PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 (4) (2)

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Jan 9, 2024

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PETER JOHN CLARK, LOUISE SALLY CLARK 16 JUNCTION STREET, SUMMER HILL NSW 2130 Workspace ID Workspace Status PEXA12345678 In Preparation Financial Settlement Schedule Settlement Summary Balanced Source Funds $1,182,909.99 Adjustments and Payments $1,182,909.99 Settlement Date and Time Thursday 12 September 20xx at 12:00 AEST Accepted Total Sources $1,182,909.99 ✔ Total Payment Directions $1,182,909.99 Transfer Indicators Discharge Authority received by FIRST LEGAL Yes Vendor surplus to be directed by Vendor Amount due on Settlement Agreed Purchaser Funds Vendor Funds Funds required to balance $0.00 Unallocated funds $0.00 Amount due on Settlement $1,126,348.42 Amount due on Settlement ( Agreed ) +$1,126,348.42 Purchaser Payment Directions +$56,561.57 Proprietor on Title Destinations -$1,126,348.42 Purchaser funds required to settle $1,182,909.99 Unallocated Funds $0.00 Incoming Proprietor Source Funds -$1,182,909.99 Total Funds Required to balance $0.00 PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 1 of 9 © The College of Law Limited 1 2 3 4 6 9 10 7 8 5 13 14 11 12

Purchaser Line Items Vendor Line Items Purchaser Sources $1,182,909.99 Vendor Payment Directions $1,126,348.42 Purchaser Payment Directions $56,561.57 Stamp Duty Settlement Statement Signing Document ID Verification Status OSR status advice Duty amount payable Participant Status Date and time 552026847 Successful Assessed $53,775.00 PURCHASER & CO Signed 11/09/20xx 09:13 AEST VENDOR & CO Signed 11/09/20xx 11:06 AEST METROPOLITAN BANK Signed 11/09/20xx 17:50 AEST Settlement Summary Balanced Source Funds $1,182,909.99 Adjustments and Payments $1,182,909.99 Payment Directions Purchaser Source Line Items Category Account Name Account Details Funds Status Owner Amount Lodgment Fee - - ✔ Ready METROPOLITAN BANK 462.60 Loan - - ✔ Ready METROPOLITAN BANK 1,182,447.39 PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 2 of 9 © The College of Law Limited 15 16 17 18 19 21

Vendor Source Line Items Category Account Name Account Details Funds Status Owner Amount - - - - - - Settlement Summary Balanced Source Funds $1,182,909.99 Adjustments and Payments $1,182,909.99 Adjustments as at: 12/09/20xx Use Settlement date of 12/09/20xx PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 3 of 9 © The College of Law Limited 20 22 24

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Adjustment Description Description Treat As From To Days Allowed Outgoing Amount ($) Vendor ($) Purchaser ($) Rates Inner West Council Paid 01/07/20xx 30/06/20xx+ 1 291 1,880.50 1,499.25 Water (Services) Sydney Water Paid 01/07/20xx 30/09/20xx 18 176.00 34.43 Water Usage Sydney Water Unpaid 01/09/20xx 12/09/20xx 12 31.06 31.06 Additional Fee Discharge Fee Unpaid 154.20 154.20 Total Adjustments 185.26 1,533.68 Less Purchaser’s Portion 185.26 Purchaser to Vendor 1,348.42 Statement of Settlement Purchase Price $1,250,000.00 Less Deposit Paid $125,000.00 Balance of Purchase Price $1,125,000.00 Plus Adjustments $1,348.42 Amount due on Settlement $1,126,348.42 Payment Directions Vendor Destination Line Items Total of $1,126,348.42 PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 4 of 9 © The College of Law Limited 23 25 26 27 28 30 31 32 29

Category Bank Name Account Name Account Details Owner Amount PEXA Fees - PEXA - Vendor & Co 123.97 Professional Fees - Vendor & Co Trust Account - Vendor & Co 2,000 Loan Payout - Sydney Banking Corporation - Vendor & Co 675,432.10 Water Rates - Sydney Water Corporation - Purchaser & Co 349.44 Council Rates - Inner West Council - Purchaser & Co 1,410.35 Other – Vendor’s Surplus - Mary Nguyen - Vendor & Co 447,032.56 Purchaser Destination Line Items Total of $56,561.57 Category Bank Name Account Name Account Details Owner Amount Stamp Duty Disbursement - Revenue NSW - Purchaser & Co 53,775.00 Lodgment Fees - NSWLRS - Metropolitan Bank 462.60 PEXA Fees - PEXA - Purchaser & Co 123.97 Professional Fee - Purchaser & Co Trust Account - Purchaser & Co 2,200.00 PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 5 of 9 © The College of Law Limited

