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 a specified party at settlement.
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When should you use a direction to pay?

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

A direction to pay should include clear payment details, contact information for queries, and the signature of an authorised representative.
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Frequently asked questions

What is a direction to pay?

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When should you use a direction to pay?

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What should be in a direction to pay?

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What are the main benefits of using this document?

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Who can issue or receive a direction to pay?

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What risks or limitations should I be aware of?

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What steps should I take before using this document?

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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.

Articles about Direction to Pay

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What Are Payment Summaries?
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What Are Payment Summaries?

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By Ilyas Omari|May 14, 2025

Is it Legal to Pay Employees in Cash? Here's What You Can Do

It may not be as common anymore, but many businesses still pay their employees in cash. Read about how to do it the legal way in this guide.

Paying Yourself as a Business Owner: Guide
By Timothy Quinn|Dec 5, 2025

Paying Yourself as a Business Owner: Guide

Learn how to pay yourself while running an Australian company. Check out our guide.

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

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

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What Are Director Fees?

Learn all about director fees and how to manage the tax obligations that arise from these payments.

Your Guide to Single Touch Payroll (STP)
By Anjaly Tessa Saji|Jul 15, 2019

Your Guide to Single Touch Payroll (STP)

Single Touch Payroll (STP) is a new way of reporting tax & superannuation information to the ATO. This comprehensive guide provides a brief overview of STP.

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?

What Should My Group Certificate Include?
By Samuel Guzman|Jun 29, 2020

What Should My Group Certificate Include?

Employers may still be required to issue group certificates to employees. Find out what to include in your group certificate here.

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