Prepared By: Property Exchange Australia Limited (PEXA) Date: May 2016

Transcription

1 PEXA For Practitioners SA Participant Workbook Prepared By: Property Exchange Australia Limited (PEXA) Date: May 2016 Training delivered by:

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3 Table of Contents Welcome... 5 Learning Objectives... 5 Learning Method... 5 Introducing PEXA... 6 Learning Objectives... 6 What is PEXA?... 7 How does PEXA work?... 7 Compliance Requirements... 8 Technology Requirements... 9 Access and Navigation Learning Objectives Login to PEXA Learning Activity Complete Getting Started Tutorial The PEXA Help Centre PEXA Foundations Learning Objectives PEXA Representative Role Workspaces Workspace Status Workspaces that include Financial Settlement Workgroups Transfers Learning Objectives When is a Transfer Created? Learner Activity Transfer Tasks per Role The Scenario: SA Two Party Transfer Proprietor on Title Tasks Unencumbered Title Create a PEXA Workspace Check the Land Title Edit the unrepresented Parties Invite Participants to join the Workspace View lodgement instructions for the other documents Sign all documents Complete the Financial Settlement Schedule (FSS) Incoming Proprietor Tasks Title will not be encumbered Review and Accept Invitation Accept or Propose New Settlement Date and Time Check the Land Title Create party you wish to represent Invite Participants (only if there is a mortgage to be placed on the title) Prepare Transfer Enter Duty information into PEXA Edit the lodgement instructions View and Sign all documents and lodgement instructions Complete the Financial Settlement Schedule (FSS) Complete the Financial Settlement Schedule (FSS) Completed by all parties to the transfer About Underlying Account Details (source funds) and Final Account Details (destination funds) Verify and Authorise the Source Funds Page

4 Sign the FSS Financial Settlement Options Create and Withdraw Caveats Learning Objectives Create a Caveat Overview Activity: Create a Caveat The Process Create Workspace Review the Land Title Create Party Details in the Participant screen Create the Caveat Edit the lodgement instructions Sign caveat Lodge caveat with your Land Registry Overview of Withdrawal of Caveat Demonstration: Withdraw a Caveat The Process Create the Workspace Review the Land Title information Edit the Unrepresented Parties Create the Withdrawal of Caveat Workspace Settings Acting in Multiple PEXA Roles Changing an incorrect role Allocate Workspace to Workgroup Global Settings Withdrawing from a Workspace Summary Learning Check Exploratory Activity Conclusion Training Feedback Appendix A PEXA Support PEXA Service Charter The PEXA Support Centre The PEXA Help Centre Frequently Asked Questions (FAQs) Appendix B PEXA Notification Triggers Appendix C Transfer Guidelines Transfer Guidelines Appendix D PEXA Registered Source Account Page

5 Welcome This course has been developed by Property Exchange Australia Limited (PEXA) and is designed to provide you with an understanding of how to use PEXA to perform key e-conveyancing transactions using the PEXA System. Learning Objectives At the completion of this course, you will be able to: Access PEXA training and support via the PEXA Help Centre. Explain PEXA key concepts and terminology. Login and navigate around PEXA. Complete a transfer. Create and withdraw a caveat. Learning Method This course provides you with an opportunity to perform key e-conveyancing transactions using the PEXA System. In this session, you will have the opportunity to discuss key concepts, see demonstrations, practice completing transactions using the PEXA training environment and locate support materials. 5 Page

6 Introducing PEXA Learning Objectives By the end of this session, you will be able to: Explain what PEXA is and does. Explain the benefits of PEXA to all parties involved in property transactions. Explain your compliance obligations imposed by ARNECC. Explain the technology requirements to use PEXA. 6 Page

7 What is PEXA? The PEXA System is the world s first online lodgement and Financial Settlement platform that is powered by Property Exchange Australia Limited (PEXA). PEXA facilitates the exchange of property through the ability to perform lodgements and financial property settlements online in a simple transaction. Like the ASX did for the exchange of shares, PEXA will remove the manual processes and paperwork associated with the exchange of property by allowing Land Registries, Financial Institutions and Practitioners to transact together, online. PEXA delivers significant time and cost efficiencies to the conveyancing industry by reducing the time spent preparing documents and removing the need to physically attend settlement. Automated processes, pre-population of data and real-time visibility means greater certainty for all parties involved in property transactions. How does PEXA work? The PEXA System provides an online secure meeting room (Workspace) which allows each participant in a PEXA transaction to interact. Each participant enters the Workspace in a defined role (e.g. Incoming Proprietor) and performs the key activities associated with that role. The Land Registry provides a direct data stream into the PEXA Workspace, populating the PEXA Workspace with validated land title data as a transaction is progressed. Documents are created within the Workspace, Signed and lodged with the relevant Land Registry. Fees are charged on completion of a successful transaction. 7 Page

