As you many of you would now be aware, PEXA is in the process of implementing an Enhanced Settlement Summary (ESS) within the Financial Settlement Schedule. The ESS has been developed in response to member feedback and, provides a more intuitive experience for practitioners and financial institutions.
Together with Team NSW, I hosted an ESS webinar series last year to ensure that practitioners are well trained on the ESS prior to launch. You will only see the ESS in your workspaces if you are a pilot practitioner, and the other parties within the workspace are also pilot practitioners. If you are yet to see the ESS and are interested in being involved in the pilot prior to launch, please reach out to your PEXA Partner, or our support team on 1300 084 515 to discuss.
You can find out more about the ESS:
On our Community page at https://community.pexa.com.au/t5/Help-Centre/PEXA-s-Enhanced-Settlement-Summary/ba-p/20957 ;
By attending scheduled webinars (you will see the details of upcoming webinars in this bulletin); or
By contacting your PEXA Partner.
ESS Top Tips and Insights
There are some steps that you can take within your workspace to make sure that you are getting the most of the ESS, as follows:
Creating your documents in the workspace as soon as you are able. In the case of the transfer this is particularly helpful for, and is required by, your Incoming Mortgagee;
Stamp your documents at least 2 weeks prior to settlement. This will allow documents to verify which is the step within the workspace that triggers the PEXA and LRS lodgement fees to pre-populate within your Financial Settlement Schedule;
Make settlement figures a priority. The sooner that the parties agree on the settlement figures, the sooner you can enter and agree upon the Amount Due on Settlement in the ESS;
Use the functionality in the ESS:
Once you have finished entering your financial line items, press the “Mark As Complete” button on the ESS;
If the Incoming Mortgagee is responsible for the Shortfall, then click the “Ready for shortfall” button to notify the Incoming Mortgagee (via a task and an on-screen button) that they may now enter or update the shortfall amount;
If you as the practitioner are responsible for the Shortfall, click the “Add as Shortfall” button which will direct you to the Add/Edit Source line item entry screen with the shortfall amount pre-populated based on the new calculations built by PEXA.
Proprietor on Title
If the Mortgagee on Title is responsible for the Surplus, once you have entered all vendor payment directions, leaving only the vendor surplus balance, click the “Ready for Surplus” button. This notifies the Mortgagee on Title (via a task and an on-screen button) that they may now enter or update the surplus amount;
If you as the practitioner are responsible for the Surplus, once you have entered all of the vendor payment directions, leaving only the vendor surplus balance, click the “Add as vendor surplus” button. You will then be directed to the Add/Edit Destination line item entry screen with the surplus amount pre-populated based on the new calculations built by PEXA.
Our pilot practitioners are eagerly awaiting the launch of the ESS. Mandi Smith, of STC Legal has said that:
“The enhanced Financial Settlement Summary provides an actual and easy summary of the financials, which is clear and concise to read and understand.”
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Coming into the busy season it is imperative to ensure that cyber security is a focus for your business.
Workspace security – sharing/obtaining account details for settlement
Since March 2020 there has been a significant increase in email phishing. A number of our practitioners have unfortunately been the victim of email fraud over the past month in different circumstances. I am sure that they can confirm that this situation is highly stressful for the practitioners and clients alike. In addition, we regularly see corrective payments come through to correct an error that has been made when keying in account details in PEXA.
PEXA recommends the use of PEXA Key to mitigate your risk of the above scenarios.
PEXA Key is a secure app for clients through which account details required for settlement can be exchanged and clients can track their settlement’s progress. When sellers input their bank account details into PEXA Key, the app communicates this information into their practitioner’s PEXA Workspace, eliminating the need to engage insecure communication channels, such as email, and risk interception by a third party. This solution also removes the need to rekey bank account information and enables the practitioners to provide their firm’s trust account details securely to the buyer.
Differentiate your firm and delight clients with enhanced levels of service and security throughout their property settlement. Find out more about PEXA Key here. Find PEXA Key Resources here.
