NSW LRS Fees - Doubling Up

[NicoleAghabi]

Check your client isn’t being charged for LRS fees when you are provide with the available funds for a purchase.

This because PEXA will automatically charge your client to pay the fee as well. In essence your client will be paying it twice.

If this is the case, you need to make sure the bank provides additional source funds to cover these costs. They need to pay it back.

[MarianAbraham]

Hi @NicoleAghabi

The way this fee is charged in PEXA is just as it would be in the paper world -  the Proprietor On Title will deduct the discharge of mortgage fee from what they are owed by the purchaser. For more information on how PEXA fees work, please visit https://community.pexa.com.au/t5/Getting-Business-Ready/bg-p/Step1_Getting_Business_Ready#2820

Thank you

Marian

[NicoleAghabi]

Yes, but they have to add it back.

I made the comment because the bank didn't add it back and my client was paying the one fee twice. Once in PEXA and once before they provided the loan amount funds available.

I made the bank aware of this and it was rectified by them going into PEXA and adding the amount back as a source fund.

[DZTS]

"The way this fee is charged in PEXA is just as it would be in the paper world"

I don't believe this is correct. In the paper world, the *BANK* is the party who will lodge the documents for registration and so they deduct the fees from the Funds Available to the purchaser on settlement. In PEXA, this fee is paid directly by the purchaser.