8 As you can see from the diagram above, the PEXA System (which includes the Electronic Lodgment Network) sends messages to, and extracts information from, the Land Registry and Office of State Revenue at regular intervals. This enables you to feel confident that PEXA will inform you of any changes to a land title which is in your PEXA Workspace. Users are Representative Subscribers (conveyancers and solicitors) and Principal Subscribers. Representative Subscribers act on behalf of others in the PEXA System. Principal Subscribers act for themselves and can be any business who meets the eligibility requirements. Currently these include Financial Institutions and government bodies. Compliance Requirements Before you begin using PEXA, please refer to the Model Participation Rules to ensure that you are aware of, and fully comply with, the Model Participation Rules. This applies to all participants transacting in PEXA. Your compliance requirements include, but are not limited to, completing Verification of Identify (VOI) on all clients and ensuring that they sign a Client Authorisation Form provided by ARNECC (our regulator) prior to using the PEXA System. The Model Participation Rules and the Client Authorisation form can be located on the ARNECC website at 8 Page

9 Technology Requirements Please review the following Technology Requirements to ensure that your system specifications meet the standard operating environment required to provide effective access to PEXA. Please refer to our website for the latest version: 9 Page

10 Access and Navigation Learning Objectives By the end of this session, you will be able to: Login to PEXA. Navigate PEXA. Access PEXA training and support via the PEXA Help Centre. 10 Page

11 Login to PEXA Upon successful registration as a Subscriber in PEXA, you will receive an welcoming you to PEXA. You will be asked to click on the link provided within the to set your password in PEXA. Once you have set your password in PEXA, login to PEXA using your address and password. Learning Activity Complete Getting Started Tutorial This tutorial will cover navigating PEXA and some basic PEXA concepts. These concepts will be revisited during the training course. You will also be required to complete learning checks along the way. Notes: 11 Page

12 The PEXA Help Centre The PEXA Help Centre is the central repository for all PEXA training and support materials. The PEXA Help Centre has a comprehensive array of tools, including Help Cards, Frequently Asked Questions, Tutorials and Work-around documents to support you. It opens in a separate tab so you can access it again easily. To access the PEXA Help Centre, click on the The following screen displays. from the top right hand side of the PEXA screen. PEXA Basics Contains introductory information about PEXA. Training Tutorials Training Tutorials provide you with access to the suite of simulations and Self-Paced Learning Topics. Find a Solution Find a Solution provides you with access to Frequently Asked Questions (FAQs), Hints & Tips and Help Cards. Context Sensitive Help You also have access to Context Sensitive Help. If you click on the screen, help about that screen will display in a new tab. button from within any PEXA Refer to the Help Centre as your first port of call, however if you cannot find an answer to your question contact the PEXA Support Centre. 12 Page

13 PEXA Foundations Learning Objectives By the end of this session, you will be able to: Explain PEXA concepts (Workgroups, Representative Roles and Workspaces). Explain other key terms and concepts relevant to online property transactions. 13 Page

14 PEXA Representative Role Whenever you begin a transaction in PEXA, you are participating in a particular role. You may nominate the role yourself or you may be allocated the role as part of an invitation into a Workspace. It is also possible to act in multiple roles within a Workspace. For more information, refer to Acting in Multiple PEXA Roles. A role in the Workspace determines: The tasks that a User can perform in the PEXA Workspace, based on their designated signing rights; The documents that can be created; and The fees that will apply. From your learnings in this training course, write down the descriptions of each role in the table below. PEXA Representative PEXA Representative Role Description Roles Incoming Mortgagee Mortgagee on Title Incoming Proprietor Proprietor on Title Incoming Caveator Caveator on Title 14 Page

15 Workspaces As you can see from the diagram below, a Workspace is a secure meeting room created for each of your property transactions. It is the centre of all PEXA activities allowing you to work together and communicate with other participants within this secure space. After 120 days of inactivity in a Workspace, PEXA gives you a grace period of 14 days to access the Workspace before it automatically archives it. 15 Page

16 Workspace Status The Workspace Status Indicator is displayed at the top of the PEXA Workspace Summary screen and helps you quickly identify where in the process the Workspace resides. As a Workspace progresses, from creation through to document preparation, to settlement and lodgement, the status will change. The diagram below shows a visual representation of each stage of the Workspace Status. Note: Workspaces can be modified at any stage before scheduled settlement. Once the Workspace is Locked, Subscribers are unable to modify anything in the Workspace. 16 Page

17 Workspaces that include Financial Settlement If a Workspace includes Financial Settlement, a Financial Settlement Status Indicator also displays. The PEXA Financial Settlement Status Indicator is located within Workspace Summary. Workgroups Workgroups are like your own personal filing cabinet. If you have the key, you can access the information in your group. Workgroups are teams of Users (or a single individual) assigned tasks to complete in PEXA. There can be one or more PEXA Users per Workgroup. Workgroups are created and assigned by the Subscriber Administrator and PEXA will always default to your Workgroup. You will rarely have to select your Workgroup unless you are part of more than one. 17 Page

18 Complete these descriptions as you progress through this training course. Key Concepts/Terminology Description A Workspace is a secure meeting room created for each of your PEXA transactions. You should create a new Workspace for every new property transaction. Electronic version of a Land Title. This is a unique identifier created by the appropriate land registry at time of lodgement, and is displayed in PEXA on the Land Titles screen. 18 Page