Please contact your PEXA Representative if you have any questions.
General Security tips
There are a few simple steps you can take to help improve your online safety and protect yourself from scammers and cyber-criminals. Here’s how:
Make sure you have up-to-date anti-virus and firewall software on your devices;
Protect your PEXA digital certificate - store it securely if you’re not using it in PEXA;
Don’t share your PEXA password or digital certificate PIN; and
If you think something has gone wrong and you or someone in your business has been compromised, contact PEXA and suspend the user’s PEXA access.
Note, this is not a full list of security measures you should take to ensure your cyber-security. If you are in doubt, or you are not sure, you should seek advice from an IT professional. Full Subscriber obligations on digital security are set out in PEXA’s Subscriber Security Policy.
You can find out more information about spam and phishing emails and protecting your business from attacks by visiting the PEXA website, pexa.com.au/security/members, or the ACSC has fantastic resources for small to medium businesses. In addition, you can visit our security page on Community here, where you can subscribe and receive security updates.
The information provided in this email is general in nature and is not intended to be a comprehensive guide to cyber security. PEXA Members are responsible for the security of their own systems. You should not rely solely on the information in this document. If you are unsure of your obligations under the Participation Agreement between PEXA and your organisation, or if you are not satisfied that your systems are adequately secure, you should obtain professional advice.
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We are enhancing the Financial Settlement Summary tab and TEAM NSW are hosting two webinars next week to demonstrate the enhanced view.
We would love for you to join us on either:
1. September 21 at 12.30 pm; or
2. September 23 at 12.30 pm.
Click here to register for your preferred webinar.
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On Wednesday 9 October at 12.00 pm Paul Atkinson and I will be running a 1 hour webinar discussing how to get the most of your PEXA Experience including PEXA Core tips, PEXA Key and more.
The webinar is targeted to our more experienced PEXA Users,
Click here to register :-)
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We often get asked whether you can complete transfer transactions through PEXA where the purchasing entity is a superannuation fund, and similarly where the superannuation fund is selling property. The answer in short is yes, however, there are some transactions that are out of scope which I’ve detailed below.
Superannuation fund purchasing property
A superannuation fund will purchase property through:
its trustee, if purchasing using funds of the superannuation fund; or
a bare trustee, if the superannuation fund is borrowing money to fund the purchase.
In NSW you cannot currently note the trustee relationship on title in paper or electronic settlements. The transfer and the title must only be in the name of the trustee or the bare trustee. Please see the NSW Registrar Generals’ Guidelines in relation to this.
To complete the transaction in PEXA, set up the workspace as a normal incoming proprietor workspace. Please see the Help Centre on PEXA’s Community forum for the step-by-step process.
When setting up your client, their name will be the name of the trustee/s or the bare trustee/s, with no reference to the superannuation fund or the capacity as trustee. This will then mean that the transfer will be in the name of the trustee/s or the bare trustee/s only.
You should not set the name of your participant up as, for example, ABC Pty Ltd as trustee for the ABC Superannuation Fund.
You will need to ensure that you retain the appropriate statutory evidence in paper (including but not limited to a correctly referenced purchaser and capacity on the contract) to show the trustee relationship and who the true purchasing entity is for auditing and statutory compliance purposes.
Funding the purchase
As you would do in a normal PEXA settlement, source funds can be contributed to a Workspace by a financial institution providing loan proceeds, through your firm’s trust account or the PEXA source account (purchaser’s equity), or a combination of borrowed funds and purchasers’ equity.
Again, you would need to ensure that you follow all statutory requirements and retain the correct evidence for auditing purposes and ensuring compliance. You may need to work with the superannuation funds’ accountant in this regard also.
Superannuation Funds selling property
The same circumstances apply as above. The workspace is set up as you would set up a normal proprietor on title workspace. See the Help Centre on PEXA’s Community forum for step-by-step processes.
