on 10-02-2018 06:06 PM
Release 7.1 has brought about the end of several nuances, Yay! In particular, the end of Nominations when there is a discharging mortgagee!!
Then there's a new box titled FUNDS CONFIRMATION on the Settlement Summary Tab, Now the Incoming Mortgagee can confirm if they hold Client Authority to provide shortfall without us having to send a conversation. It's all there for us to see as soon as we open the FSS.
But it's this surprising little gem is in the FSS Funds Confirmation box that I think many practitioners will embrace; it's where we can confirm the TOTAL FUNDS REQUIRED TO SETTLE without having to send a conversation.
It's prudent to note that the "TOTAL FUNDS REQUIRED TO SETTLE" is NOT the "Balance due to the Vendor at Settlement"
How to calculate the total funds required to settle figure:
Easy! It's the SUM of the adjusted balance due to the Vendor (from Statement of Adjustments), all registration fees, stamp duty, the PEXA fee, and your professional fees (if payment is required at settlement). In other words; it's the total cost to the Purchaser. It's important to note the difference as the incoming mortgagee will rely on this figure to populate the source funds. In the example below the sum of Total Funds Required to Settle is $2,105,959.59
on 11-02-2018 06:08 PM
@LodgeX, agreed. Those are some very handy features. Quite simple changes but, they will make life with PEXA a little easier.
on 12-02-2018 10:59 AM
Just wanted to clarify a couple of things on the nomination change you mentioned. This change was actually made as part of release 7.0 in November last year. It's definitely a great step to making the PEXA workspace easier, however, please also keep in mind that the nomination is only no longer required if the title is electronic and controlled by the discharging mortgagee.
19-04-2018 10:28 AM - edited 19-04-2018 10:29 AM
So can I please just clarify something;
Once the TOTAL FUNDS REQUIRED TO SETTLE amount has been entered, should this ultimately be the overall figure entered into the Sources & Destinations tab? There is some confusion with conveyancers / settlement agents around what the figure means and how it is determined.
Some think it is the Loan Proceeds required + the Registration fees, and others think it is the Loan Proceeds only. I have had previous settlements proceed whereby all three figures match, and others where only the destinations & sources tab match.
Just want to confirm so we're all on the same page.
on 19-04-2018 12:08 PM
That's a great question!
Yes, the TOTAL FUNDS REQUIRED TO SETTLE will be the ultimate overall figure entered as source funds which, in turn, is equal to the Destinations total.
The only time the Source funds amount will differ from TOTAL FUNDS REQUIRED TO SETTLE FIGURE is when the Vendor's representative adds to the source funds (i.e. they may want to bring in the deposit funds held in trust for example)
Hope this helps.
3 weeks ago
I act for a vendor and currently have a settlement where the incoming mortgagee has reduced the source funds because the total funds required to settle' does not include the deposit.
It appears this feature is not particularly clear about whether it should or should not include the deposit. At the end of the day I don't really care so long as the correct amount is provided and everything balances, but having the purchasr's rep and the bank locked in an argument about who is right has delayed settlement 2+ hours.
3 weeks ago
I would send a conversation along these lines:
"To clarify any confusion, we calculate that the amount required from the PURCHASER is $xxxx +PLUS from the VENDOR $(deposit amount you have uploaded) = TOTAL amount required to settle being $xxxxx."
Ideally, the Incoming Mortgagee shouldn't be arguing with the Purchasers' representative as to funds required to settle.