19 Key Concepts/Terminology Description This search help identify whether a specific title is eligible for electronic lodgement. Workgroups are teams of users or Workspaces. You are required to complete a Verification of Identity (VOI) on all clients you represent in PEXA. This allows the Subscriber to act on their clients behalf in PEXA. Subscribers must enter into a Client Authorisation with its Client before the Subscriber Digitally Signs any Document in the ELN, except for Caveats and Priority/ Settlement Notices. 19 Page

20 Transfers Learning Objectives By the end of this session, you will be able to: Determine when to complete a transfer. Identify roles within the transfer process. Identify time frames for specific tasks. Understand the two party transfer process. Complete a two party transfer. 20 Page

21 When is a Transfer Created? A transfer of title is facilitated via a transfer document. This document is a Land Registry document, which, when lodged and registered, transfers the proprietorship of a title from one party (Transferors) to another (Transferees). Transfer Roles There are a number of PEXA Roles involved in a transfer. These are represented in the diagrams below. This training course will focus on the Proprietor on Title and Incoming Proprietor roles in a two party transfer. 21 Page

22 Learner Activity Using the Transfer Guidelines (Appendix C) as a reference, answer the following questions: 1. Who would generally be responsible for the creation of the initial Workspace in a transfer, the Proprietor on Title or the Incoming Proprietor? 2. True or False. Whitehaven Conveyancing has 7 working days to respond to an invitation request from Kakadu Property Law? 3. How many days prior to settlement will the Mortgagee on Title provide an indicative payout figure? 4. True or False. Kakadu Property Law and Whitehaven Conveyancing must complete the statement of adjustments three days prior to settlement? 5. What is the recommended time limit on the FSS being completed and Signed by all other parties? 22 Page

23 Transfer Tasks per Role 23 Page

24 The Scenario: SA Two Party Transfer Maxwell and Margaret Black have just signed a Contract of Sale to sell their property in Brighton to William and Amanda Wakefield. They have enlisted the services of Kakadu Property Law to help them with the transfer of their property and William and Amanda have enlisted Whitehaven Conveyancing Services to assist them in the purchase of their new residential property. You have reviewed the Contract of Sale and all associated paper work and have determined that: Land Title Reference: 6850/391 Purchase Price: $650,000 Purchase Method: Cash Proprietors on Title: Vendors The current Proprietors on Title are: Name: Maxwell Black Date of Birth: 01/03/1959 Name: Margaret Black Date of Birth: 12/12/1961 Current Residential Address: 271 Ocean View Lane, Brighton SA 5048 Future Residential Address: 10 Palm Drive, Brighton SA 5048 Represented By: Kakadu Property Law Incoming Proprietors: Purchasers Details for the Incoming Proprietors are: Name: William Wakefield Date of Birth: 19/6/1965 Name: Amanda Wakefield Date of Birth: 12/10/1976 Current Residential Address: 21 Rocky Hollow, Brighton SA 5048 Future Residential Address: 271 Ocean View Lane, Brighton SA 5048 Represented By: Whitehaven Conveyancing Services 24 Page

25 In PEXA, the funds are required to be inserted into the Financial Settlement Schedule: Source Funds Destination Funds Incoming Proprietor: Purchasers Equity: Settlement Schedule Information: Proprietor on Title: $Amount required to balance Vendor s Funds : $583, Conveyancing Fees: $1000 SA Water Rate Payment: $150 BSB A/C City of Holdfast Bay Rates: $150 BSB A/C PEXA Fees: $ (auto populated) ================================================= Incoming Proprietor: Conveyancing Fees: $600 Transfer Duty: $(auto populated) Lodgement Fee: $(auto populated) PEXA Fees: $ (auto populated) 25 Page

26 Proprietor on Title Tasks Unencumbered Title Follow the steps below to complete the tasks required of the Proprietor on Title (POT) (vendor s representative). Create a PEXA Workspace Either the Proprietor on Title or Incoming Proprietor can create the Workspace. However, typically it is the Proprietor on Title that kicks off the transaction. Follow the steps below to create a Workspace. Workspaces can be created directly from the Land Title Look Up on the Main Menu. Click Once you have successfully validated that a Title is valid for electronic lodgement, you can quickly launch the Create New Workspace screen. The Create New Workspace screen is also subsequently populated with the valid land title, helping reduce the number of clicks to initiate a new workspace. OR Select Create Workspace from the left hand navigation panel. Select/type the following information into the named fields. Fields Type/Select Hints and tips Jurisdiction The jurisdiction is the state in which the property is located. Select SA. This defaults based on your User preference. 26 Page

