on 13-04-2018 11:12 AM
on 13-04-2018 11:12 AM
I have today received a request from ST GEORGE to upload a TRANSFER in this matter into documents - firstly no transfer in hard copy should be required in electronic conveyancing, secondly when you go down list of documents available to be uploaded there is no TRANSFER in the list so I uploaded a transfer but called it title search. ANYONE else getting these requests? seems silly to me and increases our work load notign Econveyancing is supposed to reduce the workload where no paper transfer is required
Solved! Go to Solution.
on 16-04-2018 11:11 AM
on 16-04-2018 11:11 AM
SolutionHello @Nicholsons1
I'm pleased to tell you that the Incoming Mortgage can view the Transfer document in a workspace. This change was introduced in Release 7 and is documented in our release notes.
"Members in the role of the Incoming Mortgagee will be able to view the rendered Transfer document once it has a document status of Prepared.
This will allow the Mortgagee to view the consideration and ownership percentage that the solicitor included in the Transfer document. This will assist them in verifying that these details match that of the loan agreement."
That being said, we are keen to followup to understand the requests you have mentioned, in-light of the above functionality.
Thanks
Brett
on 13-04-2018 11:44 AM
on 13-04-2018 11:44 AM
@AandTLegal, we've had the same thing happen before with one of our first PEXA settlements, we thought it was completely dumbfounding. Alas we did it to save argument and any issues arising later on, but I agree with you that it is silly to have to provide scans of physical copies when it is no longer a necessary requirement.
on 13-04-2018 12:02 PM
on 13-04-2018 12:02 PM
Yes, I did it as well to save any delay but we should not be required to provide it at all.
Who can we speak to about this to make sure it doesn't happen again?
on 13-04-2018 12:09 PM
on 13-04-2018 12:09 PM
I'm not too sure who would be best to speak to. I'm also not sure whether the reason some banks request it is because they aren't actually able to see the transfer documents that we create in PEXA. Maybe it'd be worth PEXA providing a 'view only' option on the transfer documents for the banks if there isn't one already.
on 16-04-2018 10:47 AM
on 16-04-2018 10:47 AM
@LawyersConveyancing is this something you've come across before? @AandTLegal do any other Financial Institutions request the same document?
on 16-04-2018 10:52 AM
on 16-04-2018 10:52 AM
I have only had it requested once but I have only undertaken a handful of settlements
on 16-04-2018 11:11 AM
on 16-04-2018 11:11 AM
SolutionHello @Nicholsons1
I'm pleased to tell you that the Incoming Mortgage can view the Transfer document in a workspace. This change was introduced in Release 7 and is documented in our release notes.
"Members in the role of the Incoming Mortgagee will be able to view the rendered Transfer document once it has a document status of Prepared.
This will allow the Mortgagee to view the consideration and ownership percentage that the solicitor included in the Transfer document. This will assist them in verifying that these details match that of the loan agreement."
That being said, we are keen to followup to understand the requests you have mentioned, in-light of the above functionality.
Thanks
Brett
on 16-04-2018 12:03 PM
on 16-04-2018 12:03 PM
Hi @TJ,
We are regularly asked to "Please forward a copy of the Transfer of Land so that we can proceed with mortgage preparation."
Implicit in this request is the threat that the client's mortgage preparation will be delayed, and therefore settlement will be delayed, unless the practitioner urgently delivers a copy of the Transfer of Land.
Usually the request comes from the borrower's mortgage broker, who has no idea at all about PEXA. The broker (or whoever else is dealing personally with the borrower) usually has a checklist of items the lender will require, and it seems that this checklist has never been updated. Thus we have the frustrating situation where a Transfer of Land is requested even though the matter is being settled via PEXA.
In some cases the loan broker will consult the lender, and will be told that the matter will definitely not proceed unless a Transfer of Land is provided, and the client is cc'd into the email the mortgage broker sends to us. Of course, the client then contacts us to express concern, seeking reassurance that we will sort matters out.
In some cases the lender will insist that a copy of the PEXA generated Transfer of Land must be generated and delivered to the mortgage broker, so that the mortgage broker can forward it to the lender. Although we will tell the broker (and the bank) that the bank has access to the document through the PEXA workspace, we still have the broker/bank spooking the client into contacting us to insist that we do as the lender demands.
Our solution to this problem (and a number of similar problems with the banks and brokers regarding documents) is to inform all of our cyber-security/privacy policy which now prevents us from forwarding any documents to any third parties.
Our management system includes a Secure Document Exchange portal (SDX) which is encrypted and quite secure, and this is the only means by which we deliver documents to the client. We advise the client (and all third parties) that only the client can determine who will receive sensitive documents (and they're all sensitive) and that only the client can decide as to which documents can be provided to whom, and the terms on which they will be delivered. We advise our clients that email, fax and post are inherently insecure due to the possibility of hacking or misdirection, and that there is no control over the party receiving and disseminating them at the other end. Clients readily accept this, given the recent publicity regarding the need for tighter data protection. We also advise the client to use encrypted email, but also make the observation that a client is entitled to send document by insecure means if they wish to accept the risk of doing so.
The upshot is that we can now tell all and sundry that the only way they can obtain any document they require is to source if direct from the client. We also explain that the client has access to their portal 24/7, and so documents can be obtained quicker if sought direct from the client. This has also solved the problem of lenders threatening to delay settlement if we can't provide the Settlement Statement as early as they would like. We upload this document to the SDX portal as soon as it is available, and leave it to the client to argue with a lender who insists on receiving it before it has been created.
Do the lenders and brokers complain about this arrangement? You bet they do! This is because they can no longer pretend that settlement is being held up because we have not provided documents, they can no longer lose document and set us the task of replacing them, and they can feed misinformation to the client in order to pressure the practitioner. However, most important of all is that the lender is now accountable to the client and it is the lender who must respond when the client says, "But I gave you that document two weeks ago, what do you mean settlement is being delayed because you don't have it?"
So, back to the Transfer of Land. We tell the loan broker that there is no paper Transfer of Land and that the lender is aware of this, having accepted the PEXA invitation. The client is bcc'd on this email, just in case the loan broker tries to use the client against us. (Only last week I had a loan broker use the client in this fashion, and so I emailed the broker and told him that I would prepare a pretend Transfer of Land, labeled as such, so that he could show it to the lender if that's what it would take to have them progress the matter, but it would generate a cost of $150. Needless to say, the loan broker found a cheaper way to sort out the problem.) Sometimes it takes a practical approach to convince someone of the absurdity of what they are demanding.
I know that this response has been rather long, but it links in with the PEXA Panic, which can occur when a lender has a last-minute demand for a document and seeks to have the practitioner assume responsibility for it, failing which settlement will be delayed.
Peter Mericka
on 16-04-2018 12:08 PM
on 16-04-2018 12:08 PM
I did the same thing. Looks like the Banks don't seem to have it together yet. When a PEXA settlement they can check the Transfer that has been created in the workspace.
on 16-04-2018 12:37 PM
on 16-04-2018 12:37 PM
Thanks for clarifying @BrettCS and for sharing what you've come across @LawyersConveyancing.
Sounds like it's one of those little things, process wise, that needs to be tightened up. Perhaps a new risk assessment for those Financial Institutions that are still relying on transfer documents - given that reading from the PEXA workspace is bound to be more reliable than recreating the document externally.
@Clarkee is this something that you have any knowledge of?