial Institutions please use the Subscriber Search functionality in PEXA to obtain their contact details.

NOTE: You can download a PDF of the Transfer Guidelines at the bottom of the article.

UPDATE: May 2018 The Transfer Guidelines have been updated to align to changes proposed by the Industry Digital Transformation Working Group. Please refer to the post below the Guidelines for a summary of the changes.

1. Workspace Preparation and invitations

Stage

Guidelines

Timing

1 -

Incoming Proprietor

Proprietor on Title

Incoming Mortgagee

XXXXXXXXXXXXXXXX

Creates the Workspace with the settlement date and time, creates/edits the party (or parties) details and invites the other Parties as applicable.

Minimum recommended timeframes to ensure the Mortgagee has sufficient time to complete the transaction:

Invitation to be sent to Mortgagee on Title at least 10 days prior to settlement

Invitation to be sent to Incoming Mortgagee at least 10 days prior to settlement

Note: Contract of Sale may specify which Party is to initiate the workspace.

If a Workspace with the same Title already exists a message will alert the Party attempting to create the duplicate workspace. Please avoid creating duplicate workspaces.

Invitations should be sent as soon as possible once the Workspace is opened to reduce possibility of duplicates

Send invitation when contract/s have been received.

2. ACCEPT/DECLINE INVITATIONS

Stage

Guidelines

Timing

2 -

All Roles

XXXXXXXXXXXXXXXX

All Roles should respond to invitations and create/edit the party (or parties) as soon as possible.

If accepting, Parties should note on the acceptance any conditions such as “subject to receipt of instructions from Client”.

If declining, Parties should include a decline reason code and additional text to fully explain why the invitation has been declined.

Note: Invitations should be sent as soon as possible to reduce possibility of duplicates

All invitation responses should be completed within 2 business days of receiving the invitation.

3. WITHDRAWING FROM PEXA

Stage

Guidelines

Timing

3 - Withdrawing from PEXA

0000000000000000

If a party cannot progress in PEXA, inform the other parties and advise reason for withdrawal (using the PEXA Conversation tool).

Un-sign all documents, withdraw from and abandon the workspace.

Note: if withdrawal occurs within 5 days of settlement, delays may be experienced when booking a paper settlement with the Mortgagee on Title or Incoming Mortgagee.

Any contractual obligations concerning changes to the format of settlement should also be observed.

Please refer to state based contractual requirements as to timeframes that the matter can revert to paper.

As soon as possible once the party knows they cannot proceed in PEXA.

4. CONVERSATIONs IN PEXA

Stage

Guidelines

Timing

4 - Conversations in PEXA

A comprehensive understanding of and rigorous adherence to these Guidelines should reduce the need to communicate via the PEXA Conversation Tool such that it should only used to communicate information that is not already in the workspace or to escalate an issue.

It is important that all participants:

› Respond to conversations in a timely manner.

› Send a conversation only if changes are made after either the Financial Settlement Schedule and or a document have been signed, detailing the changes.

To minimise the number of messages each party receives:

› Avoid conversations to all workspace participants, only send to your client’s lender or practitioner (or practitioner to practitioner)

› the Incoming Proprietor to the Incoming Mortgagee and vice versa,

› Proprietor on Title to Mortgagee on Title and vice versa.

There is no need to respond to a conversation requesting completion of a task if the task is completed and visible in the Workspace.

Within 8 business hours after receiving the notification.

Within 4 business hours after receiving notification, if settlement is in 2 business days or less.

5. DOCUMENT CREATION

Stage

Guideline

Timing

5 -

Incoming Proprietor

Incoming Proprietor completes Transfer document.

When the workspace has been created or an invitation has been accepted.

6. DISCHARGE AUTHORITY SENT AND RECEIVED

Stage

Guideline

Timing

6a -

Proprietor on Title 00000000000000000

Proprietor on Title checks the “Discharge Authority Sent” checkbox on the Workspace Summary.

Note: Refer to Banks’ Transfer Checklist on the eConveyancing Community to find the latest Discharge Authority form and where to send.

When the Discharge Authority has been sent to the Mortgagee on Title

6b -

Mortgagee on Title

Mortgagee on Title checks the “Discharge Authority Received” checkbox on the Workspace Summary.