27 Fields Type/Select Hints and tips Representative Role Land Title Reference Describes the role you are representing in this Workspace. Select Proprietor on Title. Alternatively, if you accept an invitation to the Workspace, the representative role is assigned to you. Enter the unique land title reference number. Click Validate. Ensure the invitation is asking you to transact in the correct role. Once you click Validate, PEXA communicates with the Land Title Registry to confirm the land title is valid for electronic lodgement. The Duplicate Land Title screen will display if the land title is being referenced in other active Workspaces. Click on the hyperlinked Workspace to review and ensure your efforts are not being duplicated by another party. If this title cannot be transacted electronically, complete the transaction in the paper channel, as you would have before PEXA. Subscriber Workgroup reference Enter your Matter Number or a Unique Reference Financial Settlement Select Yes If not known, select No and add this at a later date in the Workspace. Financial Settlement date Select the date of Financial Settlement Select a working day. PEXA will inform you if that day is not available, for example, if it s a public holiday. Financial Settlement Select time of Financial Select business hours. time Mark all land title references in Workspace as parent Request Land Title Data? Settlement Select No Select Now This is only relevant where property in the contract of sale is a Lot on an unregistered plan of subdivision and the actual title references are not yet known. For example, an off-the-plan development. Select later to request Land Title Data once all participants have joined the Workspace or once a Child title has been added to the Workspace. 27 Page

28 Fields Type/Select Hints and tips Workgroup This will default if you are a member of one Workgroup. If you are a member of multiple Workgroups, select the correct one Click Save to save the Workspace. This will automatically default to later for parent land titles. This can be changed at any time via Workspace Settings. Select Edit under the heading Allocate Workspace to Workgroup. You can add and remove Workgroups to your Workspace. The Workspace status will now be in In Preparation status. Check the Land Title It is important to review the Land Titles screen to make sure the information returned from your Land Registry into PEXA is as you expected. To do this: Select Land Titles located on the left hand navigation bar. You can view information such as the property address, proprietor, property description, registered mortgage(s), any caveats, dealing numbers etc. that are currently on the title. Edit the unrepresented Parties You need to tell PEXA that you are representing the Proprietors on Title, who in the example screen below, are Margaret and Maxwell Black. Click Participant in the left hand navigation. Under the heading Unrepresented Parties, select Edit Party from the Actions cog. You will be taken to the Party screen. The name of the party and the relevant land title will automatically default in the relevant fields. You need to complete the remaining fields. Select: 28 Page

29 I Represent this Party Notice your role of Proprietor on Title will automatically default. Enter the Party Details, namely the Party Type, Party Name, Date of Birth. If applicable, enter in phone number and details of whether the selected party has held land in any other name. Copy Address buttons are available under Current Address and Future Address sections of the Party screen. For parties in the role of Incoming Proprietor or Proprietor on Title, this button allows you to copy the address of an existing party or land title address. If the address does not match, you are required to type a full address. Repeat this procedure for each party you are representing. Each party will now be represented by the Proprietor on Title. 29 Page

30 Invite Participants to join the Workspace You now need to invite the other participants who will transact in this Workspace, namely the Incoming Proprietor and the Mortgagee on Title (if there is a mortgage on the title). From the Participant Screen: Select Invite Participant from the Participant drop down box. The Invite Participants screen displays. Type the name of the Participant that you wish to invite. Type in the first 3 letters of the participant organisation name and PEXA will search and display those participants that match this criteria. If an organisation is not yet a PEXA member, you can request PEXA to get in contact with the organisation, via the Invite them to connect link. Select the role that the other party will play in this transaction, that is, Incoming Proprietor or Mortgagee on Title (see the note below to invite both). Select the relevant title (if there is more than one). Select the parties you are representing under the heading Party represented (optional). Type in any additional notes if you wish. Note: For an encumbered title, you can also invite another participants, that is, the Mortgagee on Title. Click Add Another Participant and complete the details. Ensure the Customer Account number or address is included in the Notes Field. Click Send Invitations. We now wait for the Incoming Proprietor to accept their invitation to the Workspace and create the Transfer. View lodgement instructions for the other documents Once the Incoming Proprietor has created the Transfer, you can view and Sign your documents. Click Documents from the left hand navigation bar. View the lodgement instructions to ensure you are happy with them o Action cog > View. 30 Page

31 Note: If you Edit the Lodgement instructions here, PEXA will assume you are making changes and will automatically Unsign any previous Signings. This may mean that all parties will have to Sign again. Sign all documents Sign the lodgement instructions and Transfer. To do this: Select Sign from the Actions cog from any of the documents. When the Signing screen displays you will be able to Sign all documents. Note: Before the Signing screen displays, you may be asked to Run Java. Ensure you have the latest version of Java on your computer. Remember to insert your USB (PEXA or Symantec) into your PC before Signing as this holds your Digital Certificate. The Document Signing Screen displays. Select the documents for Signing, as shown above. Note: Do not Sign the Settlement Statement unless both parties have completed it. Click Sign Documents. The Signing pop up box displays. 31 Page

32 Type in your password and press OK. Once all documents have been Signed you will see a screen similar to the example below. The document Status will say Signed. Complete the Financial Settlement Schedule (FSS) It is a few days prior to settlement. The documents have been prepared and Signed by all parties in this transaction. All financial adjustments have been agreed between the parties outside of PEXA. It s now time to enter in your destination Line Items. For instructions regarding completing the FSS see Complete the Financial Settlement Schedule (FSS) Completed by all parties in the transfer later in your workbook. 32 Page

