Transfer with Mortgage to Continue on Title - NSW

[gmichael]

Hi all,

I have a transfer whereby the property is being transferred from husband and wife to the wife. The mortgagee has indicated that the current mortgage will continue and they will not be discharging same on settlement.

On a paper Transfer this would be done by noting at item (G) the encumbrance (mortgage) that is going to continue after the Transfer.

Is this able to be done on PEXA, if so how?

Thanks!

[GeorgePolus]

Hi Georgina,

Yes this transaction may most certainly be completed in PEXA. 

In short, the NSW Registrar no longer requires the Transfer to note the encumbrance which is to remain on title.  

What will be required is for the CoRD Holder (the first Mortgagee in this case) to create a Third Party Consent to the Transfer dealing in the PEXA  workspace.

Therefore, you will need to create the Transfer from (A+B) to A.  Once you have done so, invite the first Mortgagee into the workspace in the role of Consenter. 

The first Mortgagee, following entry to the worksapce will create the Third Party CoRD Consent. 

Make sure to communicate the requirement to the bank, else they may mistake the transaction for a DTM and start looking for a Discharge Authority. 

Please let me @GeorgePolus know if you have more questions. 

Regards,

George