PAYOUT not entered less then hour before settlement

[FionaS]

This is getting really frustrating.

It is less than an hour to my settlement at 12.00 noon and the discharging Bank's representative have still not entered a payout figure despite us specifically requesting same the day prior to settlement (as would have happened in a paper settlement).

Why is this so difficult?  We need time to contact the client and confirm the payout with them, then enter our client's amount and confirm all account information, then sign off on the workspace.  We should be given sufficient time to do this !

[CourtneyFitzgerald · Accepted solution]

Hi @FionaS 

I understand your frustration. We find it very difficult to get any information regarding indicative's from banks and then payout figures are entered last minute which leads to a scramble to settle on the nominated time!

These are the PEXA guidelines which all network participants are encouraged to operate within:

INDICATIVE PAYOUT -  'Where possible the Mortgagee on Title to advise Proprietor on Title of indicative payout figure by sending them a conversation.'  'At least 2 business days before settlement.'

SETTLEMENT PREPARATION - Mortgagee on Title updates the indicative payout figure in the Financial Settlement Schedule to represent a final payout figure if required and enters a destination line item in the Financial Settlement Schedule for Surplus if it is authorised to collect and signs Financial Settlement Schedule. No later than 10am day of settlement (in jurisdiction of the land where the property is situated).

The guidelines are published on the Community here. 

Although I shouldn't have too, i find calling the bank settlements team to chase information, payout details and to get them to sign off makes it go faster. Very annoying that the banks have all the power and seem to answer to no one. A lot of time wasted chasing up banks that is for sure.

- Courtney 

[FionaS]

Thanks for your reply Courtney.

The most frustrating part too is that this was a set payout amount (as per a Deed of Set Off), so they didn't even have to wait to receive it from their Bank.  The amount was known two weeks ago.  They just needed to enter it (as well as their fees).

Also, when I rang them at 11.20am (40 mins before settlement), they said they received confirmation at 10.20am, but put a conversation in Pexa at 11am saying they were still waiting........... very poor service !

Anyway, it's settled now.  Just so frustrated at the time.

Thanks again for the reply, and have a great day !

Fiona.

[Claudia11]

I feel your pain Fiona! They drive us all crazy!

[SF]

I totally agree.

We have also had a number of instances where we have been advised the PO will be loaded prior to 10am day of settlement, only to be still chasing well past this time and sometimes up to 15 mins prior to the actual settlement time. Then we are reminded via a conversation that WE need to sign off in PEXA for settlement to proceed.

What then happens when the PO figure is more than available funds at settlement?  We need to request a release of deposit with funds to be paid to either our  Solicitors Trust account:- delays of 24 hours or more or to the PEXA settlement account a delay:- 3 days.

I have worked in a Solicitors office handling conveyancing for over 15 years, our policy has always been to work and provide clients with full disclosure of fees and charges prior to settlement. We are now forwarding correspondence to our clients stating "to be advised due to your lender not providing details".  

The pressure is always on Solicitors and Conveyancers to get documents in the prepared stage to satisfy the Banks however the Banks do not reciprocate.

PEXA is becoming a "one way street" to satisfy the Banks with little or no regard as to client's needs or customer service.

[Clara]

Based on my experience, I was acting for the POT for a 3:00 pm settlement and the OM waited until 4:30pm to enter the vendor's funds, which I could have done if I was allowed to do since  I knew the exact figures to balance.  Countless conversations were unanswered until I totally gave up.  The time spent on checking whether they have entered the figures ate up all my time for my other matters.

Is there any other way to oblige these banks to adhere to the time limit?  Or we, as practitioners, just have to accept and wait for their mercy?

[JodieS]

I agree this is very frustrating. If this was a paper settlement we would not be getting figures the day of or minutes before settlement. the banks need to lift their game. 

Ideally figures should be in 2 days before hand and signed off, whether its payout or available funds as we have to advise the clients before settlement what the funds are! 

I am finding that banks often don't sign off either and settlement keeps rolling because even though they are ready, they just do not sign off. it is getting ridiculous.