33 Incoming Proprietor Tasks Title will not be encumbered In this scenario, the title will remain unencumbered as the purchaser is providing the funds by cash. Follow the steps below to complete the tasks required of the Incoming Proprietor (purchaser s representative). Review and Accept Invitation On the main navigation panel you will notice you have an invitation (perhaps one of many). To retrieve the invitation: Click Invitations. Click View on the relevant Invitation. The Workspace Invitation screen displays. Ensure you read any notes provided. Accept the invitation and save. It is recommended that you select to Open Workspace upon Acceptance. This will open the Workspace immediately for you to begin your tasks. Accept or Propose New Settlement Date and Time Under My Subscriber Outstanding Tasks window in the Workspace Summary, you will see an option appears to Accept or Propose New Settlement Time and Date. Click Accept or Propose New Settlement Time and Date. 33 Page

34 Review the screen and confirm the details are as expected. If the details are correct, click Accept and then click Save. If the details are incorrect, click Propose new date and time and complete details. The settlement date and time acceptance status will appear in the navigational panel under Settlement. The status types are: Accepted = Settlement Date and Time has been accepted by all Workspace participants. Not Accepted = Settlement Date and Time has not been accepted by you. Pending Others = Settlement Date and Time has been accepted by you, however there are outstanding acceptances for one or more other participants in the Workspace. This provides you with greater visibility to the status of the Settlement date and time for a selected Workspace. Check the Land Title It is important to review the Land Titles screen just to make sure the information returned from your Land Registry into PEXA is as you expected. To do this: Select Land Titles located on the left hand navigation bar. 34 Page

35 You can view information such as the property address, proprietor, property description, registered mortgage(s), caveats, dealing numbers etc. that are currently on the title. Create party you wish to represent When a land title is added to the Workspace, and verified with your Land Registry, on title parties are displayed for you automatically on the Participants screen. Click Participant in the left hand navigation. You will see the names of the Proprietors on Title. As the representative for the purchaser, you need to provide PEXA with details about the purchasers whom you are representing. Select Create Party from the Participant button on the right. Enter client s details including their name, date of birth, future residential or business address details. Click Save. Copy Address buttons are available under Current Address and Future Address sections of the Party screen. For parties in the role of Incoming Proprietor or Proprietor on Title, this button allows you to copy the address of an existing party or land title address. Repeat for any other party you are representing in this transaction. You are taken back to the Participant screen where you will notice your client s name has been added under your organisation. 35 Page

36 Invite Participants (only if there is a mortgage to be placed on the title) This section is for when the title will be unencumbered but below is some additional information for the other scenario. If there is a mortgage to be placed on the title, then you need to invite the relevant Financial Institution in the role of Incoming Mortgagee. To do this: Navigate to the Participants screen. Select Invite Participant from the Participant button on the right. The Invite Participant screen displays. Enter the relevant information for the participant you wish to invite, including the Financial Institution s name and role as Incoming Mortgagee. Enter Notes to support your request. It s a good idea to enter in the client s name, customer account number, loan number and any other pertinent information. Click Send Invitation. You are taken back to the Participants screen where all participants invited to interact in this Workspace, are displayed. Prepare Transfer To prepare the transfer: Click Documents in the left hand navigation. Click Create Document in the top right and select Transfer. Much of the information is prepopulated. 36 Page

37 Enter the Consideration type as well as the Consideration amount and GST (if known). Click Save. The Transfer will still be at the status of In Preparation until Stamp Duty information is entered into PEXA. 37 Page

38 Enter Duty information into PEXA In PEXA, all Transfer documents must have stamp duty self-determined and confirmed in RevNet at the time of lodgement. PEXA has an automated stamp duty verification process that communicates with RevenueSA, sending details from your workspace to the online duties system (RevNet) for verification. On successful verification, RevNet responds with the stamp duty information required for lodgement and the payment of stamp duty. In SA, your responsibility is to obtain a RevNet ID through the process of completing a duty self-determination of stamp duty in RevNet. You then enter the RevNet ID number in PEXA on the Stamp Duty screen. Note: Please refer to the introductory details on RevNet located on the RevenueSA website. You can access RevNet directly via In PEXA: Select Stamp Duty from left hand navigation. (This menu option is available once a Transfer document has been created). The View Stamp Duty Information screen displays. You will notice that the Stamp duty verification result is Not Verified. Click. The following screen displays. Select if the Stamp Duty is to be included in PEXA Financial Settlement (note this is only available if you have a duty disbursement account registered in your Subscriber Profile). 38 Page

39 Enter the RevenueSA RevNet ID and click Save. Review the Stamp Duty Information. Once the connection with the RevNet duty system is made for this transaction, you can click Actions > Verify Duty to confirm the duty results. This can be used to confirm the correct duty amount at any time prior to settlement. Once duty verification returns duty data, if duty is to be disbursed to your duty disbursement account at Settlement, a stamp duty financial line item is added to the Destination tab in the Financial Settlement Schedule. 39 Page

