task 3

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School

Western Sydney University *

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Course

123

Subject

Law

Date

Feb 20, 2024

Type

docx

Pages

8

Uploaded by SargentDragonfly3673

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Before settlement: As the solicitor for the purchaser, I need to advise my client to do a final inspection of the property as close as possible to the settlement so that he can tell me that everything is okay to settle. I want my client to get vacant possession, if that's what their contract specified. So the purpose of their final inspection is to ensure three things. • Firstly, that they're getting vacant possession. • Secondly, that the property is in the same condition, that it was an exchange, and • Thirdly, that all the inclusions listed in their contract are still there. I f there was a problem, the first thing I would do is check the contract, because my client's rights are all governed by the contract. But assuming that the purchaser tells me that the final inspection is OK, there is one other thing I must do. I want my client to get good title, so I need to know what is on the existing title as close as possible to settlement. So as close as possible to settlement, I would obtain a final search, which tells me the state of the title now. Note that a title activity check is NOT a final search. When I obtain that final search, and you can see now on your screen the final search in the Douglas purchase, I will compare it with the search in the contract to ensure that nothing is different. I want to make sure, for example, that no caveat has been lodged since I exchanged. Please pause this video now to make sure that the final search hasn't changed from the search on the contract. Assuming it hasn't changed, assuming that all the destination items populated by the Vendor in the FSS have been arranged, that I'm now ready to attend the settlement on behalf of the purchaser. At your assessment, you may be asked questions about all of these procedures, so please make sure that you're familiar with them. For Financial Settlement to be Ready for settlement: The Purchaser needs to sign the Financial Settlement Schedule once satisfied that it balances – the money in the source accounts equals the amount required to be paid to the destination accounts. The Vendor signs the FSS. Discharging Mortgagee signs FSS. Incoming Mortgagee signs FSS. For Document Lodgement to be Ready for Settlement: Vendor signs the Transfer Incoming Mortgagee complete/sign Lodgement Instructions Outstanding tasks:
For Financial Settlement to be Ready for settlement: 1. Complete Lodgement Instructions METROPOLITAN BANK 2. Verify Source Financial Line Item(s) METROPOLITAN BANK Write to the vendor’s mortgagee advising them of the sale and the settlement date, providing them with your client’s written consent to the release of information (if you have not already), attaching a completed discharge authority signed by your purchaser client (if not completed online) and requesting the payout figure for settlement. The mortgagee will need sufficient time to prepare all relevant documentation required for settlement, for example, a discharge of mortgage or release of any security interest over the property. 3. Sign the Financial Settlement Statement The source funds and destination accounts must balance for the Financial Settlement Schedule to be digitally signed and the settlement to proceed. Each party must authorise the Financial Settlement Schedule by digitally signing the Financial Settlement Statement confirming that funds are available for settlement. Once this is done, the “Financial Settlement” indicator will change the status to “Ready”. 4. The Vendor signs the Financial Settlement Statement: 5. The Purchaser signs the Financial Settlement Statement: Once satisfied that it balances – the money in the source accounts equals the amount required to be paid to the destination accounts. 6. Discharging mortgagees sign the Financial Settlement Statement. 7. Incoming mortgagee signs the Financial Settlement Statement. For Document Lodgement to be Ready for Settlement: 8. Sign Transfer of Land VENDOR & CO The purchaser’s lawyer is responsible for preparing the transfer of land in the PEXA workspace at least 7 days before the date of settlement: standard contract GC 10. The vendor’s representative checks the details of the transfer and digitally signs on behalf of the vendor in the workspace. The purchaser’s representative then digitally signs the transfer on behalf of the purchaser. here are still the following tasks outstanding:
1. Sydney Banking Corporation Accept or propose new settlement date and time Accept or invite participants to workspace Create discharge of mortgage document 2. Metropolitan Bank Complete lodgment Verify source financial line items 3. Purchaser & CO Sign financial settlement statement 4. Vendor & CO Sign transfer of land Sign financial settlement statement
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