on 02-08-2016 02:11 PM
We've have had a few practitioners ask about the final payout figure so we'd like to share some background information.
The current transfer guidelines in PEXA state that a Financial Institution must enter their final payout figure into the Financial Settlement Schedule by 10am on the morning of settlement, and that an indicative payout figure is to be entered at least 48 hours prior to settlement. This is because Financial Institutions are not able to confirm the final figure for some home loan types and structures. For example, loans with redraw or offset capabilities would allow a customer to deposit or withdraw funds at any time up until the day of settlement, subsequently changing the loan payout amount. This protocol was agreed within various industry sessions which involved Financial Institutions, and peak bodies such as the AIC and Law Society.
However, PEXA understands that leaving the payout figure until the day of settlement creates a problem for practitioners if the final figure is different to what was expected. The practitioner would need to go back into the workspace, adjust their figures and sign the Settlement Schedule again. We are currently working through options to help resolve this issue, and we will be sure to keep you informed on any developments in the near future.
I've created this post to keep as a place to generate discussion and share any future developments.
on 11-07-2016 12:43 PM
What should a practitioner/conveyancer do if the Financial Institution involved has not put the the final payout figure in the Financial Settlement Schedule by 10am the morning of settlement?
03-08-2016 10:43 PM - edited 03-08-2016 10:44 PM
An interesting post @AnnaHardie! I think it's important to understand that when a financial institution determines a final payout figure for any settlement, paper or PEXA, it is not as simple as calculating a simple equation. Many financial institutions have their own internal
processes which need to be followed which can sometimes include two, three levels of management approval. When a financial
instutuion has hundreds of settlements on one day, it's not always easy to simply enter a payout figure.
on 08-08-2016 09:51 AM
If a practitioner does not have the payout figure by 10am on the morning of settlement then they can contact the Financial Institution via the conversation tool within the workspace or contact via normal channels. If this is unsuccessful please contact the PEXA Support team.
The Transfer Guidelines are best practice guidelines.