How to Prepare for Settlement
Settlement day. It’s the day everyone looks forward to.
As you could well imagine, there’s a lot to organise prior to this day arriving and yes, it can be confusing for some.
Well there’s no need to panic. We’ve put some information together that will help you easily manage the big day. Most of them will relate to buyers, but there are a couple of tips for the sellers too.
Let’s get into it.
The Most Important Thing That Will Help You Settle On-time:
Start getting things underway early
Let me start by giving you the number one tip straight off the bat. That tip is:
Start getting things underway early.
Whether that’s packing, or signing documents, organising money to be transferred or booking a removalist. This tip alone will reduce most of your stress.
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How close to settlement should you inspect the property?
If you’re the buyer of the property, we recommend doing a final inspection of the property before settlement.
When should you do it?
We suggest you inspect the property on the day of settlement. This may require you to take some time off work.
However, If you are not able to inspect the property on the day of settlement, then do the inspection as close to that day as possible. We do not recommend inspecting the property any earlier than 3 days before the settlement date.
Who do I organise the inspection with?
The final inspection is organised via the real estate agent.
We suggest you call the agent at least a week before the estimated date of settlement.
Organise a time to complete the final inspection with them.
The agent or their assistant will attend the inspection with you.
Don’t inspect too early – you only have the right to inspect the property once prior to settlement.
What happens if there are any issues?
Hopefully, this doesn’t happen but if it does, contact us immediately.
Failure to inform us that there is a problem may result in settlement occurring without the issue being rectified, means you are stuck with that issue. There is nothing we can do. So if there is something you’re not happy with, call us immediately.
This is why the final inspection and a phone call to us is so important.
And just a special note, do not rely on the agent to tell us. They are not obligated to highlight any issues you mention to them.
What is considered “Good Condition”?
This is actually the tricky question to answer.
As a vendor, it is expected that you have the property looking like it was when the buyer first inspected it.
As the buyer, make sure everything is working as it was at the time of exchange.
- Are there any holes in the wall?
- Are all the inclusions there?
- Are you happy to take ownership in its current condition?
These are the things you need to consider.
What if you don’t think it’s clean enough?
To be open and honest with you on the topic of clean: there is nothing in the contract that says the property must be professionally cleaned. Everyone has a different opinion of clean. Your clean is probably different to my clean.
As mentioned before, the property only has to be in a condition that was presented at exchange. If you are the vendor, it is actually to your advantage to have the property professionally cleaned as it gives you proof that the property was cleaned. You don’t have to but it is something to consider.
We have received calls from buyers saying “The draws and cupboards are still dusty”. Unfortunately, we cannot hold up settlement because of dirty cupboards or windows. If you are unsure though, give us a call and we can tell you what you can and can’t do.
Once you have completed the final inspection, let us know via email or a phone call to let us know you are happy to proceed to settlement. If we do not hear from you, we’ll assume everything is “ok” and you’re just busy packing.
The final tip is for the Seller (vendor)
If you’re the vendor, make sure you’re ready to move out! Settlement day means you must be out of the property PRIOR to the settlement time. Do not leave moving to the last minute. We suggest, if it’s possible, to be out at least 3 hours before settlement.
Hopefully that answers any questions you may have had regarding settlement.
Of course, if you would like to know anything else, please feel free to connect with us on Facebook, give us a call or send us an email.
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