Paying PEXA Fees from General Account for settlements

[KathrynOswald]

Allowing a selection between the PEXA fee being deducted from the firms general account, just as they are for caveats, rather than only being payable from the settlement proceeds or funds available. This is very important for firms doing fixed fees as due to the current restriction in how the PEXA fees are payable, we cannot include them in our fixed fees offered to clients.  

[AnnaHardie]

Thanks for your suggestion @KathrynOswald. I will discuss this with the PEXA team.

Our process works as below: 

1. Idea discussed by PEXA team. 
2. If progressed, idea added to a feedback register 
3. Outcome shared here in community
4. If progressed again, I will let you know when implementation is scheduled or complete 

Would this benefit others? I encourage your peers here in community to let PEXA know if this is important to you too. You can do this by liking or adding a comment by clicking 'reply'. 

[AnnaHardie]

Hi @KathrynOswald

PEXA has solicited further feedback in the market and reviewed current system functionality. At present it is not possible to select on a case by case, or Workspace by Workspace, basis the source funding for the PEXA fee. As you are aware it is defaulted to be paid from the settlement proceeds.

Based on your feedback we are investigating if and how it would be possible to make your suggested change. This will take further analysis and time, however we will keep you update as we progress your suggestion.

Thank you again for providing this feedback and suggestion Kathryn, please let us know of any further enhancements you feel would make e-Conveyancing easier.

[DonnaR]

Have Pexa looked at dealing with fees via a monthly account system like Landgate do. 

[AnnaHardie]

Hi Donna,

Thanks for your question. 

Yes, this was considered, however, given our obligation as a collection agent for the various state land registries we are required to remit lodgement fees the next business day following lodgement. In order to meet these obligations our collections process is required to be completed on a daily basis.

[Brooke]

Hello

I also had a bad surprise today when I realised I couldn't pay the PEXA fee from our firm's fee paying account in the FSS.

This is really inconvenient and I hope PEXA change this. I now have to arrange (before settlement) for the fees to be paid from our fee paying account, to our trust account so that they are ready and available for settlement in PEXA. Complete waste of time when we should just be able to pay these fees from the fee paying account like we would if there was no FSS.

Thanks, Brooke

[amyhantler]

There are a few points were I completely agree that the PEXA fees should come out of the subscribers account, not the client funds.

1. The agreement is between Pexa and the subscriber, not Pexa and the client (e.g. the Vendor or Purchaser). 
2. The invoice from Pexa for their current fee of $110.55 is addressed to the subscriber, yet the money is taken out of the client funds. The money should be taken from the person who is being invoiced.
3. Under an all inclusive Fixed Price model that we charge our clients it becomes extremely hard to manage when we invoice our client and then need to show receipt of payment against that invoice. For example:
   • Fixed Price quoted to client $1,000
   • We invoice to our client the full $1,000 (this is necessary as this is our quote and if client needs to claim GST they need a full invoice from us)
   • Upon a Pexa settlement, Pexa deducts $110.55 from the clients funds
   • The client needs to pay our invoice of $1,000 but since they have paid $110.55 to Pexa, the remaining balance they need to pay is now only $889.45.
   • Our invoice now shows $110.55 still remaining to be paid. (To get around the remaining $110.55 we have a convoluted system to offset it but it is very messy and takes my bookkeeper additional time and that is assuming she is aware which settlements are Pexa and which ones are manual. 
4. What if we were doing a pro bono matter and we wanted to absorb that fee on behalf of our client. We would have to pay our client the $110.55 for Pexa taking money from the client's funds that has not been authorised by the client to do.

 I am not sure why you are able to deduct funds out of our general account for Caveats but not for Settlements. Everything else we do associated with a conveyance settlement is invoiced to us and paid from us including Title & Certificate searches, Settlement Agent fees, Owners Corporation Fees etc.  No other professional arrangement that I am aware of seeks to bypass the direct business they have the agreement with (i.e. us a subscriber), and take the money via our client. How we choose to pass on fees and costs should be our choice.

[TJ]

Hey @amyhantler,

Thanks for your question.

By way of background, PEXA Workspaces can be either:

(a) lodgement only (whereby PEXA fees are direct debited from an account nominated by the Subscriber for this purpose i.e. an office account); or

(b) Financial Settlement and lodgement (whereby PEXA Fees are paid out of the total pool of source funds).

For more information, please refer to the following link: https://community.pexa.com.au/t5/Help-Centre/PEXA-Fees-and-Lodgement-Fees-FAQs/ba-p/2820

PEXA is unable to register a Subscriber’s office account as a source account for the purposes of contributing funds to settlement. Where the Workspace involves Financial Settlement, PEXA will send a message to the bank that holds the source account and requests it to move funds from that registered source account to the bank's account that supports a PEXA settlement. A registered source account must be an account that fits the integration model and the contractual framework for Subscribers (including the settlement terms and conditions). Therefore, only trust accounts held at Financial Institutions that are integrated with PEXA for this purpose and the PEXA Source Account can be used to contribute source funds.

[RosaV]

I was about to ask the same question.  I have a husband/wife transfer with nil duty.  But because it has to be a financial settlement according to PEXA we have to transfer funds from our office (general) account to Trust Account to complete the transaction.  Unlike Caveats, Transmission applications etc, the funds for a simple transfer such as this need to come out of our Trust Account?