Transfer Guidelines | Help Centre

[EmilyBilling]

Transfer Guidelines - Current as of May 2018

The PEXA guidelines have been developed to assist Subscribers with what they should be doing, and when, in order to ensure the timely and successful completion of a PEXA settlement. They have been developed through industry-wide collaboration with the intention to meet the needs of all PEXA Subscribers.

The guidelines are:

•  not intended to override existing obligations between parties to a transaction, such as those contained in the Contract of Sale.
• to be read sequentially therefore start at step 1 and work through the stages that are relevant to your role. 
• not intended to cover sub divisions.
• For any escalations relating to your transaction please contact the Financial Institution via their current settlement booking line. For members that are not Financial Institutions please use the Subscriber Search functionality in PEXA to obtain their contact details.  

NOTE: You can download a PDF of the Transfer Guidelines at the bottom of the article. 

UPDATE: May 2018 The Transfer Guidelines have been updated to align to changes proposed by the Industry Digital Transformation Working Group. Please refer to the post below the Guidelines for a summary of the changes. 

1. Workspace Preparation and invitations

Stage	Guidelines	Timing
1 -  Incoming Proprietor  or Proprietor on Title  or  Incoming Mortgagee  XXXXXXXXXXXXXXXX	Creates the Workspace with the settlement date and time, creates/edits the party (or parties) details and invites the other Parties as applicable.  Minimum recommended timeframes to ensure the Mortgagee has sufficient time to complete the transaction:  Invitation to be sent to Mortgagee on Title  at least 10 days prior to settlement Invitation to be sent to  Incoming Mortgagee  at least 10 days prior to settlement Note: Contract of Sale may specify which Party is to initiate the workspace. If a Workspace with the same Title already exists a message will alert the Party attempting to create the duplicate workspace. Please avoid creating duplicate workspaces. Invitations should be sent as soon as possible once the Workspace is opened to reduce possibility of duplicates	Send invitation when contract/s have been received.

2. ACCEPT/DECLINE INVITATIONS

Stage	Guidelines	Timing
2 -  All Roles  XXXXXXXXXXXXXXXX	All Roles should respond to invitations and create/edit the party (or parties) as soon as possible.  If accepting, Parties should note on the acceptance any conditions such as “subject to receipt of instructions from Client”. If declining, Parties should include a decline reason code and additional text to fully explain why the invitation has been declined. Note: Invitations should be sent as soon as possible to reduce possibility of duplicates	All invitation responses should be completed within 2 business days of receiving the invitation.

3. WITHDRAWING FROM PEXA

Stage	Guidelines	Timing
3 - Withdrawing from PEXA       0000000000000000	If a party cannot progress in PEXA, inform the other parties and advise reason for withdrawal (using the PEXA Conversation tool). Un-sign all documents, withdraw from and abandon the workspace. Note: if withdrawal occurs within 5 days of settlement, delays may be experienced when booking a paper settlement with the Mortgagee on Title  or Incoming Mortgagee. Any contractual obligations concerning changes to the format of settlement should also be observed. Please refer to state based contractual requirements as to timeframes that the matter can revert to paper.	As soon as possible once the party knows they cannot proceed in PEXA.

4. CONVERSATIONs IN PEXA

Stage	Guidelines	Timing
4 - Conversations in PEXA	A comprehensive understanding of and rigorous adherence to these Guidelines should reduce the need to communicate via the PEXA Conversation Tool such that it should only used to communicate information that is not already in the workspace or to escalate an issue. It is important that all participants: ›   Respond to conversations in a timely manner. ›   Send a conversation only if changes are made after either the Financial Settlement Schedule and or a document have been signed, detailing the changes. To minimise the number of messages each party receives: ›   Avoid conversations to all workspace participants, only send to your client’s lender or practitioner (or practitioner to practitioner) ›  the Incoming Proprietor  to the Incoming Mortgagee and vice versa, › Proprietor on Title to Mortgagee on Title and vice versa.  There is no need to respond to a conversation requesting completion of a task if the task is completed and visible in the Workspace.	Within 8 business hours after receiving the notification. OR Within 4 business hours after receiving notification, if settlement is in 2 business days or less.

