on 27-06-2019 11:48 AM
We have had a number of Workspaces Disbursed but not Completed. The settlement funds are always paid into our Law Firm Trust Account and we then transfer them to our client.
Is it safe to pay the funds out is the Workspace is Disbursed but not Completed?
We have been making our clients wait which they have been very unhappy about. We are being cautious because we have seen PEXA funds come into our Trust Account and, on the same day, be taken back out by PEXA.
on 27-06-2019 12:58 PM
You could look at it like this:
"SETTLED" is settled - all parties consider the matter settled, then just like in the paper world, someone had to go to LRS to lodge (that is now electronic "LODGED" and "DISBURSING" would be just like going to the bank with a cheque - "COMPLETED" is registration completed and funds credited to the accounts.
Obviously, you can't disburse funds from your trust account without receipting the clear funds, but I would be transferring funds as soon as the matter is marked SETTLED - as this is irrevocably completed.
Happy to be corrected, but that is my understanding.
27-06-2019 02:32 PM - edited 27-06-2019 02:34 PM
Thanks Yvette for your thoughts.
I am keen to hear what PEXA has to say especially in regards to funds being taken back by them. Ideally I would like a guarantee that at a certain stage i.e. Settled, we can receipt the clear funds and draw on them.