40 Once the funds are disbursed to the Practitioner s duty disbursement account then the Practitioner will pay stamp duty as part of the normal RevNet process. Edit the lodgement instructions You need to edit the lodgement instructions for two reasons: 1. Checks verification of documents with the Land Registry. This verification confirms that all documents in the lodgement case have been prepared correctly and will be accepted by Land Registry at time of lodgement. 2. This verification also progresses the lodgement instructions for the transfer to Prepared. To Edit the lodgement instructions: Navigate to the Documents tab in the left hand navigation. Select Edit from the Actions cog against the lodgement instructions. You will notice many fields prepopulate, such as Subscriber details, Client Reference and Order of Lodgement. 40 Page

41 Review the lodgement instructions. View and Sign all documents and lodgement instructions Before you Sign any documents, please view them to ensure they are correct and that you agree to all certifications relating to that document. Treat digital signatures the same as wet signatures. Sign the Transfer. To do this: Click on the Actions Cog for the transfer in the right hand side of the screen. Click Sign. Note: Before the Signing screen displays, you may be asked to Run Java, which is required by the Digital Certificate. Ensure you have the latest version of Java on your computer otherwise you may not be able to Sign documents in PEXA. 41 Page

42 The Document Signing Screen displays. Select the documents for Signing, as shown in the example above. Click Sign Documents. The Signing pop up box displays. Type in your password. Click OK. 42 Page

43 Complete the Financial Settlement Schedule (FSS) Both parties have agreed to the statement of adjustments outside of PEXA. It is now time to complete the FSS. You will enter your source and destination Line Items. For instructions for completing the FSS, see Complete the Financial Settlement Schedule (FSS) Completed by all parties in the transfer below 43 Page

44 Complete the Financial Settlement Schedule (FSS) Completed by all parties to the transfer. It is a few days prior to settlement. The documents have been prepared and Signed by all parties in this transaction. All financial adjustments have been agreed between the parties outside of PEXA. Each party now enters the financial Line Items that they are responsible for in the Source and Destination tabs. To enter in destination and source Line Items for the Incoming Proprietor and Proprietor on Title: Navigate to Settlement on the left hand navigation bar. The financial Settlement Schedule screen displays. The Settlement Summary tab displays summary information about the financial disbursements. The following pages explain the FSS in more detail. Source Funds Incoming Proprietor: Purchasers Equity: $Amount required to balance Destination Funds Settlement Schedule Information: Proprietor on Title: Vendor s Funds : $583, Conveyancing Fees: $1000 SA Water Rate Payment: $150 BSB A/C City of Holdfast Bay Rates: $150 BSB A/C PEXA Fees: $ (auto populated) ================================================= Incoming Proprietor: Conveyancing Fees: $600 Transfer Duty: $(auto populated) Lodgement Fee: $(auto populated) PEXA Fees: $ (auto populated) 44 Page

45 Click the Sources Tab and Destination Tab in turn to enter your financial Line Items. The Destination tab has been selected in the example below. Select Add Destination or Add Source from the right hand side (the screen above shows the Add Destination button because the Destination tab is selected). Enter your disbursements and click Save. 45 Page

46 The following table explains the field options that can be selected when creating Line Items in the financial Settlement Schedule. Incoming Proprietor Source FSS tab Description Where are the funds coming from for the purchase of this property? Available Options Source Accounts Select this option if PEXA Registered Source Account If your organisation doesn t have a registered trust account with PEXA. You may be eligible to use this source account. Note 1: You must register for this account. Note 2: Funds must be in this registered account 3 days prior to settlement. Please see Appendix D for more information. Trust Account you have a trust account that is integrated with PEXA. You must also Verify and Authorise funds. Third Party Beneficiary Both parties are required to Sign off on this financial Line Item. Destination Funds required to settle the transfer transaction Destination Accounts Body Corporate Fees/ Council Rates/ Water Rates Professional Fees/ Other Both parties are required to Sign off on these financial Line Items. Trust Account Customer Account Your practice s trust account. Your office/everyday account or the customer s account. 46 Page

47 Source Proprietor on Title (POT) FSS Description Available Options Select this option if Destination N/A Pay outstanding disbursements Destination Fund Details: Category Vendor s Funds Professional Fees/ Other Body Corporate Fees/ Council Rates/ Water Rates Third Party Beneficiary There are monies owed to the vendor at settlement once all other fees have been considered. Refer to the example screen and explanation below. you don t want the other party to see the details of the Line Items entered, such as conveyancing fees. The other party won t see the account and BSB number. They will see the category and dollar amount only. Both parties are required to Sign off on these financial Line Items. Both parties are required to Sign off on this financial Line Item. Note: 1. Landgate fees are automatically added as a Line Item in the Destination Funds. These are collected by PEXA on behalf of the Land Registry and then passed on to the Land Registry. 2. Both parties are charged PEXA Fees and these are automatically entered as Line Items in the Destination tab. 3. Transfer Duty is automatically entered as a Line Item in the Destination tab. On Saving you will be taken back to the financial Settlement Schedule. Notice that the financial Line Item is now displayed. You can edit or remove a Line Item at any time before settlement. If the FSS has been Signed by any party it will be automatically Unsigned. In this case, communicate via PEXA Conversations ASAP. PEXA will also send an notification that the FSS has been Unsigned. 47 Page

