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 display 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 Access & Sewerage Rates, Administrative Funds and Insurance)
- Water Usage
- Penalty Interest
- Rent or Licence 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. Note that the layout for Water Access & Sewerage changes to the calculation.
Water Usage
Enter water usage based on either average daily usage or last two reading dates. Add Tiers to allow for pricing increases for excess usage. Refer to Time Related Adjustments for information on Description and Cheque Details.
Penalty Interest
This allows you to enter interest adjustment such as late settlement interest payment.
Rent or Licence Fees
Select Rent for seller allowable rent that has been pre-paid by a tenant prior to settlement. Select Licence fees when the buyer pays a fee for early licence of the property. Refer to Time Related Adjustments for information on Description and Cheque Details.
Registration Fees
Enter details of any document registration fees to be allowed by the seller. Any entries with a Quantity of 0 will not appear on the Adjustments Screen. Only enter cheque details if a cheque 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 adjustments such as settlement fees. Enter all relevant information, including Cheque details if required.
Cheques Tab
As viewed on a purchase matter. Note: In a Sale matter only the Cheque Direction section is available.
Amounts Required to Settle
Once you have entered all your adjustments, select the Cheques tab
The Amount Required to Settle section is a reconciliation of the amounts the buyer 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.
Cheque Direction
The cheques you added whilst creating the adjustments will automatically appear in the cheque direction section. These items are grayed 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 cheque payee as [Council]. When you generate a precedents (such as Settlement Adjustment Sheet) the Council name will be automated from the Council contact name you've entered on the matter.
If the agent’s fees are greater than the deposit held, a cheque will also appear here to the agent. Select who the cheques are to be drawn by and the Cheque Type. Check the box to the right of the cheque amount to mark ‘Seller Cheques’. The Council and Water Authority Cheques will be automatically marked as Seller Cheques. The cheques that are marked Seller Cheques 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 Cheque to add additional cheques required for settlement.