@DebbieCrawford thanks for your posts, great questions and comments and we'll be addressing some of these in the upcoming Guidelines Webinars (Dates to be confirmed). I can't answer your posts individually, so here's a collective response, feel free to direct message me for further discussion/info:
Post 1&2: I didnt see any reference for Outgoing Mortgagee to send conversation to confirm if they have authority to collect surplus. Perhaps similar to "funds required" that the Incoming Purchasers agent completes - perhaps a "tab" where we can put in "full proceeds available" for the Outgoing Mortgagee so they know what funds are available for them to collect - and for the Outgoing Mortgagee to have a box to tick if they do or dont have authority for surplus
Response: Great suggestion to have the ability to communicate Surplus details via fields (or tab). In the meantime, see Guideline 15, this hasn’t changed from last version.
Post 3: Total Funds Required at settlement - there seems to be some differing in opinions in WA/confusion as to what this relates to. Whether it is total funds (including funds contributed by other parties) i.e. Total Source Funds on the FSS or whether it is the total funds required from the Incoming Mortgagee. In the paper world we would normally advise the Incoming Mortgagee our cheque split - which advises the banks what funds we require from them. I dont see why this should change. Total Funds Required should be the figure we require from the bank - the bank doesnt need to worry themselves about other figures or even the balancing of the FSS - that is our job as the conveyancer. Banks need to stop thinking about a Transfer deal the same way as they think about a refinance.
Response: The definition of Total Funds is: “the adjusted balance of the purchase price, all lodgement fees, stamp duty, PEXA fees and Practitioner professional fees if entered into the Destinations by the Practitioners. (as denoted by the information contained in the section by the “?”)
Which aligns to your definition above: “total funds (including funds contributed by other parties) i.e. Total Source Funds on the FSS”
This figure allows the Incoming Mortgagee to calculate any Shortfall they are providing.
Where in the paper world you advise the Incoming Mortgagee of the amount they are required to provide via the cheque split, in the electronic world, this is communicated via the Total Funds Required to Settle field. In addition, you also need to take into account the registration fees when advising of the amount to settle.
Thanks for your feedback on this Debbie. We will add some further clarification in the Guidelines to make this clearer for all parties
Post 4: Added to the above about "total funds required to settle" - the guidelines say we need to put this in 5 days prior to settlement - the problem here is unfortunately we are lucky to get a statement from some other agents a day prior to settlement, let alone 5 days prior. We can obviously give an indicative figure - which I dont have an issue with, but are the banks going to rely on this or will they realise it is indicative. We can send a conversation saying it is an indicative figure - but everyone is trying to reduce conversations. I have found if the figure changes the banks may not look until the last minute and may enter the old figure, and then we have the "last minute fingers crossed" conversations hoping they will update properly and sign off a minute before the due time!
Response: It's fine to enter an indicative figure and ensure it is updated 2 days prior to settlement when the Banks are entering Shortfall. The aim of this guideline is to assist the incoming Proprietor/Incoming Mortgagee to determine if there may be a shortfall earlier in the process. Where total funds can not be confirmed 2 days from settlement, or there is confusion over who is providing Shortfall and what the amount is, or there is a subsequent change to the actual amount within 2 days from Settlement, send a conversation or if on day of settlement, call the settlement booking line.
Post 5: If settlement is delayed by a day - for reasons outside the PEXA Platform - the banks need to move on without issue. There have been numerous occasions when settlement date has been changed for contractual reasons, and then the banks (sorry but especially CBA lately) have then said that they wont be able to settle until a week plus later. If a bank is ready to settle today, and settlement is delayed until tomorrow - there is NO reason why they reasonable cannot settle the next day. I assume this may have something to do with time/work allocations within the banks - but this cant happen. We cant expect clients to end up in "penalty interest" territory just because the banks can reallocate files a day!
Not sure if this comes under the topic of "transfer guidelines" but thought I would just put it out there anyway.
Response: The Banks have been made aware of this.
Post 6: Not sure if "2 days prior" for stamp duty is sufficient. I would tend to suggest 5 days prior. Reasoning is that I worry that 2 days prior will give banks and other parties sufficient time to finalise their figures. If a settlement agent does it "2 days prior" at 5.00pm, that only really gives any other party, especially the banks, a day to process - which I question if that is sufficient in the banks defense. If they dont do 2 days prior and go - oops forgot - then it leaves us with the day of to check figures! If we put "5 days prior" as the standard - it gives sufficient leeway for any delays when we have a "bad day" and/or the banks are "swamped" on a certain day - so that all parties have sufficient time and are not doing everything "last minute".
Response: The Guidelines state “at least 2 days prior”. Obviously as you rightly point out Debbie, earlier is better in order for all parties to progress the Workspace, but two days is the minimum requirement. Also, just to let you know, that as of Release 8 coming shortly, the banks will be able to view the details of the Transfer when it is at “In Preparation” status (ie: prior to stamp duty verification). This will also allow them to continue to progress on their end without the need to wait until the stamping is finalised in the Workspace.
Thanks,
Kate.
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