5. DOCUMENT CREATION

Stage	Guideline	Timing
5 - Incoming Proprietor	Incoming Proprietor completes Transfer document.	When the workspace has been created or an invitation has been accepted.

6. DISCHARGE AUTHORITY SENT AND RECEIVED

Stage	Guideline	Timing
6a -   Proprietor on Title                      00000000000000000	Proprietor on Title checks the “Discharge Authority Sent” checkbox on the Workspace Summary.  Note: Refer to Banks’ Transfer Checklist on the eConveyancing Community to find the latest Discharge Authority form and where to send.	When the Discharge Authority has been sent to the Mortgagee on Title
6b -   Mortgagee on Title	Mortgagee on Title checks the “Discharge Authority Received” checkbox on the Workspace Summary. Note: Once received, the Discharge Authority will be verified. Refer to Banks’ Transfer Checklist for timeframes for verification. If a new Discharge Authority is required, this checkbox will be unchecked.	When the Discharge Authority has been received.

7. LOAN DOCUMENTS SENT AND RECEIVED

Stage	Guideline	Timing
7- Incoming Mortgagee  0000000000000000	Incoming Mortgagee Checks the “Loan Documents Sent” and “Loan Documents Received” checkboxes on the Workspace Summary.	When documents have been sent and received from  Customer.

8.SETTLEMENT DATE AND TIME

Stage	Guideline	Timing
8a -  Mortgagee on Title               00000000000000000	Mortgagee on Title should accept the proposed settlement date and time. If they are not yet able to, a conversation should be sent to the Proprietor on Title to advise of the reason for the delay If the Discharge Authority has not been received 5 business days before settlement, or security packet is not available, the Mortgagee on Title  should send a conversation to Proprietor on Title to advise of delay in acceptance	Once Discharge Authority and security packet has been received.
8b -  Incoming Mortgagee	Incoming Mortgagee accepts the proposed settlement date and time.	Once the mortgage document has been signed by the customer.
8c -  Incoming Proprietor	Incoming Proprietor accepts the proposed settlement date and time or proposes an alternative settlement date and time.	At the same time as accepting invitation.
8d -  Proprietor on Title	Proprietor on Title accepts the proposed settlement date and time (where the Incoming Proprietor has opened the workspace) or proposes an alternative settlement date and time.	At the same time as accepting invitation.

9. STAMP DUTY ASSESSMENT

Stage	Guideline	Timing
9 -  Incoming Proprietor     00000000000000000	Outside of PEXA, login to online revenue office system, and provide relevant transaction details for duty assessment If NSW › EDR requires the Lodgement Case ID not the transfer doc id. › Once record is completed user enters transaction id into PEXA.  If QLD: › OSR Connect does not require any input as the record is automatically created against the Subscribers profile after they have Entered Duty Information in PEXA. › Once record is completed in OSR Connect the user just needs to come into PEXA and click verify duty. If VIC: › Duties Online requires the user to claim the PEXA transaction by entering the Transfer Document ID and SRO Transaction ID together with the Form ID into Duties Online › Once record is completed in DOL user just needs to come into PEXA and click verify duty.  If WA: › Print duty certificate in Revenue Online.  › Enter Certificate number into PEXA workspace stamp duty tab. If SA: › Log into Revnet for duty assessment and select ‘e-conveyancing batch’ › Enter reference number into the PEXA workspace Stamp duty tab	In accordance with jurisdictional requirements. NSW/QLD: at least 2 weeks prior to settlement SA: no more than 9 calendar days before settlement VIC: at least 1 week before settlement WA: at least 2 days before settlement

