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Moving in and occupying a house happens naturally after you buy a home. It is understandable for some people to think you can move into a new house immediately after the closing date. However, this does not always happen. There may be some uncertainties that you should have clarified. Read on to get an answer to how long after buying a house you can move in.
This guide will discuss how long it takes to move into a house after the closing date, what happens during the pre-settlement period, and what to do after closing day. You can also learn how removalist companies can help with house buying and moving.
How Long to Move into a House After Closing Date?
You should be clear on two important dates after making a home purchase offer: the closing and occupancy dates. Your trusted real estate agent will likely ask you what day you want to move into the house (occupancy date). The amount of time before moving in can depend on various factors.
These factors include inspections, appraisals, business finance, and loan approvals. However, homeowners generally expect you to move in anytime, around three days to 4 weeks after the closing process. You can refer to the contract and settlement terms you and the seller agreed upon earlier. The terms can determine how soon you can move in after closing.
What does closing mean?
The closing process is a procedure for legally transferring ownership of the house to the new owner. All parties must complete paperwork, coordinate payment, review documents, sign final mortgage loan agreements, and transfer funds or titles as needed. The closing process can take up to 30 days, depending on the circumstances.
What Happens During the Pre-settlement Period?
Several activities can take place during the pre-settlement period. This includes fully paying the seller's deposit– sometimes up to 10% of the selling price. Note that after paying the deposit and exchanging a contract of sale, both parties may have a cooling-off period of five days. You are entitled to receive your deposit back if you withdraw from the sale at this time. , you would also have to perform the following activities.
House insurance
Some bonus tips for preparing for settlement day and the moving process is to have a home and contents insurance policy in place. The commencement of the cover should be on or before the closing date.
This insurance helps to reduce the chances of something going wrong. You would want to avoid being saddled with the costs of sudden house repairs immediately after moving in.
Preparing paperwork
The property settlement period is also when your solicitor or conveyancer will prepare the needed paperwork. This paperwork includes the 'Stamp duty,' 'land transfer duty,' 'Transfer of land,' and 'Identification of encumbrances'
Final inspection
Before the closing date and during the settlement period, do a pre-settlement inspection to confirm that everything is in good order. You and your trusted real estate agent can decide to leave this final inspection of the property till on the day of settlement.
- Completing this final inspection step is advisable before you finally take ownership of the house.
- Be sure to confirm that appliances, fittings, and fixtures are in working order and that no significant damage has occurred since you signed the contract.
- The house should be reasonably clean.
- Your legal agent or solicitor can advise you on what to expect and what to do if there are issues.
Settlement adjustment and stamp duty statements
You must complete some legal and administrative tasks shortly before the closing date arrives. Your solicitor or conveyancer will prepare a settlement adjustment statement. These are adjustments to compensate the seller for property bills they must pay until you legally take ownership of the property on the closing date.
This compensation is done through an adjustment to the purchase price. Review the pre-settlement adjustment statement before giving your legal agent the leave to continue with the final settlement.
A settlement adjustment statement usually includes the following:
- Pre-settlement adjustments like stamp duty, stamp duty concessions, and any applicable first homeowner's grant
- Compensation to the seller for specific fees such as water, body corporate fees, and council rates
Why is the Closing Date Important?
The closing date or settlement day is essential to your settlement process. The property settlement day is a day of transferring property ownership. You can finalise the property settlement as you pay the purchase price balance.
With the property ownership intact and the land transfer completed, you can collect the keys and move into your new house. The closing date is important because you will subsequently become the house owner regardless of whether you move in immediately or not.
What happens on settlement day?
The closing date is when your solicitor finalises the closing with the seller's solicitor. Your solicitor hands over the cheque and receives the signed transfer documents. Of course, payments such as transfer fees would have already been concluded, and all documents for a clear title would have been handed over.
The implication is that all third-party rights, such as previous property mortgages, are now removed. Other activities on this closing date include handing over the final payment and signing the transfer documents.
