TRANSFERS: WHO SHOULD DO WHAT, WHEN
We received quite a few questions across the three webinars. We have collated the most frequently asked questions and responses below.
Q: How should the Discharge Authority be provided to the Mortgagee on Title?
A: Please refer to the Bank Transfer Tips and Discharge Authority (DA) preferences, to check where the DA should be sent. Links to these pages are available at the end of this post .
I n addition to forwarding the DA to the m ortgagee via their preferred channels , we recommend that you upload the DA to the Files screen within the workspace.
You should also tick the checkbox “D i s charge Authority s ent” on your workspace summary screen if the DA has been sent to the mortgagee.
Q: We need the banks to be more responsive with conversations.
A: The banks acknowledge there is room for improvement in this area and are looking at new and innovative ways to support and streamline their processes.
In the meantime, we would like to provide some context and background. Major banks can receive over 1,000 conversations each per day (as at 18 December 2018), with approximately 75% of these marked as high importance.
To minimise the number of messages each party receives, please send conversations to the relevant participants only. Please mark messages as high importance only on the day of, or day before settlement. Ensure that you are not asking a Bank to complete a task outside of the Guideline s time frame .
Q: Banks are slow to upload payout figures and surplus funds. Is this being addressed?
A: Our most recent data shows that 84% of final payout figures are entered by 10am day of settlement. Surplus funds can only be entered once the Practitioner has advised the amount of surplus available for collection. Banks have a number of initiatives, processes and system changes underway to streamline completion of the F inancial Settlement Schedule .
It is also important to note that while t his may appear to be a simple process , there are complexities to be aware of.
For example, the provision of payout figures by 10am are challenging in more complex scenarios involving partial discharge or substitutions/swaps and linked or simultaneous settlements, or where there is last minute activity on the loan account.
Sometimes th e reason for delay is not evident to all participants in the workspace. This can include scenarios where the discharge authority is received late , or when last minute changes are requested by the customer .
Payout figures are a key focus for the banks and new functionality will arrive in the near future to further drive efficiency in this space.
Q: Banks are signing things last minute. Is this being addressed?
A: We are working with the banks to develop tools for greater visibility over workspace status and enhanced workflow management. Similarly, new functionality will be implemented soon to assist practitioners with identifying when tasks should be completed relative to Transfer Guidelines.
We are also developing additional notifications and alerts within the workspace to help parties identify outstanding steps and action them in a timely manner.
Just as the banks work to refine their processes, it is important for practitioners to ensure they a re ready to go ahead of time. Continued collaboration between all parties in a workspace will ensure the smoothest possible transaction.
Q: Are there any consequences for breach of the Transfer Guidelines?
A: The Transfer Guidelines have been developed to assist members with what they should be doing, and when, to help ensure the timely and successful completion of a PEXA settlement.
Banks have requested and currently receive regular reporting on adherence to Guidelines to indicate areas that need improvement.
The Industry will be revising the Guidelines in early 2019, which will build in more robust requirements including guidance on timing and completion of tasks.
Q: Can the PEXA fees go in earlier?
A: In order for PEXA fees to be automatically populated in the ‘Adjustments and Payments“ tab on the settlement screen, all of the documents need to have passed lodgement verification.
Lodgement Verification is the process where the documents are reviewed and returned from the Land Registry with a Document Verification Result, at which point the PEXA fees and lodgement fees are returned.
The earlier parties have their documents prepared and verified, the earlier the fees will generate in the workspace.
Q: Who should enter the payments to the authorities and w hen should they be entered in?
A: There is currently no Transfer Guideline around who should enter the payments to the authorities. Some practitioners will enter it as the Incoming Proprietor to match the process for paper, where the Purchaser’s representatives would collect the cheque at settlement. Some practitioners enter the payments as the Proprietor on Title to show they have approved the adjustments.
This is a matter we intend to address in the next version of the Transfer Guideline s .
Bank Transfer Tips
Discharge Authority preferences
The Bank Blog
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When creating a workspace from a Proprietor on Title role solely, the Transfer of Land is only required to be signed once by the practitioner on behalf of both Proprietors, including the one remaining on title.
Kind regards, Megan Tennyson
PEXA Partner (VIC)
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Hi All, A practitioner recently requested the following enhancements to the system, which I think would be really helpful: 1. When completing an on-sale in PEXA, the Adjustments & Payments (Destinations) should allow the Purchaser section to be split into two purchaser sections, one for the head contract and one for the on-sale. That way the practitioners clearly know which funds relate to the head contract and which ones relate to the on-sale. In particular as there will be two lots of stamp duty, transfer fees and PEXA fees for purchasers. 2. Although there is a conversations tab on the dashboard already, the reference view etc. is not always easy to understand. It would be better if there was an extra column next to each individual matter on the dashboard when a new conversation comes through for that matter. That way it will be easy to distinguish who it relates to. Thanks!