Note: Once received, the Discharge Authority will be verified. Refer to Banks’ Transfer Checklist for timeframes for verification. If a new Discharge Authority is required, this checkbox will be unchecked.

When the Discharge Authority has been received.

7. LOAN DOCUMENTS SENT AND RECEIVED

Stage

Guideline

Timing

Incoming Mortgagee 0000000000000000

Incoming Mortgagee Checks the “Loan Documents Sent” and “Loan Documents Received” checkboxes on the Workspace Summary.

When documents have been sent and received from Customer.

8.SETTLEMENT DATE AND TIME

Stage	Guideline	Timing
8a - Mortgagee on Title 00000000000000000	Mortgagee on Title should accept the proposed settlement date and time. If they are not yet able to, a conversation should be sent to the Proprietor on Title to advise of the reason for the delay If the Discharge Authority has not been received 5 business days before settlement, or security packet is not available, the Mortgagee on Title should send a conversation to Proprietor on Title to advise of delay in acceptance	Once Discharge Authority and security packet has been received.
8b - Incoming Mortgagee	Incoming Mortgagee accepts the proposed settlement date and time.	Once the mortgage document has been signed by the customer.
8c - Incoming Proprietor	Incoming Proprietor accepts the proposed settlement date and time or proposes an alternative settlement date and time.	At the same time as accepting invitation.
8d - Proprietor on Title	Proprietor on Title accepts the proposed settlement date and time (where the Incoming Proprietor has opened the workspace) or proposes an alternative settlement date and time.	At the same time as accepting invitation.

9. STAMP DUTY ASSESSMENT

Stage

Guideline

Timing

9 -

Incoming Proprietor

00000000000000000

Outside of PEXA, login to online revenue office system, and provide relevant transaction details for duty assessment

If NSW

› EDR requires the Lodgement Case ID not the transfer doc id.

› Once record is completed user enters transaction id into PEXA.

If QLD:

› OSR Connect does not require any input as the record is automatically created against the Subscribers profile after they have Entered Duty Information in PEXA.

› Once record is completed in OSR Connect the user just needs to come into PEXA and click verify duty.

If VIC:

› Duties Online requires the user to claim the PEXA transaction by entering the Transfer Document ID and SRO Transaction ID together with the Form ID into Duties Online

› Once record is completed in DOL user just needs to come into PEXA and click verify duty.

If WA:

› Print duty certificate in Revenue Online.

› Enter Certificate number into PEXA workspace stamp duty tab.

If SA:

› Log into Revnet for duty assessment and select ‘e-conveyancing batch’

› Enter reference number into the PEXA workspace Stamp duty tab

In accordance with jurisdictional requirements.

NSW/QLD:

at least 2 weeks prior to settlement

SA:

no more than 9 calendar days before settlement

VIC:

at least 1 week before settlement

WA:

at least 2 days before settlement

10. DOCUMENT COMPLETION AND SIGNING

Stage

Guideline

Timing

10a -

Incoming Mortgagee

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The Incoming Mortgagee prepares and signs Mortgage document in PEXA

Prepare Mortgage:

When accepting settlement date and time and mortgage documents have been verified by the Incoming Mortgagee and are deemed ready to settle.

Signing Mortgage:

When required information in Transfer Document is viewable.

10b -

Mortgagee on Title

Proprietor on Title

Mortgagee on Title creates and signs the discharge of mortgage document.

If NSW:

› Where there is a mortgage on the title, the Mortgagee on Title also creates and signs the Consent document for both an electronic and paper Certificate of Title.

› Where there is no Mortgage on the title, the Proprietor on Title creates and signs the Consent document.

If VIC:

› Where there is a mortgage on the title, and the certificate of title is paper, the Mortgagee on Title also creates, signs and lodges the Nomination document.

› Where there is no mortgage on the title, and the certificate of title is paper, the Proprietor on Title creates, signs and lodges the Nomination document.

› Where the certificate of title is electronic and the CT Controller is also a party in the Workspace, no nomination is required

› Where the certificate of title is electronic and the CT Controller is not a party in the Workspace, the CT Controller needs to be invited into the Workspace to create, sign and lodge the Nomination document.

Once the Discharge Authority has been received

10c -

Incoming Proprietor

The Incoming Proprietor signs the Transfer document, lodgement instructions and:

If QLD:

› Form 24 Part A&B

If NSW:

› NOS

If VIC:

› NoA

Once all documents in the Workspace have been created and lodgement verification has occurred.