You would then complete the transaction the same as any other proprietor on title workspace.
Out of Scope
There are some transactions involving superannuation funds that are out of scope. For example, you cannot currently complete a transaction in PEXA where the superannuation fund has paid out the loan funds to the financial institution and is now transferring the property from the bare trustee back to the superannuation fund trustee.
We are advised by Revenue NSW that these transactions are stamped pursuant to Section 62 of the Duties Act NSW 1997, and when the stamp duty reference is input in the PEXA workspace, an unsuccessful result will be returned.
We continue to work with Revenue NSW and the Office of the Registrar General NSW to understand what can and cannot be completed electronically. Until such time as we can provide a comprehensive list of superannuation fund transactions that are out of scope, please reach out to your PEXA Direct Specialist or email email@example.com if you have any enquiries about this matter.
Please note, this information is to assist in relation to completing electronic transactions involving superannuation funds in New South Wales, but not to provide advice regarding any statutory or other requirements for superannuation funds purchasing or selling property.
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I have had the pleasure of working with the people and firms below over the last year. They have all been great advocates of PEXA, adapting their business processes and providing peer to peer support to their colleagues. Congratulations to you all for completing the new PEXA Certified Modules, and to your firms for graduating from the PEXA Certified program. @michellelogan and Toni Hattenfels of Coastwide Conveyancing in Shellharbour @Leilany6 and Hope Toole of DGB Lawyers in Wollongong @GeorgeBlackwell @LynneRobinson @NicoleL of Blackwell Short Lawyers in Orange @BellConveyancing2795 Kristy Bell of Bell Conveyancing in Bathurst @JoanneBelfanti @Sharla of City and Country Conveyancing in Bathurst
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It was great to catch up with our members from Orange and the surrounding suburbs last week at the Roadshow. Lots of great feedback and questions regarding the next steps in the industry's transition to 100 percent digital. Congratulations to @dkillen @JacquiMeades @jennie and Melissa Bestwick of Killen & Associates Bathurst who were awarded their graduation trophy at the roadshow and are now PEXA Certified. My colleagues @GeorgePolus, @Karen and I also enjoyed a dinner with @AnthonyShort @GeorgeBlackwell @WelburyMoyers and @GeraldineSutton from Blackwell Short Lawyers and Sandra Kelly, from Sandra Kelly Conveyancing. Thanks for the great company. George Polus of PEXA presenting Jennie and Melissa of Killen & Associates with their trophy DuntryLeagues, venue for the Orange Roadshow
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We had a great turn out at the Wollongong Roadshow on the 6th of March at Villa D'oro. Members from the Wollongong Region together with Members from Nowra, Helensburgh, the Southern Highlands and Campbelltown attended. It was great to see peer to peer support occurring, with many people who often transact with each other having the chance to meet in person. Information was provided by PEXA, ORG, Revenue NSW, Stewart Title and Cybersecurity. Our panel members at the end were also able to provide the attendees with insight regarding their use of PEXA and also to answer any questions. We would like to thank Paul Ell of RMB Lawyers who drove up from Nowra to be on the panel, @Sally_Field of Carter Ferguson who was asked to fill in for a panel member with little notice, and graciously agreed without hesitation, and Joanne Seddon of IMB who provided her knowledge from a Financial Institution's perspective. All in all it was a great day.
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Congratulations to the team at RMB Galland Elder Lawyers - Goulburn and in particular @jennyw, @sharonl, @Leannea and Huw Edwards who completed their first development through PEXA. I had the privilege of working with the lovely ladies from RMB while they were completing this development. Not only was it their first PEXA Development but they were acting in multiple roles, and it was the first time that Jenny and Sharon had ever used PEXA, while Leanne had only limited previous use. Despite this, they jumped in without hesitation and worked wonderfully together to ensure that the development settled smoothly. It is a testament to your team that you all embraced PEXA and the training to ensure such a wonderful result and I look forward to working with you all further.
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