Paying Rates to Councils

[CassandraBird]

Hi,

I have been attempting to add to the Financial Settlement Statement a Vendor Destination Line Item for Council Rates and had a couple of queries.

The first being how do I find out the banking/bpay details for the council being used? Is it a case that I just have to manually get a rates notice from Council? Further, from a Purchaser's perspective - how can they know that the monies are safely transmitted to the right entity and account number? Why is there not a pick list for Council's with their account number just as you have for legal practitioners like us.  

The second is that the Associated Subscriber is the Purchaser and not us as the Vendor. Why is this?

I look forward to any information you can provide me.

Thank you.

Cassandra

[CourtneyFitzgerald]

Hi Cassandra,

Our office has a table of local councils we frequently use and their BPAY account details for use on PEXA. Majority of the time the Biller Reference is the assessment number as per the s603 certificate however this would need to be confirmed with each Council. 

Same process with payment of outstanding Strata Levies - you will need to contact each Strata Manager for BPAY details or obtain a copy of the levies notice from the client direct.

I believe the associated subscriber is to do with the fact that council/strata cheques are for the benefit of both parties. You acting for the Vendor are the subscriber entering in the payment request for council rates and then you nominate the Purchaser conveyancer as associated subscriber so they can view the details you have entered in for this payment. (happy to be corrected if wrong).

Hope this helps.

- Courtney @ Edmonds

[Nicholsons1]

@CassandraBird,

In regards to your question below

The second is that the Associated Subscriber is the Purchaser and not us as the Vendor. Why is this?

---

I believe this is because any and all outstanding rates become the Purchaser's responsibility upon the acquisition of the property, as the Vendor's and Purchaser's portion are adjusted for. It is the Purchaser's (or the Purchaser's representatives) responsibility to ensure that these rates are paid. Thus the associated subscriber becomes the Purchaser.

That's my understanding of how it works at least.

Happy to be corrected if my thought process is flawed.

[Enbomb]

The Purchaser's representative should include the destination funds for Council, water, owners corp, land tax etc as they are the ones that have the BPay/bank details and received the certificates from the relevant authorities.

[Ames]

Hi @CourtneyFitzgerald is correct. Either a vendor's or purchaser's representative can enter third party line items (council, water, body corporate etc), and will then nominate the other as the "associated subscriber". The associated subscriber will have visibility of the payment details for these third party line items and will also be signing for those financial line items.

Ames

[Enbomb]

I understand but it should be like a paper settlement, the Purchaser's rep being responsible to enter the information in, thus alleviating any duplicate entries as I have found to happen a few times.  Country Conveyancers have this down pat and there is never an issue and should be standard practice.