Simultaneous Settlement is available in PEXA and allows up to 10 PEXA workspaces to be linked so that settlement of each workspace occurs at the same date and time. Financial settlement for all workspaces involved in a Simultaneous Settlement must take place at the same time on the same day. If one workspace is unable to settle, all workspaces in the chain will be unable to settle. Simultaneous Settlement is used on occasions when assurance is required that all settlements in a chain are successfully completed at the same time.
See the interactive simulation below or follow the instructions to create your own.
You can download a printable Help Card at the bottom of this article.
Click "I'd like to try it myself"! Or to launch the tutorial in a new screen, click here.
At least two Workspaces need to be created.
Workspace 1: Preceding
The Proprietors on Title are selling their property and using these funds in the purchase of their new property.
Workspace 2: Trailing
The Incoming Proprietors (Purchasers) are using money from the sale of their property to help fund the purchase of their new property.
The link can be created in either Workspace. Once either one of these are created, a link request is sent to link the selected Workspaces. Upon acceptance within the Workspace to be linked, PEXA automatically creates a linked Line Item in the Financial Settlement Schedule.
Note: Calculations (i.e. the amount of funds that are required from the preceding Workspace to fund the Trailing Workspace), is completed outside of PEXA.
How to Complete a Linked Settlement in PEXA
Please note: You can download a Linked Settlement Help Card at the bottom of this article.
To view all details pertaining to a Workspace with linked Financial Settlement:
Navigate to the linked Workspace. You will notice an outstanding task to Accept or Decline Link Request in the Workspace Summary.
Click Accept or Decline Link Request. The following screen displays all details for the linked Financial Settlement Workspaces.
The associated Workspaces are displayed according to their relationship to the current Workspace that you are in. Details for each linked Financial Settlement includes your Subscriber reference for the Workspace and the Workspace status.
All new link requests are displayed on this screen and you can choose to Accept or Decline. Click Accept. If you Accept the request: A Source Financial Line item will be added to the Financial Settlement schedule and will Unsign any previous Signings. Note: Your Workspace will no longer be ready to proceed with Financial Settlement. If you Decline the request: Provide a reason for it in the space provided and click Confirm. Note: The Linked Financial Line will be removed from the proceeding Workspace. A notification will be sent to the subscribers in the preceding Workspace with the reason.
Navigate to the Sources tab. You will notice that the Source funds have now been populated, based on the link set up in the preceding Workspace. Note: All Workspaces involved in a Linked Financial Settlement must be at a READY -READY status for settlement to commence for the first Workspace. You can see the status of each Workspace in the link on this screen.
If Settlement Date and Time are not aligned correctly, you will not move in to READY status until this has been addressed. A task appears in the Workspace Summary to remind you.