I represent Financial Institutions here at LeadPoint and in fact initiated the change to allow us to view the Transfers. Firstly to check the consideration amount as there are some dodgy practices out there and secondly to see the tenancy holding as some Banks have rules around the property shares.
I don't know if the Banks mentioned are aware they can view the Transfer, but please also be aware the Transfer needs to be in a "prepared" status. I find transfers are not brought to prepared status until immediately before settlement which doesn't help and it also prevents lodgement instructions being "prepared".
I am wondering if this is more of a broker problem than a bank problem, as we have encountered a number of aggressive brokers in recent times who demand a copy of the Transfer of Land and then tell the client that settlement will be delayed until it is received. I do note that we don't receive PEXA conversations from banks making this request.
Perhaps its a matter of some housekeeping on the part of the banks in terms of updating brokers to the effect that there is no need to secure a copy of a Transfer of Land for a PEXA settlement.
With regard for the need to have the PEXA Transfer of Land at the "Prepared" stage, this is certainly a good reason for a lender to fire out a conversation requesting this.
Tuesday - last edited Tuesday
A Bankers Perspective.
Has this request been made via the PEXA workspace, or outside of PEXA?
Many Banks will still request a copy of a paper transfer as part of their normal file processing, regardless of PEXA or paper settlement arrangement.
Such requests would be made outside of PEXA, not via the PEXA workspace.
If the settlement does proceed down the PEXA path, right through to settlement, then I see no need for a paper transfer copy to be provided.
A Bank cannot confirm their readiness to settle until the transfer is created in the workspace.
If, for any reason, the settlement is subsequently redirected down the paper path. then a copy of paper transfer will be required before a settlement booking will be accepted.
Requesting (but not following up) a copy of paper transfer may allow an urgent paper settlement booking in this instance.
I was involved in the PEXA discussions which led to the ability for Incoming Mortgagees to view the electronic transfer details.
This had two main goals:
If some Banks are still demanding a copy of paper transfer, for PEXA settlements, perhaps PEXA can liaise with those Banks in addressing the process. Not just for a specific worksace.
In this matter it was a request passed on from bank to broker to me (Solicitor) specifically to upload a transfer document into PEXA files - they then "approved" transfer via conversations to me saying "Transfer checked & verified".
Then that request does sound strange to me.
I wonder if it was a misinterpretation from the Bank to the Broker to you.
I suspect the Bank told the Broker they are waiting for the transfer to be created in PEXA, but the Broker interpreted that to mean uploading a copy of paper transfer to PEXA.
I think St George are well aware they can view the electronic transfer in the workspace.
My most recent run-in with a broker over this issue revealed that it was the bank's settlement agency that was making the demand. Some of these settlement agencies (I'm talking about those who control funds and take settlement bookings rather than those that are merely representatives on settlement day) purport to be acting on the instructions of the bank when they require the broker to obtain a Transfer of Land.
Someone needs to sit down with the brokers and settlement agencies and explain to them that a copy of the Transfer of Land should only be sought in cases of non-PEXA settlements, and that the bank's own PEXA team can access the electronic version through the PEXA workspace.
Thanks Everyone - so what happens when the transfer is "in preparation" and purchaser says they cannot sign transfer until stamping done and in that matter stamps are paid on settlement??? - so in other words what actual steps need to be completed to get the transfer to "prepared" so the bank can see it?
It would be that they need the stamping assessment to be completed within the workspace, not the stamp duty being paid.
The transfer cannot move to a successful status until the stamping assessment is complete.
So the Purchaser, and the Incoming Mortgagee, would use the successful status of the transfer as their indication that the stamping is complete.
I can't help you there.
@TJ can you shed some light on this or refer to a NSW practitioner to assist?