on 17-07-2018 12:06 PM
We are acting for a client who is purchasing land which comprises of multiple Lots of which part of the land is an Auto-Consol.
The client is then on-selling part of the lands by way of sub-sales to 2 separate entities but also retaining part of the land, each party will be obtaining part of the Auto-Consol.
Settlement is to take place simultaneously.
We need to know if the Auto-Consol needs to be split into separate titles prior to settlement or will it all just happen simultaneously when settlement takes place via PEXA?
on 23-07-2018 03:45 PM
There are a lot of elements here, so I hope I cover them all!
The first thing to understand would be if the titles will be suitable for electronic lodgement (will they pass Land Title Reference Verification).
When the title reference is entered into PEXA, PEXA will send a request for validation by the Land Registry for each Land Title Reference entered into an Electronic Workspace to determine whether:
LRS information says that the whole of an Auto Consol title is suitable for electronic lodgement. However, a lot in an Auto Consol is not. So while the acquisition sounds like it may pass, the on-sale sounds like you're parcelling up the Auto Consol, which would not work. And if they are required to settle together, then they'd all be out of scope vis-a-vis the Auto Consol.
You may need to arrange separate titles prior to settlement.
In relation to the on-sale itself, you likely need to establish both transfers in the same Workspace, where A is the current proprietor, B is your client and C is the party acquiring from your client, so that the transfers in the Workspace are:
A to B and B to C.
Guidance on this process in PEXA can be found here.
However, if you are hoping to actually transact whereby the titles are transferred:
A to B and B to C and B to D
then that's another layer of complexity again.
@GeorgePolus is it possible to transfer lots to B, then for B to separately transfer those lots to two different recipients?
on 24-07-2018 12:03 PM
Thank you for your time and response. Yes - there are several layers of complexity to this transaction. We have decided that for this matter we will revert to paper on the basis that the AC will need to be split.