10d -

Proprietor on Title

The Proprietor on Title should sign all documents and:

If QLD:

› Form 24 Part A&B

If VIC:

› NoA

Once all documents in the Workspace have been created and lodgement verification has occurred.

11. TOTAL FUND REQUIRED TO SETTLE

Stage

Guideline

Timing

11 -

Incoming Proprietor

and

Proprietor on Title

0000

Incoming Proprietor and Proprietor on Title calculate the total funds required to settle and

Incoming Proprietor enters amount into the Financial Settlement Schedule Summary.

Note: The total funds required to settle include the adjusted balance of the purchase price, all lodgement fees, stamp duty, PEXA fees and Practitioner professional fees if entered into the Destinations by the Practitioners.

5 business days before settlement.

12. LOAN PROCEEDS

Stage

Guideline

Timing

12 -

Incoming Mortgagee

000000000000000000

Enters the Loan Proceeds into the Financial Settlement Schedule once Loan Documents have been received and verified.

Note: This timeframe may be impacted by Customer’s unsecured debts and where the transaction is outsourced to a Panel Solicitor.

At least

5 business days before settlement.

13. AUTHORITY TO DEBIT AND DRAW DOWN AMOUNT

Stage

Guideline

Timing

13 -

Incoming Mortgagee 000000000000000000

Where Incoming Mortgagee holds an authority to debit the Customer’s account for Purchaser’s Equity (Shortfall) they answer “Yes” in the Financial Settlement Schedule Summary and enter the first four digits of the authorised account in the Financial Settlement Schedule Summary.

If Incoming Mortgagee is not providing Purchaser’s Equity (Shortfall), they enter “No” on the Financial Settlement Schedule Summary.

At least 5 business days before settlement.

000000o00000000000

14. PURCHASER'S EQUITY

Stage

Guideline

Timing

14a -

Incoming Proprietor

000000000000000000

If the Incoming Proprietor is providing Purchaser’s Equity (Shortfall) they must create a source line item in the Financial Settlement Schedule and ensure funds are deposited in the relevant source account (either own trust account or PEXA Source Account).

000000000000000000000000000000000000000000000000000000

When using the PEXA source account, enter source line item at least 5 business days before settlement to generate account deposit details. Funds must be cleared and available in the PEXA Source Account no less than 3 business days prior to Scheduled Settlement.

14b -

Incoming Mortgagee

If the Incoming Mortgagee is providing Purchaser’s Equity (Shortfall), they must create a line item in the Financial Settlement Schedule

2 business days from Settlement

15. COLLECTING VENDOR SURPLUS

Stage	Guideline	Timing
15a - Mortgagee on Title	If applicable Mortgagee on Title to confirm via conversation to Proprietor on Title that authority is held to collect any surplus funds. 000	At least 2 business days before settlement.
15b - Proprietor on Title	If Mortgagee on Title is authorised to collect Vendor Surplus, Proprietor on Title is to notify Mortgagee on Title of the Net Vendor Amount (loan payout plus vendor surplus). Note: This is the amount due to Vendor after deducting outgoings, third party payments and professional fees.	At least 2 business days before settlement.
15c - Proprietor on Title	If Mortgagee on Title is not collecting surplus funds, the Proprietor on Title should enter a destination line item into the Financial Settlement Schedule.	After indicative payout figure is entered and if required amended once the final payout figure is entered.

16. INDICATIVE PAYOUT FIGURES

Stage

Guideline

Timing

16 -

Mortgagee on Title

Where possible the Mortgagee on Title enters indicative payout figure into the Financial Settlement Schedule.

At least 2 business days before settlement.

17. PAYMENT DIRECTIONS

Stage

Guideline

Timing

17 -

Incoming Proprietor and

Proprietor on Title

The Incoming Proprietor and Proprietor on Title enter payment destination line items into the Financial Settlement Schedule.

At least 1 business day before settlement.

Note: If changes made within 2 hours of settlement time, a call is required to impacted parties.