Annotated comments to PEXA Financial Settlement Schedule Page 1: Settlement Summary 1. Names : Full names of the clients that you represent in this workspace. 2. Address : Address for the property that is the subject of the conveyancing transaction. 3. Workspace ID : Unique workspace number assigned by the electronic lodgment network (PEXA). 4. Workspace status : State of preparedness/readiness for settlement of the workspace. The workspace has a dashboard that shows the state of preparedness of the conveyancing transaction in relation to both document preparation and financial settlement. The dashboard must be at Ready/Ready status for these matters at the scheduled time for completion. 5. Financial Settlement Schedule (FSS) : The area in the workspace in which the parties to the conveyancing transaction will: ● enter information about the adjustments (as calculated in the Settlement Adjustment Sheet); ● enter bank account details from which money will be paid; and ● direct the payment of monies by entering bank account details into which money will be paid to successfully complete the conveyancing transaction. These matters are set out in three separate tabs of the FSS – Settlement Summary, Source Funds, and Adjustments and Payments. 6. Settlement Summary tab : Shows a summary of the financial details for the conveyancing transaction. The Settlement Summary for this workspace shows it to be ‘Balanced’, meaning there are cleared funds in the nominated Source Account(s) which equals the total amount that the purchaser must pay to purchase the property. 7. Source Funds : Clicking on this tab will take you to the part of the workspace in which the purchaser and incoming mortgagee can enter bank account details from which money will be paid to successfully complete the conveyancing transaction. The Source Funds tab for this workspace indicates the amount that the purchaser has deposited and is available in the Source Account(s). 8. Adjustments and Payments : Clicking on this tab will take you to the part of the workspace in which the vendor and purchaser can enter information about the adjustments and direct the payment of monies into which money will be paid that are necessary to successfully complete the conveyancing transaction. The Adjustment and Funds tab for this workspace indicates the amount that the purchaser needs to have to be able to purchase the property. 9. Settlement date and time : The date and time scheduled for completion of the conveyancing transaction. In this workspace it shows all parties have “accepted” the schedules time and date. 10. Balanced : The FSS is “balanced”, meaning there are cleared funds in the nominated Source Account(s) which equals the total amount that the purchaser must pay to purchase the property. At settlement, the electronic lodgment network (PEXA) will move funds from Source Accounts and place funds in nominated destination accounts PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 6 of 9 © The College of Law Limited

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11. Vendor surplus : When a vendor sells property, they will be required to payout any existing mortgage that they have over the property. The vendor is also required to payout any unpaid expenses and charges that relate to the land (for example, local council rates, water rates and usage, strata levies) (subject to any special conditional in the contract that say differently). After the payment of these required items, the vendor is entitled to the remainder of the amount due on settlement. This is known as the vendor’s surplus (or vendor’s equity). Either the vendor or the discharging mortgagee can direct the payment of the vendor’s surplus. In this workspace, the vendor has directed the payment of surplus monies. This will be seen as a vendor’s destination line item in the Adjustments and Payments tab. 12. Amount due on settlement : The amount that the vendor will receive from the purchaser, as calculated by the purchase price minus deposit paid plus/minus net adjustments (as calculated in the Settlement Adjustment Sheet). 13. Purchaser funds : This panel summarises the purchaser’s responsibilities in the financial settlement summary. In this workspace, it shows the amount that the purchaser must pay to the vendor (the amount due on settlement); the amount the purchaser must pay (including any duty, lodgment and legal fees) totalling the purchaser’s Source Accounts in order to settle; and the funds already deposited by the purchaser into Source Accounts. If the purchaser has not deposited the total funds required to settle into a Source Account, the workspace will show that the purchaser requires funds to be deposited so that the FSS will become “balanced”. 14. Vendor funds : This panel summarises the vendor’s responsibilities in the financial settlement summary. In this workspace, it shows the amount that the purchaser must pay to the vendor (the amount due on settlement); the amount the vendor is entitled (and required) to direct to destination accounts; and the unallocated funds. If the vendor has not given payment directions that total the amount due on settlement, the workspace will show that the vendor has unallocated funds which must be allocated (by giving a payment direction(s)). 15. Purchaser line items : This panel summarises the purchaser’s and vendor’s responsibilities in the FSS. You will note that the purchaser’s funds in Source Accounts equals the total of the purchaser’s payment directions and the vendor’s payment directions. 16. Transfer duty (previously known as stamp duty) : Payments to Revenue NSW for duty payable on the conveyancing transaction is integrated within the electronic lodgment network (PEXA). In this workspace, it shows a successful duty assessment has occurred on the Transfer document, and the amount of duty payable by the purchaser to Revenue NSW. This amount is in addition to the amount due on settlement to the vendor, and the purchaser will pay Revenue NSW at settlement by nominating the account details as a Destination Account. 17. Settlement Statement Signing : When the FSS is balanced, the subscriber (legal practitioner) for each participant (vendor, purchaser and incoming and outgoing mortgagee) in the workspace must sign the FSS. Page 2: Source Funds 18. Payment Directions : Bank account information about where the total funds required to successfully settle the conveyancing transaction are coming from. The accounts specified PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 7 of 9 © The College of Law Limited

