Releasing Funds

Releasing Funds

Available funds can be released from the whole project or individual units, and for one source or multiple sources (such as Tarion, ECDI, upgrades, and/or interest).

Releasing Funds from a Project

Before starting a release for a project, ensure the correct project is displayed/selected on the Main screen. If it is not, select the desired project before continuing.

Go to Project > Release to access the Project Release screen. The screen displays a Release Summary of funds currently available and funds previously released from the project. The summary shows the following:
  1. Deposits: Total Deposits, Clear Deposits;
  2. Unit Totals: Holdbacks, Refunds, Other, Adjustments In/Out;
  3. Releases: Draw Release, Final Release;
  4. Sources: Tarion, ECDI, Upgrades, Interest;
  5. Total Balances: Total Released, Total Available.
Release Summary at the Project level.

The following icons appear to the right of all release entries, as shown in the above image:

Icon
Description

Click to update the most recently created release.


Click to view the details of a previously added release.


Click to open or save the Schedule for ECDI Report spreadsheet for a previously added release.


Review the Release Summary to determine the amount and sources to specify when adding the next release.

Before adding any new release, ensure your units/files in the project are set up as intended. Deleting files after doing releases will impact fund calculations performed by the system.

Adding a New Release

Auto Clear must be enabled for the project to add project releases. Enable this feature on the project's Deposit & Release screen.

To add a new release, click +New Release at top of the Release Summary.
The +New Release option to add additional releases for the project.

In the New Project Release # screen, specify the Release Amount, Source of funds (one or multiple), Order of funding (which source to take funds for first, second, etc.), and Holdback amount(s).

The Holdback amounts in each new release will be set to the values of holdbacks specified on the project's Deposit & Release screen. These amounts are able to be changed by entering different holdback amounts as required for the particular release you are adding. Changes to the default holdback amounts here will only apply to the particular release being created and will not appear in future releases.



The Release Type will be set to 'Draw Release'. Change it to 'Final Release' if you want the system to release all remaining available funds for all sources.

Which Units Will Funds Come From?

Once you have specified the above information, the bottom of the screen will display a Release per Unit interface. This interface details which units will be affected by the release and the amounts that will be released from each unit. The system starts with the lowest numbered unit with available funds, working its way up in numerical order.

If the Release Type selected is 'Final Release', the interface will display and release funds from units with a File Status of 'Ready for Final Release'. This File Status is found on the Basic Information screen in each file.

To find units with available funds to use for the Adjustment Out or Refund Other Unit releases in files, run the Project Deposit Report on the Reports screen.



Generating a Proposed Project Release Report

After entering the information for the new release, you have the option to generate a report.

Click Generate Proposed Release Report at the top of the screen to automatically download the Proposed Project Release Report to the Local Folder Location specified in your Firm Settings for saving documents.

Find the file on your computer to open and view the spreadsheet report in Microsoft Excel.

Completing Creation of the Release

To complete the new release, click Create at the top of the New Project Release # screen.

The newly created release (Draw or Final, as applicable) will appear on the Project Release screen.

At the bottom of the screen, you will see updated totals and balances that take into account the released amount, including the new calculation(s) of Total Available funds.



Updating a Release

Editing a project release is available until a subsequent release is created. Creating a new release will lock all previous releases.

To edit your current release, find it in the Release Summary and click the edit icon. The edit icon is shown in the above image.

In the Update Project Release screen, specify the New Amount $ to be released and any changes to funding Source, Order and Holdback amounts, as applicable.

You must enter a New Amount $ above zero to update the release. To update the Source and related information only, enter the current release amount in the New Amount $ to keep the amount the same.



When the changes have been made, click Update.

To run an updated Schedule for ECDI Report, click the paper icon beside the updated release.

Releasing Funds from a Unit

While project releases are added using the Project Release screen, you can also create unit-specific releases within files, for various purposes. Unit-specific releases are managed in the Releases interface at the bottom of the Deposit & Release screen in individual files. 

The Releases interface displays calculations of Total Deposits and Clear Deposits, as well as Total Available funds, so you will know what amounts are available to release. Project releases that have taken funds from the unit are also displayed here.



To create a new release for the unit, use the first available row and specify Release Type, Unit Reference (if applicable), Date of release, and dollar amounts being released for each source with available funds.

For additional rows, click +Release.

Release Types in Units

The Release Type is set to 'Other', but is able to be changed depending on why you are creating the unit release. The following additional release types are available.
  1. Refund
  2. Refund Other Unit
  3. Adjustment In
  4. Adjustment Out

Refund or Refund Other Unit?

Refunds of deposits should be entered as releases in one or more unit files. Which Release Type you should select for a refund, and how many releases are required, depends on where you need to take the funds from to cover the full amount.

Select ‘Refund’ where the unit requiring a payout has sufficient funds to cover it. Where that unit does not have available funds (due to prior releases), get approval to pay the refund from other unit(s) as required, create the release(s) in those units, and select ‘Refund Other Unit’ for those release(s).

For details about when and how to create different types of refund release, see Releasing Funds from a Unit - Refunds.

Adjustment In and Adjustment Out

Select these release types when moving funds around to cover a shortfall caused by a NSF deposit. 

Whenever you create an ‘Adjustment In’ release in one unit, you need to offset it by also creating an ‘Adjustment Out’ release in another unit (or in multiple units). The sum of all amount(s) adjusted out must add up to the amount(s) adjusted in to ensure fund calculations are balanced at the project level and that your Project Release screen is not displaying funds that do not actually exist. 

If one or more units has a shortfall, the Project Release and New Project Release screens will show a message advising which unit(s) are overdrawn and instructing you to review your unit(s) and adjust as necessary.