The usual practice is to receive the keys and move into your new house immediately after closing. But sometimes, the seller may request more time after the sale for some reason.
For example, they may want to finalise the purchase of the home they want to move into. Remember that you will need your solicitor to register the successful transfer of ownership with the relevant government agency after the seller transfers ownership.
Right of rescission of mortgage agreement
Certain types of mortgages give you room to change your mind even after signing the mortgage closing documents. This can apply to non-purchase money mortgages. With this right, you have up to three business days to cancel the non-purchase money mortgage agreement. Note that the business days do not include Sundays or legal public holidays.
Tips for a Smooth Close and Move-In
- It would help to have a ready-to-compromise mindset as you determine your occupancy date.
- The general rule is to allow a seven to ten-day period for the seller to vacate the house after the closing date.
- On their part, sellers who want more time may secure a temporary residence as a compromise.
- Do note that you may be unable to change your occupancy date once it is set.
- Be sure to confirm that there is an agreed-upon moving date before you sign the contract.
- Correctly understanding the settlement agreement before signing it is essential.
- Both parties signing the purchase agreement make the moving date final.
Consequences of Missing the Closing Date
One consequence of failing to settle on the settlement date is that you may have to pay interest on the amount owed for the property. However, the seller can decide to waive the interest payments.
What to Do After Closing Day
You may have to carry out several tasks immediately after closing – and before you move into the new house. Completing these tasks will make your home purchase more satisfying.
Change the locks and update keypads and codes for security reasons. This can help protect the house from unauthorised intrusion and theft. Be sure to keep copies of essential documents safe. This includes the closing statement and all paperwork relating to the home purchase.
How Long to Sell Property?
The time it takes to sell your home can depend on where you live, market demand for your property, and your asking price. However, the process of selling your home can take from four weeks to around ten weeks. You may use the first two weeks to stage the property for sale and get bank valuations.
How Removalist Companies Can Help You
Your removalist can work with you to coordinate your moving date harmoniously with your property settlement date. This is applicable whether you want to buy or sell a property. After all, you must clean your home and perform other tasks before you move in or out.
Linking Up with reliable mortgage brokers
A reputable moving company can link you with reliable, experienced mortgage brokers. These brokers can also provide a guide on foreign exchange and Internet banking if you are moving internationally.
Refinancing and home loan options
Mortgage brokers can give you helpful advice for buying property or refinancing your home loan amidst changing property prices. You can also get tips to help you refinance your mortgage.
Apart from tips on refinancing home loans, reliable estate agents and mortgage brokers can provide services with low-interest rates on home loans if you are concerned about rate hikes or variable rate home loan changes.
Property investment consultations
Mortgage brokers can help you set up investment property settlements in a way that enables you to meet your home purchase objectives, home loan repayments, and financial situation requirements.
This is especially useful if you perform a dual property settlement involving selling your current home and purchasing a new one. They can also provide a consultation service if you want to buy and sell property and know more about its associated costs.
Mortgage brokers have good experience with property market trends and how to schedule monthly repayments. So you can speak to them if you are still making mortgage repayments, as this can be a blocker for renting out owner-occupied property.
You can consult mortgage brokers to learn how to take advantage of the government's Home Guarantee Scheme if you can get a place there. With this scheme, you can enter the property market with a smaller upfront investment without paying Lenders Mortgage Insurance (LMI).
Property costs research
Mortgage brokers can help you navigate the hidden costs of selling your property or buying one. This is because they are equipped with property research tools and cost calculators that include the following:
- Property selling cost calculators
- Mortgage repayment calculators
- Borrowing power calculators
- Stamp duty calculators
Get Professional Help When Buying and Moving
Now that you have read up on this ultimate guide on how long after buying a house you can move in, you may be feeling more clued up on things. Moving in is usually stressful and intense; you wouldn't want to make a mistake.
This is why getting all the professional help you need is critical. A professional moving company is a great place to start. Contacting them well before your prospective settlement and move date will make everything easier.
