Method of Payment for Settlement

[chb]

Is it safe to make the cheque out to the conveyancer/solicitor who then makes the cheques out to the other parties?

Do we rely on trust?

 

[auror]

Um... maybe the fact that you are asking this question shows you are uneasy about it?

For my husband and I, we made the settlement cheque out to the vendor (as requested by our solicitor)

 

[chb]

Was hoping there was more to it then that heh

We'll make out cheques to the vendors then

Thanks

 

[BV]

Was hoping there was more to it then that heh

We'll make out cheques to the vendors then

Thanks

I think you should wait for instructions from your solicitor
because sometimes the cheque is issued to the vendor's lender

 

[RumpledElf]

Last few times I've settled on anything the conveyancer has done it all, and the bank has given the money to the conveyancer to give to me. Last time it was all via direct debits though, no cheques.

A conveyancer is $300 well spent if you ask me.

 

[Terryw]

its usually done throught trust accounts. Never pay into the conveyancer or lawyers normal account,

 

[Rixter]

Yep ours are done through our conveyancers trust accounts.

 

[chb]

Going to send seperate cheques to the vendor

but the weird thing is it's only made out to NAB

should be fine either way

 

[BV]

Going to send seperate cheques to the vendor

but the weird thing is it's only made out to NAB

should be fine either way

Why is it strange?
The vendor's lender is NAB and they won't release the property till they are paid

 

[shiftyphil]

Why is it strange?
The vendor's lender is NAB and they won't release the property till they are paid

It's strange because the NAB don't like it that way.

NAB’s policy on receiving cheques

Where our customer’s intention is to deposit a cheque into
their account the cheque should be made payable to the
customer, not the NAB. This applies to loan accounts, credit
card accounts, deposit accounts and investment products.
Any cheque payable to a bank solely could easily be
misappropriated if lost. Cheques provided to us for property
settlement may be payable either to the customer or
‘NAB on account of [customer name]’.

(From http://www.nab.com.au/vgnmedia/downld/Bank_Cheque_Flyer.pdf)

 

[Terryw]

It's strange because the NAB don't like it that way.

NAB’s policy on receiving cheques

Where our customer’s intention is to deposit a cheque into
their account the cheque should be made payable to the
customer, not the NAB. This applies to loan accounts, credit
card accounts, deposit accounts and investment products.
Any cheque payable to a bank solely could easily be
misappropriated if lost. Cheques provided to us for property
settlement may be payable either to the customer or
‘NAB on account of [customer name]’.

(From http://www.nab.com.au/vgnmedia/downld/Bank_Cheque_Flyer.pdf)

This applies when depositing cheques in personal accounts.

What we have here is the NAB having lent money to someone and they hold security. To release the security they will need to be paid back.

 

[shiftyphil]

This applies when depositing cheques in personal accounts.

What we have here is the NAB having lent money to someone and they hold security. To release the security they will need to be paid back.

The last sentence in the extract is specifically about property settlement.

 

[Terryw]

You're right Shift. I missed that,

 

[shiftyphil]

Yeah, I probably should have just highlighted the second bit, since the first part was referring to other situations.

(Edit: That PDF came up in a search I did earlier today, which is why I thought of it when I was browsing through this thread.)