For information on how to determine if adjustments are needed, how to create Adjustment In and Adjustment Out releases, and what reports are available, see Releasing Funds from a Unit - Adjustments.

Other

Select ‘Other’ for any release at the unit/file level that does not fit into one of the other categories in the Release Type menu.

RealtiBuilderSales® does not have a standard report for ‘Other’ release types. If you input this type of release, go to the Reports screen to create your own release report and ECDI schedule, as needed.

Releasing Funds from a Unit - Refunds

When a deal falls through and will be terminated, deposits need to be refunded to the buyer as releases from units. These releases are done in the Releases section of the appropriate file's Deposit & Release screen. Which Release Type should be selected for a refund and which unit file you use to input the release depends on where the funds will come from.

Refund





Select ‘Refund’ when the unit requiring a refund has sufficient available funds for the release.

If the unit has enough funds to release part, but not all, of the refund amount, do the refund release just for the available amount. Obtain approval from the insurer to take the remaining portion of the refund from another unit.
Refund Other Unit









Select ‘Refund Other Unit’ when the unit requiring the refund does not have sufficient funds (due to the funds already being released) and you have approval from the insurer to release the refund from another unit.

Create this type of release in one or more files for the unit(s) with available funds, and specify the unit number receiving the refund in the Unit Reference column.

Ensure that the release does not put the unit’s Deposits Balance below 0.00 (negative amounts will appear in red).

Example of how the Refund will appear.

Refund Reporting

RealtiBuilderSales does not have a standard report for refund release types. Create your own release report and ECDI schedule as needed on the Reports screen.

Refunds Displayed on the Project Release Screen

You can see the total value of refunds released for all units on the Project Release screen, and these refund values are factored into the Total Available funds for the project.








Releasing Funds from a Unit - Adjustments

When a deposit previously marked 'Clear' is returned NSF, funds may need to be moved around (or adjusted) to cover a fund shortfall if that deposit was already used for an earlier release.

How to Determine if Adjustments are Needed

To determine if an adjustment is required, do the following:
  1. In the file for the unit, update the Status of the deposit to 'NSF'; and
  2. Review the Total Available funds of the file's Deposit & Release screen to see if any amounts are displayed as negative (a fund shortfall).



If the Total Available balances appear positive, no further steps are required.

If there is a shortfall, fund adjustments in and out will be needed to bring balances back into the black.

In the above example, a deposit of $40,000 for unit 101 went NSF. The deposit Status was updated, and the Total Available at the bottom of the screen then displayed a negative balance. The shortfall occurred because a previous project release took $80,000 of ECDI funds from this unit, when it turned out that only $40,000 ECDI funds was available, due to the NSF. Therefore, adjustment releases are needed to bring the negative balance to $0.00.

Create the necessary Adjustment In and Adjustment Out releases by following the steps below.

Step 1: Adjustment In

In the file for the unit that has a shortfall:
  1. Navigate to the Releases section on the Deposit & Release screen.
  2. In the first available row, change the Release Type to 'Adjustment In'. Optionally, under Unit Reference, Select the unit number from which you will be moving funds to cover the shortfall.
  3. Enter the Date of the adjustment release.
  4. Enter the amount of the unit's shortfall (e.g. $40,000) in the appropriate source column, either Tarion, ECDI or Upgrades (the one with a negative balance).
  5. Review the Releases to confirm:
    1. the system has updated your dollar amount to a negative amount;
    2. the Total Available for the applicable source column(s) is $0.00; and
    3. there are no other negative amounts displayed.
Run the Project Deposit Report in the Reports to find one or more units with available funds for the appropriate source(s).


After adjusting funds into a unit, you must adjust the unit(s) from which the funds were moved in order to balance your funds. To do this, complete Step 2: Adjustment Out below.

Step 2: Adjustment Out

Always complete your Adjustment In release in the unit with a fund shortfall before adjusting funds out of another unit.
To find unit(s) that have sufficient available funds to release, either:
  1. run a Project Deposit Report on the Reports screen; or
  2. manually review the available funds in each file's Deposit & Release screen by scrolling unit-to-unit using the left/right arrows at the top of the file screen.
Adjustments out to cover a shortfall can come from one or multiple units.

In the file(s) for the unit(s) from which the money is being taken to cover the shortfall:
  1. Navigate to the Releases section on the Deposit & Release screen.
  2. In the first available row, change the Release Type to 'Adjustment Out'.
  3. Under Unit Reference, Select the unit number from which the funds are being moved to cover the shortfall.
  4. Enter the Date of the adjustment release.
  5. Enter the amount of the shortfall that is being covered by this particular unit in the appropriate source column, either Tarion, ECDI or Upgrades (the one used previously for the "Adjustment In" steps).
  6. Review the Total Available to confirm there are no negative amounts displayed on the screen.
If the Adjustment Out results in any negative balance, reduce the amount(s) entered to ensure all Total Available balances displayed are greater or equal to $0.00. Then use another unit to adjust out the remaining amount required to cover the initial shortfall.



The funds adjusted out must equal the same amount that was adjusted in, whether you are adjusting out of one or multiple units.

Step 3: Adjustment Reporting

After completing the above Adjustment In and Adjustment Out steps, navigate to Project > Reports to run the appropriate release reports.There are two reports specifically for adjustments:
  1. Project Release Report (Adjustments only)
  2. Schedule for ECDI Report (Adjustments only)

Step 4: Adjustments Balance Displayed on the Project Release Screen

You can see if the adjustments that have been made in various files are balancing by reviewing the Adjustments Balance section of the Project Release screen.

The Adjustments Balance displayed should always be $0.00. If it is not, the Adjustments In and Adjustments Out amounts do not balance and further adjustment releases are required.


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