18. SETTLEMENT PREPARATION

Stage	Guideline	Timing
18a - Mortgagee on Title	Mortgagee on Title updates the indicative payout figure in the Financial Settlement Schedule to represent a final payout figure if required and enters a destination line item in the Financial Settlement Schedule for Surplus if it is authorised to collect and signs Financial Settlement Schedule.	No later than 10am day of settlement (in jurisdiction of the land where the property is situated).
18b- Proprietor on Title	Proprietor on Title updates Vendor surplus if they are collecting and if final payout figure differs from indicative and signs Financial Settlement Schedule.	At least 2 hours prior to settlement or once balanced.
18c - Incoming Mortgagee	Incoming Mortgagee confirms the source line item in the Financial Settlement Schedule for the loan proceeds and signs the Financial Settlement Schedule and the Lodgement Instructions.	Sign Financial Settlement Schedule and lodgement instructions once balanced
18d - Incoming Proprietor	Incoming Proprietor completes and signs the Financial Settlement Schedule Note: Even if the Incoming Proprietor* is not providing any source funds and does not need to complete the FSS, they still need to sign.*	Sign Financial Settlement Schedule once balanced

18E. SETTLEMENT PREPARATION

Stage

Guidelines

Timing

18e. Settlement preparation -

Incoming Proprietor

and

Incoming Mortgagee

Where there is a positive Title Activity Check (TAC) notification 1 hour before settlement, all incoming parties (Incoming Proprietor, Incoming Mortgagee and/or Incoming Caveator) respond to the notification by permitting settlement to proceed, or send a conversation to advise the reason for delay.

Within 30 minutes of receiving notification.

19. DELAY IN SETTLEMENT

Stage

Guidelines

Timing

19. Delay in Settlement

If settlement is delayed for any reason, all parties must accept or decline the new time/date and re-sign if required.

If a party changes the settlement date they should send a conversation providing a clear reason as to why the settlement date has changed.

Within an hour of receiving notification.

Re: Transfer Guidelines

LawyersConveyancing — Wed, 23 Nov 2016 00:18:50 GMT

Hmm, the Duties Online explanation reminds me of the Monty Python skit where Jacquie gives a lesson in how to play the flute:

Jacquie: "Well, you just blow in one end, and move your fingers up and down the outside."

Host: "Thanks Jacquie, that was great."

Duties Online is not just a matter of entering data, then moving across to PEXA. The SRO requires us to prepare a hard copy duties form for the client, send it to the client, answer the clilent's questions about it, have the client execute it, receive it from the client, check that it is properly executed and complete, transcribe the information from it into Duties Online, then provide filing and storage services for the SRO for the next 5 years just in case someone from the SRO wants to have a look at it.

Methinks there will be plenty more "flute lessons" to be discovered.

Re: Transfer Guidelines

Brooke — Mon, 22 May 2017 06:52:18 GMT

How can we tell if these are the latest version of the Guidelines or if they have been superseded by another community post? It would be really helpful if PEXA had one page where all workbooks, guidelines etc could be found and downloaded in PDF rather than having to scroll through community posts.

Re: Transfer Guidelines

EmilyBilling — Mon, 22 May 2017 06:58:02 GMT

Hi , these are the latest version of the Guidelines. You'll notice there is a note at the top of the page "Transfer Guidelines - Current as of 15th November 2016". If there are changes, we'll always update with the latest date. All help content can be found in the Help Centre and is categorised by topic. We are continually improving the content on offer, and how it is displayed however, we do tend to avoid PDFs as these are much harder to maintain and keep current. May I ask what Workbooks/topics you are looking for and would like categorised together?

Re: Transfer Guidelines

Brooke — Mon, 22 May 2017 07:03:22 GMT

Thanks Emily

Super speedy response! So this post won't be superseded by a separate post with updates to the Guidelines? Rather, this original post will just be updated? If so, I can see how that works the same as having a standalone page where we can download things from. I was just worried that I might pick up an old post instead of a new post on this forum.

We were looking for a workbook to do a mortgage discharge in South Australia and having trouble finding this online (but have since had our local contact email the 'Panel Lawyers - Mortgagee Processing' workbook to us). When this was emailed to us we found it had substantially changed from the workbooks provided to us in training a few years ago (which were WA specific). As I work with a national firm, it would be helpful to have 1 page where we can download all workbooks from as we will no doubt need them for other transaction types in other jurisdictions soon.

Thanks

Re: Transfer Guidelines

EmilyBilling — Mon, 22 May 2017 07:14:40 GMT

sometimes I'm a speed demon

You are correct! This post will just be updated if anything changes, and we'll always make sure it has the last updated date.

