Settlement Adjustment Sheet

I received a final settlement adjustment sheet from my conveyancer for their services for the settlement of a property. I added up the figures, but they do not match – could someone more knowledgeable please comment whether my interpretation of the report is correct? (note: the $ have been simplified)

Purchase Price: $550,000
Balance due on settlement = $500,000 (-10% deposit then add strata/water/council, assume $5000)

“The Cheque Distribution/Direction to Pay” (with bank loan of $453,000, then -$500 for their fees)
(instructions from my solictor to the bank)
1. [A Big 4 Bank] : $300,000
2. [Vendor’s name] : $150,000
3. [Vendor’s solicitor fee] : $1,500
4. [My conveyancer fee] : $1,000

TOTAL: $452,500

I was advised by the conveyancer on settlement date to issue a cheque for $48,500 to cover the shortfall.

$48,500 + $452,500 = $501,000.

I cannot work out what the $1,000 extra is for, as my conveyancer fees should be covered in the “direction to pay” letter they sent to the bank right?

 

best to ask them.

 

where are the adjustments?
Why assume $5000?

 

The conveyancer had the council rates, water rates, and strata levy adjusted (pay 3 of the 91 days), with various certificates (eg. S184) and vendor discharge fee/deductions calculated to the balance. I simplified that section as the calculations fit - I wrote assume $5000 to make calculations easier.

The balance due on settlement is fine, its more the cheque distribution section. Would the $1000 cheque fee mean they already received $1000 from the bank?

 

You will need to ask the conveyancer that.

 

Hang on isn't it for their fees?

 

I looked over the calculations and it evens out if I add the $1k (their fee) to the "balance due for settlement" (ie. total $501k instead of leaving it at $500k). I should of ignored the "cheque distribution" as that was what made it confusing.

Thanks for your comments Terry, prompted me think clearly!

 

The cheques are all given to the otherside - except one!

 

Sometimes the legals and conveyancing are further complicated if you have paid a deposit towards final fees. The final fees will be due at settlement and reduced by the earlier amount paid. So it looks like the legals are $500 when you earlier had paid $1K and total is $1500

When selling the agents commission is also often not shown but deducted from the deposit proceeds and sometimes if it hits the solicitors trust they may even reduce it further for their fees.

Sometimes the settlement may also show a issue with FHB grants and credits....Payments to BAs etc.