48 About Underlying Account Details (source funds) and Final Account Details (destination funds) Underlying Account Details are for informational purposes. For example, if the source Financial Institution is providing loan funds and they want to record the actual loan account that the funds are coming from. This will appear on their settlement reports. This information does not drive any functionality in PEXA. It will appear in the financial Line Item details. Final Account Details are similar to Underlying Account Details. If a Financial Institution or practitioner is disbursing all funds to a single account they can then enter a final account which shows the actual account that funds are to be disbursed to after settlement; (this would be a manual movement external to PEXA). This will appear in settlement reports and against the financial Line Item. This information does not drive any functionality in PEXA. It is for informational purposes only and will appear as a financial Line Item detail. 48 Page

49 Verify and Authorise the Source Funds For source funds, where a trust account is used, you need to Verify that the funds are in the trust account and will continue to be in the trust account at settlement. A Payment Authoriser must Authorise the Financial Institution to draw these funds from the trust account at settlement. This must be done before you Sign the FSS. To do this: select Verify Funds from the Actions cog for that Line Item. Once Verified: select Authorise Funds to Authorise the FI to withdraw funds from the trust account. Note: Authorise Funds will bring up the Signing screen so it s best to Authorise the Financial Settlement schedule at the end of the process, when you complete all Signings. Note: The source Line Item status will not move to Ready status unless funds have been Verified and Authorised. Workspace Summary Screen At this point, both the Workspace Status and the Financial Settlement Status should be at Ready and settlement will proceed at the settlement time and date as planned. Note: If the Workspace Summary shows a Prepared or In Preparation status, then you will need to troubleshoot and amend the problem to move the Workspace to Ready. Amendments may result in Unsigning of documents or the FSS therefore you may need to re-sign them. 49 Page

50 Sign the FSS To Sign the FSS Select Sign from the Actions cog at the top right side of the screen as shown below. Remember that any changes made to the FSS by another party may automatically Unsign it and you will need to re-sign. For example any Third Party Beneficiary Line Items entered by the other party will Unsign the FSS as this type of Line Items needs to be viewed and Signed by all parties. Financial Settlement Options There are a number of additional settlement functions you can perform in PEXA. These are available in the FSS, as shown in the screen below. Stop Settlement This will Stop Settlement by Unsigning the FSS for all Subscribers in the Financial Settlement. The Settlement Date and Time will also be removed from the Workspace. You are required to enter in a reason for all participants in this Workspace to be notified. You can reset the Settlement Date and Time but it will need to be Signed by all participants again. 50 Page

51 Maintain Settlement Values This selection is optional and used for informational purposes only. Practitioners can enter information not included in the FSS such as deposit amounts and the total adjustment amount. Change Settlement Date Change the settlement date and time here. If the settlement date changes, the FSS will automatically Unsign and a notification will be sent to alert all participants in the Workspace that a change has been made and that they need to review the change before resigning it. A change in the settlement time will not Unsign the settlement schedule. Override Lodgement On rare occasions there may be a technical fault / loss of connection between PEXA and the Land Registry. This function gives participants the option to agree to continue with the Financial Settlement despite lodgement failing with the Land Registry. PEXA will continue to attempt lodgement with the Land Registry until successful. Be aware that all parties providing source funds, must agree to this and will need to re-sign the FSS. 51 Page

52 Create and Withdraw Caveats Learning Objectives By the end of this session, you will be able to: Create and lodge a caveat. Withdrawal of caveat. 52 Page

53 Create a Caveat Overview A caveat can be placed on a land title electronically using a caveat in a PEXA Workspace. The diagram below depicts the 5 key steps involved in creating a caveat. 53 Page

54 Activity: Create a Caveat Scenario Legal firm, Kakadu Property Law, wish to place a caveat on a land title on behalf of their clients, Matthew and Amelia Brown. Land Title Ref: 6268/301 Your Clients Details Name/s: Matthew Brown Amelia Brown Date of Birth: 12/1/ /12/1976 Current Residential Address: 271 Ocean View Lane, Glenelg SA 5045 Proprietor on Title Details: Name/s: Maxwell & Margaret Black Current Residential Address: 10 Palm Drive, Glenelg SA Page

55 The Process Create Workspace Select SA from Jurisdiction. Select the representative role of Incoming Caveator. Enter the land title reference number and click Validate. Type your Workspace Subscriber Reference. This is your matter number or a unique reference of your choice. Select Now to request Land Title Data. Select your Workgroup. This may default if you are part of one Workgroup only. There is no Financial Settlement. Save your Workspace. Note: Multiple land titles can be added to a Workspace. Review the Land Title It is important to review the Land Titles screen just to make sure the information returned from your Land Registry into PEXA is as you expected. To do this: Select Land Titles located on the left hand navigation bar. Review information such as the property address, proprietor, property description, registered mortgage(s), caveats, dealing numbers etc. that are currently on the title. Note: If you have multiple land titles to add you can add them here. Create Party Details in the Participant screen To create the party you wish to represent in PEXA: Click Participant in the left hand navigation. From the Participant button on the right, select Create Party. The Party screen displays. 55 Page

