04-09-2018 04:28 PM - edited 15-11-2018 09:08 AM
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.
on 18-09-2018 11:41 AM
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?
on 20-09-2018 10:09 AM
Land Use Victoria, SRO and PEXA are here to answer you questions. Feel free to post below.
on 20-09-2018 10:22 AM
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
on 20-09-2018 10:25 AM
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
on 20-09-2018 10:27 AM
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
on 20-09-2018 10:33 AM
on 20-09-2018 10:43 AM
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.
on 20-09-2018 10:55 AM
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,