Transfer of the Home Equity Access Scheme (HEAS) debt based on Court Order 065-19062519

Has the Module S been completed and coded?

• Yes, go to Step 2
• No, undertake actions as required in Assessing the Separation details Mod S and online updates

Note: obtain the Court Order or ruling granting transfer to one person of:

• the HEAS loan debt, and
• the HEAS secured property

Once obtained, go to Step 2

Check court documents:

• for evidence that grants full ownership of the HEAS secured property to one person (transferee)
• that the responsibility for repayment of the HEAS loan debt of transferor is given to the transferee, and
• make sure the secured property title details are in accordance with the court documents

Is the binding agreement for debt and property transfer evident in the court documents provided?

• Yes, cease loan payments to both go to Step 3
• No, procedure ends here. See Home Equity Access Scheme (HEAS) reviews

The transferor and transferee must both be contacted as part of this process. Contact the transferor first (if known)

Consent of both persons is required and must be provided at the contact in order to code using the instructions below.

Contacting the transferor – go to Step 4

Contacting the transferee – go to Step 5

When contacting the transferor confirm that they agree to the agency transferring their debt to the transferee based on legal documents provided.

Advise transfer of their HEAS debt balance will be nil after the terms in the Court document are recorded.

• Create a Fast Note – select Auto text > use Older Australians > Home Equity Access Scheme > HEAS debt transferred Fast Note
• Annotate HEAS DOA DOC with HEAS debt transferred annotation. See, HEAS DOC Annotations table in Change of circumstances – Home Equity Access Scheme (HEAS)

Does transferor want loan payment to restart?

• Yes,
• They are required to complete a new claim, see Eligibility of Home Equity Access Scheme. Procedure end here for transferor
• Go to Step 5, to continue transfer procedure
  Note: A new loan ID will be required as the transferor’s first loan will be settled as part of the court order
• No, go to Step 5

Prior to contact review available equity and payability of HEAS to transferee based on consolidated debt of both persons.

Consent of both persons must be provided at the time of contact, in order to action using the instructions below.

Contact and advise transferee of:

• equity including any other encumbrances
• Projected Maximum Loan Amount (MLA)

The customer must:

• agree to terms and conditions of participation, and
• provide consent to record transfer of the HEAS loan debt of the transferor to their record

Is the customer Age Pension age, has adequate equity and wants loan payments to continue?

• Yes, customer meets all 3 requirements:
• Update the percentage share owned in the property on both records: Note: Error E607CQ may occur. See Step 5 in the Assessing income and assets when a business has been sold table for workaround
• Add outstanding balances of loan components of the transferor to the record of the transferee
• Zero all loan components on record of the transferor
• Restart loan
• Create a Fast Note – select Auto text > use Older Australians > Home Equity Access Scheme > HEAS debt consolidated Fast Note
• Mail Q999
• Go to Step 6
• No, 1 or more conditions not met:
• Add balances of loan components for the transferor to the record of the transferee and mail Q999
• Create a Fast Note – select Auto text > use Older Australians > Home Equity Access Scheme > HEAS debt consolidated Fast Note
• Annotate HEAS DOA DOC with HEAS debt consolidation annotation. See, HEAS DOC Annotations table in Change of circumstances – Home Equity Access Scheme (HEAS)

If the following applies take the necessary action:

• Below Age Pension age: Recovery action will commence immediately and interest is accruable until all debts repaid. Procedure ends here
• Age Pension age reached and does not offer additional security or want loan payment: Advise interest will be charged until full debt amount is repaid. Procedure ends here
• Age Pension age reached and offering another security: Advise the customer of the requirement to provide a completed Home Equity Access Scheme variation form SA497 with all required evidence. See the Resources page for HEAS Forms
• Annotate HEAS DOA DOC with HEAS debt consolidation annotation. See, HEAS DOC Annotations table in Change of circumstances – Home Equity Access Scheme (HEAS)
• When all documentation is provided, go to Step 6

Make sure the property or properties being used as security for the loan are coded on the Real Estate Details (RE) screen and property ownership is correct (on both records if required).

A property valuation will be required if a valuation has not been undertaken in the last 12 months..

For coding real estate and requesting valuations see the Real estate valuation for HEAS applications table.

Transmission of title

A transmission of title is required if:

• a court order creates a formal property settlement, and
• one member of the couple is to take full ownership of the security property

Send the relevant tasking request using the transmission of title template on the Resources page to the Property and Home Equity Access Scheme Legal team.

After recording the secured property on the RE screen and a valuation has been obtained, go to Step 7

To ensure the customer still wants to pursue recommencement of HEAS the delegate must contact the customer to:

• Revisit the terms and conditions
• Discuss equity including any other encumbrances
• Confirm revised Maximum Loan Amount (MLA) available to them
• Confirm the payment arrangement they have requested
• Inform them of any costs payable by them in relation to any registration of caveat/charge and that the costs can be added to the loan

Does the customer still wish to proceed?

• Yes, go to Step 8
• No, procedure ends here

As soon as the payment is current, following process to register caveats and/or charge. See the Registering caveats and charges table in Processing claims for Home Equity Access Scheme (HEAS).