Ask us Anything | Transfers are go in Victoria from 1 Oct

[Aoife]

Hi Community,

All combinations of transfer transactions possible in PEXA are transitioning online from 1 October in Victoria, as announced by Land Use Victoria (LUV) in March 2017 (Customer Information Bulletin 163).

To help you with this transition Paul Major (LUV), Paul McKee (SRO) and Jonathon Teh (PEXA) are hosting an Ask us Anything on 20 September 2018 from 10am to 1pm.

Simply login to your e-Conveyancing Community account on the day and post your question for a quick response from the experts.

In the meantime, feel free to post your questions below, read our guide to 1 October or register for an upcoming webinar to boost your skills.

Chat soon

Aoife

[AngelaToler]

1.  Please can you advise how it is anticipated we deal with a transaction involving a simultaneous exchange and settlement ie. one transaction in which we must exchange and settle at the same time, as distinct from simultaneous settlements on multiple transactions?  

2.  How are practitioners dealing with the handing over of documents that would normally occur at settlement?  For example, are Vendors generally  holding onto them until settlement has occurred and then delivering them to the Purchaser or vice versa?  Are undertakings being given to support this?

Many thanks

Angela  

[Aoife]

Hi @AngelaToler,

Thanks for your question! The Ask us Anything begins at 10am. @PaulMajor, @PMcKee1 and @JonTeh will have a look at your question and get back to you.

Cheers

Aoife

[Aoife]

Morning Community,

Land Use Victoria, SRO and PEXA are here to answer you questions. Feel free to post below.

Aoife

[PaulMajor]

@AngelaToler,

Where there are two separate transaction sets with a party selling and then buying one is paper one electronic the first matter would be concluded and if funds are required this aspect would need to be co-ordinated with the relevant bank to ensure a quick turnaround and availability of funds. This is a situation that can and would happen at times and should be achievable.

Hope this answers your question

Regards Paul Major

[JonTeh]

Hi all, a common query that I have come across from practitioners:

What happens when you have paid Stamp Duty for a paper settlement but it cannot proceed via paper and must settle electronically? @PMcKee1

[AngelaToler]

Hi Paul,

This doesn't quite deal with my first question which relates to one transaction. Usually exchange of contracts will occur and then, some 30/60/90 days later, there will be a settlement.  However in some instances we may need to exchange and settle the same transaction simultaneously, on the same date at the same time.  Rgds Angela  

[TonyaDixon]

1. To SRO – Is there anything in the pipeline in the near future for the payment of land tax via BPAY. With all other authorities we can pay electronically in the PEXA workspace at settlement.

1. To PEXA – There appears to be an increase in the attitude the Banks have adopted in leaving settlement destinations / pay outs / signing off FSS until the last five minutes before settlement or letting it roll over to the next time slot. This is creating a very stressful environment for users and is affecting linked settlements. It also is creating so much more extra work than necessary in double handing signing and the roll on effect of extra client and agent communications. Is there anything that can be done to change this culture with the Banks?

[PaulMajor]

@AngelaToler

The second transaction would therefore need to be delayed until the funds can be declared available. It is not our view that the two transactions could be treated as linked for lodgement as they are not related by our business rules. This would therefore mean each transaction would be treated separately where lodgement acceptability is being determined around paper versus electronic.

Hope this improves your clarity on this matter and how our business deals with these situations.

Paul Major

[PMcKee1]

Thanks Jonathan,

Great question.  As was the case in March of this year when the previous LUV mandate milestone occurred, there will be examples of in-flight transactions as we reach the 1 October 2018 milestone.

The Land Use Victoria bulletin #182 has included a checklist of examples that would be permitted for paper lodgement as an exception.  For clarity in relation to transfers, duty payment, and lodgement,  there are 2 ways of how this will be treated:

1. If one or more of the signing events has occurred in paper prior to 1 October 2018, then it will be able to proceed as a paper settlement and lodgement. 

2. If the transfer instruments have not been signed prior to 1 October 2018, then it must be transacted electronically in PEXA, 

* In this case even if duty has been assessed and paid via Duties Online, PEXA must be used and a refund applied for post settlement.

I hope this is of assistance,

Regards,

Paul McKee.