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  • 1 © Property Exchange Australia Limited (PEXA) 2019.

    Lift and Replace Encumbrances in South Australia

    Matthew Kelly PEXA Direct Specialist – South Australia

  • 2 © Property Exchange Australia Limited (PEXA) 2019.

    1. In South Australia, we have a common practise of lifting and replacing encumbrance documents at

    settlement. This is a South Australian specific procedure, and not something that is common place in other states.

    2. In a paper settlement, it would be standard practise for the practitioners completing the conveyance to book the practitioner who is completing the lift and replace encumbrance to attend the settlement, for the purposes of handing over their certified documents in exchange for their

    fees.

    3. In a PEXA settlement, it is very similar. We invite the practitioner to join the workspace, to attend the settlement, for them to load their documents and enter their fees to be paid at settlement.

    4. This webinar does not deal with whether a lift and replace is required for your settlement, as this

    varies due to a large number of things.

  • 3 © Property Exchange Australia Limited (PEXA) 2019.

    Creating the workspace

    1. You create your workspace as usual. It makes no difference if the workspace is created by the Proprietor on Title or the Incoming Proprietor. Pursuant to PEXA Transfer Guideline 1, the

    workspace can be opened by the Proprietor on Title, Incoming Proprietor or the Incoming Mortgagee. If a workspace already exists, and pop-up will appear to notify you and you will have

    the option to join the workspace.

    2. Once you are at the stage of sending your invitations, invite the practitioner who is completing the lift and replace as “Encumbrancee on Title”

  • 4 © Property Exchange Australia Limited (PEXA) 2019.

    If the Encumbrancee is staying the same:

    If the Encumbrancee does not change from the lift and replace documents, the practitioner

    completing the process can complete the whole transaction as “Encumbrancee on Title”. This is because PEXA has designed the transaction to be completed without creating a new party.

    If the Encumbrancee on the new encumbrance will be different:

    If the new encumbrance has a different Encumbrancee to the encumbrance being removed, then

    the practitioner completing the lift and replace will need to create a new role of incoming encumbrancee, allowing them to create the new party in the participants screen, and then select

    this party on the encumbrance document.

    To create the new role: you can complete this from the “Workspace Settings” screen:

  • 5 © Property Exchange Australia Limited (PEXA) 2019.

    For the practitioner completing the lift and replace, you would add the role of incoming encumbrancee the same way as adding any other role, as follows:-

    i. Go to the Workspace settings on the top left of the screen ii. Edit the role settings

    iii. Add the role from the dropdown menu iv. Click the green “add role” button, then the blue “save” button.

    The difference between these two scenarios is that the practitioner completing the lift and replace will either have either 1 role of encumbrancee on title, or 2 roles, encumbrancee on title and incoming encumbrancee.

  • 6 © Property Exchange Australia Limited (PEXA) 2019.

    • Once the roles are added to the workspace, the practitioner completing the

    lift and replace encumbrance competes the workspace like any other, by working down the blue menu on the left hand side.

    • Land Titles – check that the title is correct and that you have the correct encumbrance registered on the title.

    • Participants – confirm representation of your clients. The encumbrancee on title

    should be an unrepresented party, so you can edit and represent them. If you have a different new encumbrancee, you can switch to the

    incoming encumbrancee role, and create the new party. • Documents –

    we can now create the withdrawal of encumbrance, and new encumbrance documents. (shown on the next slides)

    • Files – For uploading and then attaching covenants to the encumbrance

    • Settlement – Confirming lodgement, PEXA and professional fees.

  • 7 © Property Exchange Australia Limited (PEXA) 2019.

    Creating the Discharge of Encumbrance

    To create the withdrawal of caveat:

    • Click Create Document • Confirm the details of the encumbrance that is being discharged:

  • 8 © Property Exchange Australia Limited (PEXA) 2019.

    Next, confirm your client’s name and address, select which operative words apply then hit save.

  • 9 © Property Exchange Australia Limited (PEXA) 2019.

    We can now create the new encumbrance.

    If you are creating both the lift and replace documents from the Same role, you can now go straight in to preparing the new Encumbrance document now:

    If you are completing the lift and replace with 2 roles, you can now switch roles to the Incoming Encumbrancee role, and then create the Encumbrance document. The switch button is on the top right hand side of the screen:

    Note: If you have to prepare the new encumbrance for a different Encumbrancee, you will need to ensure that you have created this party In the participants screen

    first.

  • 10 © Property Exchange Australia Limited (PEXA) 2019.

    Creation of Encumbrance Document

    Confirm the title details:

    And your clients name and address for the Encumbrancer. This will bring through the details from the title, or

    what their representative has entered for them:

  • 11 © Property Exchange Australia Limited (PEXA) 2019.

    Now you can compete the details for

    the Encumbrancee. This should all be already completed from the participants screen.

    This warning is just here to remind you that if you cannot Select your client, you have to go back and create them first

    In the participants screen.

  • 12 © Property Exchange Australia Limited (PEXA) 2019.

    You can now complete the Details of Rent Charge, and Terms and

    Conditions.

    There are three ways that you can complete the terms and

    conditions.

    1. Prior lodgement: You can lodge them with the land registry as a memorandum of common provisions, to receive your

    registration number. This is the number that you would put in the “Document Reference” box. If you do not have pre-lodged

    terms and conditions, leave this box empty. 2. By adding freeform text: You can click the freeform text

    option, then add text. 3. Uploading the covenants: This is the most common option.

    Click the “Upload Attachment” option, the “Freeform Text” option automatically selects, and the words “Refer to

    Covenants” automatically populates. The uploaded covenants will then be page 2 and so on, of the final registered document.

  • 13 © Property Exchange Australia Limited (PEXA) 2019.

    If you are uploading your attachment, you will now get this warning, reminding you that although the

    document has been completed, it is still awaiting the attachment.

    To upload a covenant file, navigate to the files screen, select to upload a file and browse your computer for the

    PDF of the covenants. When selecting the File Description Be sure to select the covenants option, near the bottom,

    under “Land Registry Attachment Files”

    Choosing this file type ensures that the upload will be readable by the LTO.

    You also have the option of choosing which workspace

    Participants will be able to view the upload.

  • 14 © Property Exchange Australia Limited (PEXA) 2019.

    After uploading the document, the final thing to remember is to attach the upload to the document.

    If you forget this step, the document will remind you that it is still awaiting the attachment.

    This step is required because there may different uploads

    which are attachments to different documents (Probate etc) and for lodgement we need to know which attachment

    belongs to which document.

  • 15 © Property Exchange Australia Limited (PEXA) 2019.

    Financials when completing the lift and replace encumbrance.

    Now that we have the documents prepared,

    And the attachments attached, we can complete our financials.

    The first thing to check is that the

    documents in the document screen have passed a lodgement verification, like this

    picture:

    If a document (i.e. the Transfer or Mortgage) is still in preparation, the documents will wait

    for these to be prepared so that all of the documents can go off for verification

    together. So you may be waiting for this to see the lodgement fees etc.

    If the verification is successful, the

    lodgement and PEXA fees will be populated in to the financial settlement schedule.

  • 16 © Property Exchange Australia Limited (PEXA) 2019.

    Regardless of whether the lodgement and PEXA fees have populated, the practitioner completing the lift

    and replace can enter their professional fees.

    Note that these roles just see “Destinations” rather than a breakdown of the Vendor Destination Lines and Purchaser Desti

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