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    Assessment 3 FNSFMB501

    Uploaded by

    Paul
    This document contains activities and answers related to property settlements as part of the FNS50315 Diploma of Finance and Mortgage Broking Management. The activities cover topics such as determining if a buyer should commit to a property before loan approval, steps to prepare for settlement, calculating loan amounts to avoid lender's mortgage insurance, benefits of e-conveyancing systems, differences between auction and agent purchases, common settlement disbursements, and what adjustments refer to in settlements.

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    Assessment 3 FNSFMB501

    Uploaded by

    Paul
    226 views5 pages
    This document contains activities and answers related to property settlements as part of the FNS50315 Diploma of Finance and Mortgage Broking Management. The activities cover topics such as determining if a buyer should commit to a property before loan approval, steps to prepare for settlement, calculating loan amounts to avoid lender's mortgage insurance, benefits of e-conveyancing systems, differences between auction and agent purchases, common settlement disbursements, and what adjustments refer to in settlements.

    Original Description:

    FNS40815 - Certificate IV in Finance and Mortgage Broking

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    This document contains activities and answers related to property settlements as part of the FNS50315 Diploma of Finance and Mortgage Broking Management. The activities cover topics such as determining if a buyer should commit to a property before loan approval, steps to prepare for settlement, calculating loan amounts to avoid lender's mortgage insurance, benefits of e-conveyancing systems, differences between auction and agent purchases, common settlement disbursements, and what adjustments refer to in settlements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    226 views5 pages

    Assessment 3 FNSFMB501

    Uploaded by

    Paul
    This document contains activities and answers related to property settlements as part of the FNS50315 Diploma of Finance and Mortgage Broking Management. The activities cover topics such as determining if a buyer should commit to a property before loan approval, steps to prepare for settlement, calculating loan amounts to avoid lender's mortgage insurance, benefits of e-conveyancing systems, differences between auction and agent purchases, common settlement disbursements, and what adjustments refer to in settlements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    FNS50315 Diploma of Finance and Mortgage Broking Management

    FNSFMB501 Settle applications and loan arrangements in the finance and


    mortgage broking industry

    Assessment 3

    FNS50315_ FNSFMB501 Assessment 3 V1.0 REAA Released January 2019


    Page 1 of 5
    a35caee1-8289-4180-84f8-96f69932029a

    Activity 1

    You have been notified by your bank that your mortgage loan has been ‘approved in principle’. Should
    you immediately commit to purchasing a property? Explain your answer.

    Activity 1 Answer
    As a buyer, you should not commit fully until the other conditions are met. you can add a
    condition to finance, building reports, pest inspections etc

    As a seller, you should ensure the buyer's loan is unconditional and add subject to finance
    on your new purchase in case the buyers loan goes unconditional to prevent possible
    implications.

    Activity 2

    What steps should be taken to prepare for a property settlement?

    Activity 2 Answer
    The steps are as follows:
    1) Choose a conveyancer (settlement agent)
    2)Receive the contract
    3)Send an authority to act form on your behalf
    4)Follow up any special conditions
    5)Examine the title search
    6)Prepare unconditional documentation
    7)Submit EAS
    8)Rates and taxes
    9)Send final statement
    10) Stamping
    11)Prepare for settlement
    12)Attend settlement
    13)Finalise settlement

    V1.0 REAA Released January 2019


    Page 2 of 5
    a35caee1-8289-4180-84f8-96f69932029a

    Activity 3

    Henry has saved up $42,500 to use as a deposit and he wants to know the maximum price of a property
    he can purchase while avoiding Lender’s Mortgage Insurance (LMI). Henry’s financial service provider
    requires borrowers with a Loan to Value ratio (LVR) of 80% or more to take out LMI.

    Calculate how much Henry can spend on a property without having to pay LMI. Show your workings.

    Activity 3 Answer
    If Henry has $42,500 he needs to borrow below $212,500
    42,500 * 100 / 20 = 212,500

    So Henry needs to borow belw $212,500 to be below 80% LVR

    Activity 4

    Identify and explain some of the benefits of the new PEXA system of e-conveyancing.

    Activity 4 Answer
    The PEXA system is backed and in collaboration between many industry participants,
    including financial institutions, Land Registries and the Reserve Bank of Australia (RBA);
    The benifits of the program is that property industry can simplify and digitise the complex
    process of property exchange.

    V1.0 REAA Released January 2019


    Page 3 of 5
    a35caee1-8289-4180-84f8-96f69932029a

    Activity 5

    How is buying property at an auction different from buying property through a real estate agent?

    Activity 5 Answer
    The differences are that when an auction you can't have certain conditions that you do
    through a real estate agent such as; BUilding reports, pest inspections, condition to finance
    and available and other conditions. Also, the deposit needs to be paid at the signing of the
    contract if sold via auction.

    Activity 6

    What sort of disbursements might a conveyancer make on behalf of a property purchaser?

    Activity 6 Answer
    a conveyancer would pay disbursements on behalf of a property purchaser such as:
    -Purchase price,
    -The deposit amount,
    -Stamp duty,
    -An estimate of rates,
    -Conveyancing fees, and
    -Government fees

    V1.0 REAA Released January 2019


    Page 4 of 5
    a35caee1-8289-4180-84f8-96f69932029a

    Activity 7

    What are adjustments when related to a property settlement?

    Activity 7 Answer
    Adjustments, when related to a property settlement, are an apportionment of the rates,
    taxes and outgoings between the Vendor and Purchaser. Eg Final readings the transition of
    the services and rates.

    V1.0 REAA Released January 2019


    Page 5 of 5

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