10. DOCUMENT COMPLETION AND SIGNING

Stage	Guideline	Timing
10a -  Incoming Mortgagee 000000000000000000	The Incoming Mortgagee prepares and signs Mortgage document in PEXA	Prepare Mortgage: When accepting settlement date and time and mortgage documents have been verified by the Incoming Mortgagee and are deemed ready to settle. Signing Mortgage: When required information in Transfer Document is viewable.
10b - Mortgagee on Title  or  Proprietor on Title	Mortgagee on Title creates and signs the discharge of mortgage document.  If NSW: › Where there is a mortgage on the title, the Mortgagee on Title  also creates and signs the Consent document for both an electronic and paper Certificate of Title. › Where there is no Mortgage on the title, the Proprietor on Title creates and signs the Consent document. If VIC: › Where there is a mortgage on the title, and the certificate of title is paper, the Mortgagee on Title also creates, signs and lodges the Nomination document. › Where there is no mortgage on the title, and the certificate of title is paper, the Proprietor on Title creates, signs and lodges the Nomination document.  › Where the certificate of title is electronic and the CT Controller is also a party in the Workspace, no nomination is required › Where the certificate of title is electronic and the CT Controller is not a party in the Workspace, the CT Controller needs to be invited into the Workspace to create, sign and lodge the Nomination document.	Once the Discharge Authority has been received
10c -  Incoming Proprietor	The Incoming Proprietor signs the Transfer document, lodgement instructions and: If QLD: › Form 24 Part A&B If NSW: › NOS If VIC: › NoA	Once all documents in the Workspace have been created and lodgement verification has occurred.
10d -  Proprietor on Title	The Proprietor on Title should sign all documents and: If QLD: › Form 24 Part A&B If VIC: › NoA	Once all documents in the Workspace have been created and lodgement verification has occurred.

11. TOTAL FUND REQUIRED TO SETTLE

Stage	Guideline	Timing
11 -  Incoming Proprietor  and Proprietor on Title         0000	Incoming Proprietor and Proprietor on Title calculate the total funds required to settle and Incoming Proprietor enters amount into the Financial Settlement Schedule Summary.  Note: The total funds required to settle include the adjusted balance of the purchase price, all lodgement fees, stamp duty, PEXA fees and Practitioner professional fees if entered into the Destinations by the Practitioners.	5 business days before settlement. 0

12. LOAN PROCEEDS

Stage	Guideline	Timing
12 - Incoming Mortgagee     000000000000000000	Enters the Loan Proceeds into the Financial Settlement Schedule once Loan Documents have been received and verified. Note: This timeframe may be impacted by Customer’s unsecured debts and where the transaction is outsourced to a Panel Solicitor.	At least 5 business days before settlement.

13. AUTHORITY TO DEBIT AND DRAW DOWN AMOUNT

Stage	Guideline	Timing
13 - Incoming Mortgagee                 000000000000000000	Where Incoming Mortgagee holds an authority to debit the Customer’s account for Purchaser’s Equity (Shortfall) they answer “Yes” in the Financial Settlement Schedule Summary and enter the first four digits of the authorised account in the Financial Settlement Schedule Summary. If Incoming Mortgagee is not providing Purchaser’s Equity (Shortfall), they enter “No” on the Financial Settlement Schedule Summary.	At least 5 business days before settlement. 000000o00000000000

14. PURCHASER'S EQUITY

Stage	Guideline	Timing
14a -  Incoming Proprietor   000000000000000000	If the Incoming Proprietor is providing Purchaser’s Equity (Shortfall) they must create a source line item in the Financial Settlement Schedule and ensure funds are deposited in the relevant source account (either own trust account or PEXA Source Account). 000000000000000000000000000000000000000000000000000000	When using the PEXA source account, enter source line item at least 5 business days before settlement to generate account deposit details. Funds must be cleared and available in the PEXA Source Account no less than 3 business days prior to Scheduled Settlement.
14b - Incoming Mortgagee	If the Incoming Mortgagee is providing Purchaser’s Equity (Shortfall), they must create a line item in the Financial Settlement Schedule	2 business days from Settlement

15. COLLECTING VENDOR SURPLUS

Stage	Guideline	Timing
15a -  Mortgagee on Title	If applicable Mortgagee on Title  to confirm via conversation to Proprietor on Title that authority is held to collect any surplus funds. 000	At least 2 business days before settlement.
15b -  Proprietor on Title	If Mortgagee on Title is authorised to collect Vendor Surplus, Proprietor on Title is to notify Mortgagee on Title of the Net Vendor Amount (loan payout plus vendor surplus). Note: This is the amount due to Vendor after deducting outgoings, third party payments and professional fees.	At least 2 business days before settlement.
15c -  Proprietor on Title	If Mortgagee on Title is not collecting surplus funds, the Proprietor on Title should enter a destination line item into the Financial Settlement Schedule.	After indicative payout figure is entered and if required amended once the final payout figure is entered.

