We know the feeling of helping your client get into their new home or successfully sell their existing one is a key part of why you love what you do. In working closely with your network, we also know that one of the barriers to successful on-time settlements is the late confirmation of settlement figures, which can cause delays and last-minute stress.
That’s why we’re increasing awareness of the Transfer Guidelines – in particular those relating to the Total Funds Required to Settle (G11) and Payment Directions (G17). These Guidelines were developed in consultation with industry to assist all parties to work together to achieve a successful settlement.
As we begin to focus on these two metrics, we've compiled answers to some of your frequently asked questions.
If you’d like further information on the Transfer Guidelines, there are a number of resources available:
A timely settlement requires all parties to play their part in a timely manner – right from the timeliness of the invitation to the bank, through to the finalisation of the Financial Settlement Schedule. There are a number of dependencies within a Workspace and often one party cannot complete their tasks when they’d prefer to, due to incomplete tasks by other parties.
The banks have an extremely high volume of settlements daily and have worked to refine their processes to manage this, with consideration to the Transfer Guidelines. PEXA provides regular and structured reports and feedback, helping the banks work to continually improve their performance against the Transfer Guidelines. They need the assistance of all parties to get things organised as early as possible – in particular, receiving early invites, preparation of the Transfer and also the “Total Funds Required to Settle”.
A smooth online settlement requires all parties to complete their tasks in a timely manner. We will be working with the industry as a whole to promote awareness of and adherence to the Transfer Guidelines and we would also encourage peers to reach out to each other to help promote the Transfer Guidelines. In addition, we now have reporting on adherence to the Transfer Guidelines by all parties and will be using this to identify who may need some further assistance and/or training on the guidelines.
We understand that whilst 5 days from settlement would be ideal, it is not always possible to finalise this figure at this time. It is important however, to ensure you have finalised and entered the TFRS as early as you can, while also avoiding changes, particularly within a day of settlement, wherever possible.
This provides plenty of time for the purchaser and their bank to arrange for any shortfall they may need to provide, and for the bank to verify these funds and enter final amounts into the Workspace on the day of settlement. Also, if you are using the PEXA Source Account to bring your client’s funds to settlement, these funds must be cleared 3 days prior to settlement, so you should be looking to finalise the TFRS 5 days prior to settlement to allow for this timeframe.