Direction to Pay

A Direction to Pay document may be used in mortgage transactions by the mortgagor to direct the mortgage to pay an advance on or at settlement.

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Last updated October 24, 2025

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Suitable for Australia

Direction to Pay

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What is a direction to pay?

A direction to pay is a document used in property or mortgage transactions to instruct one party to pay funds directly to another party, usually at settlement.
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When should you use a direction to pay?

You should use a direction to pay when you want to ensure funds are paid directly to the correct party during a property sale or mortgage settlement.
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What should be in a direction to pay?

A direction to pay should include payment details, contact information for queries, authorised signatures, and clear instructions on how and when the funds are to be paid.
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Frequently asked questions

Who typically prepares and signs this document?

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What are the main benefits of using this document?

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Does this document reduce the risk of payment disputes?

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Are there any limitations or risks to be aware of?

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Is this document valid across all Australian states and territories?

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View Sample Direction to Pay

Direction to Pay
risk level indicator at Low level

The Legal Risk Score of a Direction to Pay Template is Low

Our legal team have marked this document as low risk considering:

  • The document outlines payment directives in a list format, which could lead to misunderstandings if the details are not specified clearly and comprehensively.
  • The document mentions contacting the issuer immediately if there are questions, but does not provide specific contact details, which could delay resolution of issues or queries.
  • The document includes a space for a signature without specifying the authority or identity of the signatory, which might lead to questions about the authenticity and enforceability of the document.

Meet Our Users

Articles about Direction to Pay

5 Ways to Get Paid: Interview with a Lawyer (2025 Update)
By Dominic Woolrych|Jan 7, 2025

5 Ways to Get Paid: Interview with a Lawyer (2025 Update)

Cashflow is the lifeblood of small businesses. Here we chat to lawyer Damin Murdock about how you can make sure you get paid.

How to Enforce a Payment in NSW (2025 Update)
By Anthony Fong|Jan 7, 2025

How to Enforce a Payment in NSW (2025 Update)

Have customers who haven't paid an invoice? Find out in this article how you can enforce a payment in New South Wales (NSW).

Which Payment Methods Should My Business Accept?
By Chloe Yoo|Oct 16, 2020

Which Payment Methods Should My Business Accept?

Find out which payment methods your business should accept and why having multiple ways to pay is important.

Should Your Business Offer 'Buy Now, Pay Later'?
By Jackie Olling|Nov 28, 2025

Should Your Business Offer 'Buy Now, Pay Later'?

What businesses should consider if they want to introduce a 'Buy now, pay later' payment method

Can A Business Refuse Cash In Australia?: Is It Legal?
By Ilyas Omari|May 14, 2025

Can A Business Refuse Cash In Australia?: Is It Legal?

Due to the rapid decline in cash use, you might wonder, can a business refuse cash in Australia? This article explains whether it is legal.

How to Enforce a Payment in WA
By Anthony Fong|Oct 12, 2015

How to Enforce a Payment in WA

In this series of posts we look at the concept of ‘enforcing a payment’ within each respective State and Territory. Read now.

How to Write a Letter of Demand in Australia (+Template)
By Paul Taylor|Aug 5, 2019

How to Write a Letter of Demand in Australia (+Template)

The thought of legal action due to debt can be daunting. Start with a letter of demand to recuperate unpaid debt — template inside!

Changes to the way we pay
By Mikail Mermi|Feb 27, 2018

Changes to the way we pay

What are the new PayID changes? How will they affect your business? What are the risks associated? How can you minimise these risks?

How to Enforce a Payment in ACT
By Anthony Fong|Oct 12, 2015

How to Enforce a Payment in ACT

In this series of posts we look at the concept of ‘enforcing a payment’ within each respective State and Territory. Read here to find out about the ACT.

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