The main difference between the help topics and the forums, are that help topic information will always be updated with the most recent content (these are your "how to do something" type articles), and the forums are where community members can ask questions to the rest of the community.

We do have the most recent and up to date "How to discharge a mortgage" article - which has both written how to and an interactive tutorial you can click through (as it's a help article this will always be updated with any changes, although again they are not downloadable). You'll also find additional information about Mortgages in this article. Hope that helps!

Re: Transfer Guidelines

EmilyBilling — Mon, 22 May 2017 07:23:37 GMT

also we held a couple webinars in April which may be of interest to you!

Re: Transfer Guidelines

JoellePEXA — Thu, 03 Aug 2017 23:52:26 GMT

As more subscribers adhere to the guidelines (both Practitioners and Mortgagees) we should start to see a smoother transaction. When all parties know what to expect and, most importantly, when they are expected to complete their tasks, the transaction should progress smoothly to a timely and successful settlement. Hopefully, this will be the beginning of what could evolve into Industry Standards and Expectations.

Re: Transfer Guidelines

LodgeX — Wed, 06 Dec 2017 23:25:20 GMT

Yay ....there's a PDF version we can download. I have also bookmarked this page as its a great reference tool when we send conversations to the Mortgagee to poke them along. Thank you

Re: Transfer Guidelines

LodgeX — Wed, 06 Dec 2017 23:29:43 GMT

I just saw my last post (and my photo) from my PEXA Direct Specialist days ... cannot emphasize enough how the guidelines help to shape expectations.

Re: Transfer Guidelines

DMc — Wed, 14 Mar 2018 09:43:39 GMT

Have a general question to the 'community at large'; when do most practitioners advise/inform their clients to confirm financial e-settlement as being booked?

Re: Transfer Guidelines

Aoife — Wed, 04 Apr 2018 22:32:20 GMT

Hi Community,

The Transfer Guidelines are being updated!

Thanks to the Industry Digital Transformation Working Group – including representatives from across your network – 15 key changes have been proposed to drive efficiency, support transacting at volume, promote best practice and align to current system functionality.

Stay tuned to this page, soon we’ll be posting a summary of the changes and asking for your feedback.

If you have any questions, please don’t hesitate to ask us below.

Cheers

Aoife

Re: Transfer Guidelines

Saysa — Fri, 20 Apr 2018 05:04:25 GMT

The Industry Digital Transformation Working Group, including Banking and Practitioner representatives from all PEXA active jurisdictions, has proposed a set of changes to the Industry Transfer Guidelines to ensure they meet the following objectives:

Align with current system functionality
Reflect current industry practices and processes
Leverage the expertise and insights of network members
Enable transacting at volume to meet mandates
Identify and transition to desired end state

These changes will be reflected in a new Version 2 of the Industry Transfer Guidelines in the coming weeks. Version 2 will be posted here. Please post any questions or comments in regards to these proposed changes below.

