Settlement Agent Scenarios and Advice for Clients

This document is Assessment 2 for FNS50315 Diploma of Finance and Mortgage Broking Management. It includes settlement agent scenarios and instructions to provide advice for clients. The document covers topics such as the settlement process, pest inspection, and legal position regarding required devices.

FNS50315 Diploma of Finance and Mortgage Broking Management
FNSFMB501 Settle applications and loan arrangements in the finance and
mortgage broking industry
Assessment 2
FNS50315_ FNSFMB501 Assessment 2 V1.0
REAA
Released January 2019
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Assessment information
You are a practicing settlement agent and are involved in a number
of residential mortgage
settlements each week.
Instructions to complete this assessment
In order to complete this assessment, you are required to complete
the following sections
consecutively. Details and specific instructions are provided within
each section and on the
form/templates provided.
Supporting documents
To find the relevant supporting documents, please refer to the Assessment
Resources folder, located
within the FNSFMB501 Settle applications and loan arrangements in the finance
and mortgage broking
industry section of your course. (Note: Not all units have assessment
resources.)
Section 1 – Review the Settlement Agent Scenarios
Requirements
Step 1: Download and review the Settlement Agent Scenarios, located in the
Assessment Resources
folder.
Section 2 – Prepare Advice for Clients
Requirements
Respond to the scenarios in step 1 and, if necessary, refer to the Conveyancing
Policy and Procedure
Manual (Assessment Resources folder) when developing your responses:
2.1 Re. Scenario 1: As Robbie’s settlement agent: what advice would you
communicate to Robbie
and how will you assist your client with his settlement problem?

In the first step of the settlement process, the first thing that Robbie needs
to know is that the interest rates may accrue in the circumstance that the date
does not settle. The next step of advice ithat the client needs to analyse is
issuing a delayed settlement process request to the vendor, shing light on the
reasons of the delay. If the settlement request gets accepted then it is
important for the client,Robbie, to immediately gain access of the building and
ensure the conditions of the contract are mainetained by a pest inspection. The
entire process of settlement is one with a whole lot of work it is very much
criticall for the parties to be accurate in thier measures and especially in the
cases of documents. The interest rate may be higher than expected ifthe date
does not settle.
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Released January 2019
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2.2 Read Scenario 2, then provide your client with advice about whether a
vendor’s pest inspection
report should be relied upon at the time of loan settlement.
As the settlement agent to the client, Robbie, the advice which i would like to
pass on is that Robbie hires her own pest inspection so that they can proceed
with their own inspection and prepare the report through them from the fact
that they are on a constraint of time. The pest inspection of the client may
even be cheaper and can be a flexible process for the client to choose a
reliable company. The vendor's pest inspection report may not be reliad upon at
the time of loan settlement. The settlement agent can also reccommend a company
for the pest inspection or the client can do a personal research and choose a
convinient company. It's better to be on a safeside and conduct a inspection of
their own for the clients and not to rely on the inspection conducted by the
vendors for the time of aloan settlement (Kegninkeu, 2018).

2.3 Read Scenario 3, then advise your client Jane what her legal position is
regarding the required
devices.
Jane probably needs the advice that the warranties on the property were valid
at the time when the contracts were exchanged. All the changes which occur to
the legislative events to change after the date, then that is not the
responsibility of the vendor and in such circumstances the purchaser needs to
install two Residual Current Devices (RCD's) and also the Main Powered Smoke
Alarms in the property after thier possession of the property. Jane also needs
to be advised to notify about the installation of the two Residual Current
Devices (RCD's) and also Main Powered Smoke Alarm to the purchaser which gives
them allowance to sell the property earlier and not later.
REFERENCE
Kegninkeu, F.T., 2018. The Impact of Credit Risk Management on the Performance
of Commercial Banks in Cameroon. Case Study of BICEC Cameroon. Global Journal of
Management And Business Research.
V1.0
REAA
Released January 2019
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