To access Settlement Financials in a Conveyancing matter, double-click on the Settlement Financials section under the Matter Details.
Adjustments Screen
This screen is where you will access and enter all the adjustments.
Ensure that you have your Settlement Date entered in Conveyancing Details. If you forgot to enter it, simply click on Edit Conveyancing Details to add it. The Adjustment Date will then default to the Settlement Date. You can enter a different adjustment date if it's not the same as the settlement date.
Click on the wording Add Adjustment Item to create an adjustment item from a blank template OR click on the arrow to see a list of your standard items.
Common standard adjustments will be displayed by default. You can add and modify Standard Adjustment Items by selecting the cog wheel next to the Add Adjustment Item drop-down menu.
Check or uncheck the boxes in the Default column to change the default adjustments that populate when you first open Settlement Financials.
Once you have all the required adjustments entered into the Adjustments Screen, double-click on each entry to open the window to enter the information.
To remove any adjustments, right-click and select delete.
Settlement Adjustments Items
There are currently 6 types of layouts in adjustment items used to calculate different adjustments:
- Time-Related (e.g. Council Rates, Water & Sewerage Rates, Strata Levies and Land Tax)
- Water Usage
- Default Interest
- Rent or Occupation Fee
- Registration Fee
- Miscellaneous
Time-Related Adjustments
Use this for any adjustments that are to be based on dates, such as Council rates, Strata Levies etc.
Water Usage
Enter water usage based on either average daily usage or the last two reading dates. Add Tiers to allow for pricing increases for excess usage. Refer to Time-Related Adjustments for information on Description and Payment Details.
Default Interest
This allows you to enter interest adjustments such as late settlement interest payments.
Rent or Occupation Fees
Select Rent for vendor allowable rent that has been pre-paid by a tenant prior to settlement. Select Occupation fees when the purchaser pays a fee for early occupation of the property. Refer to Time-Related Adjustments for information on Description and Payment Details.
Registration Fees
Enter details of any document registration fees to be allowed by the vendor. Any entries with a Quantity of 0 will not appear on the Adjustments Screen. Only enter payment details if a payment is required to be drawn.
Miscellaneous
Use the Miscellaneous type for any adjustments that do not fall into the other categories. These are generally one-off lump sum adjustment such as settlement fees. Enter all relevant information, including payment details if required.
Payments Tab
As viewed on a Purchase matter. Note: In a Sale matter, only the Payment Direction section is available.
Amounts Required to Settle
Once you have entered all your adjustments, select the Payments tab.
The Amount Required to Settle section is a reconciliation of the amounts the Purchaser needs to pay in order to settle. i.e. Amount due on Adjustment Sheet plus Stamp Duty and Your Invoice. You will need to add the amount of your invoice (if applicable).
Click on the Add Amount button to create additional entries if required.
To remove any of these amounts, hover over the relevant line and click on the red cross that appears to the right. Amount due on Settlement and Stamp Duty (if applicable) cannot be deleted. Stamp Duty will only appear if the duty is unpaid and not exempt.
Payment Direction
The payments you added whilst creating the adjustments will automatically appear in the payment direction section. These items are greyed out and can only be modified from the adjustment you first entered them in.
Note that some payees can be automated. For example, you may see a payment payee as [Council]. When you generate precedents (such as the Settlement Adjustment Sheet), the Council name will be automated from the Council contact name you've entered on the matter.
On a Sale matter, if the agent’s fees are greater than the deposit held, a payment will also appear here to the agent.
- Select who the payments are to be paid from and the Payment Type.
- Check the box to the right of the payment amount to mark ‘Vendor Payments’.
- The Council and Water Authority Payments will be automatically marked as Vendor Payments.
- The payments that are marked Vendor Payments are the only ones to show up on your Settlement Adjustment Sheet and also on Settlement Instructions to hand to the other side.
- Click on Add Payment to add additional payments required for settlement.