16. INDICATIVE PAYOUT FIGURES

Stage	Guideline	Timing
16 -  Mortgagee on Title	Where possible the Mortgagee on Title enters indicative payout figure into the Financial Settlement Schedule.	At least 2 business days before settlement.

17. PAYMENT DIRECTIONS

Stage	Guideline	Timing
17 -  Incoming Proprietor and  Proprietor on Title	The Incoming Proprietor and Proprietor on Title enter payment destination line items  into the Financial Settlement Schedule.	At least 1 business day before settlement. Note: If changes made within 2 hours of settlement time, a call is required to impacted parties.

18. SETTLEMENT PREPARATION

Stage	Guideline	Timing
18a -  Mortgagee on Title	Mortgagee on Title updates the indicative payout figure in the Financial Settlement Schedule to represent a final payout figure if required and enters a destination line item in the Financial Settlement Schedule for Surplus if it is authorised to collect and signs Financial Settlement Schedule.	No later than 10am day of settlement (in jurisdiction of the land where the property is situated).
18b-  Proprietor on Title	Proprietor on Title updates Vendor surplus if they are collecting and if final payout figure differs from indicative and signs Financial Settlement Schedule.	At least 2 hours prior to settlement or once balanced.
18c -  Incoming Mortgagee	Incoming Mortgagee confirms the source line item in the Financial Settlement Schedule for the loan proceeds and signs the Financial Settlement Schedule and the Lodgement Instructions.	Sign Financial Settlement Schedule and lodgement instructions once balanced
18d -  Incoming Proprietor	Incoming Proprietor completes and signs the Financial Settlement Schedule Note: Even if the Incoming Proprietor is not providing any source funds and does not need to complete the FSS, they still need to sign.	Sign Financial Settlement Schedule once balanced

18E. SETTLEMENT PREPARATION

Stage	Guidelines	Timing
18e. Settlement preparation -  Incoming Proprietor and  Incoming Mortgagee	Where there is a positive Title Activity Check (TAC) notification 1 hour before settlement, all incoming parties (Incoming Proprietor, Incoming Mortgagee and/or Incoming Caveator) respond to the notification by  permitting settlement to proceed, or send a conversation to advise the reason for delay.	Within 30 minutes of receiving notification.

19. DELAY IN SETTLEMENT

Stage	Guidelines	Timing
19. Delay in Settlement	If settlement is delayed for any reason, all parties must accept or decline the new time/date and re-sign if required.  If a party changes the settlement date they should send a conversation providing a clear reason as to why the settlement date has changed.	Within an hour of receiving notification.

[DebbieCrawford]

Hi @Kate_Camilleri - Can I ask who/how it was determined that the "Funds required" should be the total of the FSS - not just the Incoming Mortgagee Source funds?  I just see more problems associated with doing it this way than just having it as the Source funds coming from the Incoming Mortgagee.

I have one at the moment where I am waiting for the Incoming Mortgagee to advise Loan funds - and until they do, I cant confirm the Total Funds required - it becomes a case of the "egg & the chicken".  If the bank advise us late, then we have to advise them late, then the bank have to go back into the file and check it balances etc.  If they just worried about their loan funds and left the rest up to us, the bank would touch the files less and chances things would be less "last minute".

On speaking to some of the banks at the Perth symposium - it would seem they tend to agree with our way of thinking - hence my question on who decided this was the way to go - was it actually someone who did settlements?  Was it banks thinking of a Transfer settlement the way they think of a refinance?  Was it banks wanting to control something that is not their job to do.  In a Transfer settlement it is the conveyancer that controls the figures, not the bank. Or was it a thing that is different in different states - I am not sure - because the logic fails me.