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Hi @GeorgePolus, I think the main improvement they are looking for is the allowance to pay for a standalone transfer from office instead of trust, as many firms won't get funds up front from their client when lodging a standalone. Even if this could be a minor improvement - regardless of removing settlement time etc. - that way the transaction won't be delayed. If there could be some sort of threshold where funds will be allowed to be drawn from trust. A standard standalone transfer will cost $307.00 in VIC - 2x PEXA fee and a non-monetary transfer of $85.90. This would improve the experience greatly for those family law and estate firms. Thanks, Megan
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I recently encountered an issue when walking a firm through a spousal transfer for Victoria within the PEXA platform. Ultimately we couldn't complete the transaction because the solicitor had already stamped the transfer non-dutiable for a paper transaction, which couldn't be reversed through duties online. However we were experiencing some issues prior to this, namely: In order to complete any stamping in PEXA you need a settlement date. When completing a spousal transfer, in most instances you won't have a settlement date, it just goes through when the practitioner is ready. This was a clear title with the property being transferred from husband to husband and wife, so no funds were changing hand between the parties, other than the payment of transfer fees (minimal) and PEXA fees (minimal). Once you select 'yes' to financial settlement, you only have the option to pay for this from your trust account or by a bank. The firm did not have funds up front from their client as they were going to bill them following the transaction, meaning they would need authority to transfer office funds to trust to pay for the transaction to go through. This firm in particular completes a number of spousal transfers for Family Law and Estates. It is a regular occurrence that they will not get funds up front for a spousal transfer. They wanted to know if we could make it possible to select 'no' for a financial settlement, allow stamping non-dutiable (only where the property is the client's PPR) and make payment of the fees from their office account if they come in under a certain threshold. This would likely only be available in cases where the practitioners have a clear title, as once a bank is involved the fees/destinations become a little higher. Obviously as more and more transaction types become available in PEXA we are going to come across these sorts of areas that have not yet been developed/not previously thought of and this firm, as well as a few others that I have spoken to, would be interested in exploring these options.
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Hi @Marty Thanks for your feedback! Ideally, if the practitioners could add their users to any/all applicable workgroups that they need to be in (including any that they may be required to cover for in the future), then it would give the individual user the option to select the workgroup(s) they want to view at any given time. This would mean the user can view workgroups they have permission for, but not workgroups they are not allocated to. It also means they wouldn't need to see all files for all workgroups at the same time (which is how we currently have it), instead they could see just the files within a single (or multiple) workgroup(s) at any give time. I imagine it would appear as a small box in the top right corner of the users dashboard, something like: Workgroups: [ View All ] [ ] [ Williamstown Workgroup ] [ * ] [ CBD Workgroup ] [ ] [ Geelong Workgroup ] [ * ] So in the above scenario, the user would be able to see all files for Williamstown and Geelong, but wouldn't see the files for the CBD office, making it easier to locate the file they are looking for. I'm just finding that there is a larger call for this as the use of PEXA expands within firms!
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I have received feedback from a few offices regarding the design and use of Workgroups within the PEXA platform. They think workgroups are a good idea, however instead of adding individuals to a workgroup, so they can look after the files while another member of staff is away, they would like the option to view different workgroups from the Dashboard. I.e. have a drop down list and the individual user can choose to see "all" (primary default), "property" "family law" "estates" etc. This would be particularly helpful for practitioners that run different offices under the same registration. I.e. "CBD" "Williamstown" "Mornington". That way if there is no one in one of those offices on any given day, the people in the other office can view those files without being added to the workgroup or having to view all files in the dashboard. Practitioners would also like the workspaces to automatically list in date order.
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Geelong Conveyancing have been one of the biggest advocates for PEXA in and around the Geelong area and I am proud to say that they are now PEXA Certified, after completing their 20th PEXA Transaction! It has been a long road getting the Geelong area moving towards a digital future, with many practitioners weary of the changing process. But not these lovely ladies, who have been encouraging other practitioners to transact, offering assistance and guiding others through when they have felt a little lost. Santina was even a part of the focus groups that helped start PEXA and make it what it is today! Congratulations ladies, our Geelong PEXperts! Geelong Conveyancing become PEXA Certified!
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I have had a number of practitioners lately ask if they can complete a linked settlement where they are not acting in the other transaction. This is particularly the case with clients who sell a property in one State (e.g. NSW) and purchase in another State (e.g. VIC). I know at this point in time we are unable to complete a linked settlement where the same subscriber is not acting in both the sale and the purchase, but would there be scope for this in the future, as I see it coming up more frequently.
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A big CONGRATULATIONS to H.C Curwen-Walker & Daylesford Hepburn Conveyancing on becoming PEXA Certified and completing 50+ PEXA Settlements! Fantastic work to all involved, always happy to lead the way for change, encourage others to transact and help practitioners through their settlements! Good luck with the next 50! @HCW-Julie @anita @HCW-June
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Even if we could add an additional tab to the bottom of the list within the workspace once the buyer/seller has joined SettleMe that would link the practitioner directly to the SettleMe web page so they can update tasks, or even be able to update tasks directly for the SettleMe tab. Practitioners hate using multiple pages and programs to complete tasks, anything that can combine them all together would greatly improve their user experience.
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