StandAlone Discharges

[sonia-collins]

Hello,

we are receiving a number of Invitations from Practitioners for us to do a Stand Alone Discharge of Mortgage Lodgement with them in the workspace.

(we are a Bank/ADI that completes all PEXA Discharges in house)

Circumstances are: - for all states:

1. They previously were provided with the CT & DOM and have not yet registered it.

2. They collected the additional CT & DOM at the sale settlement of another property and were offering the registration as a value add to our mutual client

3. They are assisting their client with other matters, and are approaching the bank on behalf of their client to have the Mortgage Removed per Debt Repaid (they may also have the LTO fee with them)

What are the circumstances and how does a Practitioner participate in the workspace or are they required to withdraw and for us as the Mortgagee on Title to process the lodgement as the sole party in our own created workspace?

We would like to assist and guide, as well as ensure the end out come is achieved the best way possible.

thanks

Sonia

[Kate_Camilleri]

Hi Sonia,

In Vic, NSW, SA and WA the Mortgagee on Title, or the party acting on their behalf in the role of Mortgagee in Title  is required to lodge the discharge of mortgage. Here’s a link  to the relevant Victorian Registrars Requirements https://www.propertyandlandtitles.vic.gov.au/__data/assets/word_doc/0026/46349/Customer-Information-...

The date on which this requirement became effective differs between the states. 

Please let me know if you’d like more information.

Kate. 

[sonia-collins]

Thanks Kate.

I am aware what the Mortgagee on Title role is, having been involved with this for 2 years with my ADI, and through to current mandates - and has been great for us during this time.

My question is more around the increase in invitations we have been receiving from Practitioners creating the workspaces and inviting us in for the purpose of them being a participant in the workspace, converse within it, and have line of sight when the lodgement is done.

The conversations we are having with Practitioners within the workspace, is that they are aware the Bank needs to do and it needs to be done by PEXA, and therefore they are taking this as the need to create the workspace, invite the bank, then instruct them with the workspace.

I am seeking clarification that there is no way or reason for the Practitioner to do this and we should advise the Practitioner to withdraw/abandon the workspace (customer to contact the bank with relative fees per requirements) and for us to continue to action as a the Standalone Discharge lodgement.

Knowing that there are a number of Practitioners coming on board using PEXA, we would like to support and educate/advocate where possible - but of course ensure that we are first are doing and saying the correct process

thanks

Sonia

[Kate_Camilleri]

Thanks for the clarification Sonia, you are correct, there is no role for a Practitioner representing the Proprietor in a workspace for a stand-alone discharge, and the need for education/information on this process in light of the invitations you are receiving is noted. 

Thanks

Kate. 

[BenMcDonald]

This is a really good topic @SoniaJ

From a Conveyancers perspective we get a transaction where the Bank has previously provided our client with the Paper Discharge (as per the 3 scenarios you have provided).  In some cases 20 years or more prior.

The client now wants to register that discharge because of some pending dealing that may be coming up (i.e. Land Division / Sale etc).

While we can currently lodge these in Series in SA with another document to achieve registration that will not last forever and there are times we would want to effect the Discharge earlier.  

Asking clients to again initiate the Discharge process with their Lender (which is a process they dont understand) when they have already previously paid for it and have the hard copy documents is confusing.  

I assume it is too hard for the lenders / government to educate the public on their need to Register documents they may be holding so this will continue to be an issue for the coming years.

It would be great to have an agreement between Conveyancers and ADI's on the quickest ways to deal with these old documents?

The Conveyancer will normally be engaged by the Mutual Client to have this resolved.

I dont think it is efficient to tell the client to contact their local branch and hopefully they can help. 

Surely there is a way a Conveyancer can initiate the process on PEXA (potentially upload a copy of the hard copy Discharge)?