We know that one of the most critical steps in the settlement process is ensuring the Financial Settlement Schedule (FSS) is balanced and correct, ahead of time. And, that this is one of the biggest contributing factors to a successful on-time settlement.
Leading up to settlement, late adjustments, unbalanced figures and last-minute Workspace conversations can all impact your experience – on both sides of the transaction.
In response to member feedback, we have developed an Enhanced Settlement Summary (ESS) that will provide a more intuitive experience for practitioners and financial institutions. The Financial Settlement Summary will still exist but a new Summary will assist with the calculations to populate it.
To help you navigate this change and allow for continued development and feedback of these solutions, we’re introducing the new features in a gradual roll-out over the coming months:
Launching a new transfer indicator panel, providing improved transparency of key responsibilities in the Workspace for all parties. In addition, the enhancements will deliver a streamlined approach to calculating both Vendor Surplus and Shortfall for the Total Funds Required to settle.
Delivering functionality enabling the Proprietor on Title representative to finalise their entries in the Financial Settlement Summary, including the Vendor Surplus, without waiting for the Mortgagee on Title to finalise their loan payout figure.
Providing more clarity regarding purchaser shortfall required for settlement – in matters where the financial institution is responsible for this.
We have been piloting Part 1 of the new enhanced settlement summary with practitioners, panel law firms and financial institutions over the last six months and have made improvements to the functionality based on their feedback. The overall response has been positive – helping parties to get the Workspace ‘Ready Ready’ more easily.
As we start to roll out the features over the coming months, there will be a number of ways you can find out more. This includes the opportunity to transition to the first stage of changes for South Australian firms, and other firms that express an interest.to take part now, allowing your firm time to learn the changes ahead of the full roll-out.
Visiting the Enhanced Settlement Summary page on the e-Conveyancing Community.
Contacting your PEXA representative.
As an Incoming Proprietor representative, practitioners will benefit from not having to calculate and enter the Total Funds Required to Settle (TFRS), have better co-ordination with the Incoming Mortgagee, see a reduction in keying of data and have less reliance on conversations to clarify responsibilities.
Where the Incoming Mortgagee is responsible for providing all funds, practitioners can generate a task to the bank to finalise their source funds required for settlement when you’ve completed entry of your line items.
Similarly, if you are acting for the Proprietor on Title, you will have more visibility over key responsibilities in the Workspace, and will also benefit from the system calculations for the Vendor Surplus line items. This should reduce the number of conversations with your client’s bank in the Workspace.
Where the Mortgagee on Title is responsible for the Vendor’s surplus, practitioners can generate a task to the bank to finalise the Vendor’s funds when you’ve completed entry of your line items.
Financial institutions will see a reduction in errors and more Workspace clarity, in addition to greater certainty over the final settlement figures, reduced reliance on conversations and greater visibility of the status of the completion of the FSS.
Old Financial Settlement Schedule:
New Enhanced Settlement Schedule:
To see full details of the changes being made, check out the Community page.
The Enhanced Settlement Summary will be switched on for all South Australian members on 12 October 2020, as part of a gradual, national roll-out plan over the coming months, to help ensure a smooth transition for industry.
The ESS will apply to any Workspaces opened from 12 October related to a South Australian property.
We have been piloting Part 1 of the new Enhanced Settlement Summary with practitioners, panel law firms and financial institutions over the last six months and have refined the functionality in line with their feedback.
Law firms and Conveyancing firms outside of South Australia, and those who have taken part in the pilot, can opt-in to this new functionality from 12 October as well to integrate this change into your firm ahead of the national roll-out. Speak to your PEXA representative for more details.
Yes, members from other jurisdictions are able to opt in to have the new view activated. Please reach out to a member of the PEXA team should you wish to do so and we’ll kindly assist.
The Financial Settlement Schedule is a key area that’s been identified by your network in enhancing your experience.
But as with any change, we want to ensure the process causes minimal disruption to your organisation’s day-to-day. By rolling this out in stages, we hope that this will make the changes as seamless as possible and enable us to quickly implement additional feedback from the network.