Getting your settlement to a READY READY status involves correctly completing all of your client details, documents and financial details.
Use the below as a check point to help you identify why your settlement may not be in a Ready Ready state and to help you identify if all of the tasks for your transaction have been completed.
For further information on completing a Transfer please see the following article
Have all the participants been correctly represented or invited?
If not all the parties have been represented create a 'Conversation' or get in touch with the relevant party to prompt them to complete this task or Invite the participant to join the workspace.
Are any of the participants marked with the following symbol:
This indicates that the participant details are incomplete - edit the participant or ask the relevant party to edit their participant.
Are all the documents created?
If not, create the document or start a conversation with the relevant participant to create their document.
Do any of the Documents have Status of 'In Preparation'?
This Indicates that there is information missing from the document. Edit the document, fill out all the required information and select 'Save'.
If you are completing a transaction in WA, the 'Property Information' must be completed also to allow the document status for the Transfer to move to 'Prepared'
If you are completing a Transfer in Victoria both a future correspondence and a current correspondence address is required for the Incoming Proprietor (IP) and Proprietor on Title (POT)
If you are completing a Transfer in QLD a Future Correspondence address is required for the Proprietor on Title and Incoming Proprietor
NOTE: In NSW, QLD and SA your Transfer document will not move to a Status of 'Prepared' until the Stamp Duty has been completed.
Does your document have a 'Document Status' of 'UNSUCCESSFUL'?
Select the word Unsuccessful - the screen will expand and the error from the Land Registry will be visible -now you can understand why you have an error and what needs to be updated. Once the issue has been fixed ensure any documents with a status of 'In Preparation' are edited and saved. This will re-trigger Lodgement Verification (this is the communication between PEXA and the Land Registry) and bring your documents to a status of 'Prepared' and the Document Verification Result of 'Successful'.
Have the Documents been signed?
Check the Signatures column in the Documents Screen. This will indicate how many signatures are required on each document and if the document owners have signed. For further information on who has signed, select the signature column for that document, the screen will expand and give you further details.
Select the document verification result or signatures to expand the screen for further information
Has everyone accepted the settlement date and time?
This is viewable under the Settlement tab.
- 'Accepted' indicates all parties have accepted the date and time.
- 'Pending Others' indicates not everyone has accepted. Select the word 'Pending Others' to identify who has not accepted the settlement date and time.
Do the Source Funds and Adjustments and Payments balance?
There are three tabs along the top of this screen:
Source Funds (money paying for the trasnaction
Adjsutmnets and payments (Cheque Directions)
Do the $ values displayed the 'Source Funds' and 'Adjustments and Payments' balance? - a settlement will not execute in PEXA unless these are balanced.
If the amounts are not balanced you will need to identify the error by ensuring all destinations line items are correct and all have been added. You will also need to ensure that the Vendors funds have been reduced by the amounts owed by the vendor including their conveyancing fee and PEXA Service fee.
Do you need to add Source Funds? Is your client providing money for the settlement?
Are all of the source funds at Ready status? (if using funds in trust, have the funds been signed off by an authorised trust account user?)
Select the Source tab to identify if they are Ready
Further information on getting your source funds to ready can be found here.
Has everyone signed the Financial settlement Schedule?
To determine who has signed the Financial Settlement schedule, scroll to the bottom of the Settlement Summary tab.
Has there been a positive Title Activity Check on the day of settlement?
If yes, have the incoming parties accepted settlement execution and selected “Proceed with Settlement”? Further information can be found here
Hints and Tips
The responsible subscriber is determined by what documents have been created in the document screen, if there is an incoming mortgagee they will be listed as the responsible subscriber when they have created the Mortgage Document
Fees are populated in PEXA ONLY once all the Documents have a status of 'Prepared' and a Document verification result
Signing can ONLY occur when once all the Documents have a status of 'Prepared' and have a Document verification result
Use the Outstanding Task list on the Settlement Summary screen to determine if you have anything outstanding.
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In settlements everyone needs to work together in a predictable way. PEXA settlements have key milestones that must be met so that the banks and other practitioners have time to do what they need to do. If they don't have enough time they won't be able to give you the funds and information that you need, or sign off on the documents for settlement. I have listed the 4 key milestones to meet if you are representing a Proprietor on Title or Incoming Proprietor. You can do these tasks earlier but do not do them any later. You should enter these milestones into your calendar for each settlement you do in PEXA. Here is a link to instructions that cover how to do each of the tasks in the milestones. How to guide: https://community.pexa.com.au/t5/Transacting-in-PEXA/bg-p/Step3_Transacting_in_PEX#523 Milestone 1 WHEN - Contract goes unconditional WHAT - Open Workspace/Accept invitation, review the Land Title, invite other parties, enter participant information. Getting the Workspace open early gives plenty of time for the other participants to get themselves organised and enter their clients details. You won't need to review the Workspace until 2 weeks out form settlement. Milestone 2 WHEN - 2 weeks out from settlement WHAT - Sign the Transfer of Land & Notice of Acquisition (or state equivalent) The banks need these documents to be signed before starting their mortgage processing. Signing these documents signals to the banks to begin their process of preparing documents, nominating titles and confirming loan amounts. Getting this process started early allows for issues to be sorted out with time to spare. Milestone 3 WHEN - Week of settlement WHAT - Assess Stamp Duty or Nominate the title Nominating the title shows all participants that it is available for settlement. Milestone 4 WHEN - 3 days before Settlement WHAT - Tell your bank the total funds you need for settlement (if representing purchaser). Both representatives enter all destination line items. You will receive conformation of the funds available and shortfall account details if you tell your Bank the total funds you need for settlement within this time frame. Telling the bank this figure lets them start the process of confirming the funds available which will ensure that there are no delays in entering it in to the Workspace. If you follow this time frame and hold the other parties to it as well settlements will be smooth and predictable.
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I think it's best to open a Workspace when your clients finance has been finalised. That way you can invite the bank, the other side and enter your clients details all in one go.
Does anyone else have a diffrent process they like using?
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They'll need to keep it on file for 7 years so that it can be presented if they're audited by the responsible land authority. If they store documents electronicaly they can scan the original and then secuerly destroy it.
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