When processing a settlement that includes a transfer, Incoming Proprietors can now use the Funds Confirmation panel to specify how much money is required for settlement. This feature improves clarity and transparency around how much money is required for settlement in the period leading up to settlement.
This amount, agreed to by both the Incoming Proprietor and Proprietor on Title, represents the total funds required from the Incoming Proprietor to complete the transaction, and includes the adjusted balance of the purchase price, lodgement fees, stamp duty, incoming proprietor’s PEXA fees, and incoming proprietor’s professional fees. You should not separately add the destination funds of the Proprietor on Title (as these already form part of the adjusted balance of the purchase price). Where the Incoming Mortgagee has authority to debit the purchaser’s account, it can then use this value to confirm how much is required for source funds.
Note: This feature is available only for Workspaces that includes a Transfer.
Specifying total funds required to settle
- Create or open a Workspace that includes a Transfer:
- Log into a Workspace as an Incoming Proprietor.
- Click Settlement to open the Financial Settlement Schedule screen.
By default, the Settlement Summary tab is selected, and a Funds Confirmation panel is displayed.
Note: This panel appears only in Workspaces that contain a Transfer document.
- Specify the Funds required to settle amount:
- On the Funds Confirmation panel, click Add to enter a new amount, or Edit to change an existing amount.
- Enter the amount that is required to settle the transaction.
Note: Include the total funds required from the Incoming Proprietor such as the adjusted balance of the purchase price, lodgement fees, stamp duty, incoming proprietor’s PEXA fees, and incoming proprietor’s professional fees. You should not separately add the destination funds of the Proprietor on Title (as these already form part of the adjusted balance of the purchase price).
- Save the changes.
An email is sent to the Incoming Mortgagee notifying them that an amount has been entered for the total funds required to settle.
Client Authority to provide shortfall
Where a settlement shortfall applies, the Incoming Mortgagee can specify whether they have the authority to draw the shortfall amount from the Incoming Proprietor’s account and provide it source funds.
- Yes – the Incoming Mortgagee holds Client Authority
The Incoming Mortgagee will cater for shortfall funds in their source line items. In addition, the Incoming Mortgagee can optionally enter the last four digits of the account that the shortfall will be drawn from.
- No – the Incoming Mortgagee does not hold Client Authority
If there is a shortfall in the settlement, then the Incoming Proprietor must resolve how they are going to provide the shortfall into the transaction by coordinating with their client.
