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

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.

Document details with the HEAS debt transferred Fast Note annotate as appropriate.

Update HEAS DOA DOC with:

• Home Equity Access Scheme debt of the a/n has been zeroed and transferred to ex partner’s (name & CRN) based on mutually binding legal agreement following separation/divorce
• Amount zeroed as at DD/MM/YY

Does transferor want loan payment to restart?

• Yes, and still meets HEAS qualification requirements including owning real estate with sufficient equity to offer as an approved secured property
• Advise customer of the requirement to provide a completed Home Equity Access Scheme variation form SA497 completing Sections 4 and 5 along with providing required documentation for example current title search, copy of rates notice and/or proof of insurance. See the Resources page for HEAS Forms
• When all documentation is provided go to step 5
• No, procedure ends here
• Go to Step 4 for contacting transferee

Prior to contact review available equity and payability of the 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:

• Discuss equity including any other encumbrances
• Projected Maximum Loan Amount (MLA)
• Agrees to terms and conditions of participation
• Provided 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 payment to continue?

• Yes, customer meets all 3 requirements. Code the following:
• 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
• Record details within HEAS debt consolidated Fast Note
• Mail Q999
• update HEAS DOA DOC with Home Equity Access Scheme debt of the ex-partner (transferor) (name and CRN) has been added to the customers record based on mutually binding legal agreement following separation / divorce. Amount added as at DD/MM/YY
• Procedure ends here
• No, 1 or more conditions not met. Add balances of loan components for the transferor to the record of the transferee and mail Q999. Record details within the HEAS debt consolidated transferred Fast Note:. 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 completing Sections 4 and 5 along with providing required documentation for example current title search, copy of rates notice and/or proof of insurance. See the Resources page for HEAS Forms
• Update HEAS DOA DOC with Home Equity Access Scheme debt of the ex-partner (transferor) (name and CRN) has been added to the customers record based on mutually binding legal agreement following separation/divorce. Amount added as at DD/MM/YY
• When all documentation is provided, go to Step 5

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

Use the relevant transmission of title template on the Resources page.

After recording the secured property on the RE screen and a valuation has been obtained, go to Step 6

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 7
• No, procedure ends here

• For Transferee:
• Update the existing HEAS loan details
• Enter details in Source and Date of Receipt fields
• Finalise the assessment
• For transferor:
• Restart the HEAS with new loan ID on PLS screen in Customer FirstGo to the PLS screen by coding 'PLS' in the Nxt field, then pressing [Enter] :
• Enter all details on the following fields, overtyping where required:
• Effect Date: defaults to current date
• Loan Top up Type: defaults to maximum rate top-up
• Loan Top up Amount per fortnight: if applicable
• Advance: if applicable
• Loan Security Value:
• Customer Advised Max Amount $: if applicable
• Nominated Amount:
• HEAS only: defaults to 'N', change to 'Y' if customer is a loan-only customer
• CLK Loan Property IDs: defaults to 'N'
• Enter details in Source and Date of Receipt fields
• Finalise the assessment

As soon as the payment is current, a tasking request must be sent to the Property and Home Equity Access Scheme Legal mailbox. This is to instruct the contracted solicitors for the registration of caveats/charges and/or transmission of title on the item(s) of real estate nominated by the customer for the security of the loan.

Create a Caveat and Costs DOC and place on hold.

See the Resources page for tasking request template.

The solicitors will advise once the caveats/charges have been completed.

Record these details on the DOA DOC and the REBS screen on the customer's record.

The solicitors will advise Legal Services Division of the legal costs involved in registering the charge.

These costs are recoverable from the customer. The cost will be added to the outstanding HEAS loan amount and interest will be charged at the same rate of the HEAS loan.

Once the Legal Services Division advise of the recoverable legal costs, update the PLS/HEAS screen.

On the PLS/HEAS screen, update the following fields:

• Costs $: the solicitors' charges
• Source
• DOR

Finalise the activity.

A batch laser advise (BLA) advising the customer of the costs to be paid by them will issue automatically.

Annotate and close both the DOA DOC and the Caveat and Costs DOC.