Linked Lodgements are used when there is no financial link between one given Settlement and any other, but Security requirements dictate a dependency.
There are two Linked Lodgement types supported by PEXA (Simultaneous and Sequential). This article describes How to do a Sequential Linked Lodgement.
For information on a Simultaneous Linked Lodgement refer to this article.
Scenario Example: Sequential Execution - Two or more Settlements
Two or more Workspaces each including Financial Settlement - Refinance Transfer.
No dependency of funds movement from one Settlement to the other.
The preceding Workspace must successfully complete settlement and lodgement prior to the trailing Workspace commencing Settlement execution.
A Client of Bank A has an existing Mortgage over their family home. The Client elects to Purchase a holiday home. The Client finds a more favourable lending arrangement with Bank B.
In order to secure the more favourable lending arrangement, Bank B has stipulated that finance for purchase of the holiday home is dependent upon successful re-finance of the family home from Bank A to Bank B.
Two separate PEXA Workspaces are required.
Workspace 1 – Refinance of the family home from Bank A to Bank B.
Workspace 2 – Transfer of Land for the Holiday home.
The two workspaces are unrelated from both a Land Registry Document and Financial Perspective. However, from the Security perspective of Bank B the dealings are related.
Using Linked Lodgements (sequential) Bank B will ensure that Workspace 2 for the Transfer of Land of the Holiday Home may only proceed following successful completion of Workspace 1 for the Refinance of the family home from Bank A to Bank B.
PEXA will manage the orchestration of the two Workspaces as follows:
Each individual Workspace in a Linked Lodgement must include financial settlement.
Each individual Workspace in a Linked Lodgement must successfully complete Lodgement Verification prior to commencement of Settlement Execution.
The Financial Settlement Schedule in each Workspace must be balanced and signed. Source line items from Trust Accounts must be Verified and (if required) Authorised.
A preceding Workspace may not commence execution of Settlement until the trailing Workspace is ready and locked for Settlement.
At execution the PEXA linked Lodgements model:
Preserves the synchronised exchange of funds for title for each individual Workspace in the chain. Funds for Workspace 1 are exchanged following Lodgement of the Refinance Discharge and Mortgage. Similarly, funds for Workspace 2 are exchanged following Lodgement of the Discharge, Transfer of Land and Mortgage.
It follows that if Lodgement fails for a preceding Workspace and financial settlement rolls-back, then the trailing Workspace will not commence Settlement execution and will fail settlement.
It follows that if Lodgement fails for a trailing Workspace, following successful settlement and lodgement of a preceding workspace, the preceding workspace will not roll-back. The successful lodgement of Workspace 1 cannot be ‘un-lodged’.
Currently, the PEXA Linked Sequential Lodgement model is limited to a chain length of three Workspaces.
Note: Each individual Workspace in a Linked Lodgement chain may be any of the described ‘Single Workspace’ scenarios.
How to Create your Linked Sequential Lodgement
Create your Workspaces. Note: All steps are the same as a normal refinance or transfer, i.e. create the Workspace, invite the relevant participants and create all documents. You can link the Workspaces at any point.
Open one of your Workspaces.
Navigate to the Financial Settlement screen.
On the Settlement Summary tab, select the Action Cog and then Create Linked Lodgement.
In the Linked Lodgement Type field, select Sequential. Note: If sequential settlement, indicate whether the selected Workspace is to be the Preceding or Trailing.
On the Workspace you want to link, click Select.
Navigate to the the Workspace you have just linked for Lodgement.
You will see a new task created to Accept or Decline Linked Sequential Lodgement Request.
Click on the link, to take you directly to the Linked Lodgement tab on the Financial Settlement Schedule screen.
Click Accept.
To add an additional Workspace You can add further Workspaces for Sequential Linked Lodgement (up to three).
In the Settlement Summary tab of the requesting Workspace (i.e. This is the workspace which will create the linked lodgement), click on the Action cog and select Create Linked Lodgement.
In the Link To field, select either Preceding or Trailing, and then click Select next to the required Workspace.
To Remove a Workspace from a Sequential Linked Lodgement
The below example displays three Workspaces linked together for Linked Sequential Lodgement. Note: To remove a workspace, click on Remove Link.
Settlement Date and Time Changes
In a sequential settlement , if the dates are not in the correct order (i.e. preceding or trailing), a new task will be created to align settlement date and time. Settlement will not move to Ready status until this task is resolved.
If you are looking for How to do a Simultaneous Linked Lodgement refer to this article.
Decline a Linked Sequential Lodgement Request
Select Decline from the Linked Lodgement tab.
A pop up will display which will ask you to enter a reason for declining. Click Confirm.
The Linked Lodgement tab will disappear (from both workspaces) and a notification will be sent to the requesting workspace with your reason.
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