Paying deposit and stamp duty - how (Logistically)?

Discussion in 'The Buying & Selling Process' started by Mietre, 17th Jan, 2017.

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  1. Mietre

    Mietre Active Member

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    We are due to settle on our PPOR this week and have been given a figure owing (remaining 10% of 20% payment to avoid LMI, stamp duty and legal fees.)

    We have asked our solicitor but haven't had a reply, does anyone know how we would pay this? We have the funds in an offset account. Would we need two bank checks, one for 10% and one for stamp duty amount? Who would they be made out to? Or do we electronically transfer (if we do we would need to increase our daily transfer limit).

    Sorry if this is a really novice question but I am worried about my availability to get to a bank at short notice once we figure out how we need to pay! We have only done this twice before and I honestly can't remember how we did it!
     
    Last edited: 17th Jan, 2017
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Does your solicitor have a trust account? If so just transfer to that and they will draw cheques for settlement.
     
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  3. Mietre

    Mietre Active Member

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    Thank you so much @Terry_w That makes a huge amount of sense, we have used their trust in the past for a will. Ok so that will be a simple increase of our electronic transfer limit.

    You have prevented a sleepless night, so thank you again, I am very grateful:)
     
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  4. Perthguy

    Perthguy Well-Known Member

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    I have done this before. I transferred the funds to my settlement agent's trust account. Except my bank would not allow an electronic transfer so I had to organise a cheque. I just got the details of the amount and who to make the cheque out to from the settlement agent
     
  5. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    There's a couple of options depending on the state the property is in and the lender.
    1. Give the bank authorisation to draw funds from your transaction account (needs to be with the same lender).
    2. Get your solicitor a cheque which they take to settlement (your solicitor will give you instructions for the cheque details).
    3. Transfer funds to your solicitors trust account and they write the cheque.
    4. Transfer funds to the lenders solicitors trust account (not ideal at all).
     
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