Guideline
Invitation Acceptance	All roles accept within 2 Days of receiving an invitation and note any conditions that need to be met for the transaction to proceed. eg. Purchaser/Buyer confirming instructions with Practitioner. Change: Aligns timeframes for Practitioners and Banks.
Document Creation, Editing and Signing	Incoming Proprietor creates Transfer Document after creating the Workspace or accepting Invite. Incoming Mortgagee creates the Mortgage document when information in the Transfer document is viewable and signs when Loan Documents have been received and verified. Note: Some Incoming Mortgagees may not create the Mortgage Document until the Loan Documents have been received and verified. Outgoing Mortgagee creates and signs Discharge Document when they have received and processed the DA. Change: Creating and signing Documents as early as possible Note: Some Participants may not sign documents until day of settlement.
Total Fund Required to Settle	Incoming Proprietor to enter Total Funds Required to Settle 5 days prior to Settlement. Note: Incoming Proprietor will endeavour to calculate this figure as accurately as possible but it should be considered as indicative. Change: Was 2 days and communicated via conversation
DA Sent	Proprietor on Title checks box on the Workspace Summary once they have sent the Discharge Authority or they have been advised by another party (Eg. their Client) that the DA has been completed and sent. Change: Replaces conversation.
DA Received	Mortgagee on Title checks box on Workspace Summary on receipt of the DA. Change: Replaces conversation. Note: Once received, the Discharge Authority still needs to be verified. Refer to Outgoing Mortgagee’s Transfer Checklist on Community for timeframes for verification. Also refer to this post for information on where to source the current DA form and where to send the completed form. If a new DA is required, this checkbox will be unchecked.
Loans Documents Sent	Incoming Mortgagee checks box on Workspace Summary when Loan Documents have been sent to the Customer. Change: Replaces conversation.
Loan Documents Received	Incoming Mortgagee checks box on Workspace Summary when Loan Documents have been received from the Customer. Change: Replaces conversation. Note: Once received, the Loan Documents still need to be verified. Refer to Incoming Mortgagee’s Transfer Checklist on Community for timeframes for verification. If a new or revised Loan Document is required, this checkbox will be unchecked.
Payment Directions – WA and SA Discharge of Mortgagee Lodgement Fee	Remove these instructions now that the process has been aligned nationally.
Conversations	Intended to be used only to communicate information not provided in the Workspace or to escalate an issue. Change: Replaces “use conversations as the primary form of communication”.
Loan Proceeds	Incoming Mortgagee enters Loan Proceeds in FSS atleast 5 days prior to Settlement and once Loan Documents have been received and verified. Note: This timeframe may be impacted by Customer’s unsecured debts. Change: Replaces conversation.
Lodgement Instructions	Only Responsible Subscriber required to sign Lodgement Instructions Change: Previously all parties required to sign
Indicative Payout Figure	Mortgage on Title to enter indicative Payout figure into FSS 2 days prior to Settlement Change: replaces sending a conversation with indicative Payout figure.
Authority to debit for Purchaser’s Equity (Shortfall)	Incoming Mortgagee to advise if “Authority to debit for Shortfall Held” on the FSS Summary 5 days prior to Settlement. Answering “Yes” commits the Incoming Mortgagee to provision of all funds, answering “No” prompts Incoming Mortgagee and Incoming Proprietor to discuss and agree arrangements for provision of Shortfall via conversation at least 5 days prior to Settlement. Change: 5 day timeframe and use of fields instead of Conversation.
Entering Purchaser’s Equity (Shortfall)	Incoming Mortgagee enters Purchaser’s Equity in FSS 2 days prior to settlement based on the Total Funds Required to Settle. Change: the TFRS is referenced from the new field, not a conversation.
Workspace Preparation and Invitations	Add: Incoming Mortgagee can create workspace and issue invitations Minimum recommended timeframes to ensure the Financial Institution has sufficient time to complete the transaction: Role of Mortgagee on Title: Invite and DA to be sent atleast 10 days prior to Settlement. Role of Incoming Mortgagee: Invite to be sent atleast 10 days prior to Settlement. Note: Contract of Sale may specify which Party is to initiate the workspace. If a Workspace with the same Title already exists a message will alert the Participant, please ensure that duplicate Workspaces are not created. Invitations should be sent as soon as possible once the Workspace is opened to reduce possibility of duplicates.
Stamp Duty WA	Guideline for WA to be simplified to “at least two days before settlement”. Change: Was at least 2 days before settlement unless the settlement is on 1st of the month then day of settlement.

Re: Transfer Guidelines

Karolidis_and_Co — Fri, 20 Apr 2018 05:21:00 GMT

These are fantastic changes, hopefully this results in more efficiency and reduction in stress (assuming they are adhered to!)

Re: Transfer Guidelines

JonTeh — Sun, 22 Apr 2018 22:58:06 GMT

Total Fund Required to Settle

Incoming Proprietor to enter Total Funds Required to Settle 5 days prior to Settlement.

Note: Incoming Proprietor will endeavour to calculate this figure as accurately as possible but it should be considered as indicative.

Change: Was 2 days and communicated via conversation

I think this needs a second part to it where the Incoming Proprietor confirms exact funds required to settle 1 day prior to settlement. As it currently stands, there may be some confusion from the IM on exact funds they are required to input into sources if this figure is left as indicative.

Thoughts?

Re: Transfer Guidelines

BGoodwin — Mon, 23 Apr 2018 00:45:18 GMT

As a Panel Solicitor we can't easily obtain an indicative Payout figure however in most cases we have the actual payout loaded in 1-2 days prior to settlement. How do you show it's an indicative figure in any case?

