Table Of Contents
Moving On Settlement Day
Moving on settlement day is possible because the settlement process can be subject to unexpected delays. However, it is recommended to move after settlement. Property settlement is the formal process of transferring property ownership. The property buyer pays the purchase price balance on the settlement date, and the land transfer is then completed. After this, you can get the keys and move in.
Settlement day is stressful, as is moving day, so why do both on the same day? If you purchase a home, moving the day after settlement or later after the dust has settled is best. You can request early or partial access to the property (e.g., the garage) to begin moving things forward. If you are selling a home, you could clean and prepare everything for the final inspection ahead of time.
Deciding The Duration Before Settlement
Before selling or buying a home, you should know how long you want to settle. It can be entirely up to you or negotiated between you and the seller before signing the contract. It all comes down to you and the seller meeting halfway and feeling at ease.
If you're still looking for a place as a seller, you could choose a longer settlement process. On the other hand, a buyer may want to act quickly to get in before crucial holiday periods such as Christmas, especially if they are a family. Except for New South Wales, where six weeks is the preferred time, two months is the most common duration in all states.
The Formalities Leading Up To Settlement Day
Going through paperwork
When the property settlement period begins, the conveyancer will prepare some paperwork to read and sign. Some of these include 'Identification of encumbrances,' 'Transfer of land,' 'Stamp duty' – the list goes on and on.
To get rid of one's mortgage, use any checklist to help fill out a mortgage discharge authority form. This also allows the seller's representatives to attend the settlement and transfer ownership to the purchaser's solicitor. The total process can take up to 15 days to finalise and arrange with all parties. If the settlement is delayed, you may be required to pay additional fees.
Duties of a conveyancer include:
- Read the contract to ensure that it is accurate and reasonable.
- Prepare the checks and make arrangements for the lender's representative to be present on settlement day.
- Ensure that any existing balances on the property are paid off.
- Check that the measurements or boundaries match the 'Certificate of Title.'
Planning the final inspection
During the settlement period, the buyer will most likely go over the house one last time. This is usually done a week before settlement day and is arranged by the seller's agent.
It is crucial for sellers to always ensure that everything is spotless for the new owners. You can go the extra mile by leaving appliance manuals, listing paint colours for the walls and trimmings, and passing on any other tips to help keep the house as beautiful as you left it.
Finally, you must return the investment property in the same condition in which it was sold. Ensure that your home insurance is valid until settlement day. It wouldn't be fair if major home repairs become necessary shortly after the buyer has moved into the house.
Sorting out finances and formalities
Want to feel confident about finances and formalities? Follow these essential guidelines.
- Consider any additional costs: Other payments unrelated to the sale price must be made on the day, such as final conveyancing fees and council rates.
- Establish a document-signing lock-in: Do you have a stack of forms to complete? Grab some takeout, put on some relaxing music, and dedicate one night to finishing them.
- Pay attention to necessary administration: Redirect your mail, switch utilities, and change your address.
Things To Do Before Settlement Day
Here is a simple checklist of things to do before Settlement Day:
Check the deposit
Check that the deposit has been fully paid. Usually, the deposit is held in the lawyer's trust account, but it should be paid to the seller on time.
Secure your home loan
You've approved your financing, but how will your loan be structured? Speak with your bank manager or mortgage broker to find the best interest rate (or combination of rates) for you.
Structure the ownership
If more than one individual or body is purchasing the home, consult with your lawyer about how to structure the ownership.
Get house insurance
You should obtain house insurance for your new home beginning with the date of possession and provide proof of coverage to your lawyer.
Meet with your lawyer
Meet your lawyer to sign the title transfer, mortgage documents (if borrowing money), and any other paperwork. This is usually done a few days before the settlement to ensure everything is in order on the big day.
Conduct a pre-possession inspection
A few days before settlement, inspect the house or investment property to ensure that no damage has occurred and that the property and all chattels are in the same condition as when you signed the contract. If the inspection reveals any visible or hidden damage or missing chattels, contact your lawyer immediately – you may be required to have some money on settlement day.
