Source funder role | Help Centre

EmilyBilling · ‎26-05-2017

PEXA now allows financial institutions to be invited to join a workspace in the role of a 'Source Funder'.

The primary use for the source funder role is for the following scenarios:

Where a Panel Member (Law Firm) is completing a transaction on behalf of a Panel Master (Bank) and the Panel Master needs to provide source funds to their Panel Member rather than transferring funds into the Panel Member’s trust account
For a residential/commercial transactions where the retail arm of a Bank requires the Commercial arm to provide source funds to complete a transaction.

Note: A Financial Institution who wishes to provide source funds must have the relevant accounts set up in PEXA prior to be invited to join a workspace in the role as source funder as currently it is not possible to load the funds directly from the Purchaser's bank account.

A Source Funder is limited to what they can do within a workspace as their primary task is to provide source funds only. A Source Funder is not be able to:

Create Workspaces
Create, edit, delete or view any documents
Add or delete Land Titles
Create, edit or delete any parties
Create, edit or delete any destination line items

Watch a demo of the Source Funder Role or follow the step by step instructions below

Inviting a Source Funder to your Workspace

Subscribers wishing only to provide funds in a Workspace, must be invited into a Workspace in the role of Source Funder.

To invite a Source Funder to your Workspace, navigate to the Participants screen, select Participant and then Invite Participant.
On the Invite Participants screen, search for and select the Participant and then select the role of Source Funder.
Click Send Invitations.

Acting in the role of Source Funder

When a Financial Institution accepts an invitation to join a workspace as a source funder they can create source line items by:

1. Navigating to the Financial settlement screen and select the Sources tab.

2. Clicking Add Source button.

3. Adding a source line item.

4. Selecting the Source Fund Category. As a Source Funder the available categories are:

Purchaser's Equity
Loan Proceeds
Other

5. Verifying and signing rules are as per a normal transaction and the funds must be verified and signed.

MarcusLiley · ‎16-08-2019

@EmilyBilling

Can PEXA extend the ability to be participate in work space as a 'Source Funder' to Law Firms & Conveyancers?

We have a situation where a Law Firm is conducting a linked settlement on non-freehold unit in retirement village.

Our client needs funds from that sale to complete related purchase in PEXA.

Law Firm has funds in their Trust A/C pending settlement. We have invited them to our work space as additional IP, but it would appear they need to sign Transfer (which they may not wish to do). Would be great if they could change their role to 'Source Funder'.

Marty · ‎19-08-2019

Hi @MarcusLiley,

Thanks for the suggestion! It's a really good idea. And one that we are already looking into. I'll be able to provide more info on our progress soon.

In the meantime, as long as the Law Firm doesn’t edit and represent a party in the Workspace, they won't be asked to sign the Transfer. They should only enter in to create the source line item.

I hope that helps.

MarcusLiley · ‎19-08-2019

Thanks @Marty
Transfer document looks like it needs 3 signatures (PoT, IM & Law Firm?), but there is no such task for the Law Firm so hopefully they will not need to sign

DebA · ‎19-05-2022

We have a client purchasing an investment property and has received a partial loan from Bank A. She has refinanced her existing property with Bank B, and to settle the investment property she requires the equity from the refinance. Bank B is not taking a mortgage over the investment property. Can I invite Bank B to the investment property settlement as a Source Funder or do I need to link the refinance settlement with the purchase settlement?

Boyd · ‎20-05-2022

Hi @DebA ,

If Bank A and bank B are not associated together then your best option would be to set up a linked financial settlement for the scenario you have described.

As the source funder role needs to be set up with the particular bank there might be a possibility that there no option for a source funder role available when inviting Bank B.

Please note that the Source Funder Role would generally used as part of the two following scenarios.

Where a Panel Member (Law Firm) is completing a transaction on behalf of a Panel Master (Bank) and the Panel Master needs to provide source funds to their Panel Member rather than transferring funds into the Panel Member’s trust account
For a residential/commercial transactions where the retail arm of a Bank requires the Commercial arm to provide source funds to complete a transaction.

If you would like to discuss your particular scenario further please don't hesitate to contact our support centre on 1300 084 515 or email us at support@pexa.com.au.