Indicative Payout Figure

Mortgage on Title to enter indicative Payout figure into FSS 2 days prior to Settlement

Change: replaces sending a conversation with indicative Payout figure.

We have been uploading the source Loan Proceeds figures as soon as we can, but with our new Source Funder client we don't think that will be possible as the Lender enters the figures based on our Certification. I suppose if we get to the point of confirmed "Total Funds Required to Settle" as per 's comment , perhaps we can Certify for funding earlier.

Loan Proceeds

Incoming Mortgagee enters Loan Proceeds in FSS at least 5 days prior to Settlement and once Loan Documents have been received and verified.

Note: This timeframe may be impacted by Customer’s unsecured debts.

Change: Replaces conversation.

Entering Purchaser’s Equity (Shortfall)

Incoming Mortgagee enters Purchaser’s Equity in FSS 2 days prior to settlement based on the Total Funds Required to Settle. Change: the TFRS is referenced from the new field, not a conversation.

Cheers, Baz....

Re: Transfer Guidelines

jgusew — Mon, 23 Apr 2018 21:52:50 GMT

While these are coined as guidelines right now, is PEXA working towards a view that these will be enforced? (I do hope one day that this is achieved, but I think we are still a couple years or more away)

Would you touch an invitation if you had not yet received instructions within that two day timeframe?

Adding to the mix, from what I can tell, there is a lot of "your urgency is not my emergency" in the legal industry. So if the other side invited us to QUICKLY settle, we shouldn't have to rush in contacting the client and urge them to hurry things up if we are not required to do so. Measure twice cut once as they say, we cant afford silly little mistakes. There is a lot more that happens on a matter/file then just PEXA and a CAF/VOI.

Re: Transfer Guidelines

LawyersConveyancing — Mon, 23 Apr 2018 23:19:17 GMT

As a lawyer representing a client I can act only on instructions, and these can only come from a client. If I have not been engaged (i.e. I have no instructions) then on whose behalf would I be accepting an invitation? It follows that if I have no instructions from the client I have neither an obligation nor the authority to accept an invitation.

Having said this, if I have been engaged by the client and my instructions are to represent that client in a conveyancing transaction, then I can move on an implied instruction to accept a PEXA invitation subject to my receiving VOI and Client Authorisation.

The "your urgency is not my emergency" view of how things operate should not be seen as a form of "get stuffed" response to a party hoping to accelerate things. Rather, it's all about the clients. Sometimes its about racking up costs generated by the other side against one's own client. As an extreme example, if I have to pay my staff overtime in order to attend to something that is "urgent" for the other side, who should pay the overtime bill - my client? the other side's client? And should I stress my staff with such supposed urgency? I have a duty to provide a safe workplace and conveyancing is stressful enough without further stressors being added by way of "urgent" action required by other parties.

All of these have to go into the mix.

Part of the reason I am so vigorous in fending off the banks when they attempt to have my staff attend to their tasks (usually as matters of urgency accompanied by the threat of a deliberately delayed or crashed settlement) is this need to avoid and reduce unnecessary workplace stress.

Peter Mericka

Lawyers Conveyancing

Re: Transfer Guidelines

LawyersConveyancing — Mon, 23 Apr 2018 23:39:31 GMT

When a bank tells us that it will accept all proceeds of the sale at settlement it makes things so easy. We don't need a payout figure, as this is a matter between the bank and the client.

We simply allow for adjustments, deduct our fee, and the rest of the money goes to the bank. The bank then deposits the proceeds into the clients nominated account after deducting the amount required to discharge the mortgage.

PEXA is an ideal vehicle for this, as the funds and disbursed as at settlement, which is the same result.

So, at the end of the PEXA settlement day, we should simply have all funds going to the mortgagee without our worrying about the payout figure - it would also be up to the lender to ensure that the mortgagor is aware that additional funds may have to be dumped into the loan account if the sale proceeds are insufficient.

Peter Mericka

Lawyers Conveyancing

Re: Transfer Guidelines

LawyersConveyancing — Mon, 23 Apr 2018 23:53:10 GMT

and , when it comes to having the incoming proprietor providing details of the total funds required for settlement, it would be a huge help to have an integrated Statement of Adjustments that could populate PEXA so that the figures could be quickly and easily checked and approved by the vendor, and the lenders could see the figures they are to work from.

Peter Mericka

Lawyers Conveyancing