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As more practitioners across Australia complete their settlements on PEXA, the industry is now focused on enhancing the quality of interactions between members transacting online.
This webinar will provide practitioners with tips on completing a smoother settlement on PEXA, covering the Transfer Guidelines and Bank Transfer Tips.
Scroll below to view the recording.
TRANSFERS: WHO SHOULD DO WHAT, WHEN
We received quite a few questions across the three webinars. We have collated the most frequently asked questions and responses below.
Q: How should the Discharge Authority be provided to the Mortgagee on Title?
A: Please refer to the Bank Transfer Tips and Discharge Authority (DA) preferences, to check where the DA should be sent. Links to these pages are available at the end of this post.
In addition to forwarding the DA to the mortgagee via their preferred channels, we recommend that you upload the DA to the Files screen within the workspace.
You should also tick the checkbox “Discharge Authority sent” on your workspace summary screen if the DA has been sent to the mortgagee.
Q: We need the banks to be more responsive with conversations.
A: The banks acknowledge there is room for improvement in this area and are looking at new and innovative ways to support and streamline their processes.
In the meantime, we would like to provide some context and background. Major banks can receive over 1,000 conversations each per day (as at 18 December 2018), with approximately 75% of these marked as high importance.
To minimise the number of messages each party receives, please send conversations to the relevant participants only. Please mark messages as high importance only on the day of, or day before settlement. Ensure that you are not asking a Bank to complete a task outside of the Guidelines time frame.
Q: Banks are slow to upload payout figures and surplus funds. Is this being addressed?
A: Our most recent data shows that 84% of final payout figures are entered by 10am day of settlement. Surplus funds can only be entered once the Practitioner has advised the amount of surplus available for collection. Banks have a number of initiatives, processes and system changes underway to streamline completion of the Financial Settlement Schedule.
It is also important to note that while this may appear to be a simple process, there are complexities to be aware of.
For example, the provision of payout figures by 10am are challenging in more complex scenarios involving partial discharge or substitutions/swaps and linked or simultaneous settlements, or where there is last minute activity on the loan account.
Sometimes the reason for delay is not evident to all participants in the workspace. This can include scenarios where the discharge authority is received late, or when last minute changes are requested by the customer.
Payout figures are a key focus for the banks and new functionality will arrive in the near future to further drive efficiency in this space.
Q: Banks are signing things last minute. Is this being addressed?
A: We are working with the banks to develop tools for greater visibility over workspace status and enhanced workflow management. Similarly, new functionality will be implemented soon to assist practitioners with identifying when tasks should be completed relative to Transfer Guidelines.
We are also developing additional notifications and alerts within the workspace to help parties identify outstanding steps and action them in a timely manner.
Just as the banks work to refine their processes, it is important for practitioners to ensure they are ready to go ahead of time. Continued collaboration between all parties in a workspace will ensure the smoothest possible transaction.
Q: Are there any consequences for breach of the Transfer Guidelines?
A: The Transfer Guidelines have been developed to assist members with what they should be doing, and when, to help ensure the timely and successful completion of a PEXA settlement.
Banks have requested and currently receive regular reporting on adherence to Guidelines to indicate areas that need improvement.
The Industry will be revising the Guidelines in early 2019, which will build in more robust requirements including guidance on timing and completion of tasks.
Q: Can the PEXA fees go in earlier?
A: In order for PEXA fees to be automatically populated in the ‘Adjustments and Payments“ tab on the settlement screen, all of the documents need to have passed lodgement verification.
Lodgement Verification is the process where the documents are reviewed and returned from the Land Registry with a Document Verification Result, at which point the PEXA fees and lodgement fees are returned.
The earlier parties have their documents prepared and verified, the earlier the fees will generate in the workspace.
Q: Who should enter the payments to the authorities and when should they be entered in?
A: There is currently no Transfer Guideline around who should enter the payments to the authorities. Some practitioners will enter it as the Incoming Proprietor to match the process for paper, where the Purchaser’s representatives would collect the cheque at settlement. Some practitioners enter the payments as the Proprietor on Title to show they have approved the adjustments.
This is a matter we intend to address in the next version of the Transfer Guidelines.
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