It is clear the bank want to "touch" the files as least amount of times possible - so by having to give them the total funds required (which could include Seller funds) means it could all be last minute - as we are waiting on another party to do their thing as well.  

The whole concept of electronic conveyancing is to make things simpler - but I dont believe this does - it just complicates things.

---

[Ames]

Hi @DebbieCrawford the total funds required are a total of some destination funds and the figure from your adjustments. That total is determined independently of any loan funds - it would be almost the same total whether or not there were any loan funds (except for an inclusion for the mortgage lodgement fee).

You shouldn't need to know the loan amount to enter that figure.

More background on this functionality is in the release notes for Release 7.1

Ames

[CatElliott]

Hi @Ames. Thank you for your recent responses.

I think the description in the Release Notes is unclear:

"This amount is discussed with the Proprietor on Title, and is entered in PEXA by the Incoming Proprietor. It includes all registration fees, stamp duty PEXA fees and professional fees.

This description does not make it obvious that we should only be dealing with Incoming Proprietor funds and implies that we are also dealing with all Proprietor on Title destinations (all PEXA Fees and Professional Fees) leading to confusion with the Total Source Funds in the FSS.

Perhaps the solution may simply be to update the Release Notes and/or re-label the function to clarify its purpose as “Total Incoming Proprietor Funds Required".

This wording is also confusing:

"The Incoming Mortgagee can then use this value to confirm how much is required for source funds."

In my experience so far, the Incoming Mortgagee fails to recognise when there are Source Funds which belong to the Proprietor on Title. They are simply using the advised figure to calculate and input any difference to bring the total FSS Source Funds up to the Funds Required to Settle value, which results in a shortfall of Incoming Proprietor funds.

The fact that the Incoming Mortgagee needs to complete this calculation seems to be where we are running into issues, so on this point I agree with @DebbieCrawford that we could (and perhaps should) avoid any need for them to calculate and/or wait for another party to input their amount, which seems to result in a "standoff" in completing figures.

[Ames]

Hi @CatElliott

"This description does not make it obvious that we should only be dealing with Incoming Proprietor funds and implies that we are also dealing with all Proprietor on Title destinations (all PEXA Fees and Professional Fees) leading to confusion with the Total Source Funds in the FSS."

You are dealing with proprietor on title destinations. The proprietor on title is entitled to distribute the balance of purchase price as required, and that balance of purchase price is part of the TFRS. However, rather than add the vendor destination line items, I'd rely on the adjusted balance of purchase price, then add in line items that are solely the responsibility of the purchaser (stamp duty, all lodgement fees and purchaser's PEXA fee and professional fees). I will see if we can update the Release Notes or add in an additional response. 

In relation to the incoming mortgagee role, I would think the new guidelines (developed after the TFRS functionality was introduced) would make things simpler?

If the incoming mortgagee has authority to debit, they create line items totalling the whole TFRS. If they do not have authority to debit, they create a line item of the approved loan amount (such amount having already been notified to the practitioner). Then the practitioner knows their source line item is the TFRS less the approved loan amount. 

The only standoff would be if the practitioner does not know the loan amount, or does not know if the incoming mortgagee holds authority to debit. However, both of those are to be advised 5 days before settlement.

Ames.

[CatElliott]

Thanks @Ames

Apologies, I don't think I explained that clearly.  We have no issue in calculating the TFRS, we simply add the agreed adjusted balance of price to the total additional Purchaser Lines. 

The problem is with Incoming Mortgagees misunderstanding the TFRS. 

When they are providing all funds for the Incoming Proprietor (from both loan and equity) they should simply input the full TFRS amount, however they seem to think they are only making up any shortfall between Vendor Source Funds and the TFRS. 

My assumption is that the Incoming Mortgagees themselves either do not understand the definition/purpose of the TFRS function, or the ownership of Source Funds.

