Completing your FSS in PEXA
09-08-2019 08:12 AM - edited 09-08-2019 08:12 AM
One of the most common queries we are receiving relate to the intricacies of balancing the Financial Settlement Schedule.
For your convenience, I have created three simple rules for you to follow when completing the Financial Settlement Schedule (calculating your cheque directions in the ‘old’ language):
The Purchaser’s rep (Incoming Proprietor) needs to make sure that they account for all lodgement fees for which they are responsible. This includes the lodgement fees for the new mortgage.
In most cases, the incoming bank won’t automatically add another $192.00 for lodgement fees. You don’t need to change your settlement statement and add the lodgement fee for the mortgage if you don’t want to, but just add it onto the amount that you request from the bank or deduct it from the amount that the bank is providing.
Both parties need to ensure that one of their payments (you can think of it as one of your cheques) is the PEXA fee. It’ll be there automatically. Think of it as one of the cheques you’re requesting and you’re handing it over to PEXA at settlement. Sometimes if there is a lawyer or conveyancer acting for a mortgagee, they may also have a smaller PEXA fee for the mortgage etc., so just watch out for that (however it’s quite uncommon).
The following is how to check if your FSS balances when you’ve completed it before the other participants. It will assist you to ensure you are not collecting or providing too much money.
Tips for smooth settlements:
- Stamp nice and early, two days prior to settlement. This helps lodgement verification and fee population to happen and move the matter along.
- Sign off on your figures when you have completed them, don’t wait until they balance with the other side. Note that you are only signing off on your line items anyway. It makes it difficult and more stressful for everyone when they’re signed only an hour before settlement.
- In the days leading up to settlement, check whether all parties have accepted the settlement date and time, especially if banks are involved. This is the same as booking a physical settlement, so if your bank hasn’t accepted the settlement date and time, the settlement is not booked, and you will have to chase them up just the same as with a paper settlement.
If you have any queries, please don’t hesitate to post below or contact your PEXA Direct Specialist.