56 In the Party screen select: I Represent this Party option in Representation. The role will default to Incoming Caveator. Individual in Party type. Alternatively you can select Organisation. Complete all details of the party you are representing. Click Save. Repeat this procedure for each party you are representing. Create the Caveat Click the Documents button in the left hand navigation. Click Create Document. Note: Because you selected the role of Incoming Caveator, PEXA will know you wish to create a caveat. Therefore you will automatically be taken to the Create Caveat screen. Enter details into the relevant fields and click Save. 56 Page

57 Click Save. Your lodgement instructions are at In Preparation and your Caveat at Prepared. 57 Page

58 Edit the lodgement instructions You need to edit the lodgement instructions to progress it to Prepared. To edit the lodgement instructions: Navigate to the Documents tab in the left hand navigation. Select Edit from the Actions cog against the lodgement instructions. Review lodgement instructions and click Save. Wait for the auto refresh to progress the status to Prepared and the Verification Result is at Successful. The PEXA auto refresh occurs every seconds after verification and lodgement. You can now Sign the caveat. Sign caveat Before you Sign the caveat, it is important to view the rendered document to confirm the information displayed is correct. Sign the caveat and lodgement Instruction at the same time. Select the Sign all checkbox, if available, or select the documents for Signing. Click Sign Documents. Enter your password for the Digital Certificate when prompted. Verification is kicked off between PEXA and the Land Registry. This will auto refresh in seconds and will display as Signed. Wait until the screen refreshes and confirm the status progresses to Signed and Successful. Lodge caveat with your Land Registry You are now ready to submit the caveat for lodgement with your Land Registry. From the Documents screen: Click the Actions cog and select Submit for Lodgement for the Lodgement Instruction. 58 Page

59 The Document Status for both the Lodgement Instruction and caveat moves to Lodging. Your Workspace is now locked and the documents have been submitted to your Land Registry for lodgement. When a lodgement is received by the Land Registry, the Land Registry will provide a Dealing Number for the caveat. PEXA will return a status of Lodged for the lodgement instruction. Once examination is completed by the Land Registry, the status of the caveat returned to PEXA will be Registered. The PEXA auto refresh occurs every seconds after verification and lodgement. Note: You may need to refresh the Documents screen to see the status progress from Unregistered to Registered. The Workspace status is now at Complete and moves to the completed folder in PEXA from the Active Screen on your dashboard. To view this, navigate to the Workspace Summary screen in the Completed folder. Notes: 59 Page

60 Overview of Withdrawal of Caveat The diagram below depicts the 5 key steps involved in withdrawing a caveat. It is important to note that the PEXA role is Caveator on Title for the withdrawal of a caveat. 60 Page

61 Demonstration: Withdraw a Caveat A caveat can also be withdrawn, from the title by the caveator. The same person who placed the caveat on title must withdraw it. Therefore, in PEXA, it is important to note that the Caveator on Title must be the party represented in the withdrawal of a caveat. Scenario Your client, Derek Jones, has requested your services to remove a caveat that he had previously lodged over land title reference 6650/394. Your Clients Details: Name/s: Derek Jones DOB: 15/12/1976 Proprietor on Title Details: Name/s: Archie & Mia Thomas Address: 26 Riverview Walk Beachport SA Page

62 The Process Create the Workspace The representative role is Caveator on Title. Review the Land Title information Validate that the information returned from the Land Registry is correct and that the caveat you are waiting to withdraw is on the land title. Edit the Unrepresented Parties From the Participant screen, select Derek Jones as the person you are representing to withdraw the caveat. Enter his date of birth. Create the Withdrawal of Caveat Because you selected the role of Caveator on Title, PEXA will know you want to create a withdrawal of caveat. Therefore you will automatically be taken to the Withdrawal of Caveat screen. Enter the relevant details. Note: You can also create the withdrawal of caveat from the Land Title Screen by pressing the Withdraw button. However, first, you must tell PEXA who you are representing in the participant screen. 62 Page

63 Save the Withdrawal of Caveat. Edit the lodgment instructions ensuring the Subscriber details and Client Reference Number is correct. Note: The Client Reference Number is limited to a maximum of 15 characters. This is a restriction of characters set by the Land Registry, not PEXA. Click Save. Verification is carried out on the documents by the Land Registry. Wait for the PEXA auto refresh until the document status is at Prepared and the Verification Result is at Successful. Once both the lodgement instructions and Withdrawal of Caveat Status are at Prepared: View the lodgement instructions rendered document to ensure all information is correct. Sign both the lodgement instructions and the Withdrawal of Caveat. Submit caveat for lodgement Once Signed: Select Submit for Lodgement against the lodgement instructions. PEXA auto refreshes every seconds. It will refresh your screen so the Document Status is Completed for the lodgement instructions and Registered for the Withdrawal of Caveat. Note: You may need to manually refresh your screen to see it progress from Unregistered to Registered. You can view your Dealing number and the Workspace status is now at Complete and moves to the completed folder in PEXA from the Active Screen on your dashboard. To view this, navigate to the Workspace Summary screen in the Completed folder. 63 Page