Hi Colleagues, I have a question that has come up with some frequency lately. Scenario; Sale of property with point of view of the outgoing Mortgagee with a loan being repaid. Prior to PEXA, when settlements were completed in paper, the outgoing mortgagee would collect cheques totalling their required payout amount. If the cheque provided has more than what was required, the outgoing mortgagee could still complete settlement, banking the excess amount as "surplus" if the customer had nominated an account held with the mortgagee for the receipt of surplus funds. I am of the opinion that in PEXA, there is no longer the issue of an outgoing mortgagee being presented a cheque greater than their requested payout figure. So an outgoing mortgagee would no longer be accepting a "surplus"/loan overpayment. The Agent acting on behalf of the vendor should be responsible for the calculation and disbursement of the vendors net sale proceeds. The vendor will have advised their Agent of a destination account for their net sale proceeds. This account may very well be held with the outgoing mortgagee, or not. As these funds are net sale proceeds being disbursed and not an overpayment being made to the outgoing mortgagee's loan the Agent acting on behalf of the vendor should be loading the Source and Destination line items as part of disbursal. Keen to hear how others are doing this or if there is published material to the contrary.
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