Discharging Bank's PEXA Fee

[MorganConveyancing]

We are acting for a Vendor where the Bank's Solicitor is treating the PEXA Fee has a Government Fee and taking no responsibility for it.  They are still charging their Settlement Legal Fee in full and passing the $41.00 fee onto the Vendor.  This means our client is paying $150 plus to settle on PEXA.  I've reduced my fees to compensate but I can't do this every time.  The way forward....    How do we sell this to our client when it's costing $85 more to settle on PEXA.   Where's the benefit?

[Ames · Accepted solution]

Hi @MorganConveyancing

I'm not sure what you mean by treating it as a government fee, but if the bank has decided to pass the fee on, that is a matter for them. We do have an article about the payment of PEXA fees and lodgement fees in various scenarios, including where there is a panel lawyer acting for a lender. The legal feel sounds like it is the lawyer's professional costs, as opposed to the PEXA fee, which may be being passed on as a disbursement.

The scenario you've described sounds like it is specific to this particular bank and may not be something you'll see in your next Workspace, where another bank is involved.

Ultimately, the cost of settling electronically could be different for each of your clients, especially where different banks are involved. However, the value to you and your client will be in more efficient processing, reduced risk and greater transparency. Here is a client brochure that may assist.

I hope this helps - please let me know if you have any further questions, or mark this solution as "accepted" if I've answered your query.

Ames

[MorganConveyancing]

Thanks Ames for your detailed response.  Much appreciated.