Purchase Settlement - Lender Additional Security

[PeggyAve]

I have a matter where we are acting for a purchaser in Victoria.  We have an incoming lender (NSW) which is taking an additional title (outside the property being purchased in the workspace) as security.  How do I go about this in the PEXA workspace?

[sharond1]

I have a similar matter. Purchase of one property and additional property as security for loan. I seem to have an additional workspace for this security (as title is in different name). Waiting to see if this works. Could we please have an answer from PEXA?

[TheDoctor]

Hi @PeggyAve 

Assuming that the additional security is also in Victoria, the only way the two properties can be in the one workspace is if the lender has one single mortgage over both properties, not separate mortgages for each property.

This does not overcome the privacy issue though.

The additional security is not part of the purchase, from the vendor perspective. So the vendor and vendor lender should not be privy to the additional security property.

Therefore, they should not be on the same workspace.

Now, how do you manage this in the separate workspace for the additional security.

In VIC & NSW the controller of the CT must be in the workspace to create the Nomination (VIC) or Consent (NSW).

Either yourself (CT Controller - Vic / Consentor - NSW) or the lender can create the workspace and invite the other.

Unfortunately you cannot link the two workspaces as the purchase will be a financial workspace and the additional will be a non-financial workspace (no settlement)

The Lender will need to manually coordinate the settlement with their additional lodgement.

If the additional security is in any other PEXA State, the Lender creates the workspace, as the sole party, and coordinates it with the purchase.

hope this helps