on 14-06-2018 02:55 PM
My clients are selling their property, however, their parents guaranteed my client's loan using one of the parent's properties. The broker has advised me that both certificates of title will be released at the sale settlement. Can I use PEXA for the settlement where the property being sold will be transferred to the Purchasers and the additional security property will be released at the same time with the title being returned to the parents?
on 20-06-2018 05:03 PM
I don't think there is a PEXA solution to this.
Ideally you want to simultaneously link a financial workspace with a non-financial workspace.
That non-financial workspace will only have one Participant - the Mortgagee on Title.
I don't believe you can link them.
Looks like you may need a physical settlement.
That's fine for now, but what happens when transfers are mandated?
on 22-06-2018 08:29 PM
on 24-06-2018 09:31 AM
It is not as simple as that @Ames.
Workspace wise, your solution is correct, but in practice, the parties involved will not allow it to proceed this way.
The Mortgagee on title (both workspaces) will not discharge their standalone mortgage until they have received their settlement funds from the other workspaces.
The Vendor Practioner will not release the settlement funds, to the mortgagee on title, until the mortgagee on title has also discharged the standalone mortgage.
Neither part can link the workspaces (financial and non-financial).
The Vendor Practioner is not a party to the standalone workspace, so cannot have certainty on its readiness.
Even if they did have visibility, they would not have control, so may still not authorise funds transfer.
A physical settlement will provide the Vendor Practioner with control of the standalone discharge.
This is not an uncommon problem scenario which electronic settlements is yet to resolve.