on 05-12-2018 10:39 AM
How is PEXA Fees for vendors with clear title accounted for?
Is it correct for purchaser to add this in the Vendor Destination Line Items?
And would PEXA charge this to the subscriber (so we pass on as disbursements) ?
on 05-12-2018 11:36 AM
As far as I'm aware, in some mindnumbing decision, PEXA automatically adds their fees and any registration fees after everything else has been confirmed, meaning that you have to Insert a wrong figure in "Funds required to Settle", a wrong figure in "Source Funds", sign everything, wait for PEXA to add in their additional fees therefore increasing both amounts, then go back and edit and re-sign everything.
on 05-12-2018 12:03 PM
The PEXA fees (for both parties) and lodgement fees will be auto-populated in the Financial Settlement Schedule upon successful document verification by the land registry. You can pre-determine the fees applicable and "pre-balance" your FSS prior to these fees populating, so that when the documents are verified, and the fees auto-populate your FSS should then balance. Once your inputs are in the FSS you can sign off at any time (or you can choose to wait until it is finalised).
The applicable PEXA fees can be found here: https://www.pexa.com.au/pricing
And you might find this further information useful: https://community.pexa.com.au/t5/Help-Centre/PEXA-Fees-and-Lodgement-Fees-FAQs/ba-p/2820
Hope this helps
on 05-12-2018 12:10 PM
Thanks Angelica, will do so in the future. I had been doing this - but PEXA throws warnings about funds being unbalanced and needing action, but good to know those can be ignored.
on 05-12-2018 01:29 PM
You should never have to wait for PEXA to calculate the fees related to your transaction if for some reason the documents in the workspace have not verified yet (showing a 'Successful' tick). I encourage you to use your land registry registration fee calculator if the fees are not showing in the workspace yet.
As soon as you have confirmed adjustments with the other side you can be confident in the total amount required to settle.
From a purchaser's perspective:
1. Adjusted Balance of Purchase Price
2. Single title or multiple titles being transferred? - Current PEXA fee $112.64 (Single title) or $129.03 (2 to 20 titles)
3. Stamp Duty
4. All Registration fees (including any discharge and mortgage document fees, in Victoria these are currently $108.10 each)
5. Your professional fees (if you are collecting these at settlement)
Add all these figures up and then input them into the 'Total Funds Required to Settle' box on the financial settlement schedule. Putting this figure in as soon as you have confirmed adjustments will ensure your bank (if you are instructing an incoming mortgagee) can ready the funds for settlement.
As this calculation is similar to a 'Statement of Account' practitioners give to clients after settlement it may be worth doing this document prior to settlement.
Look forward to hearing other practitioners tips and insights into how they go about calculating and instructing the incoming bank as to Total Funds Required for settlement as we are working on improving this area.