I have been asked recently whose responsibility it is to enter destination line items into PEXA for payments to third parties, particularly to council, water and owners corporation. Some practitioners are reluctant to enter these line items, believing it is not their responsibility to undertake this task.
According to the PEXA Transfer Guidelines, (guideline 14] The Incoming Proprietor and Proprietor on Title enter payment destination line items into the Financial Settlement Schedule.
There is no guideline to state who should enter the utilities payments, and we often see practitioners working collaboratively to finalise these amounts.
It is good practice for the practitioner representing the Incoming Proprietor to ask the relevant authority for BPAY and reference number when seeking an update from them as to what, if any, amount remains outstanding to them in anticipation of settlement. On the other hand, if the Proprietor on Title’s representative has these details from their client's most recent bills, they can enter the payments into the destinations.
We note that most authorities are now including the BPAY and reference numbers into their certificates, making this task more streamlined and efficient.
In the case where the details cannot be obtained, a suggestion is for the Incoming Proprietor to enter a destination line item directing the payment to their Trust Account. A trust cheque can be drawn after settlement which can then be sent off to the relevant authority with the Notice of Acquisition.
Hoping this will now help when entering DESTINATIONS.
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