here must be a trust account (solicitor’s trust account or PEXA’s designated Source Account). 19. Purchaser Source Line Items : The purchaser’s source line items are the Source Accounts nominated by the purchaser. In this workspace, the purchaser has deposited a single amount into a trust account. If necessary, additional Source Accounts may be nominated until the total funds required to settle is reached. The purchaser or the purchaser’s incoming mortgagee can enter this information. 20. Funds Status : The “Ready” status of those funds means the funds are available and cleared for use. 21. Vendor Source Line Items : The vendor’s source line items are the Source Accounts nominated by the vendor. It is uncommon for a vendor to do this, but it can occur when the amount payable at settlement to the vendor is less than the amount required to payout the discharging mortgagee. In that situation, the vendor would need to deposit money into a Source Account. In this workspace, there is a vendor surplus, and the vendor is not required to nominate any Source Account. Page 3: Adjustments and Payments 22. Adjustments: There are three components to the purchase price: The deposit paid to the deposit holder, the balance of the purchase price which is payable at settlement, and adjustments to the balance of the purchase price. Adjustments are made to the balance of the purchaser price to apportion rates and levies relating to the land between the vendor and purchaser having regard to the period in which they are the owner of the property in the rating period. The adjustment date is defined in cl 1 of the standard contract and is normally the date for completion. 23. Settlement date : In this workspace, the adjustment calculations are based on the date for completion. Clause 14.1 of the standard contract states “the vendor is entitled to the rents and profits and will be liable for all rates, water, sewerage and drainage service and usage charges, land tax, levies and all other periodic outgoings up to and including the adjustment date after which the purchaser will be entitled and liable”. 24. Adjustment Description : The description of each charge or levy that will be the subject of an adjustment calculation. 25. Treat As : Adjusting a “paid” expense (vendor has already paid the expense) - operates as a reimbursement from the purchaser to the vendor of their pro rata liability for that expense – the purchaser’s liability is adjusted, or added, to the purchase price. Adjusting an “unpaid” expense (vendor has not paid the expense; the expense is owing) – operates by adjusting the expense “as if it were paid” so that the purchaser’s pro rata liability for that expense is paid to the vendor: clause 14.6 of the standard contract. The vendor will then pay the entire expense from the amount due on settlement by listing it as a payment direction. 26. To : The rating period of the rate, levy or charge that is being adjusted. 27. Total Adjustments : Depending on the paid status of each rate, levy or charge relating to the property, when the totals for the purchaser and vendor contributions are calculated, there will be either: ● an amount payable by the purchaser to the vendor – this will be shown here as “Purchaser to pay Vendor” and will be added to the balance of the purchase price; and PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 8 of 9 © The College of Law Limited

● an amount payable by the vendor to the purchaser – this will be shown here as “Vendor to pay Purchaser” and will be reduced from the balance of the purchase price. 28. Balance Purchase Price : These amounts are pre-populated based on information entered in the workspace when the purchaser prepares the Transfer form. 29. Amount due on Settlement : These amounts are pre-populated based on the settlement calculations, above. 30. Payment Directions : In this panel, the vendor and purchaser will populate the FSS with information about bank accounts of payees (persons to whom money will be paid at settlement). This was the subject matter of Activity 3.2. 31. Vendor Destination Line Items : This sets out the payees, nominated by the vendor, to whom money will be paid at settlement. These are also known as the vendor’s payment directions, the total for which must equal the amount due on settlement. The typical payment types that are specified by the vendor are payments to: ● discharging mortgagee – to payout the mortgage; ● local council and water supply authority – to pay any unpaid expenses relating to the land (per the settlement adjustments); ● vendor’s legal practitioner – for legal fees; ● PEXA – for lodgment fees; and ● vendor – after the payment of the preceding amounts, the remainder of the balance at settlement is the vendor’s surplus. 32. Total Vendor Destination Line Items : The total of the vendor’s payment directions must equal the amount due on settlement (after the adjustments are taken into account). 33. Purchaser Destination Line Items : The payees, nominated by the purchaser, to whom money will be paid at settlement. These are also known as the purchaser’s payment directions. These amounts are payable by the purchaser in addition to the amount due on settlement to the vendor. The typical payment types that are specified by the purchaser are payments to: ● Revenue NSW – for the payment of duty; ● purchaser’s legal practitioner – for legal fees; and ● PEXA – for lodgment fees. 34. Total Purchaser Destination Line Items : The purchaser’s payment directions are in addition to the amount due on settlement to the vendor. When the vendor’s destination line items and the purchaser’s destination line items are added, you obtain a new total which is referred to as – total funds required to settle. In other words: it is the total cost to the purchaser to purchase the land and settle the transact PROP T3 A2 Clark PEXA Financial Settlement Schedule NSW 2022_10_17 Page 9 of 9 © The College of Law Limited

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