What happens in an onsale situation with paperless Title

[HelenZ]

As I understand in NSW in the situations of paperless CT, the Vendor or the Vendors Mortgagee needs to provide a Consent which will appear under a CT Enquiry from LPI, but what happens where there is an "onsale" situation with say an "off the plan" property? say if we are the "middle party", and there is a paperless CT, the Vendor/Vendors Mortgagee will initiate a Consent for the property to be transferred to me, but how do I provide consent to be shown on the record that the property is to be transferred to the Purchaser of mine? Will this involve the Vendors assistance?

[GeorgePolus · Accepted solution]

Hi Helen

A CoRD Consent in a PEXA Workspace provides the CoRD Holders Consent to all dealings in the Lodgement Case. 

So, although CoRD technically flows from the original CoRD Holder through each transaction participant, there is only one CoRD Consent required.  

In the example you have presented the PEXA Lodgement Case would contain the following: 

1. CoRD Consent
2. Discharge of Mortgage
3. Transfer from Developer to Purchaser 1
4. Transfer from Purchaser 1 to Purchaser 2
5. Mortgage - Mortgagor Purchaser 2. 
   The Incoming Mortgagee will be the new CoRD Holder.
   
   Think of the scenario as though you were attending a paper settlement. In the example above, the paper title would be passed directly from the Mortgagee on Title to the Incoming Mortgagee.   
   Please contact me again if you still have questions. 
   
   

[conveyancingsolutions]

Hello @GeorgePolus 

Could you please advise if a Form 1 for GST can be used in this situation?

Thank you

[GeorgePolus]

Hi Rachael,

From the perspective of how PEXA functions, which is in accordance with rules set by each jurisdictional Registrar, an 'onsale' will function in the same manner as it had previously when a paper title with CAC may (or may not) have been in place, with the exception that CoRD Consent is no longer required in NSW. 

As for the GST Withholding Form 1, the requirement to lodge will be per the requirements set by the ATO. 

Rgds

George