For the sake of clarification what is happening is, say, the Incoming Proprietor sets the TFRS as $200,000.00. The Proprietor on Title holds deposit money, so they enter it as a source line of $50,000.00. The Incoming Mortgagee then inputs source funds of only $150,000.00, rather than the required $200,000.00. They do not seem to recognise that some existing sources do not relate to the Incoming Proprietor, do not form part of the TFRS, and should not be included in their calculations when completing source funds.

[DMc]

As the banks formerly mentioned (also repeated in the recent Transfer guidelines webinar) their preference is to NOT provide an early calculation of either supply or collection (source/destination) of their clients' funds. 

If PEXA was able to implement some auto-balance feature (within acceptable limits - I would imagine merely add a Supply up to a maximum amount, &/ to supply and a minimum Loan payout to collect) on destination/source. 

Would the banks be more able to supply/accept surplus funds?

[Kate_Camilleri]

Thanks for listening in to the webinar @DMc, some Banks have indicated a preference to enter amounts for Loan Proceeds and Loan Payouts in the workspace, with the Practitioner subsequently entering any Surplus or Shortfall as required. However, it is important to note that the Guidelines allow for either Party to enter Surplus and Shortfall.

We are looking at ways to make this process more efficient for Banks and Practitioners, and your suggestion of an auto-calculate functionality is a great one. 

Thanks, 

Kate. 

[nakatos]

Hi @CatElliott,

There is definitely confusion amongst the banks, however the confusion comes from all parties interpreting and using the TFRS in different ways.  Some list the amount as what is required from the bank, some list it as the total funds required.  Until we get consistency amongst practitioners and banks, the problem will continue.

[LawyersConveyancing]

Am I the only one who sees a simple solution here regarding TFRS? Why can we not have the party responsible for delivering funds to settlement taking responsibility for ALL funds being delivered to settlement. In other words:

1. If there is no lender involved, the practitioner is responsible for ensuring that the purchaser comes up with the TFRS.

2. If there is a lender involved, the lender is responsible for ensuring that the borrower comes up with the TFRS.

It seems to be the common-sense way to keep the PEXA promise of simplifying the conveyancing process.

Peter Mericka

Lawyers Conveyancing

[Enbomb]

I agree, the Lender should ensure that from the outset they obtain client authorisation to draw any excess funds from the client's account rather than the Lawyer/Conveyancer finding out at the last minute and having to wait till the Bank get around to advising amount available.

[LawyersConveyancing]

 OK, so do we all agree that the only reason a practitioner is forced to interact with a lender in a PEXA transaction is because the lender finds it easy to put the practitioner to work in providing assistance to the lender at no cost?

And if this is the case, why are practitioners still seeing the delivering of free clerical services to lenders as part and parcel of conveyancing practice?

Practitioners need to develop a collective consciousness here and combine to force the lenders to handle ALL FUNDS in a sale or a purchase.

I will keep pressing this issue until someone is able to come up with a cogent argument to the contrary.

Peter Mericka

Lawyers Conveyancing

[Ames]

Hi @CatElliott

The Release Notes have now been updated. Hopefully this makes things clearer.

Ames

[LawyersConveyancing]

Hi @Ames, do the Release Notes now make it clear that:

1. Where there is no lender in a purchase transaction the practitioner is fully responsible for delivering/arranging ALL FUNDS for settlement;
2. Where there is no lender in a sale transaction the practitioner is fully responsible for receiving ALL SURPLUS FUNDS after settlement;
3. Where there is a lender in a purchase transaction the lender is fully responsible for delivering/arranging ALL FUNDS for settlement;
4. Where this is a lender in a sale transaction the lender is fully responsible for receiving ALL SURPLUS FUNDS after settlement.

If the guidelines do reflect this at present, when can we expect that they will?

Peter Mericka

Lawyers Conveyancing

[CatElliott]

That is much clearer, thanks @Ames.  Is it possible to have a similar update included in the Guidelines?

[HeatherC]

For those looking for a complete list of Bank Transfer Checklists (referenced in guideline 6), please check out this page.