Discuss access
Before settlement day arrives, discuss access, keys, and alarm codes with the seller. A little thought and planning can make things easier to handle. Consult your lawyer about the timing of your new property settlement and your own (if you've recently sold).
The settlement on your new home will most likely be determined by the time of day the funds from the sale of your current home arrive. If it is late in the day, your new home purchase will also be late.
With a bit of communication between the lawyers, they can often arrange a time that works for both parties. Unless something unexpected happens on the day, the transaction should go smoothly.
Arrange the movers
Hire movers or arrange for friends and family to be available on that day. Hopefully, your lawyers are well-organised and will have everything sorted out as soon as possible. You don't want to pay movers to sit outside your new home, unable to unload because of a delay in gaining access.
Things To Take Care Of On Settlement Day
There are a lot of things that happen on settlement day. Often, it is simply a meeting between each party's conveyancer and representatives from the lenders (usually a bank). Other things that are taken care of on settlement day include:
- The buyer's mortgage is activated, and the lender pays the seller the remaining house price balance.
- The buyer's conveyancer receives the property title and officially registers them as the new owner.
- Cheques are exchanged, and the deposit is available to the seller from their agent.
- Any unfinished paperwork and payments (such as stamp duty and council rates) are signed and filed.
- Loose ends are tucked away, keys are handed over, and everyone breathes a sigh of relief.
What To Do If Things Go Wrong?
With enough planning, you can be confident that the settlement will be finalised without a hitch. But that doesn't rule out the possibility of something going wrong.
Check with your conveyancer about the following scenarios and what to do if:
- The seller's mortgage is not paid off on time.
- The buyer's lender does not approve their mortgage loan on time.
- After the final inspection, the buyer refuses to settle.
The most important thing is to maintain a positive attitude. A good conveyancer will do everything possible to ensure that the settlement goes smoothly and quickly.
Suggestions For Moving On Settlement Day
If you absolutely have to move in on settlement day, you can take steps to ensure everything goes well. When it comes to the moving itself, it is recommended that you:
Declutter
Before moving day, declutter as much as possible. Any furniture, appliances, or household goods you do not want to be moved should be sold, given away, or disposed of. The less there is to move, the faster it will be.
Pack early
Pack early and thoroughly. It is much easier for you to move out if everything is placed in boxes and ready to go.
Plan ahead of time
Plan ahead of time and be aware of parking and other important information. Notify your conveyancer of any parking or loading zone entrances. Please provide them with swipe cards or keys, and reserve any lifts and loading zones. If any bookings must be made, discuss the timing carefully so you can be provided with a realistic timeframe based on your settlement.
Listen to professionals
Allow your removalists to plan their move around the settlement time. In this regard, it is best to listen to the professionals. Even if you want to save money on removals, it will delay property settlement if you do not vacate your old property on time. You may also end up paying other costs that are likely to be greater than one more hour of removals.
Make a packing list
Label all of your boxes clearly and precisely. Make a packing list to ensure you remember where you put everything.
Cooperate with removalists
A room plan can assist removalists in knowing where things are going. Use coloured stickers that match the stickers on the room plan to label large items so the movers know what is going where.
Manage your luggage
Pack a suitcase with clothes and necessities if you can't move on settlement day. Even if you move on settlement day, having all of your toiletries, clothes, and devices in one bag for easy access is a good idea.
Dual Settlement
For the brave, 'dual settlement' occurs when you sell, buy, and settle on the same day. It may look like a nightmare, but it definitely can be done. And with enough preparation, it is avoidable.
When you have a dual settlement, you must deal with the paperwork and stress twice. The most considerable risk in a double settlement is the problem with the transfer of funds.
The seller might not be ready to move out, or any other delays that could mean you've moved out of the property you're selling but have nowhere to go can have drastic effects.
There is usually little you can do to avoid this situation. Even if you are in contact with the conveyancer and seller, a problem with the bank or a last-minute error may arise.
Bidding Farewell To Your Old Home
There are a lot of memories and love between the walls of your old home, so celebrate them before you move out. Reliving the best moments in the places where they occurred is a great way to feel at ease with moving on. Once you're ready to move, professional movers can help make the process less stressful and more seamless, so you have one less thing to worry about on move day.
